Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 95

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 95
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% premium to the
trading price of shares of Essential common stock, the timeline to sign a definitive agreement, 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, representation of Mr. Schuller and Ms. Arnold in the senior management of the combined company, and post-closing commitments.

Between
September 5, 2025 and September 9, 2025, Mr. Griffith and Mr. Franklin held multiple calls to discuss the September 4, 2025 draft term sheet, the regulatory approval process for the potential transaction, and certain governance items.

On September 9, 2025, and after discussions with other members of Essential management and Essential’s advisors, Mr. Franklin sent Mr.
Griffith an email responding to the September 4, 2025 draft term sheet, including with respect to board composition and roles, roles and responsibilities of the Executive Vice Chair of the board of directors of the combined company and
compensation arrangements with respect to certain members of Essential management.

On September 10, 2025, members of American Water management,
members of Essential management, and representatives of their respective advisors, including BofA Securities and Moelis, held a meeting to discuss diligence matters. During the meeting, members of Essential management discussed Essential’s
historical and projected growth, Essential’s rate base growth, employee matters, regulatory matters, tax matters, Essential’s capital plan, and Essential’s natural gas business.

On September 12, 2025, Mr. Griffith and Mr. Franklin held a call to continue their prior discussions on a potential transaction and discussed certain
merger agreement terms, continuing roles for certain members of Essential management in the combined company, potential timeline for executing the merger agreement, regulatory considerations, and Essential’s natural gas business.

Also on September 12, 2025, the Essential board held a special meeting, at which certain members of Essential management were present. During the
meeting, Mr. Franklin reviewed the meetings and conversations that had taken place with American Water regarding the potential transaction since the prior Essential board meeting. Mr. Franklin described the weekly meetings he recently had with
Mr. Griffith. The Essential board then reviewed and discussed, among other things, the proposed terms set forth in the draft term sheet, the proposed economic terms of the possible transaction, the status and proposed approach to due diligence, the
anticipated timing of a potential transaction and certain key terms proposed to be