Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 92

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 92
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 Chief Executive Officer of
Essential to the role of Executive Vice Chair of the board of directors of the combined company, and senior management roles for Mr. Schuller and Ms. Arnold.

On August 25, 2025, American Water and Essential entered into a mutual confidentiality agreement to share certain non-public information about their
respective businesses. The confidentiality agreement included, among

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other things, customary confidentiality and non-disclosure obligations for a two-year period, a non-solicitation of employees covenant with a one-year period, a one-year standstill period with
customary fall-aways, and the ability to make confidential proposals regarding a potential transaction.

On August 27, 2025, Mr. Griffith and Mr. Franklin
had a call and continued their discussion of key governance terms of the combined company in a potential transaction. During their discussion, Mr. Griffith and Mr. Franklin achieved conceptual alignment as to their views of the role of the
Executive Vice Chair of the board of directors of the combined company, the composition of the board of directors of the combined company, roles for Mr. Schuller and Ms. Arnold, and post-closing commitments.

On August 28, 2025, Stacy A. Mitchell, Executive Vice President and General Counsel of American Water, and Christopher P. Luning, Executive Vice President and
General Counsel of Essential, held an introductory call to discuss the potential transaction, including the due diligence process.

Also on
August 28, 2025, the American Water board held a special meeting, at which certain members of American Water management were present. Representatives of BofA Securities and Skadden also attended portions of this meeting. During the meeting, the
American Water board engaged in discussion with members of American Water management regarding the potential transaction, including recent interactions between Mr. Griffith and Mr. Franklin and their discussions following the July 30, 2025
American Water board meeting, an overview of Essential’s business, governance terms for the combined company, regulatory considerations, the proposed timeline to sign a definitive agreement and close the potential transaction, key diligence
areas and an update on the diligence process, and next steps. Members of American Water management also reviewed with the American Water board the proposed draft of the transaction term sheet and discussed federal and state regulatory considerations
and approvals for the potential transaction. During the same meeting, representatives of BofA Securities presented on key financial, economic, market, public market, and structuring considerations and the rationale for a potential transaction