Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 48

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 48
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 non-breaching                       
 party to the breaching party and (B) three business days prior to the end date; provided that the right to terminate will not be available to the non-breaching party if such party is in material breach of                   
 any of its representations, warranties, covenants, or other agreements contained in the merger agreement such that certain conditions of the merger applicable to such party would not be capable of being satisfied;          |

| • |     | by American Water or Essential, before obtaining its shareholder approval, in order to enter into a written                                                                                                     
 definitive agreement for a superior proposal, if such party has complied with its change of recommendation and match right obligations described above, subject to paying of any applicable termination fee; or |

| • |     | by American Water or Essential, before the other party obtains its shareholder approval, if there has been an 
 adverse recommendation change by the board of directors of the other party.                                   |

For more information regarding the rights of American Water and Essential to terminate the merger agreement, see “ The Merger Agreement—Termination of the Merger Agreement” beginning on page 142.

29

Termination Fees As more fully described in this joint proxy statement/prospectus and in the merger agreement, Essential has agreed to pay American Water $370 million if the merger agreement is terminated:

| • |     | (i) by American Water, if Essential willfully breached or failed to perform in any material respect any of its                                                                                                                                   
 representations, warranties, covenants, or other agreements contained in the merger agreement, which breach or failure to perform would result in a failure of a condition of the merger applicable to such party’s representations, warranties, 
 covenants, or other agreements, (ii) by American Water or Essential, if the Essential shareholder approval is not obtained after the Essential shareholder meeting (including any adjournments or postponements) has concluded, or (iii) by      
 American Water or Essential, if the merger is not completed by the end date and, in each case:                                                                                                                                                   |

| • |     | prior to any such termination, any third party has publicly announced and not publicly withdrawn a competing 
 proposal for Essential; and                                                                                  |

| • |     | within 12 months of any such termination, Essential enters into a competing acquisition transaction; |

| • |     | by American Water, if there has been an adverse recommendation change by the Essential board; or |

| • |     | by Essential, if it accepts a superior proposal. |

As