Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 201

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 201
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 proposes to adopt, approve, or recommend, any competing proposal; |

| • |     | fails to include the recommendation in this joint proxy statement/prospectus; |

| • |     | fails to send to its shareholders, within 10 business days after the commencement of any tender offer or exchange                                                                                                                                     
 offer relating to shares of American Water common stock or Essential common stock (or, if earlier, at least two business days prior to the special meeting), a statement disclosing that it recommends rejection of such tender or exchange offer and 
 reaffirming its recommendation of the merger agreement and the merger; or                                                                                                                                                                             |

| • |     | fails to publicly reaffirm its recommendation of the merger agreement and the merger within 10 business days of                                                                                                                                  
 the other party’s written request to do so (or, if earlier, at least two business days prior to the special meeting) following the public announcement of any competing proposal (or any material amendment thereto, including any change to the 
 price or form of consideration); provided that such party will not be entitled to make such written request, and the other party’s board of directors will not be required to make such reaffirmation, more than once with respect to any        
 particular competing proposal (or any material amendment thereto).                                                                                                                                                                               |

Any action or failure to act described above is referred to as an adverse recommendation change. Prior to obtaining shareholder approval of the share issuance proposal, the American Water board may, or, prior to obtaining shareholder approval of the merger agreement proposal, the Essential board may, make an adverse recommendation if (i) American Water or Essential, as applicable, receives a superior proposal that does not result from a material breach of such party’s non-solicitationobligations and (ii) such board determines in good faith (after consultation with outside legal counsel and a financial advisor) that the failure to effect an adverse recommendation change would be inconsistent with its fiduciary duties under applicable law. Prior to making any such adverse recommendation change, the American Water board or the Essential board, as applicable, must comply with the following obligations:

| • |     | provide the other party with at least four business days’ prior written notice advising the other party                                                                                                                                                 
 that it is prepared to make an adverse recommendation change, which notice must include the basis for the proposed action of the American Water board or the Essential board, as applicable, and the most current draft of any competing agreement with 
 respect to such superior proposal or, if no draft exists, a summary of the material terms and