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

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 29
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i) the      
 greater of actual or target level of performance with respect to any ongoing performance periods as of the completion of the merger, or (ii) the actual level of performance with respect to any performance period completed as of the completion       
 of the merger. For a more detailed discussion of the treatment of Essential equity awards, see “The Merger Agreement—Treatment of Outstanding Essential Equity Awards” beginning on page 123.                                                            |

15

| Q: | What will happen to the Essential ESPP? |

| Q: | What will happen to the Essential 401(k) Plan? |

| A: | Prior to completion of the merger, Essential will prohibit any future investments in “corporation                                                                                                                            
 stock” (as defined in the Essential 401(k) Plan) and prohibit any future investments in “employer securities” (as defined in Section 407(d)(1) of the Employee Retirement Income Security Act of 1974, as amended) under the 
 Essential 401(k) Plan.                                                                                                                                                                                                       |

For Both American Water Shareholders and Essential Shareholders

| Q: | When is the merger expected to be completed? |

| A: | American Water and Essential expect to complete the merger in the first quarter of 2027, although American                                                                                                                                                
 Water and Essential cannot assure completion by any particular date, if at all. Because the merger is subject to a number of conditions, including the approval of the share issuance proposal by American Water shareholders, the approval of the merger 
 agreement proposal by Essential shareholders, and the receipt of certain governmental approvals, including the HSR clearance and the required state regulatory approvals, in each case on such terms and conditions that would not, individually or in    
 the aggregate, result in a burdensome effect (as defined in “The Merger Agreement—Efforts Related to Consents and Approvals of Governmental Entities” beginning on page 137), the exact timing of the merger cannot be                                    
 determined at this time and American Water and Essential cannot guarantee that the merger will be completed at all. For a description of the conditions to the merger, see “The Merger Agreement—Conditions to the Completion of the                      
 Merger” beginning on page 140. Also see “Risk Factors” beginning on page 35.                                                                                                                                                                              |

| Q: | Following the merger, what percentage of American Water common stock will the continuing American Water 
 shareholders and former Essential shareholders own?                                                     |

| A: | Immediately following the completion of the merger, continuing American Water shareholders will own