Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 186

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 186
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 option, including any “double trigger” vesting protections, except that for any Essential stock options subject to performance-based
conditions, the vesting of the corresponding adjusted options will no longer be subject to achievement of the applicable performance goals.

Treatment of Essential RSAs

Each Essential RSA
that is outstanding immediately prior to the effective time will, as of the effective time, be assumed and converted into an adjusted RSA equal to the product of (i) the total number of shares of Essential common stock subject to such Essential
RSA and (ii) the exchange ratio, with any fractional shares rounded down to the nearest whole share of restricted American Water common stock. Each adjusted RSA will be subject to the same terms and conditions applicable to the corresponding
Essential RSA, including any “double trigger” vesting protections.

Treatment of Essential RSUs and Essential PSUs

Each Essential RSU and Essential PSU that is outstanding immediately prior to the effective time will, as of the effective time, be assumed and converted into
an adjusted RSU in respect of a number of shares of American Water common stock equal to the product of (i) the total number of shares of Essential common stock subject to such Essential RSU or Essential PSU, as applicable, as of immediately
prior to the effective time and (ii) the exchange ratio, with any fractional shares rounded down to the nearest whole share. Each adjusted RSU will be subject to the same terms and conditions applicable to the corresponding Essential RSU or PSU
(including any “double trigger” vesting protections), as applicable, under the Essential stock plan and the applicable award agreement, including vesting terms, except that any adjusted RSU corresponding to an Essential PSU will no
longer be subject to any performance-based vesting conditions.

For purposes of the foregoing, the number of shares of Essential common stock subject to
each Essential PSU as of immediately prior to the effective time will be determined based on (i) if the applicable performance period is ongoing as of the date of the closing, the greater of (A) the number of shares of Essential common
stock subject to such Essential PSU based on actual performance from the beginning of the applicable performance period through the date of the closing or (B) the target number of shares of Essential common stock subject to such Essential PSU,
or (ii) if the applicable performance period is completed as of the date of the closing, the number of shares of Essential common stock subject to such Essential PSU based on actual performance as of the end of the applicable performance
period.

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