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<SEC-DOCUMENT>0001104659-07-047696.txt : 20070614
<SEC-HEADER>0001104659-07-047696.hdr.sgml : 20070614
<ACCEPTANCE-DATETIME>20070614140318
ACCESSION NUMBER:		0001104659-07-047696
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20070613
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070614
DATE AS OF CHANGE:		20070614

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:		07919569

	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>a07-15222_38k.htm
<DESCRIPTION>8-K
<TEXT>
<html>

<head>






</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>

<p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font><br>
WASHINGTON, D.C.&#160; 20549<a name="UnitedStatesSecuritiesAndExchange_231213"></a></b></p>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM 8-K<a name="Form8k_231220"></a></font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">CURRENT REPORT<br>
Pursuant to Section 13 or 15(d) of the<br>
Securities Exchange Act of 1934<a name="CurrentReportPursuantToSection13O_231234"></a></font></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Date of report (Date of earliest event
reported):&nbsp;&nbsp;</font></b>June 13, 2007<a name="DateOfReportdateOfEarliestEventRe_231244"></a></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">ARTESIAN RESOURCES CORPORATION</font><br>
</b><font style="font-weight:normal;">(Exact Name of
Registrant Specified in Charter)</font><a name="ArtesianResourcesCorporationexact_231300"></a></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>Delaware<br>
  </b>(State or Other<br>
  Jurisdiction of<br>
  Incorporation)</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" colspan="3" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">000-18516<br>
  </font></b>(Commission File<br>
  Number)</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:31.74%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">51-0002090<br>
  </font></b>(I.R.S. Employer<br>
  Identification No.)</p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="3" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>664 Churchmans Road<br>
  Newark, Delaware</b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="3" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">19702</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" colspan="3" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of
  Principal Executive Offices)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="3" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="237" style="border:none;"></td>
  <td width="18" style="border:none;"></td>
  <td width="110" style="border:none;"></td>
  <td width="18" style="border:none;"></td>
  <td width="110" style="border:none;"></td>
  <td width="18" style="border:none;"></td>
  <td width="237" style="border:none;"></td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registrant&#146;s telephone number, including area code:&nbsp;<b>(302) 453-6900</b></font></p>

<p align="center" style="font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Not Applicable<br>
</font></b>(Former Name or Former Address, if Changed Since Last Report)</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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:</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0in 0in 12.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 1.01 Entry
into a Material Definitive Agreement<a name="Item1_01EntryIntoAMaterialDefinit_230700"></a></font></b></p>

<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On June 13, 2007, Artesian Resources Corporation (&#147;we&#148;,
&#147;us&#148;, &#147;our&#148; or the &#147;Company&#148;), entered into an Underwriting Agreement with
Janney Montgomery Scott LLC and Edward D. Jones &amp; Co., L.P. (collectively,
the &#147;Underwriters&#148;), which provides for the issuance and sale by the Company
and the purchase by the Underwriters of 1,000,000 shares (the &#147;Firm Shares&#148;) of
our Class A Non-Voting Common Stock at $19.15 per share. We have also granted
to the Underwriters an option to purchase up to 150,000 additional shares of
our common stock (the &#147;Optional Shares&#148; and collectively with the Firm Shares,
the &#147;Shares&#148;), to cover over-allotments, if any. The sale of the Firm Shares
will result in net proceeds to the Company, after underwriting commissions and
offering expenses, of approximately $17.9 million. The offering of the Shares
has been registered under the Securities Act of 1933, as amended, pursuant to a
registration statement on Form S-3 (File No.&nbsp;333-136184). We expect the
transaction to close on Tuesday, June 19, 2007. A copy of the Underwriting
Agreement is filed as Exhibit&nbsp;1.1 to this report, and is incorporated by
reference herein.</font></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item&nbsp;8.01
Other Events.<a name="Item8_01OtherEvents__230703"></a></font></b></p>

<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, on June 14,
2007, we issued a press release announcing the pricing of the public offering
described above. The press release is being filed with this Current Report on
Form 8-K as Exhibit 99.1, and is incorporated by reference herein. </font></p>

<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Also on June&nbsp;14,
2007, we filed with the SEC a Prospectus Supplement relating to this public
offering. In connection with the Prospectus Supplement, we are filing the legal
opinion of Morgan, Lewis &amp; Bockius LLP, attached hereto as Exhibit<a name="InAdditionOnJune142007WeIssuedAPr_102429"></a>&nbsp;5.1.</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Current Report on Form 8-K includes
forward-looking statements within the meaning of Section&nbsp;27A of the
Securities Act of 1933, as amended, Section&nbsp;21E of the Securities Exchange
Act of 1934, that we believe to be reasonable as of today&#146;s date. Statements in
this Current Report on Form 8-K that are forward-looking statements are subject
to various risks and uncertainties concerning specific factors described in our
2006 Annual Report on Form 10-K, our most recently filed Quarterly Report on
Form 10-Q and other SEC filings. Such information contained herein represents
our management&#146;s best judgment as of the date hereof based on information
currently available. We do not intend to update this information and disclaim
any legal obligation to the contrary.</font></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9.01.
Financial Statements and Exhibits.<a name="Item9_01_FinancialStatementsAndEx_230653"></a></font></b></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d) Exhibits.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0in .7pt 0in 0in;width:3.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><!-- SET mrlNoTableShading -->1.1</p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in 0in;width:93.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Underwriting Agreement, dated June 13, 2007, between
  Artesian Resources Corporation, Janney Montgomery Scott LLC and Edward D.
  Jones &amp; Co., L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0in .7pt 0in 0in;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in 0in;width:93.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0in .7pt 0in 0in;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in 0in;width:93.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Morgan, Lewis &amp; Bockius LLP</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0in .7pt 0in 0in;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in 0in;width:93.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0in .7pt 0in 0in;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in .7pt 0in 0in;width:93.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release, dated June 14, 2007, issued by
  Artesian Resources Corporation</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURE</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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 border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTESIAN RESOURCES CORPORATION</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: June 14, 2007</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.4%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="45%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:45.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DAVID B. SPACHT</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.4%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:45.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">David B. Spacht </font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.4%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:45.62%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer and Treasurer</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:11.8%;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading -->Exhibit Number</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="85%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:85.46%;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Document</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Underwriting Agreement, dated June 13, 2007, between
  Artesian Resources Corporation, Janney Montgomery Scott LLC and Edward D.
  Jones &amp; Co., L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Morgan, Lewis &amp; Bockius LLP</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="85%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:85.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release, dated June 14, 2007, issued by
  Artesian Resources Corporation.</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<SEQUENCE>2
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<DESCRIPTION>EX-1.1
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<body lang="EN-US" style="text-justify-trim: punctuation">

<div>


<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="right" style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit
1.1</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,000,000 SHARES</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTESIAN RESOURCES
CORPORATION</font></b></p>

<p style="font-weight:bold;margin:0in 0in 24.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">CLASS
A NON-VOTING COMMON STOCK</font></b></p>

<div style="border-bottom:solid windowtext 2.25pt;border-left:none;border-right:none;border-top:solid windowtext 2.25pt;margin-left:1.5in;margin-right:1.5in;padding:25.0pt 0in 24.0pt 0in;">

<p style="border:none;font-weight:bold;margin:12.0pt 0in;padding:0in;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">UNDERWRITING AGREEMENT</font></b></p>

</div>

<p align="right" style="margin:0in 0in 12.0pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in 12.0pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Philadelphia,
Pennsylvania<br>
June 13, 2007</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JANNEY MONTGOMERY SCOTT LLC<br>
EDWARD D. JONES &amp; CO., L.P.<br>
c/o Janney Montgomery Scott LLC<br>
1801 Market Street<br>
Philadelphia, PA 19103</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ladies and Gentlemen:</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Artesian Resources Corporation, a Delaware corporation (&#147;<u>Artesian
Resources</u>&#148;), proposes, subject to the terms and conditions stated herein,
to sell to Janney Montgomery Scott LLC and Edward D. Jones &amp; Co., L.P.
(collectively, the &#147;<u>Underwriters</u>&#148;) an aggregate of 1,000,000 shares of
Artesian Resources&#146; Class&nbsp;A Non-Voting Common Stock, par value $1.00 per
share (&#147;<u>Class A Common Stock</u>&#148;).&#160;
The 1,000,000 shares of Class A Common Stock to be sold to the Underwriters
by Artesian Resources are referred to herein as the &#147;<u>Firm Shares</u>.&#148;&#160; The respective amounts of the Firm Shares to
be purchased by the several Underwriters are set forth opposite their names in <u>Schedule&nbsp;I</u>
hereto.&#160; The Firm Shares shall be offered
to the public at a public offering price of $19.15 per Firm Share (the &#147;<u>Offering
Price</u>&#148;).</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In order to cover over-allotments in the sale of the Firm Shares, the
Underwriters may, at the Underwriters&#146; election and subject to the terms and
conditions stated herein, purchase ratably in proportion to the amounts set
forth opposite their respective names in <u>Schedule&nbsp;I</u> hereto, for the
Underwriters&#146; own accounts up to 150,000 additional shares of Class A Common
Stock from Artesian Resources.&#160; Such
150,000 additional shares of Class A Common Stock are referred to herein as the
&#147;<u>Optional Shares</u>.&#148;&#160; If any
Optional Shares are purchased, the Optional Shares shall be purchased for
offering to the public at the Offering Price and in accordance with the terms
and conditions set forth herein.&#160; The
Firm Shares and the Optional Shares are referred to collectively herein as the &#147;<u>Shares</u>.&#148;</font></p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In consideration of the mutual agreements contained herein, Artesian
Resources and the Underwriters, intending to be legally bound, confirm their
agreement as follows:</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Representations
and Warranties of Artesian Resources</u>.</b>&#160; Artesian Resources represents and warrants
to, and agrees with, the several Underwriters that:</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian
Resources has prepared and filed with the Securities and Exchange Commission
(the &#147;<u>SEC</u>&#148;), in accordance with the provisions of the Securities Act of
1933, as amended (the &#147;<u>Act</u>&#148;), and the rules and regulations thereunder
(the &#147;<u>Regulations</u>&#148;), a registration statement on Form S-3 (File No.
333-136184), including a prospectus, relating to the Shares.&#160; The term &#147;<u>Registration Statement</u>&#148; as
used herein means the registration statement (including all exhibits and
information incorporated by reference therein) as amended to the date of this
Agreement, and includes information (if any) contained in a form of prospectus
or prospectus supplement that is deemed retroactively to be part of the
Registration Statement pursuant to Rule 430B under the Act, to be part of the
registration statement as of the time specified in Rule 430B.&#160; If it is contemplated, at the time this
Agreement is executed, that a post-effective amendment to the Registration
Statement will be filed and must be declared effective before the offering of
the Shares may commence, the term &#147;<u>Registration Statement</u>&#148; as used
herein shall mean the Registration Statement as amended by such post-effective
amendment.&#160; If Artesian Resources has
filed or files on or after the date of this Agreement a registration statement
to register additional shares of Class A Common Stock pursuant to Rule 462(b)
under the Act (the &#147;<u>Rule 462(b) Registration Statement</u>&#148;), then any
reference herein to the term &#147;<u>Registration Statement</u>&#148; shall be deemed to
include such Rule 462(b) Registration Statement.&#160; The term &#147;<u>Base Prospectus</u>&#148; shall mean
the base prospectus filed as part of the Registration Statement in the form in
which it has most recently been filed with the SEC on or prior to the date of
this Agreement.&#160; The term &#147;<u>Preliminary
Prospectus</u>&#148; shall mean any preliminary prospectus supplement relating to
the Shares, together with the Base Prospectus, and filed with the SEC pursuant
to Rule 424(b) of the Regulations.&#160; The
term &#147;<u>Statutory Prospectus</u>&#148; shall mean the Preliminary Prospectus, as
amended or supplemented, immediately prior to the Initial Sale Time (as defined
below), including any document incorporated by reference therein.&#160; The term &#147;<u>Prospectus</u>&#148; shall mean the
final prospectus supplement relating to the Shares, together with the Base
Prospectus, that is first filed pursuant to Rule 424(b) after the effective
time of the Registration Statement (the &#147;<u>Effective Time</u>&#148;).&#160; The term &#147;<u>Issuer Free Writing Prospectus</u>&#148;
shall have the meaning ascribed to it in Rule 433 of the Regulations relating
to the Shares, in the form filed or required to be filed with the SEC or, if
not required to be filed, in the form retained in Artesian Resources&#146; records
pursuant to Rule 433(g) of the Regulations.&#160;
The term &#147;<u>Disclosure Package</u>&#148; shall mean (i)&nbsp;the Statutory
Prospectus, (ii)&nbsp;the Issuer Free Writing Prospectus, if any, identified in
<u>Schedule&nbsp;II</u> hereto, and (iii)&nbsp;any other free writing
prospectus defined in Rule 405 of the Regulations that is required to be filed
by Artesian Resources with the SEC or retained by Artesian Resources under Rule
433 of the Regulations and that all parties hereto expressly agree to treat as
part of the Disclosure Package (the &#147;<u>Other Free Writing Prospectus</u>&#148;).&#160; For purposes of this Agreement, the &#147;<u>Initial
Sale Time</u>&#148; shall mean 5:00 p.m. (Eastern Time) on the date of this
Agreement.&#160; All references in this
Agreement to the Registration Statement, the Rule 462(b) Registration
Statement, the Base Prospectus, a Preliminary Prospectus, the Statutory
Prospectus, the Prospectus, the Issuer Free Writing Prospectus, the Other Free
Writing Prospectus or any amendments or supplements to any of the foregoing,
shall include any copy thereof filed with the SEC pursuant to its Electronic
Data Gathering, Analysis and Retrieval System (&#147;<u>EDGAR</u>&#148;).</font></h2>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Registration Statement has become effective under the Act, and the SEC has not
issued any stop order suspending the effectiveness of the Registration
Statement or preventing or suspending the use of the Statutory Prospectus or
the Prospectus, nor has the SEC instituted or, to the knowledge of Artesian Resources,
threatened to institute proceedings with respect to such an order.&#160; No stop order suspending the sale of the
Shares in any jurisdiction designated by the Underwriters as provided for in <u>Section&nbsp;5(f)</u>
of this Agreement has been issued, and no proceedings for that purpose have
been instituted or, to the knowledge of Artesian Resources, threatened.&#160; Artesian Resources has complied in all
material respects with all requests of the SEC, or requests of which Artesian Resources
has been advised of any state or foreign securities commission in a state or
foreign jurisdiction designated by the Underwriters as provided for in <u>Section&nbsp;5(f)</u>
of this Agreement, for additional information to be included in the
Registration Statement, the Disclosure Package or the Prospectus.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (A)
The Registration Statement complied at the Effective Time and, as amended or
supplemented, complies on the date hereof and will comply on the Closing Date
and any Option Closing Date, in all material respects, with the requirements of
the Act and the Regulations, (B) the Registration Statement, at the Effective
Time, did not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein not misleading, (C) the Disclosure Package, at the time it
was filed and as of the Initial Sale Time, complied in all material respects
with the requirements of the Act and the Regulations, (D) the Disclosure
Package, at the time it was filed and as of the Initial Sale Time, did not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, (E) the Prospectus,
at the time it is filed and, as amended or supplemented, as of the Closing Date
and any Option Closing Date, will comply in all material respects with the
requirements of the Act and the Regulations, and&#160; the Prospectus, as so amended or
supplemented, will not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; <u>provided</u>,
<u>however</u> that the representations and warranties set forth in this
paragraph do not apply to omissions from or statements in the Registration
Statement, the Disclosure Package or the Prospectus based upon and in
conformity with written information furnished to Artesian Resources by any
Underwriter specifically for use therein, it being understood and agreed that
the only information furnished by any Underwriter for use in the Registration
Statement, the Disclosure Package and the Prospectus is the information as set
forth in <u>Section&nbsp;13</u> of this Agreement, and (F) the statistical and
market-related data included or incorporated by reference in the Registration
Statement, the Disclosure Package and the Prospectus are based on or derived
from sources that Artesian Resources believes to be reliable and accurate.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; As
of the Initial Sale Time, the Disclosure Package complied in all material
respects with the Act and the Regulations and, if filed by electronic
transmission pursuant to EDGAR (except as may be permitted by Regulation S-T
under the Act), was identical to the copy thereof delivered to the Underwriters
for use in connection with the offer and sale of the Shares.&#160; The Disclosure Package, at the Initial Sale
Time, did not, and at the Closing Date will not, contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.&#160; The preceding sentence does not</font></h2>


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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">apply to
omissions from or statements in the Disclosure Package based upon and in
conformity with written information furnished to Artesian Resources by any
Underwriter specifically for use therein, it being understood and agreed that
the only such information furnished by any Underwriter for use in the
Disclosure Package is the information as set forth in <u>Section&nbsp;13</u> of
this Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian
Resources (including its agents and representatives, other than the
Underwriters in their capacity as such) has not used, authorized, approved or
referred to and will not use, authorize, approve or refer to any Issuer Free
Writing Prospectus, other than the documents listed on <u>Schedule&nbsp;II</u>
hereto.&#160; Each such Issuer Free Writing
Prospectus complied in all material respects with the Act and the Regulations
and has been filed in accordance with the Act and the Regulations (to the
extent required thereby).&#160; Each Issuer
Free Writing Prospectus, as of its issue date and at all subsequent times
through the completion of the public offer and sale of the Shares or until any
earlier date of which Artesian Resources notified or notifies the Underwriters
as described in the next sentence, did not, does not and will not include any
information that conflicted, conflicts or will conflict with the information
contained in the Registration Statement.&#160;
If at any time following issuance of an Issuer Free Writing Prospectus,
there occurred or occurs an event or development as a result of which such
Issuer Free Writing Prospectus conflicted or would conflict with the
information then contained in the Registration Statement or included or would
include an untrue statement of a material fact or omitted or would omit to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances prevailing at that subsequent time, not misleading,
(i)&nbsp;Artesian Resources has promptly notified or will promptly notify the
Underwriters and (ii)&nbsp;Artesian Resources has promptly amended or will
promptly amend or supplement such Issuer Free Writing Prospectus to eliminate
or correct such conflict, untrue statement or omission.&#160; The foregoing sentences do not apply to
omissions from or statements in any Issuer Free Writing Prospectus based upon
and in conformity with written information furnished to Artesian Resources by
any Underwriter specifically for use therein, it being understood and agreed
that the only such information furnished by any Underwriter for use in any
Issuer Free Writing Prospectus is the information as set forth in <u>Section&nbsp;13</u>
of this Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian
Resources has not distributed and will not distribute, prior to the later of
the last Option Closing Date (as defined below) and the completion of the
Underwriters&#146; distribution of the Shares, any offering material in connection
with the offering and sale of the Shares other than the Registration Statement,
the Disclosure Package or the Prospectus.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
documents incorporated by reference into the Prospectus pursuant to Item 12 of
Form S-3 under the Act, at the time they were filed with the SEC, complied in
all material respects with the requirements of the Securities Exchange Act of
1934, as amended (the &#147;<u>Exchange Act</u>&#148;) and with the rules and regulations
promulgated under or pursuant to the Exchange Act, and did not contain any
untrue statement of material fact or omit to state a material fact required to
be stated therein, or necessary to make the statements therein not misleading.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; There
are no legal or governmental proceedings pending or, to the knowledge of
Artesian Resources, threatened to which Artesian Resources&#160; or any of its Subsidiaries is a party or to
which any of the properties of Artesian Resources or any Subsidiary</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in 12.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">are subject that are
required to be described in the Registration Statement, the Disclosure Package
or the Prospectus and are not so described or any statutes, regulations,
contracts or other documents that are required to be described in the
Registration Statement, the Disclosure Package or the Prospectus or to be filed
as exhibits to the Registration Statement that are not described or filed as
required.</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian
Resources is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, and has the corporate power
and authority to own or lease and operate its properties and to conduct its
current business as described in the Registration Statement, the Disclosure
Package and the Prospectus, and to execute, deliver and perform this
Agreement.&#160; Each of Artesian Water
Company, Inc., a Delaware corporation, Artesian Wastewater Management, Inc., a
Delaware corporation, Artesian Utility Development, Inc., a Delaware
corporation, Artesian Development Corporation, a Delaware corporation, and
Artesian Water Pennsylvania, Inc., a Pennsylvania corporation, is a wholly
owned subsidiary of Artesian Resources and, collectively, shall herein be
referred to as the &#147;<u>Subsidiaries</u>.&#148;&#160;
Each Subsidiary of Artesian Resources has been duly incorporated and is
an existing corporation in good standing under the laws of the jurisdiction of
its incorporation, and has the corporate power and authority to own or lease
and operate its properties and to conduct its current business.&#160; Artesian Resources and the Subsidiaries are
duly qualified to do business as foreign corporations, and are in good standing,
in all jurisdictions in which such qualification is required, except where the
failure to so qualify would not have a material adverse effect on the general
affairs, properties, condition (financial or otherwise), results of operations,
stockholders&#146; equity, business or prospects (collectively, the &#147;<u>Business
Conditions</u>&#148;) of Artesian Resources and the Subsidiaries taken as a
whole.&#160; References to materiality as
applicable to the Subsidiaries shall mean material to the Business Conditions,
operations or assets, as the case may be, of the Subsidiaries taken as a whole.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; AquaStructure
Delaware, L.L.C. (&#147;<u>AquaStructure</u>&#148;) has been duly formed and is an
existing limited liability company in good standing under the laws of the State
of Delaware, and has the power and authority to own or lease and operate its
properties and to conduct its current business.&#160;
AquaStructure is duly qualified to do business and is in good standing,
in all jurisdictions in which such qualification is required, except where the
failure to so qualify would not have a material adverse effect on the Business
Conditions of Artesian Resources and the Subsidiaries taken as a whole.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
of the outstanding shares of capital stock of each of the Subsidiaries have
been duly authorized and validly issued, are fully paid and non-assessable and
are owned by Artesian Resources free and clear of all liens, encumbrances and
security interests, except as otherwise disclosed in the Registration
Statement, the Disclosure Package and the Prospectus; and no options, warrants
or other rights to purchase, agreements or other obligations to issue, or other
rights to convert any obligations into shares of capital stock or ownership
interests in each of the Subsidiaries or securities convertible into or exchangeable
for capital stock of, or other ownership interests in any of the Subsidiaries
are outstanding, except as disclosed in the Registration Statement, the
Disclosure Package and the Prospectus.&#160;
Neither Artesian Resources nor the Subsidiaries owns any stock or other
interest whatsoever, whether equity or debt, in any corporation, partnership or
other entity other than Artesian Resources&#146; ownership of the Subsidiaries,
except that Artesian Utility Development, Inc. is a member of AquaStructure.</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This
Agreement has been duly authorized, executed and delivered by Artesian
Resources and constitutes its legal, valid and binding obligation, enforceable
against Artesian Resources in accordance with its terms, except as enforcement
may be limited by bankruptcy, insolvency or other similar laws affecting the
enforcement of creditors&#146; rights generally and subject to applicability of
general principles of equity and except, as to this Agreement, as rights to
indemnity and contribution may be limited by federal and state securities laws
or principles of public policy.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
execution, delivery and performance of this Agreement and the transactions
contemplated herein, do not and will not, with or without the giving of notice
or the lapse of time, or both, (i)&nbsp;conflict with any term or provision of
Artesian Resources&#146; or the Subsidiaries&#146; respective Certificate or Articles of
Incorporation, as the case may be, or Bylaws; (ii)&nbsp;result in a breach of,
constitute a default under, result in the termination or modification of,
result in the creation or imposition of any lien, security interest, charge or
encumbrance upon any of the properties of Artesian Resources or the
Subsidiaries or require any payment by Artesian Resources or any of the
Subsidiaries or impose any liability on Artesian Resources or any of the
Subsidiaries pursuant to, any contract, indenture, mortgage, deed of trust,
commitment or other agreement or instrument to which Artesian Resources or any
of the Subsidiaries is a party or by which any of their respective properties
are bound or affected other than this Agreement; except where such breach,
default, modification, termination, lien, security interest, charge,
encumbrance, payment or liability could not reasonably be expected to have a
material adverse effect on the Business Conditions of Artesian Resources or its
Subsidiaries, taken as a whole; (iii)&nbsp;assuming compliance with Blue Sky
laws and the rules of the National Association of Securities Dealers, Inc. (the
&#147;<u>NASD</u>&#148;) applicable to the offer and sale of the Shares, violate any law,
rule, regulation, judgment, order or decree of any government or governmental
agency, instrumentality or court, domestic or foreign, having jurisdiction over
Artesian Resources or the Subsidiaries or any of their respective properties or
businesses, except where such violation could not reasonably be expected to
have a material adverse effect on the Business Conditions of Artesian Resources
or its Subsidiaries, taken as a whole; or (iv)&nbsp;result in a breach,
termination or lapse of Artesian Resources&#146; or the Subsidiaries&#146; corporate
power and authority to own or lease and operate their respective properties and
conduct their respective businesses, except where such breach, termination or
lapse could not reasonably be expected to have a material adverse effect on the
Business Conditions of Artesian Resources or its Subsidiaries, taken as a
whole.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At
the date or dates indicated in the Registration Statement, the Disclosure
Package or the Prospectus, Artesian Resources had or will have the
capitalization set forth in the Registration Statement, the Disclosure Package
and the Prospectus under the caption &#147;Capitalization&#148; and will have, as of the
issuance of the Firm Shares on the Closing Date, the as-adjusted capitalization
set forth therein as of the date indicated in the Registration Statement, the
Disclosure Package and the Prospectus.&#160;
At the Effective Time and on the Closing Date and any Option Closing
Date, there will be no options or warrants or other outstanding rights to purchase,
agreements or obligations to issue or agreements or other rights to convert or
exchange any obligation or security into, capital stock of Artesian Resources
or securities convertible into or exchangeable for capital stock of Artesian
Resources, except as described in the Registration Statement, the Disclosure
Package or the Prospectus or the grant of options after the date of the
Registration Statement, the Disclosure Package or the Prospectus under option
plans of Artesian Resources.&#160; The information
in the Registration Statement, the Disclosure Package and the</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prospectus, insofar as it
relates to all outstanding options and other rights to acquire securities of
Artesian Resources as of the dates referred to in the Registration Statement,
the Disclosure Package and the Prospectus, is true and correct in all material
respects.</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
currently outstanding shares of Artesian Resources&#146; capital stock have been
duly authorized and are validly issued, fully paid and non-assessable, and none
of such outstanding shares of Artesian Resources&#146; capital stock has been issued
in violation of any preemptive rights or similar rights of any security holder
of Artesian Resources.&#160; The holders of
the outstanding shares of Artesian Resources&#146; capital stock are not subject to
personal liability solely by reason of being such holders.&#160; All previous offers and sales of the
outstanding shares of Artesian Resources&#146; capital stock made by or on behalf of
Artesian Resources, whether described in the Registration Statement, the
Disclosure Package or the Prospectus were made in conformity with applicable
federal, state and foreign securities laws.&#160;
The authorized capital stock of Artesian Resources, including, without
limitation, the outstanding Class A Common Stock and the Shares being issued,
conform in all material respects with the descriptions thereof in the
Registration Statement, the Disclosure Package and the Prospectus, and such
descriptions conform in all material respects with the instruments defining the
same.&#160; The description of Artesian
Resources&#146; stock plans, equity compensation plans and other equity
arrangements, and the rights granted thereunder, set forth in the Registration
Statement, the Disclosure Package and the Prospectus accurately and fairly
presents, in all material respects, the information required to be shown with
respect to such plans, arrangements and rights.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; There
are no contracts, agreements or understandings between Artesian Resources or
any of its Subsidiaries and any person granting such person the right to
require Artesian Resources to file a registration statement under the Act with
respect to any securities of Artesian Resources owned or to be owned by such
person or to require Artesian Resources to include such securities in the securities
registered pursuant to the Registration Statement or in any securities being
registered pursuant to any other registration statement filed by Artesian
Resources under the Act.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Shares have been duly and validly authorized, and, when issued and delivered
against payment therefor as contemplated by this Agreement, the Shares will be
validly issued, fully paid and non-assessable, and the holders thereof will not
be subject to personal liability solely by reason of being such holders.&#160; The certificates representing the Shares are
in proper legal form under, and conform in all respects to the requirements of,
the Delaware General Corporation law, as amended.&#160; Neither the filing of the Registration
Statement or the Prospectus nor the offering or sale of Shares as contemplated
by this Agreement gives any security holder of Artesian Resources any rights
for or relating to the registration of any Class A Common Stock or any other
capital stock of Artesian Resources or any rights to convert or have redeemed
or otherwise receive anything of value with respect to any other security of
Artesian Resources.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No
consent, approval, authorization, order, registration, license or permit of, or
filing or registration with, any court, government, governmental agency,
instrumentality or other regulatory body or official is required for the valid
and legal execution, delivery and performance by Artesian Resources of this
Agreement and the consummation of the transactions contemplated hereby or
described in the Registration Statement, the Disclosure Package or the</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prospectus, except
(i)&nbsp;such as may be required for the registration of the Shares under the
Act and the listing of the Shares on The NASDAQ Global Market,
(ii)&nbsp;filings under the Exchange Act, and (iii)&nbsp;filings required for
compliance with the applicable state securities or Blue Sky laws or the Bylaws,
rules and other pronouncements of the NASD.</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Class A Common Stock (including the Shares) is registered pursuant to Section
12(b) of the Exchange Act.&#160; The issued
and outstanding shares of Class A Common Stock are listed on The NASDAQ Global
Market.&#160; Neither Artesian Resources nor,
to Artesian Resources&#146; knowledge, any other person has taken any action
designed to cause, or likely to result in, the termination of the registration
of the Class A Common Stock under the Exchange Act.&#160; Artesian Resources has not received any
notification that the SEC or The NASDAQ Global Market is contemplating
terminating such registration or listing.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
statements in the Registration Statement, the Disclosure Package and the
Prospectus, insofar as they are descriptions of or references to contracts,
agreements or other documents, are accurate in all material respects and
present or summarize fairly, in all material respects, the information required
to be disclosed under the Act or the Regulations, and there are no contracts,
agreements or other documents, instruments or transactions of any character
required to be described or referred to in the Registration Statement, the
Disclosure Package or the Prospectus or to be filed as exhibits to the
Registration Statement that have not been so described, referred to or filed,
as required.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
contract or other instrument (however characterized or described) to which
Artesian Resources or any of the Subsidiaries is a party or by which any of
their respective properties or businesses is bound or affected and which is
material to the conduct of Artesian Resources&#146;, or the Subsidiaries&#146; business
has been duly and validly executed by Artesian Resources or the Subsidiaries,
as applicable, and, to the knowledge of Artesian Resources, by the other
parties thereto.&#160; Each such contract or
other instrument is in full force and effect and is enforceable in all material
respects against the parties thereto in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency or other similar laws
affecting the enforcement of creditors&#146; rights generally and subject to
applicability of general principles of equity, and neither Artesian Resources
nor any of the Subsidiaries is, and to the knowledge of Artesian Resources, no
other party thereto is, in default thereunder, except where such default would
not have a material adverse effect on the Business Conditions of Artesian
Resources and its Subsidiaries, taken as a whole, and no event has occurred
that, with the lapse of time or the giving of notice, or both, would constitute
a default under any such contract or other instrument.&#160; All necessary consents under such contracts
or other instruments to the disclosure in the Registration Statement, the
Disclosure Package or the Prospectus with respect thereto have been obtained.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
consolidated financial statements of Artesian Resources (including the notes
thereto) filed as part of or incorporated by reference in, the Registration
Statement, the Disclosure Package and the Prospectus present fairly, in all
material respects, the financial position of Artesian Resources as of the
respective dates thereof, and the results of operations and cash flows of
Artesian Resources for the periods indicated therein, and have been prepared in
conformity with generally accepted accounting principles, except as disclosed
therein.&#160; The financial information
included in the Registration Statement, the Disclosure Package and the</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prospectus under the
captions &#147;Prospectus Summary - Summary Consolidated Financial Information,&#148; &#147;Use
of Proceeds&#148; and &#147;Capitalization&#148; presents fairly the information shown therein
and has been compiled on a basis consistent with that of the financial
statements incorporated by reference in the Registration Statement, the
Disclosure Package and the Prospectus.&#160;
The unaudited pro&nbsp;forma adjustments to financial information in the
Registration Statement, the Disclosure Package and the Prospectus have been
properly applied to the historical amounts in the compilation of that
information to reflect the sale by Artesian Resources of the Shares offered
thereby at an assumed offering or actual price set forth in the Registration
Statement, the Disclosure Package or the Prospectus, as the case may be, and
the application of the estimated net proceeds therefrom.</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(w)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Since
the respective dates as of which information is given, or incorporated by
reference, in the Registration Statement, the Disclosure Package and the
Prospectus, except as otherwise stated therein, there has not been (i)&nbsp;any
material adverse change, or development involving a prospective material
adverse change (including, whether or not insured against, any loss or damage
to any assets that would constitute a material adverse change), in the Business
Conditions of Artesian Resources; (ii)&nbsp;any material adverse change, loss,
reduction, termination or non-renewal of any material contract to which
Artesian Resources or any Subsidiary is a party; (iii)&nbsp;any transaction
entered into by Artesian Resources or any of the Subsidiaries not in the
ordinary course of its business that is material to Artesian Resources or any
Subsidiary; (iv)&nbsp;any dividend or distribution of any kind declared, paid
or made by Artesian Resources on its capital stock, except for and to the
extent described in the Registration Statement, the Disclosure Package and the
Prospectus; (v)&nbsp;any liabilities or obligations, direct or indirect,
incurred by Artesian Resources or any of the Subsidiaries that are material to
Artesian Resources or any Subsidiary; (vi)&nbsp;any change in the
capitalization of Artesian Resources or any of the Subsidiaries, except for
issuances pursuant to Artesian Resources&#146; stock option or equity compensation
plans; or (vii)&nbsp;any change in the indebtedness of Artesian Resources or
any of its Subsidiaries that is material to Artesian Resources or any
Subsidiary.&#160; Neither Artesian Resources
nor any of the Subsidiaries has any contingent liabilities or obligations that
are material and that are not expressly disclosed in the Registration
Statement, the Disclosure Package and the Prospectus.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither
Artesian Resources nor, to Artesian Resources&#146; knowledge, any of its officers,
directors or affiliates has (i)&nbsp;taken, nor shall Artesian Resources or
such persons take, directly or indirectly, any action designed to, or that
might be reasonably expected to, cause or result in stabilization or
manipulation of the price of the Class A Common Stock, or (ii)&nbsp;since the
filing of the Registration Statement (A) sold, bid for, purchased or paid
anyone any compensation for soliciting purchases of, the Shares or (B) paid or
agreed to pay to any person any compensation for soliciting another to purchase
any other securities of Artesian Resources.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian
Resources and the Subsidiaries have filed with the appropriate federal, state
and local governmental agencies, and all foreign countries and political
subdivisions thereof, all material tax returns that are required to be filed or
have duly obtained extensions of time for the filing thereof and have paid all
taxes shown on such returns or otherwise due and all material assessments
received by them to the extent that the same have become due, other than those being
contested in good faith and for which adequate reserves have been
provided.&#160; Neither Artesian Resources nor
any of the Subsidiaries has executed or filed with</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any taxing authority,
foreign or domestic, any agreement extending the period for assessment or
collection of any income or other tax and none of them is a party to any
pending action or proceeding by any foreign or domestic governmental agency for
the assessment or collection of taxes, and no claims for assessment or
collection of taxes have been asserted against Artesian Resources or any of the
Subsidiaries that might materially adversely affect the Business Conditions of
Artesian Resources or any of the Subsidiaries.</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(z)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To
the knowledge of Artesian Resources, BDO Seidman LLP and KPMG LLP, which have
each given their report on certain financial statements included as part of, or
incorporated by reference in, the Registration Statement, the Disclosure
Package and the Prospectus are each a firm of independent certified public
accountants as required by the Act and the Regulations with respect to Artesian
Resources.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(aa)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither
Artesian Resources nor any of the Subsidiaries is in violation of, or in
default under, any of the terms or provisions of (i)&nbsp;its Certificate or
Articles of Incorporation, as the case may be, or Bylaws or similar governing
instruments and (ii)&nbsp;except where any such default would not reasonably be
expected to have a material adverse effect on the Business Conditions of
Artesian Resources or any of the Subsidiaries, (A) any indenture, mortgage,
deed of trust, contract, commitment or other agreement or instrument to which
it is a party or by which it or any of its assets or properties is bound or
affected, (B) any law, rule, regulation, judgment, order or decree of any government
or governmental agency, instrumentality or court, domestic or foreign, having
jurisdiction over it or any of its properties or business, or (C) any license,
permit, certification, registration, approval, consent or franchise.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(bb)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except
as expressly disclosed in the Registration Statement, the Disclosure Package
and the Prospectus, there are no claims, actions, suits, protests, proceedings,
arbitrations, investigations or inquiries pending before, or, to Artesian
Resources&#146; knowledge, threatened or contemplated by, any governmental agency,
instrumentality, court or tribunal, domestic or foreign, or before any private
arbitration tribunal to which Artesian Resources or any of the Subsidiaries is
or may be made a party that could reasonably be expected to affect the validity
of any of the outstanding Class A Common Stock, or that, if determined
adversely to Artesian Resources or any of the Subsidiaries would, in any case
or in the aggregate, result in any material adverse change in the Business
Conditions of Artesian Resources or any of the Subsidiaries, nor to Artesian
Resources&#146; knowledge is there any reasonable basis for any such claim, action,
suit, protest, proceeding, arbitration, investigation or inquiry.&#160; There are no outstanding orders, judgments or
decrees of any court, governmental agency, instrumentality or other tribunal
enjoining Artesian Resources or any of the Subsidiaries from, or requiring
Artesian Resources or any of the Subsidiaries to take or refrain from taking,
any action, or to which Artesian Resources or any of the Subsidiaries or their
properties, assets or businesses are bound or subject.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(cc)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
of Artesian Resources and the Subsidiaries owns, or possesses adequate rights
to use, or can acquire on reasonable terms, all patents, patent applications,
trademarks, trademark registrations, applications for trademark registration,
trade names, service marks, licenses, inventions, copyrights, know-how
(including any unpatented and/or unpatentable proprietary or confidential
technology, information, systems, design methodologies and devices or
procedures developed or derived from or for Artesian Resources&#146; or the</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in 10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subsidiaries&#146; business),
trade secrets, confidential information, processes and formulations and other
proprietary information necessary for, used in, or proposed to be used in, the
conduct of the business of Artesian Resources and the Subsidiaries as described
in the Registration Statement, the Disclosure Package and the Prospectus
(collectively, the &#147;<u>Intellectual Property</u>&#148;), except where the failure to
own or possess or otherwise be able to acquire such Intellectual Property would
not have a material adverse effect on the Business Conditions of Artesian
Resources or its Subsidiaries, taken as a whole.&#160; To Artesian Resources&#146; knowledge, neither
Artesian Resources nor any of the Subsidiaries has infringed, is infringing or
has received any notice of conflict with, the asserted rights of others with
respect to the Intellectual Property that, individually or in the aggregate, if
the subject of an unfavorable decision, ruling or finding, could materially
adversely affect the Business Conditions of Artesian Resources or any of the
Subsidiaries, and Artesian Resources knows of no reasonable basis therefor.&#160; To the knowledge of Artesian Resources, no
other parties have infringed upon or are in conflict with any Intellectual
Property.&#160; Neither Artesian Resources nor
any of the Subsidiaries is a party to, or bound by, any agreement pursuant to
which royalties, honorariums or fees are payable by Artesian Resources or any
of the Subsidiaries to any person by reason of the ownership or use of any
Intellectual Property.</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(dd)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
of Artesian Resources and the Subsidiaries has good and marketable title to all
property described in the Registration Statement, the Disclosure Package and
the Prospectus as being owned by it, free and clear of all liens, security
interests, charges or encumbrances and the like, except such as are expressly
described or referred to in the Registration Statement, the Disclosure Package
or the Prospectus or such as do not materially adversely affect the Business
Conditions or the conduct of the business of Artesian Resources and the
Subsidiaries as described in the Registration Statement, the Disclosure Package
and the Prospectus.&#160; Each of Artesian
Resources and the Subsidiaries has insured its property against loss or damage
by fire or other casualty, in amounts reasonably believed by Artesian Resources
to be adequate, and maintains insurance against such other risks as management
of Artesian Resources deems appropriate.&#160;
All real and personal property leased by Artesian Resources and the
Subsidiaries, as described or referred to in the Registration Statement, the
Disclosure Package and the Prospectus, is held by Artesian Resources or the
Subsidiaries, as applicable, under valid and enforceable leases.&#160; The executive offices and facilities of
Artesian Resources and the Subsidiaries (the &#147;<u>Premises</u>&#148;), and all
operations presently or formerly conducted thereon by Artesian Resources and
the Subsidiaries or any predecessors thereof, are now and, since Artesian
Resources and the Subsidiaries began to use such Premises, always have
been&#160; and, to the knowledge of Artesian
Resources prior to when Artesian Resources or the Subsidiaries began to use
such Premises, always had been in compliance with all federal, state and local
statutes, ordinances, regulations, rules, standards and requirements of common
law concerning or relating to industrial hygiene and the protection of health
and the environment (collectively, the &#147;<u>Environmental Laws</u>&#148;), except to
the extent that any failure in such compliance would not materially adversely
affect the Business Conditions of Artesian Resources and the Subsidiaries.&#160; To the knowledge of Artesian Resources, the
facilities of Artesian Resources and the Subsidiaries produce water of
sufficient quality and quantity to supply the current and planned customers and
service areas of Artesian Resources and the Subsidiaries, and are not subject
to any restriction on groundwater withdrawal under any federal, state or local
law, regulation, rule, order or permit, except as expressly described in the
Registration Statement, the Disclosure Package and the Prospectus or as
provided in State of Delaware and other regulatory agencies&#146; allocation permits
and such as do not materially adversely affect the Business Conditions or the</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">conduct of the business
of Artesian Resources and the Subsidiaries as described in the Registration
Statement, the Disclosure Package and the Prospectus.&#160; To the knowledge of Artesian Resources, there
are no conditions on, about, beneath or arising from the Premises, in close
proximity to the Premises or at any other location that (i)&nbsp;might give
rise to liability, the imposition of a statutory lien upon Artesian Resources
or any of the Subsidiaries, (ii)&nbsp;require a &#147;Response,&#148; &#147;Removal&#148; or &#147;Remedial
Action,&#148; as defined herein, under any of the Environmental Laws by Artesian
Resources or any of the Subsidiaries, or (iii)&nbsp;affect the quality of the
groundwater withdrawn by Artesian Resources or the Subsidiaries, and that in
any such case described in (i), (ii)&nbsp;or (iii)&nbsp;would materially
adversely affect the Business Conditions of Artesian Resources, except as
described in the Registration Statement, the Disclosure Package or the
Prospectus.&#160; Except as expressly
disclosed in the Registration Statement, the Disclosure Package or the
Prospectus, or which will not materially adversely affect the Business
Conditions of Artesian Resources or the Subsidiaries (i)&nbsp;Artesian
Resources has not received notice or has knowledge of any claim, demand,
investigation, regulatory action, suit or other action instituted or threatened
against Artesian Resources or any of the Subsidiaries or any portion of the
Premises or any parcel in close proximity to the Premises relating to any of
the Environmental Laws and (ii)&nbsp;neither Artesian Resources nor any of the
Subsidiaries has received any notice of material violation, citation,
complaint, order, directive, request for information or response thereto,
notice letter, demand letter or compliance schedule to or from any governmental
or regulatory agency arising out of or in connection with &#147;hazardous substances&#148;
(as defined by applicable Environmental Laws) on, about, beneath, arising from
or generated at the Premises, near the Premises or at any other location.&#160; As used in this subsection, the terms &#147;Response,&#148;
&#147;Removal&#148; and &#147;Remedial Action&#148; shall have the respective meanings assigned to
such terms under Sections 101(23)-101(25) of the Comprehensive Environmental
Response, Compensation and Liability Act, as amended by the Superfund
Amendments and Reauthorization Act, 42 U.S.C. 9601(23)-9601(25).</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ee)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
of Artesian Resources and the Subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurances that:&#160; (i)&nbsp;transactions are executed in
accordance with management&#146;s general or specific authorization;
(ii)&nbsp;transactions are recorded as necessary in order to permit preparation
of financial statements in accordance with generally accepted accounting
principles and to maintain accountability for assets; (iii)&nbsp;access to
assets is permitted only in accordance with management&#146;s general or specific
authorization; and (iv)&nbsp;the recorded accountability for assets is compared
with existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ff)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian
Resources is in compliance in all material respects with all currently
effective provisions of the Sarbanes-Oxley Act of 2002 and the rules and
regulations promulgated thereunder that are applicable, or will be applicable
as of the Closing Date, to Artesian Resources.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(gg)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian
Resources, the Subsidiaries and any Related Employer (which for purposes of
this Paragraph means any entity that with Artesian Resources or any of the
Subsidiaries is a member of a controlled group of corporations within the
meaning of Section&nbsp;414(b) of the Internal Revenue Code of 1986, as amended
(the &#147;<u>Code</u>&#148;), is, individually or collectively, a trade or business
under common control within the meaning of</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;414(c) of
the Code, or is a member of the same affiliated service group within the
meaning of Section&nbsp;414(m) of the Code) have established, maintain,
contribute to, are required to contribute to, are a party to, or are bound by
certain pension, retirement, profit-sharing plans, deferred compensation,
bonus, or other incentive plans, or medical, vision, dental, or other health
plans, or life insurance or disability plans, or any other employee benefit
plans, programs, arrangements, agreements, or understandings, some of which are
subject to the Employee Retirement Income Security Act of 1974, as amended (&#147;<u>ERISA</u>&#148;)
and the rules and regulations thereunder (&#147;<u>Plans</u>&#148;).&#160; Any disclosure regarding the Plans required
under the Act or the Exchange Act has been made in the Registration Statement,
the Disclosure Package or the Prospectus and the documents incorporated
therein.&#160; All Plans that are subject to
ERISA are in compliance with ERISA, in all material respects, and, to the
extent a Plan is intended to be tax-qualified within the meaning of Section
401(a) of the Code, such Plan is in compliance with the Code in all material
respects and is the subject of a current favorable determination letter from
the Internal Revenue Service as to its tax qualification or such Plan has been
submitted to the Internal Revenue Service for an updated determination letter
and Artesian Resources expects that the Internal Revenue Service will issue a
favorable determination letter with respect to the Plan.&#160; No Plan is an employee pension benefit plan
that is subject to Part 3 of Subtitle B of Title I of ERISA, a defined benefit
plan subject to Title IV of ERISA, or a multiemployer plan.&#160; None of Artesian Resources, the Subsidiaries
or any Related Employer maintains or has maintained retiree life or retiree
health insurance plans that are employee welfare benefit plans providing for
continuing benefit or coverage for any employee or any beneficiary of any employee
after such employee&#146;s termination of employment, except as required by Section
4980B of the Code and except as disclosed in the Registration Statement, the
Disclosure Package or the Prospectus.&#160; No
fiduciary or other party in interest with respect to any of the Plans has
caused any of such Plans to engage in a prohibited transaction as defined in
Section 406 of ERISA and Section 4975 of the Code.&#160; As used in this subsection, the terms &#147;defined
benefit plan,&#148; &#147;employee benefit plan,&#148; &#147;employee pension benefit plan,&#148; &#147;employee
welfare benefit plan,&#148; &#147;fiduciary&#148; and &#147;multiemployer plan&#148; shall have the
respective meanings assigned to such terms in Section 3 of ERISA.</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(hh)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No
labor dispute exists with Artesian Resources&#146; or the Subsidiaries&#146; employees,
and to Artesian Resources&#146; knowledge, no such labor dispute is threatened.&#160; Artesian Resources has no knowledge of any
existing or threatened labor disturbance by the employees of any of the
principal suppliers, contractors or customers of Artesian Resources or the
Subsidiaries that would materially adversely affect the Business Conditions of
Artesian Resources or any of the Subsidiaries.&#160;
None of Artesian Resources&#146; or the Subsidiaries&#146; employees is covered by
a collective bargaining agreement and no union organizing activity exists with
respect to any of such employees.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; There
are no contracts, agreements or understandings between Artesian Resources
and/or any person that would give rise to a valid claim against Artesian
Resources and/or any Underwriter for a brokerage commission, finder&#146;s fee or
other like payment in connection with the transactions contemplated herein, the
Registration Statement, the Disclosure Package and the Prospectus, or in any
contracts, agreements, understandings, payments, arrangements or issuances with
respect to Artesian Resources or, to the knowledge of Artesian Resources, any
of its officers, directors, stockholders, employees or affiliates that may
affect any Underwriter&#146;s compensation as determined by the NASD.</font></h2>

<p style="margin:0in 0in 12.0pt 256.5pt;page-break-after:avoid;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(jj)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources is not, and after giving effect to the
offering and sale of the Shares and the application of the proceeds therefor
described in the Registration Statement, the Disclosure Package and the
Prospectus will not be an &#147;investment company&#148; or an entity &#147;controlled&#148; by an &#147;investment
company,&#148; as such terms are defined in the Investment Company Act of 1940, as
amended.&#160; None of the Subsidiaries is an &#147;investment
company&#148; as defined in the Investment Company Act of 1940, as amended.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(kk)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (i)&nbsp;Artesian Resources and the Subsidiaries have
received all permits, licenses, franchises, authorizations, registrations,
qualifications and approvals (collectively, &#147;<u>Permits</u>&#148;) of governmental
or regulatory authorities as may be required to own their properties and
conduct their businesses in the manner described in the Registration Statement,
the Disclosure Package and the Prospectus, subject to such qualifications as
may be set forth in the Registration Statement, the Disclosure Package and the
Prospectus, except to the extent that failure to receive such Permits would not
have a material adverse effect on the Business Conditions of Artesian Resources
or its Subsidiaries; (ii)&nbsp;Artesian Resources and the Subsidiaries have
fulfilled and performed all of their material obligations with respect to such
Permits, and no event has occurred which allows or, after notice or lapse of
time or both, would allow revocation or termination thereof or result in any
other material impairment of the rights of the holder of any such Permit,
subject in each case to such qualifications as may be set forth in the
Registration Statement, the Disclosure Package and the Prospectus; and
(iii)&nbsp;except as described in the Registration Statement, the Disclosure
Package and the Prospectus, such Permits contain no restrictions that
materially affect the ability of Artesian Resources or the Subsidiaries to
conduct their businesses.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ll)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No statement, representation, warranty or covenant made by
Artesian Resources or any of the Subsidiaries in this Agreement or in any
certificate or document required by this Agreement to be delivered to the
Underwriters is, or as of the Closing Date or any Option Closing Date will be,
inaccurate, untrue or incorrect in any material respect.&#160; No transaction has occurred or is proposed
between or among Artesian Resources or any of the Subsidiaries and any of their
respective officers, directors or stockholders or any affiliate of the
foregoing, that is required to be described in and is not described in the Registration
Statement, the Disclosure Package or the Prospectus.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(mm)&#160;&#160;&#160;&#160;&#160;&#160; None of Artesian Resources, the Subsidiaries or any officer,
director, employee, partner, agent or other person acting on behalf of Artesian
Resources or the Subsidiaries has, directly or indirectly, given or agreed to
give any money, property or similar benefit or consideration to any customer or
supplier (including any employee or agent of any customer or supplier) or
official or employee of any agency or instrumentality of any government (foreign
or domestic) or political party or candidate for office (foreign or domestic)
or any other person who was, is or in the future may be in a position to affect
the Business Conditions of Artesian Resources or any of the Subsidiaries or any
actual or proposed business transaction of Artesian Resources or any of the
Subsidiaries that (i)&nbsp;could subject Artesian Resources or any of the
Subsidiaries to any liability (including, but not limited to, the payment of
monetary damages) or penalty in any civil, criminal or governmental action or
proceeding that would have a material adverse effect on the Business Conditions
of Artesian Resources or any of the Subsidiaries or (ii)&nbsp;with respect to
Artesian Resources, the Subsidiaries, or any officer or</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">director thereof, violates any law, rule or
regulation to which Artesian Resources or any of the Subsidiaries is subject.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(nn)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources has an audit committee whose composition
satisfies the requirements of the Exchange Act, the rules and regulations of
the SEC adopted thereunder and Rules 4200 and 4350 of the NASD that are
applicable as of the Closing Date.&#160;
Artesian Resources&#146; audit committee has adopted a charter that satisfies
the Exchange Act, the rules and regulations of the SEC adopted thereunder and Rules
4200 and 4350 of the NASD that are applicable as of the Closing Date.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(oo)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At the time of filing the Registration Statement and as of
the date of the execution and delivery of this Agreement (with such date being
used as the determination date for purposes hereof), Artesian Resources was not
and is not an Ineligible Issuer (as defined in Rule 405 of the Act), without
taking account of any determination by the SEC pursuant to Rule 405 of the Act
that it is not necessary that Artesian Resources be considered an Ineligible
Issuer.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(pp)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any certificate signed by any officer of Artesian Resources
or any of the Subsidiaries in such capacity and delivered to the Underwriters
or to counsel for the Underwriters pursuant to this Agreement shall be deemed a
representation and warranty by Artesian Resources or the Subsidiaries as the
case may be, to each Underwriter as to the matters covered thereby.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Purchase and Sale of Firm Shares</u>.</b>&#160; On the basis of the representations,
warranties, covenants and agreements contained herein, but subject to the terms
and conditions set forth herein, Artesian Resources shall sell the Firm Shares
to the several Underwriters at the Offering Price less the Underwriting
Discounts and Commissions shown on the cover page of the Prospectus, and the
Underwriters, severally and not jointly, shall purchase from Artesian Resources
on a firm commitment basis, at the Offering Price less the Underwriting
Discounts and Commissions shown on the cover page of the Prospectus, the
respective amounts of the Firm Shares set forth opposite their names on <u>Schedule&nbsp;I</u>
hereto.&#160; In making this Agreement, each
Underwriter is contracting severally and not jointly, and except as provided in
<u>Sections 4</u> and <u>12</u> hereof, the agreement of each Underwriter is to
purchase only that number of Shares specified with respect to that Underwriter
in <u>Schedule&nbsp;I</u> hereto.&#160; The
Underwriters shall offer the Shares to the public as set forth in the
Prospectus.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Payment and Delivery</u>.</b>&#160; The Firm Shares shall be issued in the form
of one or more fully registered global securities (the &#147;<u>Global Securities</u>&#148;)
in book-entry form in such denominations and registered in the name of the
nominee of The Depository Trust Company (&#147;<u>DTC</u>&#148;) or in such names as the
Underwriters may request upon at least 48 hours&#146; prior notice to Artesian
Resources and shall be delivered by or on behalf of Artesian Resources to the
Underwriters for the account of such Underwriter against payment by such
Underwriter on its behalf of the purchase price therefor by wire transfer of
immediately available funds to such accounts as Artesian Resources shall
designate in writing (with all costs and expenses incurred by the Underwriters
in connection with such settlement in immediately available funds, including,
but not limited to, interest or cost of funds and expenses, to be borne by
Artesian Resources).&#160; The closing of the
sale and purchase of the Firm Shares shall be held at the offices of Ballard
Spahr Andrews &amp; Ingersoll, LLP, 1735 Market Street, Philadelphia,
Pennsylvania for</font></h1>


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<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the respective accounts
of the Underwriters.&#160; Such payment and
delivery will be made at 10:00&nbsp;a.m., Philadelphia, Pennsylvania time, on
the fourth business day after the date of this Agreement, or at such other time
on the same or such other date, not later than seven business days thereafter
as shall be designated in writing by the Underwriters.&#160; Such time and date are referred to herein as
the &#147;<u>Closing Date</u>.&#148;&#160; Artesian
Resources shall make the Global Securities representing the Firm Shares
available for examination by the Underwriters and counsel for the Underwriters
at the Philadelphia correspondent office of Artesian Resources&#146; transfer agent
not less than one full business day prior to the Closing Date.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Option to Purchase Optional Shares</u>.</b></font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For the purposes of covering any over-allotments in
connection with the distribution and sale of the Firm Shares as contemplated by
the Prospectus, subject to the terms and conditions herein set forth, the
several Underwriters are hereby granted an option by Artesian Resources to
purchase all or any part of the Optional Shares (the &#147;<u>Over-allotment Option</u>&#148;).&#160; The purchase price to be paid for the
Optional Shares shall be the Offering Price less the Underwriting Discounts and
Commissions shown on the cover page of the Prospectus.&#160; The Over-allotment Option granted hereby may
be exercised by the Underwriters as to all or any part of the Optional Shares
at any time and from time to time within 30 days after the date of the Prospectus.&#160; No Underwriter shall be under any obligation
to purchase any Optional Shares prior to an exercise of the Over-allotment
Option.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Over-allotment Option granted hereby may be exercised
by the Underwriters by giving notice to Artesian Resources by a letter sent by
facsimile (such notice to be effective when received), addressed as provided in
<u>Section&nbsp;14</u> hereof, setting forth the number of Optional Shares to
be purchased, the date and time for delivery of and payment for the Optional
Shares and stating that the Optional Shares referred to therein are to be used
for the purpose of covering over-allotments in connection with the distribution
and sale of the Firm Shares.&#160; If such
notice is given at least two full business days prior to the Closing Date, the
date set forth therein for such delivery and payment shall be not earlier than
the Closing Date.&#160; If such notice is
given after two full business days prior to the Closing Date, the date set
forth therein for such delivery and payment shall be a date selected by the
Underwriters not later than five full business days after the exercise of the
Over-allotment Option.&#160; The date and time
set forth in such a notice is referred to herein as an &#147;<u>Option Closing Date</u>,&#148;
and a closing held pursuant to such a notice is referred to herein as an &#147;<u>Option
Closing</u>.&#148;&#160; Upon each exercise of the
Over-allotment Option, and on the basis of the representations, warranties,
covenants and agreements herein contained, and subject to the terms and
conditions herein set forth, the several Underwriters shall become severally,
but not jointly, obligated to purchase from Artesian Resources the number of
Optional Shares specified in each notice of exercise of the Over-allotment
Option (allocated among them in accordance with <u>Section&nbsp;4(c)</u>
hereof).</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The number of Optional Shares to be purchased by each
Underwriter pursuant to each exercise of the Over-allotment Option shall be the
number that bears the same ratio to the aggregate number of Optional Shares
being purchased through such Over-allotment Option exercise as the number of
Firm Shares opposite the name of such Underwriter in <u>Schedule&nbsp;I</u>
hereto bears to the total number of all Firm Shares.&#160; Notwithstanding the foregoing, the number of
Optional Shares purchased and sold pursuant to each exercise of the Over-</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">allotment Option shall be subject to such
adjustment as the Underwriters may approve to eliminate fractional shares.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Optional Shares shall be issued in the form of one or
more Global Securities in book-entry form in such denominations and registered
in the name of the nominee of DTC or in such names as the Underwriters may
request upon at least 48 hours&#146; prior notice to Artesian Resources, and shall
be delivered by or on behalf of Artesian Resources to the Underwriters for the
account of such Underwriter, against payment by such Underwriter on its behalf
of the purchase price therefor by wire transfer of immediately available funds
to such accounts as Artesian Resources shall designate in writing (with all
costs and expenses incurred by the Underwriters in connection with such
settlement in immediately available funds, including, but not limited to,
interest or cost of funds and expenses, to be borne by Artesian
Resources).&#160; The closing of the sale and
purchase of the Optional Shares shall be held at the offices of Ballard Spahr
Andrews &amp; Ingersoll, LLP, 1735 Market Street, Philadelphia, Pennsylvania
for the respective accounts of the Underwriters.&#160; Such payment and delivery will be made at
10:00 a.m., Philadelphia, Pennsylvania time, on the Option Closing Date.&#160; Artesian Resources shall make the Global
Securities representing the Optional Shares available for examination by the
Underwriters and counsel for the Underwriters at the Philadelphia correspondent
office of Artesian Resources&#146; transfer agent not less than one full business
day prior to the Option Closing Date.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Certain Covenants and Agreements of Artesian
Resources</u>.</b>&#160; Artesian
Resources covenants and agrees with the several Underwriters as follows:</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources will comply with the requirements of
Rule 430B of the Regulations.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources will not file with the SEC, the
Prospectus, any amendment or supplement to the Prospectus or any amendment to
the Registration Statement or the Disclosure Package, and will not use,
authorize, refer to or file any Issuer Free Writing Prospectus, unless the
Underwriters have received a reasonable period of time to review any such
proposed amendment, supplement or Issuer Free Writing Prospectus and have not
reasonably objected to the filings thereof, and will use its best efforts to
cause any such amendment to the Registration Statement to be declared effective
as promptly as possible.&#160; Upon reasonable
request of the Underwriters or counsel for the Underwriters, Artesian Resources
will promptly prepare and file with the SEC, in accordance with the
Regulations, any amendments to the Registration Statement or amendments or
supplements to the Prospectus or the Disclosure Package that may be necessary
or advisable in connection with the distribution of the Shares by the several
Underwriters and will use its best efforts to cause any such amendment to the
Registration Statement to be declared effective as promptly as possible.&#160; If required, Artesian Resources will file any
amendment or supplement to the Prospectus or the Disclosure Package with the
SEC in the manner and within the time period required by Rule 424(b) or Rule
433 under the Act.&#160; Artesian Resources
will advise the Underwriters, promptly after receiving notice thereof, of the
time when any amendment to the Registration Statement has been filed or
declared effective or the Prospectus or the Disclosure Package, or any
amendment or supplement thereto has been filed and will provide evidence to the
Underwriters of each filing or effectiveness.</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources will advise the Underwriters
immediately, and confirm such advice in writing, (i)&nbsp;when any
post-effective amendment to the Registration Statement is filed with the SEC
under Rule 462(c) under the Act or otherwise, (ii)&nbsp;when any Rule 462(b)
Registration Statement is filed, (iii)&nbsp;of the receipt of any comments from
the SEC concerning the Registration Statement, (iv)&nbsp;when any
post-effective amendment to the Registration Statement becomes effective, or
when any supplement to the Prospectus or the Disclosure Package or any amended
Prospectus or Disclosure Package has been filed, (v)&nbsp;of any request of the
SEC for amendment or supplementation of the Registration Statement, the
Disclosure Package or the Prospectus or for additional information, (vi)&nbsp;during
the period when a prospectus is required to be delivered under the Act and
Regulations (the &#147;<u>Prospectus Delivery Period</u>&#148;), of the happening of any
event as a result of which any Prospectus would include an untrue statement of
a material fact or omit to state a material fact necessary to make the
statements therein not misleading, (vii)&nbsp;during the Prospectus Delivery
Period, of the need to amend the Registration Statement or supplement the
Prospectus to comply with the Act, (viii)&nbsp;of the issuance by the SEC of
any stop order suspending the effectiveness of the Registration Statement or of
any order preventing or suspending the use of any Preliminary Prospectus or the
Prospectus, and (ix)&nbsp;of the suspension of the approval of the Shares for
listing on The NASDAQ Global Market or the qualification of any of the Shares
for offering or sale in any jurisdiction in which the Underwriters intend to
make such offers or sales, or the initiation or threatening of any proceedings
for any of such purposes known to Artesian Resources.&#160; Artesian Resources will use its best efforts
to prevent the issuance of any such stop order or of any order preventing or
suspending such use, and if any such order is issued, to obtain as soon as
possible the lifting thereof.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources has delivered to the Underwriters,
without charge, as many copies of each Preliminary Prospectus as the
Underwriters have reasonably requested.&#160;
Artesian Resources will deliver, without charge, to the Underwriters,
such number of copies of the Registration Statement, the Disclosure Package and
the Prospectus, and any supplements or amendments thereto, as the Underwriters
may reasonably request from time to time during the Prospectus Delivery
Period.&#160; Artesian Resources hereby
consents to the use of such copies of the Disclosure Package and the Prospectus
for purposes permitted by the Act, the Regulations and the securities or Blue
Sky laws of the states or foreign jurisdictions in which the Shares are offered
by the several Underwriters and by all dealers to whom Shares may be sold, both
in connection with the offering and sale of the Shares and during the
Prospectus Delivery Period.&#160; Artesian
Resources has furnished or will furnish to the Underwriters at least one
original signed copy of the Registration Statement as originally filed and of
all amendments and supplements thereto, whether filed before or after the
Effective Time, at least one copy of all exhibits filed therewith and of all
consents and certificates of experts, and will deliver to the Underwriters such
number of conformed copies of the Registration Statement, including financial
statements and exhibits, and all amendments thereto, as the Underwriters may
reasonably request.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources will comply with the Act, the Regulations,
the Exchange Act and the rules and regulations thereunder so as to permit the
continuation of sales of and dealings in the Shares for as long as may be
necessary to complete the distribution of the Shares as contemplated hereby.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources will furnish such information and pay
such filing fees and other expenses as may be required, including its counsel&#146;s
reasonable legal fees, and</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">otherwise cooperate in the registration or
qualification of the Shares, or exemption therefrom, for offering and sale by
the several Underwriters and by dealers under the securities or Blue Sky laws
of such jurisdictions in which the Underwriters determine to offer the Shares,
after consultation with Artesian Resources, and will file such consents to
service of process or other documents necessary or appropriate in order to
effect such registration or qualification; provided, however, that no such
qualification shall be required in any jurisdiction where, solely as a result
thereof, Artesian Resources would be subject to taxation or qualification as a
foreign corporation doing business in such jurisdiction where it is not now so
qualified or to take any action which would subject it to service of process in
suits, other than those arising out of the offering or sale of the Shares, in
any jurisdiction where it is not now so subject.&#160; Artesian Resources will, from time to time,
prepare and file such statements and reports as are or may be required to
continue such qualification in effect for so long a period as is required under
the laws of such jurisdictions for such offering and sale.&#160; Artesian Resources will furnish such
information and pay such filing fees and other expenses as may be required, and
otherwise cooperate in the listing of the Shares on The NASDAQ Global
Market.&#160; Artesian Resources will, from
time to time, prepare and file such statements and reports as are or may be
required to continue such qualification in effect for a period of three years
from the date hereof.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subject to <u>Section&nbsp;5(b)</u> hereof, in case of any
event occurring at any time within the Prospectus Delivery Period, as a result
of which the Disclosure Package or the Prospectus, as then amended or
supplemented, would contain, in the opinion of counsel for the Underwriters, an
untrue statement of a material fact, or omit to state any material fact
necessary in order to make the statements therein not misleading, or, if it is
necessary at any time to amend the Disclosure Package or the Prospectus to
comply with the Act or the Regulations or any applicable securities or Blue Sky
laws, Artesian Resources promptly will prepare and file with the SEC, and any
applicable state and foreign securities commission, an amendment, supplement or
document that will correct such statement or omission or effect such compliance
and will furnish to the several Underwriters such number of copies of such
amendments, supplements or documents (in form and substance satisfactory to the
Underwriters and counsel for the Underwriters) as the Underwriters may reasonably
request.&#160; For purposes of this <u>Section&nbsp;5(g)</u>,
Artesian Resources will provide such information to the Underwriters, the
Underwriters&#146; counsel and counsel to Artesian Resources as shall be necessary
to enable such persons to consult with Artesian Resources with respect to the
need to amend or supplement the Registration Statement, the Disclosure Package
or the Prospectus or file any document, and shall furnish to the Underwriters
and the Underwriters&#146; counsel such further information as each may from time to
time reasonably request.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources agrees that, unless it obtains the
prior written consent of the Underwriters, not to be unreasonably withheld, it
will not make any offer relating to the Shares that would constitute an Issuer
Free Writing Prospectus or that would otherwise constitute a &#147;free writing
prospectus&#148; (as defined in Rule 405 of the Act) required to be filed by
Artesian Resources with the SEC or retained by Artesian Resources under Rule
433 of the Act; provided that the prior written consent of the Underwriters
shall be deemed to have been given in respect of the free writing prospectuses
included in <u>Schedule&nbsp;I</u> hereto.&#160;
Any such free writing prospectus consented to by the Underwriters is
hereinafter referred to as a &#147;<u>Permitted Free Writing Prospectus</u>.&#148;&#160; Artesian Resources agrees that (i)&nbsp;it
has treated and will treat, as the case may be, each Permitted Free Writing
Prospectus as an Issuer Free Writing Prospectus, and (ii)&nbsp;has</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">complied and will comply, as the case may be,
with the requirements of Rules 164 and 433 of the Act applicable to any
Permitted Free Writing Prospectus, including in respect of timely filing with
the SEC, legending and record keeping.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources will make generally available to its
security holders and the Underwriters as soon as practicable an earning
statement that satisfies the provisions of Section&nbsp;11(a) of the Act and
Rule&nbsp;158 promulgated thereunder covering a period of at least twelve
months beginning with the first fiscal quarter of Artesian Resources occurring
after the &#147;effective date&#148; (as defined in Rule&nbsp;158) of the Registration
Statement.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For a period of three years from the date hereof,
Artesian Resources will deliver to the Underwriters:&#160; (i)&nbsp;a copy of each report or document,
including, without limitation, reports on Forms 8-K, 10-K and 10-Q (or such
similar forms as may be designated by the SEC), registration statements and any
exhibits thereto, filed or furnished to the SEC or any securities exchange or
the NASD, on or promptly after the date each such report or document is so
filed or furnished; (ii)&nbsp;as soon as practicable, copies of any reports or
communications (financial or other) of Artesian Resources mailed to its
security holders; and (iii)&nbsp;every material press release in respect of
Artesian Resources or its affairs that is released or prepared by Artesian
Resources.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; During the course of the distribution of the Shares,
Artesian Resources and the Subsidiaries will not and Artesian Resources shall
cause its officers and directors not to, (i)&nbsp;take, directly or indirectly,
any action designed to, or that could reasonably be expected to, cause or
result in stabilization or manipulation of the price of the Class A Common
Stock or (ii)&nbsp;sell, bid for, purchase or pay anyone any compensation for
soliciting purchases of, the Shares.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources has caused each person listed on <u>Schedule&nbsp;III</u>
hereto to execute an agreement (a &#147;<u>Lock-Up Agreement</u>&#148;) in the form set
forth as <u>Exhibit A</u> hereto.&#160;
Artesian Resources has delivered such Lock-Up Agreements to the
Underwriters prior to the date of this Agreement.&#160; Appropriate stop transfer instructions will
be issued by Artesian Resources to the transfer agent for the Class A Common
Stock and a copy of such instructions will be delivered to the Underwriters.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources has executed a Lock-Up Agreement in the
form set forth as <u>Exhibit B</u> hereto.&#160;
Artesian Resources has delivered such Lock-Up Agreement to the
Underwriters prior to the date of this Agreement.&#160; Appropriate stop transfer instructions will
be issued by Artesian Resources to the transfer agent for the Class A Common
Stock and a copy of such instructions will be delivered to the Underwriters.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For a period of three years from the date hereof, Artesian
Resources will use all reasonable efforts to maintain the listing of the Class
A Common Stock (including, without limitation, the Shares) on The NASDAQ Global
Market or on a national securities exchange.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources shall, at its sole cost and expense,
supply and deliver to the Underwriters and the Underwriters&#146; counsel, within a
reasonable period from the Closing</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date transaction binders in such number and
in such form as the Underwriters reasonably request.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources will use the net proceeds from the sale
of the Shares to be sold by it hereunder substantially in accordance with the
description set forth under the caption &#147;Use of Proceeds&#148; in the Prospectus.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Certain Covenants and Agreement of the
Underwriters</u>.</b>&#160; The
Underwriters agree that, unless the Underwriters obtain the prior written
consent of Artesian Resources, they will not make any offer relating to the
Shares that would constitute a &#147;free writing prospectus&#148; (as defined in Rule
405 of the Act) required to be filed by Artesian Resources with the SEC or
retained by Artesian Resources under Rule 433 of the Act; provided that the
prior written consent of Artesian Resources shall be deemed to have been given
in respect of the free writing prospectuses included in <u>Schedule&nbsp;II</u>
hereto.&#160; Any such free writing prospectus
consented to by Artesian Resources is hereinafter deemed to be a Permitted Free
Writing Prospectus.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Payment of Fees and Expenses</u>.</b></font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Whether or not the transactions contemplated by this
Agreement are consummated and regardless of the reason this Agreement is
terminated, Artesian Resources will pay or cause to be paid, and bear or cause
to be borne, all costs and expenses incident to the performance of the
obligations of Artesian Resources under this Agreement, including:&#160; (i)&nbsp;the fees and expenses of the
accountants and counsel for Artesian Resources incurred in the preparation of
the Registration Statement and any post-effective amendments thereto (including
financial statements and exhibits), the Disclosure Package, any Preliminary
Prospectuses and the Prospectus and any amendments or supplements thereto;
(ii)&nbsp;printing and mailing expenses associated with the Registration
Statement and any post-effective amendments thereto, the Disclosure Package,
any Preliminary Prospectus, the Prospectus, this Agreement, the Underwriters&#146;
Questionnaire, the power of attorney executed by each of the Underwriters, the
Selected Dealer Agreement and any related documents and any Blue Sky memorandum
(and any supplement thereto); (iii)&nbsp;the costs and expenses (other than
fees and expenses of the Underwriters&#146; counsel except such fees incurred in
connection with Blue Sky and NASD filings or exemptions as provided herein)
incident to the authentication, issuance, sale and delivery of the Shares to
the Underwriters; (iv)&nbsp;the fees, expenses and all other costs of
qualifying the Shares for sale under the securities or Blue Sky laws of those
states or foreign jurisdictions in which the Shares are to be offered or sold,
including the reasonable fees and expenses of Underwriters&#146; counsel and such
local counsel as may have been reasonably required and retained for such
purpose; (v)&nbsp;the fees, expenses and other costs of, or incident to,
securing any review or approvals by or from the NASD, (including the reasonable
fees and expenses of the Underwriters&#146; counsel, provided that the aggregate
fees and expenses for Underwriters&#146; counsel under this clause (v)&nbsp;and
clause (iv)&nbsp;above shall not exceed $10,000), (vi)&nbsp;the filing fees of
the SEC; (vii)&nbsp;the cost of furnishing to the Underwriters copies of the
Registration Statement, any Issuer Free Writing Prospectuses, any Preliminary
Prospectuses and Prospectuses as herein provided; (viii)&nbsp;Artesian
Resources&#146; travel expenses in connection with meetings with the brokerage community
and institutional investors; (ix)&nbsp;the costs and expenses associated with
settlement in same day funds (including, but not limited to, interest or cost
of funds expenses), if desired by Artesian Resources; (x)&nbsp;any fees or
costs payable to The NASDAQ Global Market as</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a result of the offering; (xi)&nbsp;the cost
of preparing, issuing and delivery to the Underwriters of any certificates
evidencing the Shares; (xii)&nbsp;the costs and charges of any transfer agent;
(xiii)&nbsp;the reasonable costs of advertising the offering; (xiv)&nbsp;all
taxes, if any, on the issuance, delivery and transfer of the Shares sold by
Artesian Resources; and (xv)&nbsp;all other costs and expenses reasonably
incident to the performance of Artesian Resources&#146; obligations hereunder that
are not otherwise specifically provided for in this <u>Section&nbsp;7(a)</u>;
provided, however, that, except as specifically set forth in <u>Section&nbsp;7(c)</u>
hereof, the Underwriters shall be responsible for their out-of-pocket expenses,
including those associated with meetings with the brokerage community and
institutional investors, other than Artesian Resources&#146; travel expenses, and
the fees and expenses of their counsel for other than with respect to Blue Sky
and NASD matters.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On the Closing Date, Artesian Resources shall pay the Underwriters
a non-accountable expense allowance in the amount of $50,000.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If (i)&nbsp;the Underwriters are willing to proceed with
the Offering, and the transactions contemplated by this Agreement are not
consummated because Artesian Resources elects not to proceed with the offering
for any reason or (ii)&nbsp;the Underwriters terminate this Agreement pursuant
to <u>Section&nbsp;11(b)(i)</u> hereof, then Artesian Resources will reimburse
the Underwriters for their out-of-pocket expenses relating to the Offering
(including but not limited to fees and disbursements to their counsel);
provided, however, such reimbursement shall not exceed $115,000.&#160; The Underwriters shall present a reasonable
accounting of all expenses for which reimbursement is claimed hereunder.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Conditions of Underwriters&#146; Obligations</u>.</b>&#160; The obligation of each Underwriter to
purchase and pay for the Firm Shares that it has agreed to purchase hereunder
on the Closing Date, and to purchase and pay for any Optional Shares as to
which it exercises its right to purchase under <u>Section&nbsp;4</u> on an
Option Closing Date, is subject at the date hereof, the Closing Date and any
Option Closing Date to the continuing accuracy and fulfillment of the
representations and warranties of Artesian Resources, to the performance by
Artesian Resources of its covenants and obligations hereunder, and to the
following additional conditions:</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Preliminary Prospectus and the Prospectus shall have
been filed with the SEC pursuant to Rule 424(b) of the Regulations within the
applicable time period prescribed for such filing by the Regulations.&#160; Artesian Resources shall have filed any
material required to be filed by Artesian Resources with the SEC in the manner
and within the time period required by Rule 433 of the Regulations, including
any Issuer Free Writing Prospectus and any Other Free Writing Prospectus.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If Artesian Resources elects to rely upon Rule 462(b),
Artesian Resources shall file a Rule 462(b) Registration Statement with the SEC
in compliance with Rule 462(b) by 10:00 P.M., Washington, D.C. time, on the
date of this Agreement, and Artesian Resources shall at the time of filing
either pay to the SEC the filing fee for the Rule 462(b) Registration Statement
or give irrevocable instructions for the payment of such fee pursuant to Rule
111(b) under the Act.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On or prior to the Closing Date or any Option Closing
Date, as the case may be, no stop order or other order preventing or suspending
the effectiveness of the</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registration Statement (including any
document incorporated by reference therein), the 462(b) Registration Statement
or any post-effective amendment to the Registration Statement or the sale of
any of the Shares shall have been issued under the Act or any state or foreign
securities law, and no proceedings for that purpose shall have been initiated
or shall be pending or, to the Underwriters&#146; knowledge or the knowledge of
Artesian Resources, shall be contemplated by the SEC or by any authority in any
jurisdiction designated by the Underwriters pursuant to <u>Section&nbsp;5(f)</u>
hereof.&#160; Any request on the part of the
SEC or any state or foreign securities authority for additional information
shall have been complied with to the reasonable satisfaction of counsel for the
Underwriters.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Underwriters shall have received from the Underwriters&#146;
counsel, Ballard Spahr Andrews &amp; Ingersoll, LLP, an opinion, dated as of
the Closing Date and any Option Closing Date, as the case may be, and addressed
to the Underwriters, which opinion shall be satisfactory in all respects to the
Underwriters.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Underwriters shall have received a copy of an executed
Lock-Up Agreement from each of the persons listed on <u>Schedule&nbsp;III</u>
hereto.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On the Closing Date and any Option Closing Date, there
shall have been delivered to the Underwriters the opinion of Morgan, Lewis
&amp; Bockius LLP, counsel for Artesian Resources, and Morris, Nichols, Arsht
&amp; Tunnell LLP, regulatory counsel for Artesian Resources, dated as of such
date and addressed to the Underwriters to the effect as is reasonably satisfactory
to the Underwriters.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At the Closing Date and any Option Closing Date:&#160; (i)&nbsp;the Registration Statement and any
post-effective amendment thereto and the Disclosure Package and the Prospectus
and any amendments or supplements thereto shall contain all statements that are
required to be stated therein in accordance with the Act and the Regulations,
and shall conform to the requirements of the Act and the Regulations in all
material respects, and none of the Registration Statement nor any
post-effective amendment thereto, the Disclosure Package and the Prospectus and
any amendments or supplements thereto shall contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading; (ii)&nbsp;since the
respective dates as of which information is given in the Registration Statement
and any post-effective amendment thereto and the Disclosure Package and the
Prospectus and any amendments or supplements thereto, except as otherwise
stated therein, there shall have been no material adverse change in the
Business Conditions of Artesian Resources from that set forth therein whether
or not arising in the ordinary course of business; (iii)&nbsp;since the
respective dates as of which information is given in the Registration
Statement, the Disclosure Package and the Prospectus or any amendment or
supplement thereto, there shall have been no event or transaction, contract or
agreement entered into by Artesian Resources or any of the Subsidiaries other
than in the ordinary course of business and as set forth in the Registration
Statement, the Disclosure Package or the Prospectus, that has not been, but
would be required to be, set forth in the Registration Statement, the
Disclosure Package or Prospectus; (iv)&nbsp;since the respective dates as of
which information is given in the Registration Statement and any post-effective
amendment thereto and the Disclosure Package and the Prospectus and any
amendments or supplements thereto, there shall have been no material adverse
change, loss, reduction, termination or non-renewal of any contract to which</font></h2>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Artesian Resources or any of the Subsidiaries
is a party, that has not been, but would be required to be set forth in the
Registration Statement, the Disclosure Package or the Prospectus; and
(v)&nbsp;no action, suit or proceeding at law or in equity shall be pending or
threatened against Artesian Resources or any of the Subsidiaries that would be
required to be set forth in the Disclosure Package or the Prospectus, other
than as set forth therein, and no proceedings (other than rate cases filed by
Artesian Resources or its Subsidiaries) shall be pending or threatened against
or directly affecting Artesian Resources or any of the Subsidiaries&#160; before or by any federal, state or other
commission, board or administrative agency wherein an unfavorable decision,
ruling or finding would materially adversely affect the Business Conditions of
Artesian Resources.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Underwriters shall have received at the Closing Date
and any Option Closing Date certificates of the Chief Executive Officer and the
Chief Financial Officer of Artesian Resources dated as of the date of the
Closing Date or Option Closing Date, as the case may be, and addressed to the
Underwriters to the effect that (i)&nbsp;the representations and warranties of
Artesian Resources in this Agreement are true and correct, as if made at and as
of the Closing Date or the Option Closing Date, as the case may be, and that
Artesian Resources has complied with all the agreements, fulfilled all the
covenants and satisfied all the conditions on its part to be performed,
fulfilled or satisfied at or prior to the Closing Date or the Option Closing
Date, as the case may be, and (ii)&nbsp;the signers of the certificate have
carefully examined the Registration Statement, the Disclosure Package and the
Prospectus and any amendments or supplements thereto, and the conditions set
forth in <u>Section&nbsp;8(g)</u> hereof have been satisfied.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At the time this Agreement is executed and at the Closing
Date and any Option Closing Date, the Underwriters shall have received a
letter, dated the date of delivery thereof, from each of BDO Seidman LLP and
KPMG LLP with respect to certain of the financial statements and certain
financial information of Artesian Resources and the Subsidiaries set forth in
or incorporated by reference in the Registration Statement, the Disclosure
Package and the Prospectus, each such letter addressed to the Underwriters
containing statements and information of the type ordinarily included in
accountants&#146; &#147;comfort letters&#148; and in form and substance satisfactory to the
Underwriters in all respects; provided, that each such letter shall use a &#147;cut-off&#148;
date no more than five business days prior to the date of such letter.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All corporate and other proceedings and other matters
incident to the authorization, form and validity of this Agreement and the form
of the Registration Statement, the Disclosure Package and Prospectus and all
other legal matters related to this Agreement and the transactions contemplated
hereby shall be reasonably satisfactory in all respects to counsel to the
Underwriters.&#160; Artesian Resources shall
have furnished to such counsel all documents and information that they shall
have reasonably requested to enable them to pass upon such matters.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The NASD shall have confirmed that it has not raised any
objection with respect to the fairness and reasonableness of the underwriting
terms and arrangements.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Shares shall have been listed on The NASDAQ Global
Market.</font></h2>


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<div>


<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At the Closing Date and any Option Closing Date, the
Underwriters shall have been furnished such additional documents, information
and certificates as they shall have reasonably requested.</font></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All such opinions, certificates, letters and documents shall be in
compliance with the provisions hereof only if they are reasonably satisfactory
in form and substance to the Underwriters and the Underwriters&#146; counsel.&#160; Artesian Resources shall furnish the
Underwriters with such conformed copies of such opinions, certificates, letters
and other documents as they shall reasonably request.&#160; If any condition to the Underwriters&#146;
obligations hereunder to be fulfilled prior to or at the Closing Date or any
Option Closing Date, as the case may be, is not fulfilled, the Underwriters
may, terminate this Agreement with respect to the Closing Date or such Option
Closing Date, as applicable, or, if they so elect, waive any such conditions
which have not been fulfilled or extend the time for their fulfillment.&#160; Any such termination shall be without
liability of the Underwriters to Artesian Resources, except that <u>Section&nbsp;7</u>
and <u>Section&nbsp;9</u> shall at all times be effective and shall survive
such termination.</font></p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Indemnification and Contribution</u>.</b></font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Artesian Resources shall indemnify and hold harmless each
Underwriter, and each person, if any, who controls each Underwriter within the
meaning of the Act and the Exchange Act, against any and all loss, liability,
claim, damage and expense whatsoever, including, but not limited to, any and all
reasonable expenses incurred in investigating, preparing or defending against
any litigation, commenced or threatened, or any claim whatsoever or in
connection with any investigation or inquiry of, or action or proceeding that
may be brought against, the respective indemnified parties, arising out of or
based upon any breach of Artesian Resources&#146; representations and warranties
made in this Agreement or any untrue statements or alleged untrue statements of
material fact contained in the Registration Statement, any Preliminary
Prospectus, the Disclosure Package or the Prospectus, any application or other
document filed in any jurisdiction in order to qualify all or any part of the
Shares under the securities laws thereof or filed with the SEC or The NASDAQ Global
Market (in this <u>Section&nbsp;9</u> collectively called &#147;application&#148;), or
the omission or alleged omission from any of the foregoing of a material fact
required to be stated therein or necessary to make the statements therein not
misleading; provided, however, that the foregoing indemnity shall not apply in
respect of any statement or omission made in reliance upon and in conformity
with written information furnished to Artesian Resources by any Underwriter
expressly for use in any Preliminary Prospectus, the Disclosure Package, the
Registration Statement or Prospectus, or any amendment or supplement thereto,
or in any application or in any communication to the SEC, as the case may be;
and further provided, however, that the indemnification contained in this <u>Section&nbsp;9(a)</u>
with respect to any Preliminary Prospectus shall not inure to the benefit of
any Underwriter (or to the benefit of any person controlling such Underwriter)
on account of any such loss, claim, liability or expense arising from the sale
of the Shares by such Underwriter to any person if a copy of the Disclosure
Package shall not have been delivered or sent to such person, and the untrue
statement or alleged untrue statement or omission or alleged omission of a
material fact contained in such Preliminary Prospectus was corrected in the
Disclosure Package, provided that Artesian Resources has delivered the
Disclosure Package to the Underwriters in requisite quantity on a timely basis
to permit such delivery or sending.&#160; The
obligations of Artesian </font></h2>


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<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Resources under this <u>Section&nbsp;9(a)</u>
will be in addition to any liability Artesian Resources may otherwise have.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each Underwriter severally and not jointly shall indemnify
and hold harmless Artesian Resources, each of the directors of Artesian
Resources, each of the officers of Artesian Resources who shall have signed the
Registration Statement, and each other person, if any, who controls Artesian
Resources within the meaning of the Act to the same extent as the foregoing
indemnities from Artesian Resources to the several Underwriters, but only with
respect to any and all loss, liability, claim, damage or expense resulting from
statements or omissions, or alleged statements or omissions, if any, made in
any Preliminary Prospectus, the Disclosure Package, the Registration Statement
or the Prospectus or any amendment or supplement thereof or any application or
in any communication to the SEC in reliance upon, and in conformity with
written information furnished to Artesian Resources by any Underwriter expressly
for use in any Preliminary Prospectus, the Disclosure Package, the Registration
Statement or the Prospectus or any amendment or supplement thereof, or any
application or in any communication to the SEC, as the case may be.&#160; The obligations of each Underwriter under
this <u>Section&nbsp;9(b)</u> will be in addition to any liability which such
Underwriter may otherwise have.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If any action, inquiry, investigation or proceeding is
brought against any person in respect of which indemnification may be sought
pursuant to <u>Section&nbsp;9(a)</u> or <u>(b)</u> hereof, such person
(hereinafter called the &#147;indemnified party&#148;) shall, promptly after notification
of, or receipt of service of process for, such action, inquiry, investigation
or proceeding, notify in writing the party or parties against whom
indemnification is to be sought (hereinafter called the &#147;indemnifying party&#148;)
of the institution of such action, inquiry, investigation or proceeding.&#160; The indemnifying party, upon the request of
the indemnified party, shall assume the defense of such action, inquiry,
investigation or proceeding, including, without limitation, the employment of
counsel (reasonably satisfactory to such indemnified party) and payment of
expenses.&#160; No indemnification provided for
in this <u>Section&nbsp;9</u> shall be available to any indemnified party who
shall fail to give such notice if the indemnifying party does not have
knowledge of such action, inquiry, investigation or proceeding to the extent
that such indemnifying party has been materially prejudiced by the failure to give
such notice, but the omission to so notify the indemnifying party shall not
relieve the indemnifying party otherwise than under this <u>Section&nbsp;9</u>.&#160; Such indemnified party shall have the right
to employ its or their own counsel in any such case, but the fees and expenses
of such counsel shall be at the expense of such indemnified party unless the
employment of such counsel shall have been authorized in writing by the
indemnifying party in connection with the defense of such action or if the
indemnifying party shall not have, within a reasonable period of time in light
of the circumstances, employed counsel to be in charge of the defense of such
action, inquiry, investigation or proceeding, or if such indemnified party or
parties shall have been advised by counsel that there may be a conflict between
the positions of the indemnifying party or parties and of the indemnified party
or parties or that there may be legal defenses available to such indemnified
party or parties different from or in addition to those available to the
indemnifying party or parties, in any of which events the indemnified party or
parties shall be entitled to select counsel to conduct the defense to the
extent determined by such counsel to be necessary to protect the interests of
the indemnified party or parties, and the reasonable fees and expenses of such
counsel shall be borne by the indemnifying party.&#160; The indemnifying party shall be responsible
for the fees and disbursements of only one such counsel so engaged by the
indemnified party or parties.&#160; Expenses
covered by the </font></h2>

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<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">indemnification in this <u>Section&nbsp;9</u>,
shall be paid by the indemnifying party as they are incurred by the indemnified
party.&#160; In the event that it is
determined that the indemnified party was not entitled to receive payments for
expenses pursuant to this <u>Section&nbsp;9</u>, the indemnified party shall
return all sums that have been paid pursuant hereto.&#160; No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement of any
pending or threatened action in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such
indemnified party unless such settlement includes an unconditional release of
such indemnified party from all liability on any claims that are the subject
matter of such action.&#160; Anything in this <u>Section&nbsp;9</u>
to the contrary notwithstanding, an indemnifying party shall not be liable for
any settlement of a claim effected without its written consent, which consent shall
not be unreasonably withheld.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the indemnification provided for in this <u>Section&nbsp;9</u>
is unavailable or insufficient to hold harmless an indemnified party under <u>Section&nbsp;9(a)</u>
or <u>(b)</u> hereof in respect of any losses, liabilities, claims, damages or
expenses (or actions, inquiries, investigations or proceedings in respect
thereof) referred to therein, except by reason of the failure to give notice as
required in <u>Section&nbsp;9(c)</u> hereof (provided that the indemnifying
party does not have knowledge of the action, inquiry, investigation or
proceeding and to the extent such party has been materially prejudiced by the
failure to give such notice), then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of such
losses, liabilities, claims, damages or expenses (or actions, inquiries,
investigations or proceedings in respect thereof in such proportion as is
appropriate to reflect the relative benefits received by Artesian Resources on
the one hand and the Underwriters on the other from the offering of the
Shares.&#160; If, however, the allocation
provided by the immediately preceding sentence is not permitted by applicable
law, then each indemnifying party shall contribute to such amount paid or
payable by such indemnified party in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of Artesian
Resources on the one hand and the Underwriters on the other in connection with
the statements or omissions which resulted in such losses, liabilities, claims
or expenses (or actions, inquiries, investigations or proceedings in respect
thereof), as well as any other relevant equitable considerations.&#160; The relative benefits received by Artesian
Resources on the one hand and the Underwriters on the other shall be deemed to
be in the same proportion as the total net proceeds from the offering (before
deducting expenses) received by Artesian Resources bears to the total
underwriting discount and commissions received by the Underwriters, in each
case as set forth in the table on the cover page of the Prospectus.&#160; The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by Artesian Resources on the one
hand or the Underwriters on the other hand and the parties&#146; relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.</font></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Artesian Resources and the Underwriters agree that it would not be just
and equitable if contributions to this <u>Section&nbsp;9(d)</u> were determined
by pro rata allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation that does not take account
of the equitable considerations referred to above in this <u>Section&nbsp;9(d)</u>.&#160; The amount paid or payable by an indemnified
party as a result of the losses, liabilities, claims, damages or expenses (or
actions, inquiries, investigations or proceedings in respect thereof) referred
to above in this <u>Section&nbsp;9(d)</u> shall be deemed to include any legal
or other expenses </font></p>

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim.&#160; Notwithstanding the provisions of this <u>Section&nbsp;9(d)</u>,
(i)&nbsp;no Underwriter shall be required to contribute any amount in excess of
the underwriting discounts and commissions applicable to the Shares purchased
by such Underwriter, and (ii)&nbsp;no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.&#160; The Underwriters&#146;
obligations in this <u>Section&nbsp;9(d)</u> to contribute are several in
proportion to their individual underwriting obligations and not joint.</font></p>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Representations and Agreements to Survive Delivery</u>.</b>&#160; Except as the context otherwise requires, all
representations, warranties and agreements contained in this Agreement shall be
deemed to be representations, warranties and agreements at the Closing Date and
any Option Closing Date.&#160; All such
representations, warranties and agreements of the Underwriters and Artesian
Resources, including, without limitation, the indemnity and contribution
agreements contained in <u>Section&nbsp;9</u> hereof and the agreements
contained in <u>Sections 5</u>, <u>7</u>, <u>11 </u>and <u>12</u> hereof, shall
remain operative and in full force and effect regardless of any investigation
made by or on behalf of the Underwriters or any controlling person, and shall
survive delivery of the Shares and termination of this Agreement, whether
before or after the Closing Date or any Option Closing Date.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Effective Time of This Agreement and Termination
Hereof</u>.</b></font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement shall become effective upon execution and
delivery hereof by the parties hereto.&#160;
The time of the public offering, for the purpose of this <u>Section&nbsp;11</u>,
shall mean the time when any of the Shares are first released by the
Underwriters for offering by dealers.&#160;
The Underwriters and Artesian Resources may prevent the provisions of
this Agreement (other than those contained in <u>Sections&nbsp;7</u>, <u>9</u>,
<u>10</u> and <u>11</u>) hereof from becoming effective without liability of
any party to any other party, except as noted below, by giving the notice
indicated in <u>Section&nbsp;11(c)</u> hereof before the time the other
provisions of this Agreement become effective.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Underwriters shall have the right to terminate this
Agreement at any time prior to the Closing Date or any Option Closing Date as
provided in <u>Sections 8</u> and <u>12</u> or if any of the following have
occurred:&#160; (i) since the respective dates
as of which information is given in the Prospectus, any material adverse change
or any development involving a prospective material adverse change in or
affecting the Business Conditions of Artesian Resources or any of the
Subsidiaries, whether or not arising in the ordinary course of business, that
would, in the Underwriters&#146; reasonable opinion, make the offering or delivery
of the Shares impracticable; (ii) any outbreak or escalation of hostilities or
other national or international calamity or crisis or change in economic,
political or financial market conditions if the effect on the financial markets
of the United States of such outbreak, calamity, crisis or change would, in the
Underwriters&#146; opinion, make the offering or delivery of the Shares
impracticable; (iii) any suspension or limitation of trading generally in
securities on the The NASDAQ Global Market or any setting of minimum prices for
trading (other than ordinary course limitations on hours or numbers of days
trading) for securities on The NASDAQ Global Market or the promulgation of any
federal or state statute, regulation, rule or order of any court or other
governmental authority that in the Underwriters&#146; opinion materially and
adversely affects trading on such exchange or over the counter market; (iv) the
enactment, publication, decree or other promulgation of any federal or </font></h2>

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<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">state statute, regulation, rule or order of
any court or other governmental authority which in the Underwriters&#146; opinion
materially and adversely affects or will materially or adversely affect the
Business Conditions of Artesian Resources; (v)&nbsp;declaration of a banking
moratorium by the United States, New York or Pennsylvania authorities; (vi) the
taking of any action by any federal, state or local government or agency in
respect of its monetary or fiscal affairs that in the Underwriters&#146; opinion has
a material adverse effect on the securities markets in the United States; or
(vii) trading in any securities of Artesian Resources shall have been suspended
or halted by The NASDAQ Global Market or the SEC.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the Underwriters elect to prevent this Agreement from
becoming effective or to terminate this Agreement as provided in this <u>Section&nbsp;11</u>,
the Underwriters shall notify Artesian Resources hereof promptly by telephone,
telex, telegraph, telegram or facsimile, confirmed by letter.</font></h2>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Default by an Underwriter</u>.</b></font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If any Underwriter or Underwriters shall default in its or
their obligation to purchase Firm Shares or Optional Shares hereunder, and if
the Firm Shares or Optional Shares with respect to which such default relates
do not exceed in the aggregate 10% of the number of Firm Shares or Optional Shares,
as the case may be, that all Underwriters have agreed to purchase on the
relevant Closing Date or Option Closing Date, then the Underwriters may make
arrangements satisfactory to Artesian Resources for the purchase of such Firm
Shares by other persons, including any of the Underwriters, but if no such
arrangements are made by the relevant Closing Date or Option Closing Date, such
Firm Shares or Optional Shares to which the default relates shall be purchased
severally by the non-defaulting Underwriters in proportion to their respective
commitments hereunder.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If such default relates to more than 10% of the Firm
Shares or Optional Shares, as the case may be, the Underwriters may in their
discretion arrange for another party or parties (including a non-defaulting
Underwriter) to purchase such Firm Shares or Optional Shares to which such
default relates, on the terms contained herein.&#160;
In the event that the Underwriters do not arrange for the purchase of
the Firm Shares or Optional Shares to which a default relates as provided in
this <u>Section&nbsp;12</u>, this Agreement may be terminated by the
Underwriters or by Artesian Resources without liability on the part of the
non-defaulting several Underwriters (except as provided in <u>Section&nbsp;9</u>
hereof) or Artesian Resources (except as provided in <u>Sections 7</u> and <u>9</u>
hereof); provided that if such default occurs with respect to Optional Shares
after the Closing Date, this Agreement will not terminate as to the Firm Shares
or any Optional Shares purchased prior to such termination.&#160; Nothing herein shall relieve a defaulting
Underwriter of its liability, if any, to the other several Underwriters and to
Artesian Resources for damages occasioned by its default hereunder.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the Firm Shares or Optional Shares to which the default
relates are to be purchased by the non-defaulting Underwriters, or are to be
purchased by another party or parties, the Underwriters or Artesian Resources
shall have the right to postpone the Closing Date or any Option Closing Date,
as the case may be, for a reasonable period but not in any event exceeding
seven days, in order to effect whatever changes may thereby be made necessary
in the Registration Statement or the Prospectus or in any other documents and
arrangements, and </font></h2>

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<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Artesian Resources agrees to file promptly
any amendment to the Registration Statement or supplement to the Prospectus
that in the opinion of counsel for the Underwriters may thereby be made
necessary.&#160; The terms &#147;Underwriters&#148; and &#147;Underwriter&#148;
as used in this Agreement shall include any party substituted under this <u>Section&nbsp;12</u>
with like effect as if it had originally been a party to this Agreement with
respect to such Firm Shares and/or Optional Shares.</font></h2>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Information Furnished by the Underwriters</u>.</b>&#160; Under the heading &#147;Underwriting&#148; in the
Statutory Prospectus and the Prospectus, the identity of the Underwriters set
forth in the first paragraph, the concession and reallowance figures appearing
in the third paragraph, the representations with respect to stabilization
activities in the seventh paragraph, and the eighth, ninth and tenth paragraphs
regarding syndicate covering transactions, penalty bids and passive market
making, constitute the only written information furnished by reference or on
behalf of any of the Underwriters referred to in <u>Sections 1(c)</u>, <u>1(d)</u>,
<u>1(e)</u> and <u>9</u> hereof.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Notice</u>.</b>&#160; All communications hereunder, except as
herein otherwise specifically provided, shall be in writing and, if sent to any
Underwriter, shall be mailed, delivered, telexed, telegrammed, telegraphed or
telecopied and confirmed to Janney Montgomery Scott LLC, 1801 Market Street,
Philadelphia, Pennsylvania 19103, Attention:&#160;
Mr.&nbsp;Joseph D. Culley, Jr., facsimile number (215) 665-6197, with a
copy to Ballard Spahr Andrews &amp; Ingersoll, LLP, 1735 Market Street,
Philadelphia, Pennsylvania 19103, Attention:&#160;
Justin P. Klein, Esquire, facsimile number (215) 864-9166; and if sent
to Artesian Resources, shall be mailed, delivered, telexed, telegrammed,
telegraphed or telecopied and confirmed to Artesian Resources Corporation, 664
Churchmans Road, Newark, Delaware 19702, Attention:&#160; Dian C. Taylor, facsimile number (302)
453-6980, with a copy to Morgan, Lewis &amp; Bockius LLP, 1701 Market Street,
Philadelphia, PA 19103, Attention:&#160;
Joanne R. Soslow, Esquire, facsimile number (215)&nbsp;963-5001.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Parties</u>.</b>&#160; This Agreement shall inure solely to the
benefit of, and shall be binding upon, the several Underwriters, Artesian
Resources and the controlling persons, directors and officers of each, and
their respective successors, assigns, heirs and legal representatives, and no
other person shall have or be construed to have any legal or equitable right,
remedy or claim under or in respect of or by virtue of this Agreement or any
provision herein contained.&#160; The terms &#147;successors&#148;
and &#147;assigns&#148; shall not include any purchaser of the Shares merely because of
such purchase.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Definition of Business Day</u>.</b>&#160; For purposes of this Agreement, &#147;business day&#148;
means any day on which The NASDAQ Global Market is opened for trading.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Counterparts</u>.</b>&#160; This Agreement may be executed in one or more
counterparts (including by means of any standard form of communication) and all
such counterparts will constitute one and the same instrument.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Construction</u>.</b>&#160; This Agreement shall be governed by and construed
in accordance with the laws of the Commonwealth of Pennsylvania applicable to
agreements made and performed entirely within such Commonwealth.</font></h1>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Amendments or Waivers</u>.</b>&#160; No amendment or waiver of any provision of
this Agreement, and no consent or approval to any departure therefrom, shall in
any event be effective unless the same shall be in writing and signed by the
parties thereto (including by means of any standard form of communication).</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Partial Unenforceability</u>.</b>&#160; The invalidity or unenforceability of any
section, paragraph or provision of this Agreement shall not affect the validity
or enforceability of any other section, paragraph or provision hereof.&#160; If any section, paragraph or provision of
this Agreement is for any reason determined to be invalid or unenforceable,
there shall be deemed to be made such minor changes (and only such minor
changes) as are necessary to make it valid and enforceable.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Consent to Jurisdiction</u>.</b>&#160; Any legal suit, action or proceeding arising
out of or based upon this Agreement or the transactions contemplated hereby (&#147;<u>Related
Proceedings</u>&#148;) must be instituted in the federal courts of the United States
of America or the courts of the Commonwealth of Pennsylvania in each case
located in the City and County of Philadelphia (collectively, the &#147;<u>Specified
Courts</u>&#148;), and each party irrevocably submits to the exclusive jurisdiction
(except for proceedings instituted in regard to the enforcement of a judgment
of any such court (a &#147;<u>Related Judgment</u>&#148;), as to which such jurisdiction
is non-exclusive) of such courts in any such suit, action or proceeding.&#160; Service of any process, summons, notice or
document by certified mail to such party&#146;s address set forth above shall be
effective service of process for any suit, action or other proceeding brought
in any such court.&#160; The parties
irrevocably and unconditionally waive any objection to the laying of venue of
any suit, action or other proceeding brought in any such court has been brought
in an inconvenient forum.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">22.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Entire Agreement</u>.</b>&#160; This Agreement constitutes the entire
agreement of the parties to this Agreement and supersedes all prior written or
oral and all contemporaneous oral agreements, understandings and negotiations
with respect to the subject matter hereof.</font></h1>

<h1 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">23.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Sophisticated Parties; No Fiduciary Relationship</u>.</b>&#160; Each of the parties hereto acknowledges that
it is a sophisticated business person who was adequately represented by counsel
during negotiations regarding the provisions hereof, including, without
limitation, the indemnification and contribution provisions of <u>Section&nbsp;9</u>,
and is fully informed regarding said provisions.&#160; Each of the parties hereto further
acknowledges that the provisions of <u>Section&nbsp;9</u> hereto fairly
allocate the risks in light of the ability of the parties to investigate
Artesian Resources, its affairs and its business in order to assure that
adequate disclosure has been made in the Registration Statement, the Disclosure
Package and the Prospectus (and any amendments and supplements thereto), as required
by the Act and the Exchange Act.&#160;
Artesian Resources acknowledges and agrees that in connection with all
aspects of each transaction contemplated by this Agreement, Artesian Resources,
on the one hand, and the Underwriters, on the other hand, have an arms-length
business relationship that creates no fiduciary duty on the part of any
Underwriter and each expressly disclaims any fiduciary relationship.</font></h1>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div style="font-family:Times New Roman;">


<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the foregoing
correctly sets forth your understanding of our agreement, please sign and
return to Artesian Resources the enclosed duplicate hereof, whereupon it will
become a binding agreement in accordance with its terms.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.42%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->Very truly yours,</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTESIAN RESOURCES CORPORATION</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:40.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DIAN C.
  TAYLOR</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:40.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dian C. Taylor</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="51%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.26%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chair of the Board, President and Chief<br>
  Executive Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing Agreement
is hereby confirmed <br>
and accepted as of the date first above written.</font></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JANNEY
MONTGOMERY SCOTT LLC<br>
EDWARD D. JONES &amp; CO., L.P.</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.68%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JANNEY MONTGOMERY SCOTT LLC</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.66%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:40.66%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ JOSEPH D.
  CULLEY, JR.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:40.66%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Joseph D. Culley, Jr.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.66%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Managing Director</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt 256.5pt;page-break-after:avoid;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Signature Page<br> to<br> Underwriting Agreement</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">SCHEDULE I</font></u></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Schedule of Underwriters</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="80%" colspan="3" valign="bottom" style="padding:0in .7pt 0in 0in;width:80.96%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in .7pt 0in 0in;width:16.32%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number&nbsp;of&nbsp;Firm&nbsp;Shares</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in .7pt 0in 0in;width:.34%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in 0in;width:8.88%;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Underwriter</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in .7pt 0in 0in;width:1.0%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="71%" valign="bottom" style="padding:0in .7pt 0in 0in;width:71.08%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in .7pt 0in 0in;width:16.32%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">to&nbsp;be&nbsp;Purchased</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in .7pt 0in 0in;width:.34%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="80%" colspan="3" valign="top" style="padding:0in .7pt 0in 0in;width:80.96%;">
  <p style="margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Janney Montgomery Scott
  LLC</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in 0in;width:16.32%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">750,000</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in .7pt 0in 0in;width:.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80%" colspan="3" valign="top" style="padding:0in .7pt 0in 0in;width:80.96%;">
  <p style="margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in .7pt 0in 0in;width:16.32%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in .7pt 0in 0in;width:.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="80%" colspan="3" valign="top" style="padding:0in .7pt 0in 0in;width:80.96%;">
  <p style="margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Edward D. Jones &amp;
  Co., L.P.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in 0in;width:16.32%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">250,000</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in .7pt 0in 0in;width:.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="80%" colspan="3" valign="top" style="padding:0in .7pt 0in 0in;width:80.96%;">
  <p style="margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" valign="bottom" style="padding:0in .7pt 0in 0in;width:16.32%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in .7pt 0in 0in;width:.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="80%" colspan="3" valign="top" style="padding:0in .7pt 0in 0in;width:80.96%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in .7pt 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in .7pt 0in 0in;width:16.32%;">
  <p style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,000,000</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in .7pt 0in 0in;width:.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="66" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
  <td width="532" style="border:none;"></td>
  <td width="18" style="border:none;"></td>
  <td width="123" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-I</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">SCHEDULE II</font></u></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Issuer Free Writing Prospectus</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">None.</font></b></p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-II</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">SCHEDULE III</font></u></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Persons Who Are To Deliver Lock-Up Agreements</font></b></p>

<p align="left" style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Lock-Up Agreements are to be
delivered by the following persons and entities immediately prior to the time
the SEC declares the Registration Statement effective:</font></b></p>

<p style="margin:0in 0in 12.0pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Artesian Resources Corporation<br>
Kenneth R. Biederman<br>
Joseph A. DiNunzio<br>
John R. Eisenbrey, Jr.<br>
Bruce P. Kraeuter<br>
John J. Schreppler, II<br>
David B. Spacht<br>
Dian C. Taylor<br>
Nichole R. Taylor<br>
Norman H. Taylor, Jr.<br>
Louisa Taylor Welcher<br>
John M. Thaeder<br>
William C. Wyer</font></p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-III</font></p>
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<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">EXHIBIT A</font></u></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Form of Director &amp; Officer Lock-Up Agreement</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Artesian Resources
Corporation<br>
664 Churchmans Road<br>
Newark, DE&#160; 19702</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Janney Montgomery Scott
LLC<br>
1801 Market Street<br>
Philadelphia, PA 19103</font></p>

<p style="margin:24.0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ladies and Gentlemen:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reference is made to a
Registration Statement on Form S-3 of Artesian Resources Corporation (the &#147;<u>Company</u>&#148;)
(as the same may be hereafter amended, the &#147;<u>Registration Statement</u>&#148;),
pursuant to which shares of the Company&#146;s Class A Non-Voting Common Stock,
$1.00 par value per share (the &#147;<u>Class A Stock</u>&#148;), will be registered
under the Securities Act of 1933, as amended (the &#147;<u>Act</u>&#148;), for public
sale underwritten by Janney Montgomery Scott LLC (&#147;<u>Janney</u>&#148;) and Edward
Jones &amp; Co., L.P. (collectively, the &#147;<u>Underwriters</u>&#148;).&#160; The undersigned is a director or officer of
the Company and holds Class A Stock and/or shares of the Company&#146;s Class B
Voting Common Stock, $1.00 par value per share (collectively referred to herein
as &#147;<u>Shares</u>&#148;).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As an inducement to the
Underwriters to underwrite the above-mentioned public sale of the Class A
Stock, the undersigned hereby agrees, from the date hereof and for a period of
ninety (90) days (the &#147;<u>Lock-Up Period</u>&#148;) from the date of the Final
Prospectus Supplement related to the above-mentioned public sale of the Class A
Stock <b>(</b>the &#147;<u>Final Prospectus Supplement
Date</u>&#148;), not to, directly or indirectly, sell, offer to sell, contract to
sell, pledge, grant any option for the sale or purchase of, agree to sell or
otherwise dispose of (collectively, &#147;<u>Disposition</u>&#148;), any Shares or any
securities convertible into or exercisable or exchangeable for Shares
beneficially owned by the undersigned now or on the Final Prospectus Supplement
Date, or with respect to which the undersigned now or on the Final Prospectus
Supplement Date has the power of Disposition, or enter into a transaction which
would have the same effect, or enter into any swap, hedge or other arrangement
that transfers, in whole or in part, any of the economic consequences of
ownership of Shares, whether any such aforementioned transaction is to be
settled by delivery of Shares or such other securities, in cash or otherwise,
or publicly disclose the intention to make any such Disposition, or to enter
into any such transaction, swap, hedge or other arrangement, without, in each
case, the prior written consent of Janney, on behalf of the Underwriters; <u>provided</u>,
<u>however</u>, that if (i)&nbsp;during the last seventeen (17) days of the
Lock-Up Period, (A)&nbsp;the Company releases earnings results or
(B)&nbsp;material news or a material event relating to the Company occurs, or
(ii)&nbsp;prior to the expiration of the Lock-Up Period, the Company announces
that it will release earnings results during the 16-day period following the
last day of the Lock-Up Period; then in each case the Lock-Up Period will be
extended until the expiration of the 18-day period beginning on the date of the
release of the earnings results or the occurrence of</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A-1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">material news or a
material event relating to the Company, as the case may be, unless Janney, on
behalf of the Underwriters, waives, in writing, such extension.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, the
undersigned agrees that, without the prior written consent of Janney, on behalf
of the Underwriters, it will not, during the Lock-Up Period or any extension
thereof, make any demand for, or exercise any right with respect to, the
registration of any Shares or any securities convertible into or exercisable or
exchangeable for Shares.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing agreement
and the representation shall not apply to (i)&nbsp;bona fide gifts of
securities, <u>provided</u> the recipient of such gift or contribution agrees
in writing as a condition precedent to such gift or contribution to be bound by
the terms hereof, or (ii)&nbsp;transfers of securities to &#147;affiliates&#148; of the
transferor if the transfers do not involve a public distribution or public
offering and <u>provided</u> the transferee agrees in writing as a condition
precedent to such transfer to be bound by the terms hereof.&#160; The term &#147;affiliate&#148; shall have the meaning
given such term in Rule 144 under the Act.&#160;
The transferor shall notify the Underwriters in writing prior to the
transfer, and there shall be no further transfer of Shares or securities
convertible into or exercisable for Shares except in accordance with this
letter agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In furtherance of the
foregoing, the Company and its transfer agent are hereby authorized to decline
to make any transfer of securities if such transfer would constitute a
violation or breach of this letter agreement.&#160;
The undersigned also agrees and consents to the entry of stock transfer
instructions with the Company&#146;s transfer agent against the transfer of any
shares of Shares or securities convertible into or exercisable or exchangeable
for Shares.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement shall be
binding on the undersigned and the successors, heirs, personal representatives
and assigns of the undersigned.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->Very truly yours,</p>
  </td>
 </tr>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt 216.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A-2</font></p>
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<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">EXHIBIT B</font></u></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Form of Company Lock-Up Agreement</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Janney Montgomery Scott
LLC<br>
1801 Market Street<br>
Philadelphia, PA 19103</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ladies and Gentlemen:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reference is made to a
Registration Statement on Form S-3 of Artesian Resources Corporation (the &#147;<u>Company</u>&#148;)
(as the same may be hereafter amended, the &#147;<u>Registration Statement</u>&#148;),
pursuant to which shares of the Company&#146;s Class A Non-Voting Common Stock,
$1.00 par value per share (the &#147;<u>Class A Stock</u>&#148;), will be registered
under the Securities Act of 1933, as amended (the &#147;<u>Act</u>&#148;), for public
sale underwritten by Janney Montgomery Scott LLC (&#147;<u>Janney</u>&#148;) and Edward
Jones &amp; Co., L.P. (collectively, the &#147;<u>Underwriters</u>&#148;).&#160; The authorized capital stock of the Company,
includes, without limitation, Class A Stock and Class B Voting Common Stock,
$1.00 par value per share (collectively referred to herein as &#147;<u>Shares</u>&#148;).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As an inducement to the
Underwriters to underwrite the above-mentioned public sale of the Class A
Stock, the Company hereby agrees, from the date hereof and for a period of ninety
(90) days (the &#147;<u>Lock-Up Period</u>&#148;) from the date of the Final Prospectus
Supplement related to the above-mentioned public sale of the Class A Stock <b>(</b>the &#147;<u>Final Prospectus Supplement Date</u>&#148;), not to,
directly or indirectly, issue, sell, offer to sell, contract to sell, pledge,
grant any option for the sale or purchase of, agree to sell or otherwise
dispose of (collectively, &#147;<u>Disposition</u>&#148;), any Shares or any securities
convertible into or exercisable or exchangeable for Shares, or enter into a
transaction which would have the same effect, or enter into any swap, hedge or
other arrangement that transfers, in whole or in part, any of the economic
consequences of ownership of Shares, whether any such aforementioned
transaction is to be settled by delivery of Shares or such other securities, in
cash or otherwise, or publicly disclose the intention to make any such
Disposition, or to enter into any such transaction, swap, hedge or other
arrangement, without, in each case, the prior written consent of Janney, on behalf
of the Underwriters; <u>provided</u>, <u>however</u>, that if (i) during the
last seventeen (17) days of the Lock-Up Period, (A) the Company releases
earnings results or (B) material news or a material event relating to the
Company occurs, or (ii) prior to the expiration of the Lock-Up Period, the
Company announces that it will release earnings results during the 16-day
period following the last day of the Lock-Up Period, then in each case the
Lock-Up Period will be extended until the expiration of the 18-day period
beginning on the date of the release of the earnings results or the occurrence
of material news or a material event relating to the Company, as the case may
be, unless Janney, on behalf of the Underwriters, waives, in writing, such
extension.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, the Company
agrees that, without the prior written consent of Janney, on behalf of the
Underwriters, it will not, during the Lock-Up Period or any extension thereof,
honor any demand for, or exercise of, any right with respect to the
registration of any Shares or any securities convertible into or exercisable or
exchangeable for Shares.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B-1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing agreement
and the representation shall not apply to (i)&nbsp;the issuance of Shares upon
the exercise of currently outstanding options as described in the Registration
Statement and in the Company&#146;s filings under the Securities Exchange Act of
1934, as amended, incorporated by reference in the Registration Statement (the &#147;<u>Incorporated
Filings</u>&#148;), (ii)&nbsp;the grant of options to purchase Shares under the
Company&#146;s currently outstanding option plans as described in the Registration
Statement and the Incorporated Filings and the issuance of Shares upon the
exercise thereof, (iii)&nbsp;the issuance of Shares pursuant to the Company&#146;s
currently outstanding equity compensation plans, as described in the
Registration Statement and the Incorporated Filings, (iv)&nbsp;bona fide gifts
of securities, <u>provided</u> the recipient of such gift or contribution
agrees in writing as a condition precedent to such gift or contribution to be
bound by the terms hereof, or (v)&nbsp;transfers of securities to &#147;affiliates&#148;
of the transferor if the transfers do not involve a public distribution or
public offering and <u>provided</u> the transferee agrees in writing as a
condition precedent to such transfer to be bound by the terms hereof.&#160; The term &#147;affiliate&#148; shall have the meaning
given such term in Rule 144 under the Act.&#160;
The transferor shall notify the Underwriters in writing prior to the
transfer, and there shall be no further transfer of Shares or securities convertible
into or exercisable for Shares except in accordance with this letter agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In furtherance of the
foregoing, the Company and its transfer agent are hereby authorized to decline
to make any transfer of securities if such transfer would constitute a violation
or breach of this letter agreement.&#160; The
Company also agrees and consents to the entry of stock transfer instructions
with its transfer agent against the transfer of any shares of Shares or
securities convertible into or exercisable or exchangeable for Shares.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement shall be
binding on the Company and its successors, heirs, personal representatives and
assigns.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="44%" colspan="2" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:44.9%;">
  <p align="left" style="margin:0pt 0pt .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly yours,</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="54%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.74%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="2" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:44.9%;">
  <p align="left" style="margin:0pt 0pt .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="54%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.74%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="2" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:44.9%;">
  <p align="left" style="margin:0pt 0pt .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTESIAN RESOURCES
  CORPORATION</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="54%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.74%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" colspan="2" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:44.9%;">
  <p align="left" style="margin:0pt 0pt .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="54%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.74%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="40%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:40.96%;">
  <p align="left" style="margin:0pt 0pt .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="54%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.74%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:40.96%;">
  <p align="left" style="margin:0pt 0pt .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="54%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:54.74%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:40.96%;">
  <p align="left" style="margin:0pt 0pt .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt 256.5pt;page-break-after:avoid;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<SEQUENCE>3
<FILENAME>a07-15222_3ex5d1.htm
<DESCRIPTION>EX-5.1
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<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
5.1</font></b></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[LETTERHEAD OF
MORGAN, LEWIS &amp; BOCKIUS LLP]</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 13, 2007</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Artesian Resources Corporation</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">664 Churchmans Road</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Newark, Delaware 19702</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RE:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Artesian Resources Corporation,
Registration Statement on Form S-3 (Registration No. 333-136184)</u></font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ladies and Gentlemen:</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have acted as counsel
to Artesian Resources Corporation, a Delaware corporation (the &#147;Company&#148;), in
connection with the offering by the Company of 1,000,000 shares of Class A
Non-Voting Common Stock of the Company, par value $1.00 per share (the &#147;Shares&#148;),
pursuant to the referenced Registration Statement (the &#147;Registration Statement&#148;)
and the Prospectus Supplement dated June 13, 2007 (the &#147;Prospectus Supplement&#148;)
each filed under the Securities Act of 1933, as amended (the &#147;Act&#148;), with the
Securities and Exchange Commission (the &#147;SEC&#148;).</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with this
opinion letter, we have examined the Registration Statement, the Prospectus
Supplement and originals, or copies certified or otherwise identified to our
satisfaction, of the Restated Certificate of Incorporation and Bylaws of the
Company of the Company and such other documents, records and other instruments
as we have deemed appropriate for purposes of the opinion set forth herein.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have assumed the
genuineness of all signatures, the legal capacity of all natural persons, the
authenticity of the documents submitted to us as originals, the conformity with
the originals of all documents submitted to us as certified, facsimile or
photostatic copies and the authenticity of the originals of all documents
submitted to us as copies.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Based upon the foregoing,
we are of the opinion that the Shares have been duly authorized by the Company
and, when issued and sold by the Company and delivered by the Company against
receipt of the purchase price therefor, in the manner contemplated by the
Registration Statement and the Prospectus Supplement, will be validly issued,
fully paid and non-assessable.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The opinion expressed
herein is limited to the Delaware General Corporation Law and we express no
opinion with respect to the laws of any other state or jurisdiction.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We hereby consent to the
use of this opinion as Exhibit 5.1 to the Registration Statement and to the
reference to us under the caption &#147;Legal Matters&#148; in the base prospectus
included in the Registration Statement and the Prospectus Supplement.&#160; In giving such consent, we do not hereby
admit that we are acting within the category of persons whose consent is
required under Section 7 of the Act or the rules or regulations of the SEC
thereunder.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly yours,</font></p>

<p style="font-size:10.0pt;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ </font>MORGAN, LEWIS &amp; BOCKIUS LLP</p>

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<p align="right" style="font-weight:bold;margin:0in 0in 12.0pt 10.0pt;page-break-after:avoid;text-align:right;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 99.1</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Artesian Resources
Announces Pricing of Common Stock Offering<a name="ArtesianResourcesAnnouncesPricing_234622"></a></font></b></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NEWARK, DE &#151; June 14, 2007&#151;Artesian Resources
Corporation (NASDAQ: ARTNA) (Artesian) announced today that it has priced an
underwritten public offering of 1,000,000 shares of its Class A Non-Voting
Common Stock at a price to the public of $19.15 per share.&#160; Net proceeds from the offering, after
deducting underwriting discounts and commissions and estimated offering
expenses, are expected to be approximately $17.9&nbsp;million.&#160; The underwriters have a 30-day
over-allotment option to purchase up to an additional 150,000&nbsp;shares.&#160; The offering is expected to close on June&nbsp;19,
2007.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The proceeds of the offering will be used to fund a
paid-in capital contribution to our wholly-owned subsidiary, Artesian Water
Company, Inc., which will use the funds to repay its outstanding short-term
borrowings, fund capital expenditures and for other general corporate
purposes.&#160; A portion of any proceeds
received from the underwriters&#146; exercise of the over-allotment may be
contributed to our other subsidiaries.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The book-running manager is Janney Montgomery Scott
LLC and the co-manager is Edward D. Jones&nbsp;&amp; Co., L.P.&#160; The offering will be made only by means of a
prospectus supplement and prospectus.&#160; A
copy of the final prospectus supplement and the prospectus related to the
offering can be obtained when available by contacting Janney Montgomery Scott
LLC, 60&nbsp;State Street, 35th&nbsp;Floor, Boston, MA 02109, Attention: Equity
Syndicate Department or prospectus@jmsonline.com.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This announcement shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of
these securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such jurisdiction.&#160; A
registration statement relating to the shares that the company intends to sell
has previously been filed with, and declared effective by, the Securities and
Exchange Commission.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Artesian, through Artesian Water, is the oldest and
largest investor-owned regulated public water utility on the Delmarva Peninsula
and has been providing superior water service since 1905.&#160; Artesian also provides water and wastewater
treatment contract services through Artesian Utility Development, Inc., a
non-regulated subsidiary, and wastewater utility services through Artesian
Wastewater Management, Inc., a regulated subsidiary.&#160; Artesian currently owns and operates five
wastewater treatments plants.&#160; In
addition, Artesian operates forty-seven water and wastewater treatment plants
under contract.</font></p>



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