Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 23

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 23
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 or become payable to Essential’s named executive officers that is based on or otherwise relates to the merger. |

| Q: | What happens if Essential shareholders do not approve the merger-related compensation proposal? |

| A: | Because the vote on the merger-related compensation proposal is advisory in nature only, it will not be binding                                                                                                                               
 upon Essential or American Water. Accordingly, the merger-related compensation will be paid to Essential’s named executive officers to the extent payable in accordance with the terms of their compensation agreements and other contractual 
 arrangements even if Essential shareholders do not approve the merger-related compensation proposal.                                                                                                                                          |

The vote on the merger-related compensation proposal is separate and apart from the votes to approve the other proposals being presented at the Essential special meeting and is not a condition to the completion of the merger.

| Q: | Who is entitled to vote at the Essential special meeting? |

| A: | The record date for the Essential special meeting is [ ], 202[ ], which is referred to as the                                                                                                                                                            
 Essential record date. Only holders of record of Essential common stock as of the close of business on the Essential record date are entitled to notice of, and to vote at, the Essential special meeting, unless a new record date is set in connection 
 with any adjournment or postponement of the Essential special meeting. As of the Essential record date, there were [ ] issued and outstanding shares of Essential common stock, and the issued and outstanding Essential common stock was held by        
 approximately [ ] shareholders of record. Each Essential shareholder entitled to vote at the Essential special meeting is entitled to cast one vote per share at the Essential special meeting.                                                          |

| Q: | How does the Essential board recommend that I vote on the proposals? |

| A: | The Essential board unanimously (i) determined that it is advisable, fair to, and in the best interests of                                                                                                                                        
 Essential and its shareholders to enter into the merger agreement and to consummate the transactions contemplated by the merger agreement, including the merger, (ii) approved, adopted, and declared advisable the merger agreement, and         
 (iii) directed that the merger agreement proposal, the merger-related compensation proposal, and the Essential adjournment proposal be submitted to the Essential shareholders for approval at the Essential special meeting. The Essential board 
 unanimously recommends that Essential shareholders vote “FOR” the merger agreement proposal, “FOR” the merger-related compensation proposal, and “FOR” the Essential adjournment proposal. For a                                                  
 discussion of the factors