Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 226

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 226
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 American Water certificate of incorporation and the American Water bylaws provide that American Water
will indemnify its directors and officers to the fullest extent permitted by law. The American Water bylaws also expressly authorize American Water to purchase and maintain insurance protecting its directors, officers and certain employees and
agents against certain liabilities or expenses, and American Water has done so.

The limitation of liability and indemnification provisions in the
American Water certificate of incorporation and the American Water bylaws may discourage shareholders from bringing a lawsuit against American Water’s directors or officers for breach of their fiduciary duty, even though such an action, if
successful, might otherwise benefit American Water and its shareholders. In addition, an investment in American Water common stock may be adversely affected to the extent American Water indemnifies its directors and officers against the costs of
settlements and damage awards in accordance with these indemnification provisions.

No Preemptive or Conversion Rights

Holders of American Water common stock have no preemptive or conversion rights and are not subject to further calls or assessments by American Water. There are
no redemption or sinking fund provisions applicable to American Water common stock.

New York Stock Exchange Listing

Shares of American Water common stock are listed on the NYSE under the symbol “AWK.”

Transfer Agent and Registrar

Equiniti Trust Company, LLC
serves as the registrar and transfer agent for American Water common stock.

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COMPARISON OF RIGHTS OF AMERICAN WATER’S SHAREHOLDERS AND ESSENTIAL’S SHAREHOLDERS The rights of American Water shareholders are currently governed by Delaware law, and, accordingly, are subject to the provisions of the DGCL and American Water’s certificate of incorporation and bylaws. The rights of Essential shareholders are currently governed by Pennsylvania law, and, accordingly, are subject to the provisions of the PBCL and Essential’s articles of incorporation and bylaws. Following completion of the merger, the rights of Essential shareholders who become shareholders of American Water in the merger will be governed by Delaware law and American Water’s certificate of incorporation and bylaws. The following discussion summarizes the material differences between the current rights of American Water shareholders and the current rights of Essential shareholders. These differences arise in part from differences between Delaware law and Pennsylvania law. Additional differences arise from the organizational documents of the two companies. Although it is impracticable to compare all of the aspects in which Delaware law and Pennsylvania law and American Water’s and Essential’s organizational documents differ with respect to shareholder rights, the following discussion summarizes certain material differences between them. This summary is