Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 159

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 159
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 Water board. Moelis did not recommend any specific consideration to Essential or the Essential board, or that any specific amount or type of consideration constituted the only appropriate consideration for the merger. Moelis acted as financial advisor to Essential in connection with the merger. Essential agreed to pay Moelis certain fees for its services, including (i) an opinion fee of $4 million, payable upon delivery of its opinion (regardless of the conclusion reached in that opinion), (ii) an announcement fee of $8 million, payable upon the public announcement of the merger, (iii) a shareholder approval fee of $13 million, payable upon shareholder approval by Essential’s shareholders of the merger and (iv) a transaction fee of $60 million, payable upon consummation of the merger. Each of the opinion fee, the announcement fee and the shareholder approval fee is offset against the transaction fee. In addition, Essential has agreed to reimburse Moelis for certain of its expenses, including reasonable attorney’s fees and disbursements, and to indemnify Moelis and related persons for certain liabilities, including liabilities under the federal securities laws, arising out of its engagement. Moelis’ affiliates, employees, officers and partners may at any time own securities (long or short) of Essential, American Water or their respective affiliates. Moelis has not received any fees from Essential, aside from the fees described above in connection with the merger, in the two years preceding the date of its opinion. Moelis had not provided investment banking or other services unrelated to the merger to Essential or American Water in the two years prior to the date of its opinion. In the future Moelis may provide such investment banking or other services to Essential or American Water or their affiliates and would expect to receive compensation for such services. The Essential board selected Moelis as its financial advisor in connection with the merger because Moelis has substantial experience in similar transactions and familiarity with Essential. Moelis is regularly engaged in the valuation of businesses and their securities in connection with mergers and acquisitions, strategic transactions, corporate restructurings, and valuations for corporate and other purposes. Governance of American Water After the Merger Board of Directors; Committees Prior to the effective time, American Water will take all necessary action to increase the size of the American Water board such that at the effective time, the American Water board will be comprised of 15 directors, which will include:

| • |     | the 10 directors serving on the American Water board as of immediately prior