Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 185

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 185
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-entry shares, (ii) any cash in lieu of fractional shares, and (iii) any dividends or distributions payable with respect to such Essential common stock, without interest.

Termination of Exchange Fund

Any portion of the
exchange fund payable that remains undistributed to holders of Essential common stock for one year after the effective time will be returned to American Water upon demand. Thereafter, a holder of Essential common stock must look only to American
Water for payment of the merger consideration, any cash in lieu of fractional shares and any dividends or distributions to which the holder is entitled under the terms of the merger agreement.

Lost Certificates

If a certificate formerly
representing shares of Essential common stock has been lost, stolen, or destroyed, the exchange agent will deliver the merger consideration, any cash in lieu of fractional shares and any unpaid dividends or distributions properly payable under the
merger agreement upon receipt of an affidavit as to that loss, theft, or destruction, and, if required by American Water, the posting of a bond in such reasonable amount as American Water will require as indemnity against any claim that may be made
against it with respect to such certificate.

Withholding Taxes

Each of American Water, Merger Sub, Essential, the surviving corporation and the exchange agent will be entitled to deduct and withhold from any consideration
payable to any Essential shareholder the amounts it is required to deduct and withhold under the Code or any applicable state, local, or non-U.S. tax law with respect to

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the making of such payment. Withheld or deducted amounts will be treated for all purposes of the merger agreement as having been paid to the Essential shareholders to whom such amounts would
otherwise have been paid.

Treatment of Outstanding Essential Equity Awards

Treatment of Essential Stock Options

Each
Essential stock option that is outstanding immediately prior to the effective time will, as of the effective time, whether vested or unvested, be assumed and converted into an adjusted option to acquire a number of shares of American Water common
stock (rounded down to the nearest whole share) equal 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