Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 50

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 50
---
 by the end date and, in each case:                                                                                                                                                   |

| • |     | prior to any such termination, any third party has publicly announced and not publicly withdrawn a competing 
 proposal for Essential; and                                                                                  |

| • |     | within 12 months of any such termination, Essential enters into a competing acquisition transaction; |

| • |     | by American Water, if there has been an adverse recommendation change by the Essential board; or |

| • |     | by Essential, if it accepts a superior proposal. |

As more fully described in this joint proxy statement/prospectus and in the merger agreement, American Water has agreed to pay Essential $835 million if the merger agreement is terminated:

| • |     | (i) by Essential, if American Water willfully breached or failed to perform in any material respect any of its                                                                                                                                   
 representations, warranties, covenants, or other agreements contained in the merger agreement, which breach or failure to perform would result in a failure of a condition of the merger applicable to such party’s representations, warranties, 
 covenants, or other agreements, (ii) by Essential or American Water, if the American Water shareholder approval is not obtained after the American Water shareholder meeting (including any adjournments or postponements) has concluded, or     
 (iii) by Essential or American Water, if the merger is not completed by the end date and, in each case:                                                                                                                                          |

| • |     | prior to any such termination, any third party has publicly announced and not publicly withdrawn a competing 
 proposal for American Water; and                                                                             |

| • |     | within 12 months of any such termination, American Water enters into a competing acquisition transaction; |

| • |     | by Essential, if there has been an adverse recommendation change by the American Water board; or |

| • |     | by American Water, if it accepts a superior proposal. |

For a more complete description of the termination fee provisions of the merger agreement, see “ The Merger Agreement—Effect of Termination” beginning on page 143. U.S. Federal Income Tax Consequences of the Merger American Water and Essential intend for the merger to qualify as a “reorganization” within the meaning of Section 368(a) of the Code for U.S. federal income tax purposes, and American Water and Essential intend to report the merger consistent with such qualification. Nevertheless, it is not a condition to American Water’s obligation or Essential’s obligation to complete the transactions contemplated by the merger agreement that