-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Hfj9CYbChU8qSY3oV9Km5H9mv6lzy8mKC3e7AtMVL+XPUDYbNkTWMo6uAq9g8STF
 YOA81fmmyKmXAr78It3VsA==

<SEC-DOCUMENT>0001125282-06-004558.txt : 20060802
<SEC-HEADER>0001125282-06-004558.hdr.sgml : 20060802
<ACCEPTANCE-DATETIME>20060802121130
ACCESSION NUMBER:		0001125282-06-004558
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060728
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060802
DATE AS OF CHANGE:		20060802

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ARTESIAN RESOURCES CORP
		CENTRAL INDEX KEY:			0000863110
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				510002090
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18516
		FILM NUMBER:		06996924

	BUSINESS ADDRESS:	
		STREET 1:		664 CHURCHMANS RD
		CITY:			NEWARK
		STATE:			DE
		ZIP:			19702
		BUSINESS PHONE:		3024536900

	MAIL ADDRESS:	
		STREET 1:		664 CHURCHMANS RD
		CITY:			NEWARK
		STATE:			DE
		ZIP:			19702
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>b414319_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<html>
<head><title>
Prepared and filed by St Ives Financial
</title>
</head>
<body bgcolor="#FFFFFF">
<page>
<p align="center"><font size="2" face="serif"><b>UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C. 20549</b></font></p>
<p align="center"><font size="2" face="serif"><b>FORM 8-K</b></font></p>
<p align="center"><font size="2" face="serif"><b>CURRENT REPORT</b></font></p>
<p align="center"><font size="2" face="serif"><b>Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934<br></b></font></p>
<p align="center"><font size="2" face="serif">Date of Report (Date of earliest event reported):  July 28, 2006</font></p>  <table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td align="center"><font size="2" face="serif"><b>ARTESIAN RESOURCES CORPORATION</b></font></td>
</tr>
<tr valign="top">
<td><hr align="center" size="1" noshade></td></tr>
<tr valign="top">
<td align="center"><font size="2" face="serif">(Exact name of registrant as specified in its charter)</font></td>
</tr>
</table>
<br><br>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="top" bgcolor="#ffffff">
<td width="30%" align="center"><font size="2" face="serif">Delaware</font></td>
<td align="left" width="2%">&nbsp;</td>
<td width="30%" align="center"><font size="2" face="serif">000-18516</font></td>
<td width="2%" align="left">&nbsp;</td>
<td width="30%" align="center"><font size="2" face="serif">51-0002090</font></td>
</tr>
<tr valign="top">
<td width="30%" align="left"><hr align="center" size="1" noshade></td>
<td align="left">&nbsp;</td>
<td width="30%" align="left"><hr align="center" size="1" noshade></td>
<td align="left">&nbsp;</td>
<td width="30%" align="left"><hr align="center" size="1" noshade></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td width="30%" align="center"><font size="2" face="serif">(State or other jurisdiction of <br>
  incorporation)</font></td>
<td align="left">&nbsp;</td>
<td width="30%" align="center"><font size="2" face="serif">(Commission<br>File Number)</font></td>
<td align="left">&nbsp;</td>
<td width="30%" align="center"><font size="2" face="serif">(IRS Employer Identification No.)</font></td>
</tr>
</table>
<br><br>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">664 Churchmans Road, Newark, Delaware</font></td>
<td align="left" width="2%">&nbsp;</td>
<td width="1%" align="right">&nbsp;</td>
<td width="36%" align="center"><font size="2" face="serif">19702</font></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top">
<td align="left"><hr align="center" size="1" noshade></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="left"><hr align="center" size="1" noshade></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">(Address of principal executive offices)</font></td>
<td align="left">&nbsp;</td>
<td align="right">&nbsp;</td>
<td align="center"><font size="2" face="serif">(Zip Code)</font></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<p align="left"><font size="2" face="serif">Registrant's telephone number, including area code:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;302-453-6900&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
<p align="center"><font size="2" face="serif">Not Applicable</font><br>
<font size="2" face="serif">&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;&#150;</font><br>
<font size="2" face="serif"> (Former name or former address, if changed since last report.)</font></p>
<p align="left"><font size="2" face="serif">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>
<p align="left"><font size="2" face="serif">[&nbsp;&nbsp;&nbsp;] &nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act </font></p>
<p align="left"><font size="2" face="serif">[&nbsp;&nbsp;&nbsp;] &nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act </font></p>
<p align="left"><font size="2" face="serif">[&nbsp;&nbsp;&nbsp;] &nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act</font></p>
<p align="left"><font size="2" face="serif">[&nbsp;&nbsp;&nbsp;] &nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p><a name="p?"></a>
</p>
<pre>&nbsp;</pre>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td align="left" width="10%"><font size="2" face="serif"><b>Item 1.01</b></font></td>
<td align="left"><font size="2" face="serif"><b>Entry into a Material Definitive Agreement.</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">Artesian Resources Corporation (the &#8220;Company&#8221;) entered into an indemnification agreement with KPMG LLP (&#8220;KPMG&#8221;), the Company&#8217;s former independent registered public accounting firm, dated as of July 28, 2006 (the &#8220;Indemnification Agreement&#8221;), pursuant to which the Company agreed to indemnify and hold KPMG harmless against and from any and all legal costs and expenses incurred by KPMG in its successful defense of any legal action or proceeding that may arise as a result of its consent to include or incorporate by reference its audit report on the Company&#8217;s consolidated financial statements as of December 31, 2004 and for each of the years in the two-year period ended December 31, 2004 in the
Company&#8217;s Registration Statement on Form S-3 (Registration Statement No. 333-136184) filed with the Securities and Exchange Commission on July 31, 2006.  The Indemnification Agreement also provides that KPMG shall not be indemnified, and shall refund to the Company, any amounts paid to KPMG pursuant to the Indemnification Agreement in the event there is court adjudication that KPMG is guilty of professional malpractice, or in the event that KPMG becomes liable for any part of the plaintiff&#8217;s damages by virtue of settlement.  In addition, the Indemnification Agreement provides that, in the event that KPMG is requested pursuant to subpoena or other legal process to produce its documents relating to the Company in judicial or administrative proceedings to which KPMG is not a
party, the Company is required to reimburse KPMG at standard billing rates for its professional time and expenses, including reasonable attorney&#8217;s fees, incurred in responding to such requests.</font></p>
<p align="left"><font size="2" face="serif">The foregoing is a summary description of certain terms of the Indemnification Agreement and is incomplete. It is qualified in its entirety by the Indemnification Agreement, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference. </font></p>  <table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td align="left" width="10%"><font size="2" face="serif"><b>Item 9.01</b></font></td>
<td align="left"><font size="2" face="serif"><b>Financial Statements and Exhibits.</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">The following exhibit is furnished with this report:</font></p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="top" bgcolor="#FFFFFF">
<td align="center" valign="bottom"><font size="2" face="serif"><b>Exhibit<br>
  Number</b></font></td>
<td width="2%" align="left" valign="bottom">&nbsp;</td>
<td width="1%" align="right" valign="bottom">&nbsp;</td>
<td width="1%" align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td width="2%" align="left" valign="bottom">&nbsp;</td>
<td width="1%" align="right" valign="bottom">&nbsp;</td>
<td width="80%" align="left" valign="bottom"><font size="2" face="serif"><b><u><br>
</u>Exhibit Title</b></font></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top">
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td colspan="4" align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="center" valign="bottom"><font size="2" face="serif">99.1</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td align="left" valign="bottom"><font size="2" face="serif">Indemnification Agreement, dated as of July 28, 2006, between Artesian Resources Corporation and KPMG LLP</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p align="center"><font size="2" face="serif"><b>SIGNATURES<br></b></font></p>
<p align="left"><font size="2" face="serif">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>  <table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">ARTESIAN RESOURCES CORPORATION</font></td> </tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" width="29%"><font size="2" face="serif">Date:  August 2, 2006</font></td>
<td align="left" width="24%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">By:  <u>&nbsp;&nbsp;/S/ David B. Spacht&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td rowspan="2" align="left"><font size="2" face="serif">David B. Spacht</font><br><font size="2" face="serif">Chief Financial Officer </font></td>
</tr>
<tr valign="top">
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
</table>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>
<p align="center"><font size="2" face="serif"><b>INDEX TO EXHIBIT</b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
<tr valign="top" bgcolor="#FFFFFF">
<td align="center" valign="bottom"><font size="2" face="serif"><b>Exhibit<br>
  Number</b></font></td>
<td width="2%" align="left" valign="bottom">&nbsp;</td>
<td width="1%" align="right" valign="bottom">&nbsp;</td>
<td width="1%" align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td width="2%" align="left" valign="bottom">&nbsp;</td>
<td width="1%" align="right" valign="bottom">&nbsp;</td>
<td width="80%" align="left" valign="bottom"><font size="2" face="serif"><b><u><br>
</u>Exhibit Title</b></font></td>
<td width="2%" align="left">&nbsp;</td> </tr>
<tr valign="top">
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td colspan="4" align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="center" valign="bottom"><font size="2" face="serif">99.1</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td align="left" valign="bottom"><font size="2" face="serif">Indemnification Agreement, dated as of July 28, 2006, between Artesian Resources Corporation and KPMG LLP</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" valign="bottom">&nbsp;</td>
<td align="right" valign="bottom">&nbsp;</td>
<td align="left" valign="bottom"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<hr noshade align="center" width="100%" size="2">
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>b414319_ex99-1.htm
<DESCRIPTION>INDEMNIFICATION AGREEMENT
<TEXT>
<html>
<head><title>
Prepared and filed by St Ives Financial
</title>
</head>
<body bgcolor="#FFFFFF">
<page>
<p align="right"><font size="2" face="serif">EXHIBIT 99.1</font></p>
<p align="left"><font size="2" face="serif">[KPMG Letterhead]</font></p>
<p align="left"><font size="2" face="serif">July 26, 2006</font></p>
<p align="left"><font size="2" face="serif">Artesian Resources Corporation</font><br>
<font size="2" face="serif">664 Churchmans Road</font><br>
<font size="2" face="serif">Newark, DE 19702</font></p>
<p align="left"><font size="2" face="serif">Attention: Dian C. Taylor, Chair of the Board, CEO and President </font></p>
<p align="left"><font size="2" face="serif">Artesian Resources Corporation (the &#8220;Company&#8221;) has requested that we consent to the incorporation by reference of our report on the Company&#8217;s consolidated financial statements as of December 31, 2004 and for each of the years in the two-year period ended December 31, 2004 in the registration statement on Form S-3 dated July 28, 2006<b>.</b></font></p>
<p align="left"><font size="2" face="serif">By agreeing to the terms of this letter, you agree to indemnify KPMG LLP (&#8220;KPMG&#8221;) from certain risks inherent in incorporating by reference our audit report on the Company&#8217;s consolidated financial statements as of December 31, 2004 and for each of the years in the two-year period ended December 31, 2004 in the registration statement on Form S-3 July 28, 2006<b>.   </b>Specifically, you agree to indemnify and hold KPMG harmless against and from any and all legal costs and expenses (including reasonable fees and expenses of attorneys, experts and consultants) which we may incur in connection with our successful defense of any legal action or proceeding that may arise as a result of our consent to the incorporation by reference of
our report on the Company&#8217;s consolidated financial statements in the registration statement on Form S-3 dated July 28, 2006, whether brought under the federal securities laws or other statutes, state statute, or common law, or otherwise.  In the event KPMG incurs legal costs or expenses indemnified hereunder, you agree to reimburse KPMG for those costs as incurred on a monthly basis.  KPMG shall not be indemnified, and shall refund to you, any amounts paid to it pursuant to this indemnification in the event there is court adjudication that we are guilty of professional malpractice, or in the event that KPMG becomes liable for any part of the plaintiff&#8217;s damages by virtue of settlement.  In the event KPMG is requested pursuant to subpoena or other legal process to produce its
documents relating to the Company in judicial or administrative proceedings to which KPMG is not a party, the Company shall reimburse KPMG at standard billing rates for its professional time and expenses, including reasonable attorney&#8217;s fees, incurred in responding to such requests.</font></p>
<p align="left"><font size="2" face="serif">Please indicate your acceptance of these terms by signing and returning a copy of this letter to me.</font></p>
<p align="left"><font size="2" face="serif">Very truly yours,</font></p>
<p align="left"><font size="2" face="serif">KPMG LLP</font><br>
<font size="2" face="serif">/S/ Carl E. Hertrich</font><br>
<font size="2" face="serif"><i>Partner</i></font></p>
<p align="left"><font size="2" face="serif">ACCEPTED:</font><br>
<font size="2" face="serif">Artesian Resources Corporation</font><br>
<font size="2" face="serif">/S/ Dian C. Taylor</font><br>
<font size="2" face="serif"><i>Chair of the Board, CEO and President</i></font></p>
<p align="left"><font size="2" face="serif">July 28, 2006</font></p>
<hr noshade align="center" width="100%" size="2">
</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
