Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 22

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 22
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 stock in “street name” through an intermediary, you will receive instructions from your intermediary as to how to effect the surrender of your shares of Essential common stock held in “street name” in exchange for (i) the shares of American Water common stock, (ii) cash in lieu of fractional shares of American Water common stock, and (iii) any dividends or distributions payable with respect to such Essential common stock. 10

| Q: | When and where is the Essential special meeting? |

| Q: | What matters will be voted on at the Essential special meeting? |

| A: | You will be asked to consider and vote on the following proposals: (i) the merger agreement proposal; 
 (ii) the merger-related compensation proposal; and (iii) the Essential adjournment proposal.          |

| Q: | Why are Essential shareholders being asked to consider and vote on a proposal to approve, by non-binding advisory vote, merger-related compensation arrangements for Essential’s named executive officers (i.e., the merger-related compensation proposal)? |

| A: | Under SEC rules, Essential is required to seek a non-binding advisory                                                                                                 
 vote with respect to the compensation that may be paid 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? |

| 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