Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 98

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 98
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 including the definition of burdensome effect, the amount of the termination fees, matters
related to Essential employees and their compensation, covenants applicable to the operation of the businesses during the interim period and certain post-closing commitments.

Also on October 10, 2025, and again on October 14, 2025, representatives from each of Skadden and Gibson Dunn discussed certain regulatory matters
in connection with the potential transaction.

On October 13, 2025, the Essential board held a meeting, at which certain members of Essential
management were present. Representatives of Gibson Dunn also attended portions of the meeting. During the meeting, Mr. Franklin reviewed the status of the potential transaction with American Water. Essential management then led the Essential
board in a discussion of the regulatory approvals that would be required in the potential transaction with American Water, the potential risks associated therewith and the potential remedies and consequences if such approvals were not obtained.
Essential management also reviewed Essential’s five-year plan for 2026 through 2030. Representatives of Gibson Dunn reviewed the status of the merger agreement negotiations, including the proposed “no shop” and “fiduciary
out” provisions. Mr. Franklin discussed his most recent exchanges with Mr. Griffith, including key topics concerning the benefits of the potential transaction to each party’s shareholders, customers and employees. The Essential board
then met in executive session, and representatives of Gibson Dunn discussed with the Essential board the key terms of the merger agreement and

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certain social and governance aspects of the proposed transaction, including Mr. Franklin’s proposed role and compensation following the closing of the potential transaction. The Essential
board instructed Essential management to continue discussions with American Water regarding the potential transaction.

On October 15, 2025,
representatives of Skadden and representatives of Gibson Dunn had a call to discuss a workplan for progressing the various workstreams that would need to be completed prior to American Water and Essential signing a definitive agreement.

Later in the day on October 15, 2025, Skadden sent a revised draft of the merger agreement to Gibson Dunn. Skadden’s revised draft of the merger
agreement included, among other things, modifications to provisions related to the covenants applicable to regulatory matters, continuing Essential employees, the operation of the businesses during the interim period, and the specified debt
agreements, the definition of burdensome effect, and the amount of the termination fees.

On October 16, 2025, members of American Water management,
members of Essential