Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 164

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 164
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 to the product of (i) the number of shares of Essential common stock subject to such Essential stock option and (ii) the exchange ratio, at an exercise price per share of American Water common stock (rounded up to the nearest whole cent) equal to the quotient obtained by dividing (A) the exercise price per share of Essential common stock subject to such Essential stock option by (B) the exchange ratio. Each adjusted option will be subject to the same terms and conditions applicable to the corresponding Essential stock option, including any “double trigger” vesting protections, except that, for any Essential stock option subject to performance-based conditions, the vesting of the corresponding adjusted options will no longer be subject to achievement of the applicable performance goals. 106

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. None of the Essential directors or executive officers
hold any Essential RSAs.

Each Essential RSU and Essential PSU that is outstanding as of immediately prior to the effective time (including each Essential RSU and Essential PSU held by
an executive officer) 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 Essential 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