Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 40

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 40
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, each outstanding Essential RSU and Essential PSU will be converted into an adjusted RSU in
respect of shares of American Water common stock as determined by applying the exchange ratio and otherwise on the same terms and conditions applicable to such Essential RSU and Essential PSU (except that any performance-based vesting conditions
will no longer apply to the adjusted RSUs, and including any “double-trigger” vesting protections). For purposes of the foregoing, Essential PSUs will be converted into a number of adjusted RSUs based on (i) the greater of actual or
target level of performance with respect to any ongoing performance periods as of the date of the closing or (ii) the actual level of performance with respect to any performance period completed as of the date of the closing. 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.

American Water Board’s Recommendations and Its Reasons for the Merger

On October 24, 2025, by unanimous vote of all directors then present, the American Water board authorized, adopted, and approved the merger agreement and
the transactions contemplated by the merger agreement, including the merger and the share issuance, and determined that the merger agreement and such contemplated transactions, including the merger and the share issuance, are advisable, fair to, and
in the best interests of American Water and its shareholders, and the American Water board unanimously recommends that American Water shareholders vote “FOR” the share issuance proposal and “FOR” the American
Water adjournment proposal.

For a discussion of the factors considered by the American Water board in reaching its decision to approve the merger
agreement and the consummation of the transactions contemplated by the merger agreement, including the merger and the share issuance, see “The Merger—American Water Board’s Recommendations and Its Reasons for the Merger” beginning on page 67.

Essential Board’s Recommendations and Its Reasons for the Merger

On October 26, 2025, the Essential board unanimously 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, and unanimously approved, adopted, and declared advisable the merger agreement, and 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