Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 92

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 92
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Griffith and Mr. Franklin met for dinner to continue their prior discussions regarding a potential transaction. During their meeting, Mr. Griffith and Mr. Franklin discussed their continued belief in the mutual benefits of a potential transaction to
American Water and Essential and their respective shareholders, and governance of the combined company, including board composition and a proposal to have Mr. Franklin transition from his role as Chairman, President and Chief Executive Officer
of Essential to the role of Executive Vice Chair of the board of directors of the combined company and his potential leadership duties and responsibilities in such role. Mr. Griffith and Mr. Franklin also discussed having the all-stock
consideration reflect a premium of 10% for Essential shareholders. Mr. Griffith and Mr. Franklin also discussed the potential timeline for announcing a potential transaction.

On August 21, 2025, the Essential board held a special meeting, at which certain members of Essential management were present. During the meeting,
Essential management reviewed potential strategic alternatives available to Essential, including the potential transaction with American Water, and Essential’s current five-year plan. The Essential board then engaged in a discussion regarding
the potential transaction, its potential benefits, and related risks and challenges. Following this discussion, the Essential board instructed Essential management to continue discussions with American Water regarding the potential transaction.

Following the Essential board meeting, also on August 21, 2025, Mr. Franklin and Mr. Kurz had a call to discuss the business rationale for a potential
transaction and board governance of the combined company.

On August 24, 2025, Mr. Griffith and Mr. Franklin had a call and discussed key governance
terms for a potential transaction, including composition of the board of directors of the combined company, including the role of the Executive Vice Chair and executive roles. Mr. Franklin proposed a board composition of ten members from American
Water and five members from Essential. In addition, Mr. Franklin confirmed his and Mr. Griffith’s mutual understanding with respect to creating senior management roles for Mr. Schuller and Ms. Arnold. After the discussion, Mr. Griffith
and Mr. Franklin agreed as a next step that each would update his respective company’s board of directors and that American Water and Essential would execute a mutual confidentiality agreement in order to facilitate the exchange of non-public
information by both parties so that they could further explore whether a potential transaction would be in the best interests of each company and its respective shareholders.

Later in the day, on August 24, 2025, Mr. Franklin sent Mr.