Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 199

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 199
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 Water, or prior to obtaining shareholder approval of the merger agreement proposal, in the case of Essential, if American Water or Essential receives a bona fide written competing proposal that does not result from a material breach of such party’s non-solicitationobligations under the merger agreement and that its board of directors determines in good faith (after consultation with outside legal counsel and a financial advisor) constitutes, or would reasonably be expected to lead to, a superior proposal, such party and its representatives may:

| • |     | participate in discussions regarding the terms of such competing proposal, including the terms of a competing          
 agreement with respect thereto, and the negotiation of such terms with the third party making such competing proposal. |

Each of American Water and Essential, as applicable, must promptly (and in any event within 24 hours after receipt) notify the other party in writing if such party receives any competing proposal and provide the other party with the material terms and conditions of any such competing proposal and the identity of the third party making any such competing proposal. Each of American Water and Essential, as applicable, must keep the other party reasonably informed in all material respects on a reasonably current basis (and in any event no later than 24 hours) of any material terms and status (including material changes) of any competing proposal and provide to the other party, as soon as reasonably practicable after receipt or delivery thereof, copies of any letter of intent, term sheet, memorandum of understanding or similar written materials (including drafts thereof) exchanged between such party or any of its subsidiaries or representatives, on the one hand, and any third party making such competing proposal or any of its representatives, on the other hand. Change of Recommendation and Match Rights Subject to the following paragraph and except for the public disclosure of a recommendation change notice by either party (as discussed below), the American Water board may not change its recommendation that American Water shareholders vote “ FOR” the share issuance proposal, and the Essential board may not change its recommendation that Essential shareholders vote “ FOR” the merger agreement proposal. Under the merger 134

agreement, a change of recommendation will occur if the American Water board or the Essential board, including any committee thereof:

| • |     | withdraws, changes, qualifies, withholds, or modifies, or proposes publicly to withdraw, change, qualify, 
 withhold or modify, in any manner adverse to the other party, the recommendation;                         |

| • |     | adopts, approves or recommends, or publicly proposes to adopt, approve, or recommend