Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 224

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 224
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 shareholders to include up to a specified number of director nominees in American Water’s proxy materials for an annual meeting of shareholders. To qualify, such American Water
shareholder (or group of up to 20 eligible shareholders) must have continuously owned for at least three years 3% or more of the outstanding American Water common stock. The maximum number of director nominees permitted under this proxy access
provision is the greater of (i) two or (ii) 20% of the total number of directors on the American Water board as of the last day on which a proxy access notice may be submitted, rounded down to the nearest whole number.

Certain Anti-Takeover Provisions

The following
provisions of the American Water certificate of incorporation and the American Water bylaws, and the DGCL, could deter, delay or prevent a third party from acquiring American Water, even if doing so would benefit or be deemed to benefit its
shareholders.

Vacancies and Newly Created Directorships

Vacancies and newly created directorships on the American Water board may be filled only by a vote of a majority of the members of the American Water board
then in office, even though less than a quorum, or by shareholders at the next annual meeting or any special meeting called for such purpose. These provisions may defer, delay or discourage a potential acquiror from conducting a solicitation of
proxies to elect the acquiror’s own slate of directors or otherwise attempting to obtain control of American Water.

156

Undesignated Preferred Stock The ability to authorize undesignated shares of American Water preferred stock makes it possible for the American Water board to authorize the issuance of American Water preferred stock with super voting, special approval, dividend or other rights or preferences on a discriminatory basis that could impede the success of any attempt to acquire American Water. These and other provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of American Water. Requirements for Advance Notification of Shareholder Meetings, Nominations and Proposals See “— Special Meetings of Shareholders” beginning on page 156 and “— Advance Notice Requirements” beginning on page 156. Shareholder Action by Written Consent As permitted by Section 228 of the DGCL, the American Water certificate of incorporation states that any action required or permitted to be taken by American Water shareholders must be effected at a duly called annual or special meeting of American Water shareholders and may not be effected by consent in writing by such shareholders. Approval of Acquisition of Control