Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 165

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 165
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 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.

Quantification of Essential Equity Awards

See
“Quantification of Potential Payments and Benefits to Essential’s Named Executive Officers in Connection with the Merger” beginning on page 110 for an estimate of the value of unvested Essential equity
awards held by each of Essential’s named executive officers. Based on the assumptions described above under “—Certain Assumptions,” the estimated aggregate value of the unvested Essential equity awards held by
Essential’s executive officer who is not a named executive officer is: unvested Essential stock options—$6,992; unvested Essential RSUs—$53,025; and unvested Essential PSUs—$83,421. All Essential equity awards held by
Essential’s six non-employee directors are fully vested.

Change in Control Agreements

Each Essential executive officer is party to a change in control or employment agreement with Essential that provides that, in the event that the executive
officer experiences a qualifying termination (i.e., a termination of the executive officer’s employment by Essential without cause or by the executive officer under certain enumerated circumstances that would result in a material negative
change in the executive officer’s relationship with Essential) during the period that is within 90 days (six months in the case of Mr. Franklin) prior to or 24 months following a change in control of Essential, then Essential will be
obligated to pay the executive officer a cash lump sum payment equal to a multiple of such executive’s “base compensation.” “Base compensation” is defined as current base annual salary, plus the greater of the executive
officer’s target bonus for the year in which the executive incurs a termination of employment, or the last actual bonus paid to the executive officer under

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Essential’s then-in-effectannual cash incentive plan (provided that, for Mr. Franklin, the bonus shall in all cases be determined based on the target bonus opportunity). The executive officer is also