Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 61

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 61
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 which currently govern the rights of Essential shareholders. Additionally,
American Water is a Delaware corporation governed by the DGCL, and Essential is a Pennsylvania corporation governed by the Pennsylvania Business Corporation Law, the Pennsylvania Entity Transactions Law, and other applicable parts of the
Pennsylvania Associations Code, and these state statutes provide for different rights in certain circumstances. For a discussion of the different rights associated with shares of American Water common stock and shares of Essential common stock, see
“Comparison of Rights of Shareholders of American Water and Essential.”

Members of the management and boards of directors of American Water and Essential have interests in the merger that may be different from, or in addition to, those of other shareholders.

In
considering whether to approve the share issuance proposal, American Water shareholders should recognize that members of American Water management and the American Water board have interests in the merger that may be different from, or in addition
to, their interests as shareholders of American Water.

These interests include that the 10 members of the American Water board as of immediately prior to
the effective time will remain on the American Water board immediately following the completion of the merger, the Board Chair with respect to the American Water board (Karl F. Kurz, or the individual serving in such position immediately prior to
the effective time) will continue to serve in such position, the President and Chief Executive Officer of American Water (John C. Griffith, or the individual serving in such position immediately prior to the effective time) will continue to serve in
such position, and the individuals serving in executive vice president and senior executive positions of American Water who report to the President and Chief Executive Officer of American Water immediately prior to the effective time will continue
in such positions until the earlier of such individual’s resignation or removal. The American Water board was aware of these interests and considered them, among other matters, in approving the merger agreement and making its recommendation
that the American Water shareholders vote “FOR” each of the share issuance proposal and the American Water adjournment proposal.

In
considering the recommendation of the Essential board to approve the merger agreement proposal, Essential shareholders should be aware that Essential’s directors and executive officers have interests in the merger that may be different from,
or in addition to, the interests of Essential shareholders generally, including treatment of outstanding Essential equity awards in connection with the transactions contemplated by the merger agreement, potential severance benefits, continued
employment benefits, potential transaction bonuses, and rights to ongoing indemnification and insurance coverage.

These interests also include that,
prior to the completion