Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 625

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 3
Chunk 625
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If four or more quarterly dividends are in arrears,
the preferred shareholders, as a class, are entitled to elect two members to the Board of Directors in addition to Directors elected by
holders of the common stock. In the event dividends on the preferred stock are in arrears, no dividends may be declared or paid on the
common stock of the Company.

The Company issues shares of its common stock
in connection with its Middlesex Water Company Investment Plan (the Investment Plan), a direct share purchase and dividend reinvestment
plan for the Company’s common stock. Since the inception of the Investment Plan and its predecessor plan, the Company has periodically
replenished the level of authorized shares in the plans.

The Company maintains a long-term incentive compensation
plan for certain management employees where awards are made in the form of restricted common stock. Shares issued in connection with this
plan are subject to forfeiture by the employee in the event of termination of employment for any reason within five years of the award,
other than as a result of retirement at normal retirement age, death, disability or change in control. The maximum number of shares authorized
for award under this plan is 0.3 million shares, of which approximately 70% remain available for future issuance as of December 31, 2024.

The Company maintains a stock plan for its independent
members of the Board of Directors as a component of their compensation. In 2024, shares of the Company’s common stock valued at
$0.4 million were granted and issued to the Independent Directors. The maximum number of shares authorized for grant under this plan is
0.1 million. Approximately 34% of the authorized shares remain available for future issuance as of December 31, 2024.

The conversion feature of the Company’s
no par $7.00 Series Cumulative and Convertible Preferred Stock allows each security holder to convert one convertible preferred share
for twelve shares of the Company's common stock. In 2024, 4,275 shares of the Company’s no par $7.00 Series Cumulative and Convertible
Preferred Stock were converted into 51,300 shares (approximately $0.4 million) of the Company’s common stock.

Set forth below is a graph comparing the yearly
change in the cumulative total return (which includes reinvestment of dividends) of a $100 investment for the Company’s common stock,
a peer group of investor-owned water utilities, and the S&P 500 Stock Index for the period of five years commencing