Company: MSEX
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047381
Chunk: 14

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-12
Form: 424B5
Chunk 14
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Non-U.S. Holder Defined

For purposes of this discussion,
you are a non-U.S. holder if you are a beneficial owner of our Common Stock (other than a partnership or any other entity treated as a
pass-through entity for U.S. federal income tax purposes) that is not, for U.S. federal income tax purposes, any of the following:

| · | an individual who is a citizen or resident of the United States; |

| · | a corporation (or other entity treated as a corporation for U.S. federal tax purposes) that is created                   
 or organized in the United States or under the laws of the United States, any state thereof or the District of Columbia; |

| · | an estate whose income is subject to U.S. federal income taxation regardless of its source; or |

| · | a trust (x) the administration of which is subject to the primary supervision of a U.S. court                                      
 and that has one or more U.S. persons for U.S. federal tax purposes who have the authority to control all substantial decisions of 
 the trust or (y) that has a valid election in effect to be treated as a U.S. person.                                               |

Distributions

If we make distributions, other than certain distributions of our stock or rights to acquire our stock, on our Common Stock,
those payments will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings
and profits, as determined under U.S. federal income tax principles. To the extent those distributions exceed both our current and our
accumulated earnings and profits, they will constitute a return of capital and will first reduce your tax basis in our Common Stock (determined
separately with respect to each share of our Common Stock), but not below zero, and then will be treated as gain from the sale of that
stock.

A redemption of our Common Stock will be treated as a distribution and hence as a dividend to the extent of our current and accumulated
earnings and profits as determined under U.S. federal income tax principles, unless the redemption satisfies one of the tests set forth
in Section 302(b) of the Code and is therefore treated as a sale or exchange of the Common Stock. The redemption will be treated as a
sale or exchange if it (1) is “substantially disproportionate” with respect to your ownership in us, (2) results in a “complete redemption”
of your ownership interests in the Company, or (3) is “not