Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 207

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 207
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 for the persons who are covered by Essential’s existing directors’ and officers’ liability insurance and fiduciary liability insurance with respect to matters existing or occurring at or prior to the effective time; provided that American Water will not be required to pay in excess of 300% of the last annual premium paid by Essential prior to the date of the merger agreement for its existing coverage in the aggregate. Alternatively, American Water may direct Essential to purchase “tail” insurance coverage, at a cost no greater than the aggregate amount which the surviving corporation would be permitted to spend during the six-yearperiod, that provides coverage not materially less favorable than described above. Essential Indebtedness Under the terms of the merger agreement, American Water and Essential will use commercially reasonable efforts to implement any necessary, appropriate or desirable arrangements, in anticipation of the completion of the merger and the other transactions contemplated by the merger agreement, regarding each party’s and its subsidiaries’ credit agreements, indentures or other documents governing or relating to indebtedness of the parties and their subsidiaries. Additionally, Essential will use commercially reasonable efforts to (i) commence offers to prepay all of the notes issued pursuant to the Essential 2016 NPA and cause its subsidiaries, and direct its and their respective non-legalrepresentatives, to provide all cooperation reasonably requested by American Water in connection with any such prepayment or (ii) obtain a waiver of, or an amendment or modification to, the Essential 2016 NPA so that the completion of the merger will not constitute a “change in control” or a “control event” under the Essential 2016 NPA. Additional Covenants and Agreements The merger agreement contains certain other covenants and agreements, including covenants relating to:

| • |     | cooperation between American Water and Essential in the preparation of this joint proxy statement/prospectus; |

| • |     | consultation between American Water and Essential with respect to the issuance of any press release or public 
 announcements relating to the merger;                                                                         |

139

| • |     | confidentiality and access by each party to certain information about the other party during the interim period; |

| • |     | actions to be taken by American Water with respect to the listing on the NYSE of the shares of American Water                                                                                                                                             
 common stock issuable as merger consideration, subject to official notice of issuance, and actions to be taken by Essential and American Water regarding the delisting of Essential common stock from the NYSE and the deregistration of Essential common 
 stock under the Exchange Act;