Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 13

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 13
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 fide written competing proposal made after the date of the merger agreement, substituting in the definition of “competing proposal” “more than 50%” for “20% or more” in each place such                                                 
 phrase appears, that the American Water board or Essential board, as applicable, determines in good faith, after consultation with outside legal counsel and a financial advisor, and taking into account, to the extent applicable, the legal, 
 financial, regulatory, timing, and other aspects of such competing proposal, the identity of the person making the proposal, and any financing required for such proposal, the ability of the                                                   
 person                                                                                                                                                                                                                                          |

3

| Defined Term: |     | Meaning:                                                                                                                                                                                                                                    |
|               |     | making such proposal to obtain such required financing, and the level of certainty with respect to such required financing, and such other factors, in each case, that are deemed relevant by such board, (i) if accepted, is               
 reasonably likely to be completed and (ii) if completed, would result in a transaction that is more favorable from a financial point of view to such party’s shareholders than the transactions contemplated by the merger agreement (after 
 taking into account all adjustments or modifications to the terms thereof, and any revisions to the terms of the transactions contemplated by the merger agreement pursuant to the non-solicitation provisions                              
 thereof)                                                                                                                                                                                                                                    |

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QUESTIONS AND ANSWERS ABOUT THE MERGER AND THE SPECIAL MEETINGS The following questions and answers are intended to address briefly some commonly asked questions regarding the merger agreement, the merger, the share issuance, and the other transactions contemplated by the merger agreement. American Water and Essential urge you to read carefully this entire joint proxy statement/prospectus, including the annexes and the other documents referred to or incorporated by reference into this joint proxy statement/prospectus, because the information in this section does not provide all of the information that might be important to you. About the Merger Agreement and the Merger

| Q: | What is the merger agreement and what is the merger? |

| Q: | What will Essential shareholders receive in the merger? |

| A: | Pursuant to the merger agreement, in the merger, Essential shareholders will receive 0.305 of a share of                          
 validly issued, fully paid, and nonassessable American Water common stock for each share of Essential common stock that they own. |

| Q: | What happens if the market price of American Water common stock or Essential common stock changes