Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 210

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 210
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 to enter into a written definitive agreement for a superior proposal prior to obtaining 
 the Essential shareholder approval.                                                                            |

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                                                                                          |

143

| 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| • |     | prior to any such termination, any third party has publicly announced or disclosed and not publicly withdrawn a                            
 competing proposal (which, solely for these purposes, is defined by substituting “50%” for “20%” in each instance) for American Water; and |

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

| • |     | by Essential, if there has been an adverse recommendation change by the American Water board prior to obtaining 
 the American Water shareholder approval; or                                                                     |

| • |     | by American Water, in order to enter into a written definitive agreement for a superior proposal prior to 
 obtaining the American Water shareholder approval.                                                        |

Payment of the applicable termination fee will constitute the sole and exclusive remedy of the non-payingparty, and upon such payment, the paying party will have no further liability to the other party, including for any willful breach. If either party fails to pay a required termination fee when due and the other party successfully seeks to enforce payment, the defaulting party will also be required to pay interest and reimburse the other party’s reasonable costs and expenses incurred in obtaining such payment. Fees and Expenses Except as provided in “— Effect of Termination” above, whether or not the merger is completed, all expenses incurred in connection with the merger agreement and the transactions contemplated by it will be paid by the party incurring such expenses, except that (i) the HSR Act filing fees, (ii) the costs and expenses incurred in connection with printing, filing and