Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 62

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 62
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 of American Water common stock to be received by Essential shareholders upon completion of the merger will have different rights from shares of Essential common stock.

Upon completion of the merger, Essential shareholders will no longer
be shareholders of Essential but will instead become shareholders of American Water, and their rights as American Water shareholders will be governed by the terms of the American Water certificate of incorporation and bylaws. The terms of the
American Water certificate of incorporation and bylaws are in some respects materially different than the terms of the Essential articles of incorporation and bylaws, 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 adj