Document:

exv4w4

Exhibit 4.4

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS
ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS
PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE
“RESALE RESTRICTION TERMINATION DATE”) THAT IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF, THE ORIGINAL ISSUE DATE OF THE ISSUANCE OF ANY ADDITIONAL NOTES AND THE LAST DATE ON WHICH
THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO
A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND
SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF
AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.

BY ITS ACQUISITION OF THIS SECURITY, THE HOLDER THEREOF WILL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT EITHER (1) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE OR HOLD THIS
SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO TITLE I OF THE U.S.
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF A PLAN, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER ARRANGEMENT THAT IS SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) OR PROVISIONS UNDER ANY OTHER FEDERAL, STATE, LOCAL,
NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE
(“SIMILAR LAWS”), OR OF AN ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR

 

 

ARRANGEMENT, OR (2) THE ACQUISITION AND HOLDING OF THIS SECURITY WILL NOT CONSTITUTE A
NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A
SIMILAR VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREIN. UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY (“DTC”) TO A NOMINEE OF DTC, OR BY A
NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC, OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

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	No. 1
	 	Principal Amount $400,000,000

CUSIP No. 30162AAA6

EXELIS INC.

5.550% SENIOR NOTES DUE 2021

     EXELIS INC., an Indiana corporation (herein called the “Company”, which term includes any
successor corporation under the Indenture referred to on the reverse hereof), for value received,
hereby promises to pay to Cede & Co. or registered assigns, the principal sum of $400,000,000 on
October 1, 2021, and to pay interest on said principal sum semi-annually on April 1 and October 1
of each year, commencing April 1, 2012, at the rate of 5.550% per annum from September 20, 2011, or
from the most recent date in respect of which interest has been paid or duly provided for, until
payment of the principal sum has been made or duly provided for.

     The interest so payable and punctually paid or duly provided for on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the Record Date for such Interest
Payment Date, which shall be the March 15 or September 15 (whether or not a Business Day) next
preceding such Interest Payment Date. Any such interest that is payable but is not so punctually
paid or duly provided for shall forthwith cease to be payable to the registered Holder on such
Record Date and may either be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Notes not earlier than 10 days prior to such Special Record Date, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange
on which the Notes may be listed and upon such notice as may be required by such exchange, if such
manner of payment shall be deemed practical by the Trustee, all as more fully provided in the
Indenture.

     Payment of the principal of and interest on this Note will be made at the Place of Payment in
such coin or currency of the United States as at the time of payment is legal tender for payment of
public and private debts; provided, however, that payments of interest may be made at the option of
the Company by checks mailed to the addresses of the Persons entitled thereto as such addresses
shall appear in the Security Register or by wire transfer to an account maintained by the payee of
a bank located in the United States.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth at this place.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

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     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by manual or
facsimile signature.

Dated: September 20, 2011

	 	 	 	 	 
	 	EXELIS INC.

	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	UNION BANK, N.A., as Trustee 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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REVERSE OF NOTE

EXELIS INC.

5.550% SENIOR NOTES DUE 2021

This Note is one of a duly authorized issue of debentures, notes or other evidences of indebtedness
of the Company (herein called the “Securities”), issued and to be issued in one or more series
under an Indenture, dated as of September 20, 2011 (herein called the “Indenture”), between the
Company, ITT Corporation, as Guarantor (herein called the “Guarantor”) and Union Bank, N.A., as
Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights thereunder of the Company, the Guarantor, the Trustee, and the
Holders of the Securities, the terms upon which the Securities are, and are to be, authenticated
and delivered, and the definition of capitalized terms used herein and not otherwise defined
herein. The Securities may be issued in one or more series, which different series may be issued in
various aggregate principal amounts, may be denominated in different currencies, may mature at
different times, may bear interest (if any) at different rates (which rates may be fixed or
variable), may be subject to different redemption provisions (if any), may be subject to different
sinking, purchase, or analogous funds (if any), may be subject to different covenants and Events of
Default, and may otherwise vary as provided in the Indenture. This Note is one of a series of
Securities of the Company designated as set forth on the face hereof (herein called the “Notes”),
initially limited in aggregate principal amount to $400,000,000.

Optional Redemption

     The Notes shall be redeemable as a whole or in part, at the Company’s option at any time and
from time to time, at a redemption price equal to the greater of (i) 100% of the principal amount
of such Notes and (ii) the sum of the present values of the remaining scheduled payments of
principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted
to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 50 basis points, plus in each case accrued and unpaid interest to
the date of redemption.

     Except as otherwise provided herein, redemption of the Notes shall be made in accordance
with the terms of Article 11 of the Indenture.

     “Treasury Rate” means the yield to maturity at the time of computation of United States
Treasury securities with a constant maturity (as compiled and published in the most recent Federal
Reserve Statistical Release H.15 (519) which has become publicly available at least two business
days prior to the date of redemption (or, if such Statistical Release is no longer published, any
publicly available source or similar market data)) most nearly equal to the period from the date of
redemption to the maturity date; provided, however, that if the period from the date of redemption
to the maturity date is not equal to the constant maturity of a United States Treasury security for
which a weekly average yield is given, the Treasury Rate shall be

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obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the
weekly average yields of United States Treasury securities for which such yields are given, except
that if the period from the date of redemption to the maturity date is less than one year, the
weekly average yield on actually traded United States Treasury securities adjusted to a constant
maturity of one year shall be used.

Repurchase Upon Change of Control Triggering Event

     If a Change of Control Triggering Event (as defined below) occurs after the Distribution Date
(as defined in the Indenture), unless the Company has exercised its right to redeem the Notes as
described above, the Company will be required to make an offer to repurchase all or, at the
Holder’s option, any part (equal to $2,000 or any multiple of $1,000 in excess thereof), of each
Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”) on the terms
set forth in the Notes. In the Change of Control Offer, the Company will be required to offer
payment in cash equal to 101% of the aggregate principal amount of Notes repurchased plus accrued
and unpaid interest, if any, on the Notes repurchased, to, but not including, the date of purchase
(the “Change of Control Payment”).

     Within 30 days following any Change of Control Triggering Event or, at the Company’s option,
prior to any Change of Control, but after public announcement of the transaction that constitutes
or may constitute the Change of Control, a notice will be mailed to Holders of the Notes describing
the transaction that constitutes or may constitute the Change of Control Triggering Event and
offering to repurchase such Notes on the date specified in the notice, which date will be no
earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of
Control Payment Date”). The notice, if mailed prior to the date of consummation of the Change of
Control, will state that the Change of Control Offer is conditioned on the Change of Control
Triggering Event occurring on or prior to the Change of Control Payment Date.

     On the Change of Control Payment Date, the Company will be required, to the extent lawful, to:

     (a) accept for payment all Notes or portions of Notes properly tendered pursuant to the Change
of Control Offer;

     (b) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect
of all Notes or portions of Notes properly tendered; and

     (c) deliver or cause to be delivered to the Trustee the Notes properly accepted together with
an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being
purchased by the Company.

     The Paying Agent will be required to promptly mail, to each Holder who properly tendered
Notes, the purchase price for such Notes, and the Trustee will be required to promptly authenticate
and mail (or cause to be transferred by book entry) to each such Holder a new Note equal in
principal amount to any unpurchased portion of the Notes surrendered, if any; provided,

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that each new Note will be in a principal amount of $2,000 or a multiple of $1,000 in excess
thereof.

     The Company will not be required to make a Change of Control Offer upon a Change of Control
Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in
compliance with the requirements for an offer made by the Company and such third party purchases
all Notes properly tendered and not withdrawn under its offer. In the event that such third party
terminates or defaults its offer, the Company will be required to make a Change of Control Offer
treating the date of such termination or default as though it were the date of the Change of
Control Triggering Event.

     In addition, the Company will not repurchase any Notes if there has occurred and is continuing
on the Change of Control Payment Date an Event of Default under the Indenture, other than a default
in the payment of the Change of Control Payment upon a Change of Control Triggering Event.

     “Change of Control” means the occurrence of any one of the following after the Distribution
Date: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than
by way of merger, amalgamation, arrangement or consolidation), in one or a series of related
transactions, of all or substantially all of the Company’s properties or assets and those of the
Company’s subsidiaries, taken as a whole, to one or more persons, other than to the Company or one
of the Company’s subsidiaries; (2) the first day on which a majority of the members of the Board of
Directors is not composed of Continuing Directors (as defined below); (3) the consummation of any
transaction including, without limitation, any merger, amalgamation, arrangement or consolidation
the result of which is that any person becomes the beneficial owner, directly or indirectly, of
more than 50% of the Company’s Voting Stock; (4) the Company consolidates with, or merges with or
into, any person, or any person consolidates with, or merges with or into, the Company, in any such
event pursuant to a transaction in which any of the outstanding Voting Stock of the Company or of
such other person is converted into or exchanged for cash, securities or other property, other than
any such transaction where the shares of the Company’s Voting Stock outstanding immediately prior
to such transaction constitute, or are converted into or exchanged for, a majority of the Voting
Stock of the surviving person immediately after giving effect to such transaction; or (5) the
adoption of a plan relating to the Company’s liquidation or dissolution (other than the Company’s
liquidation into a newly formed holding company). Notwithstanding the foregoing, a transaction
described in clause (3) above will not be deemed to involve a Change of Control if (1) the Company
becomes a direct or indirect wholly-owned subsidiary of a holding company (which will include a
parent company) and (2)(A) the direct or indirect holders of the Voting Stock of such holding
company immediately following that transaction are substantially the same as, and hold in
substantially the same proportions as, the holders of the Company’s Voting Stock immediately prior
to that transaction or (B) immediately following that transaction no person (other than a holding
company satisfying the requirements of this sentence) is the beneficial owner, directly or
indirectly of more than 50% of the then outstanding Voting Stock, measured by voting power, of such
holding company. Following any such transaction, references in this definition to the Company shall
be deemed to refer to such holding company. For the purposes of this definition, “person” and
“beneficial owner” have the meanings used in Section 13(d) of the Exchange Act.

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     “Change of Control Triggering Event” means the Notes cease to be rated Investment Grade by
each of the Rating Agencies on any date during the 60-day period (the “Trigger Period”) commencing
upon the earlier of (1) the first public announcement of the Change of Control or the Company’s
intention to effect a Change of Control and (2) the consummation of such Change of Control, which
Trigger Period will be extended following consummation of a Change of Control for so long as the
rating of the Notes is under publicly announced consideration for possible downgrade by any of the
Rating Agencies. Unless at least one Rating Agency is providing a rating for the Notes at the
commencement of any Trigger Period, the Notes will be deemed to have ceased to be rated Investment
Grade during that Trigger Period. Notwithstanding the foregoing, no Change of Control Triggering
Event will all be deemed to have occurred in connection with any particular Change of Control
unless and until such Change of Control has actually been consummated.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors who (1) was a member of the Board of Directors on the issue date of the Notes; or (2) was
nominated for election, elected or appointed to the Board of Directors with the approval of a
majority of the Continuing Directors who were members of the Board of Directors at the time of such
nomination, election or appointment (either by a specific vote or by approval by such directors of
the Company’s proxy statement in which such member was named as a nominee for election as a
director).

     “Fitch” means Fitch Inc., and its successors.

     “Investment Grade” means a rating equal to or higher than BBB- (or the equivalent) by Fitch,
Baa3 (or the equivalent) by Moody’s or BBB- (or the equivalent) by S&P, and the equivalent
investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by
the Company.

     “Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation,
and its successors.

     “Rating Agencies” means (a) each of Fitch, Moody’s and S&P; and (b) if any of the Rating
Agencies ceases to provide rating services to issuers or investors, a “nationally recognized
statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange
Act that is selected by the Company (as certified by the Company’s Chief Executive Officer or Chief
Financial Officer) as a replacement for Fitch, Moody’s or S&P, or all of them, as the case may be.

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.,
and its successors.

     “Voting Stock” of any specified person as of any date means the capital stock of such person
that is at the time entitled to vote generally in the election of the board of directors of such
person.

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Defeasance

     The Indenture contains provisions for defeasance at any time of the entire principal of all
the Securities of any series upon compliance by the Company with certain conditions set forth
therein.

     Certain of the Company’s obligations under the Indenture with respect to the Notes may be
terminated if the Company irrevocably deposits with the Trustee money or U.S. Government
Obligations or Equivalent Government Securities sufficient to pay and discharge the entire
indebtedness on the Indenture.

Events of Default

     If an Event of Default with respect to the Notes shall occur and be continuing, the principal
amount hereof may be declared due and payable or may be otherwise accelerated in the manner and
with the effect provided in the Indenture.

Payment

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency,
herein prescribed.

Amendments

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of not less than a majority of the aggregate principal amount of the
Securities at the time Outstanding of each series to be affected by such amendment or modification.
The Indenture also contains provisions permitting the Holders of not less than a majority of the
aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of
the Holders of Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Note.

Transfer, Registration and Exchange

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registerable in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in any Place of Payment duly
endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed, by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or transferees.

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     No service charge shall be made for any such registration or transfer or exchange, but
the Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to the presentment of this Note for registration of transfer, the Company, the Trustee,
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for the purpose of receiving payment as herein provided and for all
other purposes, whether or not this Note is overdue, and neither the Company, the Trustee, nor any
such agent shall be affected by notice to the contrary.

Other Terms

     The Indenture contains provisions setting forth certain conditions to the institution of
proceedings by Holders of Securities with respect to the Indenture or for any remedy under the
Indenture.

     The Notes are issuable only in registered form without coupons in denominations of $2,000 and
integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain
limitations therein set forth, this Note is exchangeable for a like aggregate principal amount of
Notes of different authorized denominations as requested by the Holder surrendering the same.

     The Notes are not subject to a sinking fund.

     This Note shall be governed by, and construed in accordance with, the laws of the State of New
York.

     All terms used in this Note which are defined in the Indenture and are not otherwise defined
herein shall have the meanings assigned to them in the Indenture.

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ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

      

      

      

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

the within Note and all rights thereunder, hereby irrevocably constituting and appointing
_________________________ attorney to transfer such Note on the books of the Issuer, with full
power of substitution in the premises.

Dated:                                         

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Note in every particular without alteration or enlargement or any change whatsoever.

-12-exv4w5

Exhibit 4.5

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED
OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF,
AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED
SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) THAT IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF,
THE ORIGINAL ISSUE DATE OF THE ISSUANCE OF ANY ADDITIONAL NOTES AND THE LAST DATE ON WHICH THE
ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO
A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO
OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF
AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.

BY ITS ACQUISITION OF THIS SECURITY, THE HOLDER THEREOF WILL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT EITHER (1) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE OR HOLD THIS
SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO TITLE I OF THE U.S.
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF A PLAN, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER ARRANGEMENT THAT IS SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL
REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”) OR PROVISIONS UNDER ANY OTHER FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS
OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF AN
ENTITY WHOSE UNDERLYING ASSETS ARE
CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR

 

 

ARRANGEMENT, OR (2) THE ACQUISITION AND HOLDING OF THIS SECURITY WILL NOT CONSTITUTE A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR
VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREIN. UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY (“DTC”) TO A NOMINEE OF DTC, OR BY A
NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC, OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

-2-

 

			
	No. 1
	 	Principal Amount $500,000,000
	 
	 	CUSIP No. 98419MAC4

XYLEM INC.

3.550% SENIOR NOTES DUE 2016

     XYLEM INC., an Indiana corporation (herein called the “Company”, which term includes any
successor corporation under the Indenture referred to on the reverse hereof), for value received,
hereby promises to pay to Cede & Co. or registered assigns,
the principal sum of $500,000,000 on September 20, 2016, and to pay interest on said principal
sum semi-annually on March 20 and September 20 of each year, commencing March 20, 2012, at the rate
of 3.550% per annum from September 20, 2011, or from the most recent date in respect of which
interest has been paid or duly provided for, until payment of the principal sum has been made or
duly provided for.

     The interest so payable and punctually paid or duly provided for on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the Record Date for such Interest
Payment Date, which shall be the March 5 or September 5 (whether or not a Business Day) next
preceding such Interest Payment Date. Any such interest that is payable but is not so punctually
paid or duly provided for shall forthwith cease to be payable to the registered Holder on such
Record Date and may either be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Notes not earlier than 10 days prior to such Special Record Date, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange
on which the Notes may be listed and upon such notice as may be required by such exchange, if such
manner of payment shall be deemed practical by the Trustee, all as more fully provided in the
Indenture.

     Payment of the principal of and interest on this Note will be made at the Place of Payment in
such coin or currency of the United States as at the time of payment is legal tender for payment of
public and private debts; provided, however, that payments of interest may be made at the option of
the Company by checks mailed to the addresses of the Persons entitled thereto as such addresses
shall appear in the Security Register or by wire transfer to an account maintained by the payee of
a bank located in the United States.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth at this place.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

-3-

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by manual or
facsimile signature.

	 	 	 	 	 
	Dated:   September 20, 2011 	XYLEM INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-4-

 

	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	UNION BANK, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-5-

 

	 	 	 	 	 

REVERSE OF NOTE

XYLEM INC.

3.550% SENIOR NOTES DUE 2016

This Note is one of a duly authorized issue of debentures, notes or other evidences of indebtedness
of the Company (herein called the “Securities”), issued and to be issued in one or more series
under an Indenture, dated as of September 20, 2011 (herein called the “Indenture”), between the
Company, ITT Corporation, as Guarantor (herein called the “Guarantor”) and Union Bank, N.A., as
Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights thereunder of the Company, the Guarantor, the Trustee, and the
Holders of the Securities, the terms upon which the Securities are, and are to be, authenticated
and delivered, and the definition of capitalized terms used herein and not otherwise defined
herein. The Securities may be issued in one or more series, which different series may be issued in
various aggregate principal amounts, may be denominated in different currencies, may mature at
different times, may bear interest (if any) at different rates (which rates may be fixed or
variable), may be subject to different redemption provisions
(if any), may be subject to different sinking, purchase, or analogous funds (if any), may be
subject to different covenants and Events of Default, and may otherwise vary as provided in the
Indenture. This Note is one of a series of Securities of the Company designated as set forth on the
face hereof (herein called the “Notes”), initially limited in aggregate principal amount to
$500,000,000.

Optional Redemption

     The Notes shall be redeemable as a whole or in part, at the Company’s option at any time and
from time to time, at a redemption price equal to the greater of (i) 100% of the principal amount
of such Notes and (ii) the sum of the present values of the remaining scheduled payments of
principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted
to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 40 basis points, plus in each case accrued and unpaid interest to
the date of redemption.

     Except as otherwise provided herein, redemption of the Notes shall be made in accordance
with the terms of Article 11 of the Indenture.

          “Treasury Rate” means the yield to maturity at the time of computation of United States
Treasury securities with a constant maturity (as compiled and published in the most recent Federal
Reserve Statistical Release H.15 (519) which has become publicly available at least two business
days prior to the date of redemption (or, if such Statistical Release is no longer published, any
publicly available source or similar market data)) most nearly equal to the period from the date of
redemption to the maturity date; provided, however, that if the period from the date of redemption
to the maturity date is not equal to the constant maturity of a United States Treasury security for
which a weekly average yield is given, the Treasury Rate shall be

-6-

 

obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are given, except that if
the period from the date of redemption to the maturity date is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a constant maturity
of one year shall be used.

Repurchase Upon Change of Control Triggering Event

     If a Change of Control Triggering Event (as defined below) occurs after the Distribution Date
(as defined in the Indenture), unless the Company has exercised its right to redeem the Notes as
described above, the Company will be required to make an offer to repurchase all or, at the
Holder’s option, any part (equal to $2,000 or any multiple of $1,000 in excess thereof), of each
Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”) on the terms
set forth in the Notes. In the Change of Control Offer, the Company will be required to offer
payment in cash equal to 101% of the aggregate principal amount of Notes repurchased plus accrued
and
unpaid interest, if any, on the Notes repurchased, to, but not including, the date of purchase
(the “Change of Control Payment”).

     Within 30 days following any Change of Control Triggering Event or, at the Company’s option,
prior to any Change of Control, but after public announcement of the transaction that constitutes
or may constitute the Change of Control, a notice will be mailed to Holders of the Notes describing
the transaction that constitutes or may constitute the Change of Control Triggering Event and
offering to repurchase such Notes on the date specified in the notice, which date will be no
earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of
Control Payment Date”). The notice, if mailed prior to the date of consummation of the Change of
Control, will state that the Change of Control Offer is conditioned on the Change of Control
Triggering Event occurring on or prior to the Change of Control Payment Date.

     On the Change of Control Payment Date, the Company will be required, to the extent lawful, to:

     (a) accept for payment all Notes or portions of Notes properly tendered pursuant to the Change
of Control Offer;

     (b) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect
of all Notes or portions of Notes properly tendered; and

     (c) deliver or cause to be delivered to the Trustee the Notes properly accepted together with
an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being
purchased by the Company.

     The Paying Agent will be required to promptly mail, to each Holder who properly tendered
Notes, the purchase price for such Notes, and the Trustee will be required to promptly authenticate
and mail (or cause to be transferred by book entry) to each such Holder a new Note equal in
principal amount to any unpurchased portion of the Notes surrendered, if any; provided,

-7-

 

that each new Note will be in a principal amount of $2,000 or a multiple of $1,000 in excess
thereof.

     The Company will not be required to make a Change of Control Offer upon a Change of Control
Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in
compliance with the requirements for an offer made by the Company and such third party purchases
all Notes properly tendered and not withdrawn under its offer. In the event that such third party
terminates or defaults its offer, the Company will be required to make a Change of Control Offer
treating the date of such termination or default as though it were the date of the Change of
Control Triggering Event.

     In addition, the Company will not repurchase any Notes if there has occurred and is continuing
on the Change of Control Payment Date an Event of Default under the Indenture, other than a default
in the payment of the Change of Control Payment upon a Change of Control Triggering Event.

     “Change of Control” means the occurrence of any one of the following after the Distribution
Date: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than
by way of merger, amalgamation, arrangement or consolidation),
in one or a series of related transactions, of all or substantially all of the Company’s
properties or assets and those of the Company’s subsidiaries, taken as a whole, to one or more
persons, other than to the Company or one of the Company’s subsidiaries; (2) the first day on which
a majority of the members of the Board of Directors is not composed of Continuing Directors (as
defined below); (3) the consummation of any transaction including, without limitation, any merger,
amalgamation, arrangement or consolidation the result of which is that any person becomes the
beneficial owner, directly or indirectly, of more than 50% of the Company’s Voting Stock; (4) the
Company consolidates with, or merges with or into, any person, or any person consolidates with, or
merges with or into, the Company, in any such event pursuant to a transaction in which any of the
outstanding Voting Stock of the Company or of such other person is converted into or exchanged for
cash, securities or other property, other than any such transaction where the shares of the
Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are
converted into or exchanged for, a majority of the Voting Stock of the surviving person immediately
after giving effect to such transaction; or (5) the adoption of a plan relating to the Company’s
liquidation or dissolution (other than the Company’s liquidation into a newly formed holding
company). Notwithstanding the foregoing, a transaction described in clause (3) above will not be
deemed to involve a Change of Control if (1) the Company becomes a direct or indirect wholly-owned
subsidiary of a holding company (which will include a parent company) and (2)(A) the direct or
indirect holders of the Voting Stock of such holding company immediately following that transaction
are substantially the same as, and hold in substantially the same proportions as, the holders of
the Company’s Voting Stock immediately prior to that transaction or (B) immediately following that
transaction no person (other than a holding company satisfying the requirements of this sentence)
is the beneficial owner, directly or indirectly of more than 50% of the then outstanding Voting
Stock, measured by voting power, of such holding company. Following any such transaction,
references in this definition to the Company shall be deemed to refer to such holding company. For
the purposes of this definition, “person” and “beneficial owner” have the meanings used in Section
13(d) of the Exchange Act.

-8-

 

     “Change of Control Triggering Event” means the Notes cease to be rated Investment Grade by
each of the Rating Agencies on any date during the 60-day period (the “Trigger Period”) commencing
upon the earlier of (1) the first public announcement of the Change of Control or the Company’s
intention to effect a Change of Control and (2) the consummation of such Change of Control, which
Trigger Period will be extended following consummation of a Change of Control for so long as the
rating of the Notes is under publicly announced consideration for possible downgrade by any of the
Rating Agencies. Unless at least one Rating Agency is providing a rating for the Notes at the
commencement of any Trigger Period, the Notes will be deemed to have ceased to be rated Investment
Grade during that Trigger Period. Notwithstanding the foregoing, no Change of Control Triggering
Event will all be deemed to have occurred in connection with any particular Change of Control
unless and until such Change of Control has actually been consummated.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors who (1) was a member of the Board of Directors on the issue date of the Notes; or (2) was
nominated for election, elected or appointed to the Board of Directors with the approval of a
majority of the Continuing Directors who were members of the Board of Directors at the time of such
nomination, election or appointment (either by a specific vote or by approval by such directors of
the Company’s proxy statement in which such member was named as a nominee for election as a
director).

     “Fitch” means Fitch Inc., and its successors.

     “Investment Grade” means a rating equal to or higher than BBB- (or the equivalent) by Fitch,
Baa3 (or the equivalent) by Moody’s or BBB- (or the equivalent) by S&P, and the equivalent
investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by
the Company.

     “Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation,
and its successors.

     “Rating Agencies” means (a) each of Fitch, Moody’s and S&P; and (b) if any of the Rating
Agencies ceases to provide rating services to issuers or investors, a “nationally recognized
statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange
Act that is selected by the Company (as certified by the Company’s Chief Executive Officer or Chief
Financial Officer) as a replacement for Fitch, Moody’s or S&P, or all of them, as the case may be.

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.,
and its successors.

     “Voting Stock” of any specified person as of any date means the capital stock of such person
that is at the time entitled to vote generally in the election of the board of directors of such
person.

-9-

 

Defeasance

     The Indenture contains provisions for defeasance at any time of the entire principal of all
the Securities of any series upon compliance by the Company with certain conditions set forth
therein.

     Certain of the Company’s obligations under the Indenture with respect to the Notes may be
terminated if the Company irrevocably deposits with the Trustee money or U.S. Government
Obligations or Equivalent Government Securities sufficient to pay and discharge the entire
indebtedness on the Indenture.

Events of Default

     If an Event of Default with respect to the Notes shall occur and be continuing, the principal
amount hereof may be declared due and payable or may be otherwise accelerated in the manner and
with the effect provided in the Indenture.

Payment

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency,
herein prescribed.

Amendments

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of not less than a majority of the aggregate principal amount of the
Securities at the time Outstanding of each series to be affected by such amendment or modification.
The Indenture also contains provisions permitting the Holders of not less than a majority of the
aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of
the Holders of Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Note.

Transfer, Registration and Exchange

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registerable in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in any Place of Payment duly
endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed, by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or transferees.

-10-

 

     No service charge shall be made for any such registration or transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to the presentment of this Note for registration of transfer, the Company, the Trustee,
and any agent of the Company or the Trustee may treat the Person in whose
name this Note is registered as the owner hereof for the purpose of receiving payment as
herein provided and for all other purposes, whether or not this Note is overdue, and neither the
Company, the Trustee, nor any such agent shall be affected by notice to the contrary.

Other Terms

     The Indenture contains provisions setting forth certain conditions to the institution of
proceedings by Holders of Securities with respect to the Indenture or for any remedy under the
Indenture.

     The Notes are issuable only in registered form without coupons in denominations of $2,000 and
integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain
limitations therein set forth, this Note is exchangeable for a like aggregate principal amount of
Notes of different authorized denominations as requested by the Holder surrendering the same.

     The Notes are not subject to a sinking fund.

     This Note shall be governed by, and construed in accordance with, the laws of the State of New
York.

     All terms used in this Note which are defined in the Indenture and are not otherwise defined
herein shall have the meanings assigned to them in the Indenture.

-11-

 

ASSIGNMENT FORM

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

 

 

 

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

the within Note and all rights thereunder, hereby irrevocably constituting and appointing
_________________________ attorney to transfer such Note on the books of the Issuer, with full
power of substitution in the premises.

Dated:_______________________

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Note in every particular without alteration or enlargement or any change whatsoever.

-12-

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED
OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF,
AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED
SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) THAT IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF,
THE ORIGINAL ISSUE DATE OF THE ISSUANCE OF ANY ADDITIONAL NOTES AND THE LAST DATE ON WHICH THE
ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO
A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES
TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER
THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL
BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

BY ITS ACQUISITION OF THIS SECURITY, THE HOLDER THEREOF WILL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT EITHER (1) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE OR HOLD THIS
SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO TITLE I OF THE U.S.
EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF A PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR
OTHER ARRANGEMENT THAT IS SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE “CODE”) OR PROVISIONS UNDER ANY OTHER FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR
REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF AN
ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR

-1-

 

ARRANGEMENT, OR (2) THE ACQUISITION AND HOLDING OF THIS SECURITY WILL NOT CONSTITUTE A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR
VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF
THE INDENTURE REFERRED TO HEREIN. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITORY TRUST COMPANY (“DTC”) TO A NOMINEE OF DTC, OR BY A NOMINEE OF DTC TO DTC OR ANOTHER
NOMINEE OF DTC, OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

-2-

 

			
	No. 2
	 	Principal Amount $100,000,000
	 
	 	CUSIP No. 98419MAC4

XYLEM INC.

3.550% SENIOR NOTES DUE 2016

     XYLEM INC., an Indiana corporation (herein called the “Company”, which term includes any
successor corporation under the Indenture referred to on the reverse hereof), for value received,
hereby promises to pay to Cede & Co. or registered assigns,
the principal sum of $100,000,000 on September 20, 2016, and to pay interest on said principal
sum semi-annually on March 20 and September 20 of each year, commencing March 20, 2012, at the rate
of 3.550% per annum from September 20, 2011, or from the most recent date in respect of which
interest has been paid or duly provided for, until payment of the principal sum has been made or
duly provided for.

     The interest so payable and punctually paid or duly provided for on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the Record Date for such Interest
Payment Date, which shall be the March 5 or September 5 (whether or not a Business Day) next
preceding such Interest Payment Date. Any such interest that is payable but is not so punctually
paid or duly provided for shall forthwith cease to be payable to the registered Holder on such
Record Date and may either be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Notes not earlier than 10 days prior to such Special Record Date, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange
on which the Notes may be listed and upon such notice as may be required by such exchange, if such
manner of payment shall be deemed practical by the Trustee, all as more fully provided in the
Indenture.

     Payment of the principal of and interest on this Note will be made at the Place of Payment in
such coin or currency of the United States as at the time of payment is legal tender for payment of
public and private debts; provided, however, that payments of interest may be made at the option of
the Company by checks mailed to the addresses of the Persons entitled thereto as such addresses
shall appear in the Security Register or by wire transfer to an account maintained by the payee of
a bank located in the United States.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth at this place.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

-3-

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by manual or
facsimile signature.

	 	 	 	 	 
	Dated:   September 20, 2011 	XYLEM INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-4-

 

	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	UNION BANK, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-5-

 

	 	 	 	 	 

REVERSE OF NOTE

XYLEM INC.

3.550% SENIOR NOTES DUE 2016

This Note is one of a duly authorized issue of debentures, notes or other evidences of indebtedness
of the Company (herein called the “Securities”), issued and to be issued in one or more series
under an Indenture, dated as of September 20, 2011 (herein called the “Indenture”), between the
Company, ITT Corporation, as Guarantor (herein called the “Guarantor”) and Union Bank, N.A., as
Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights thereunder of the Company, the Guarantor, the Trustee, and the
Holders of the Securities, the terms upon which the Securities are, and are to be, authenticated
and delivered, and the definition of capitalized terms used herein and not otherwise defined
herein. The Securities may be issued in one or more series, which different series may be issued in
various aggregate principal amounts, may be denominated in different currencies, may mature at
different times, may bear interest (if any) at different rates (which rates may be fixed or
variable), may be subject to different redemption provisions (if any), may be subject to different
sinking, purchase, or analogous funds (if any), may be subject to different covenants and Events of
Default, and may otherwise vary as provided in the Indenture. This Note is one of a series of
Securities of the Company designated as set forth on the face hereof (herein called the “Notes”),
initially limited in aggregate principal amount to $100,000,000.

Optional Redemption

     The Notes shall be redeemable as a whole or in part, at the Company’s option at any time and
from time to time, at a redemption price equal to the greater of (i) 100% of the principal amount
of such Notes and (ii) the sum of the present values of the remaining scheduled payments of
principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted
to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 40 basis points, plus in each case accrued and unpaid interest to
the date of redemption.

     Except as otherwise provided herein, redemption of the Notes shall be made in accordance
with the terms of Article 11 of the Indenture.

          “Treasury Rate” means the yield to maturity at the time of computation of United States
Treasury securities with a constant maturity (as compiled and published in the most recent Federal
Reserve Statistical Release H.15 (519) which has become publicly available at least two business
days prior to the date of redemption (or, if such Statistical Release is no longer published, any
publicly available source or similar market data)) most nearly equal to the period from the date of
redemption to the maturity date; provided, however, that if the period from the date of redemption
to the maturity date is not equal to the constant maturity of a United States Treasury security for
which a weekly average yield is given, the Treasury Rate shall be

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obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are given, except that if
the period from the date of redemption to the maturity date is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a constant maturity
of one year shall be used.

Repurchase Upon Change of Control Triggering Event

     If a Change of Control Triggering Event (as defined below) occurs after the Distribution Date
(as defined in the Indenture), unless the Company has exercised its right to redeem the Notes as
described above, the Company will be required to make an offer to repurchase all or, at the
Holder’s option, any part (equal to $2,000 or any multiple of $1,000 in excess thereof), of each
Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”) on the terms
set forth in the Notes. In the Change of Control Offer, the Company will be required to offer
payment in cash equal to 101% of the aggregate principal amount of Notes repurchased plus accrued
and unpaid interest, if any, on the Notes repurchased, to, but not including, the date of purchase
(the “Change of Control Payment”).

     Within 30 days following any Change of Control Triggering Event or, at the Company’s option,
prior to any Change of Control, but after public announcement of the transaction that constitutes
or may constitute the Change of Control, a notice will be mailed to Holders of the Notes describing
the transaction that constitutes or may constitute the Change of Control Triggering Event and
offering to repurchase such Notes on the date specified in the notice, which date will be no
earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of
Control Payment Date”). The notice, if mailed prior to the date of consummation of the Change of
Control, will state that the Change of Control Offer is conditioned on the Change of Control
Triggering Event occurring on or prior to the Change of Control Payment Date.

     On the Change of Control Payment Date, the Company will be required, to the extent lawful, to:

     (a) accept for payment all Notes or portions of Notes properly tendered pursuant to the Change
of Control Offer;

     (b) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect
of all Notes or portions of Notes properly tendered; and

     (c) deliver or cause to be delivered to the Trustee the Notes properly accepted together with
an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being
purchased by the Company.

     The Paying Agent will be required to promptly mail, to each Holder who properly tendered
Notes, the purchase price for such Notes, and the Trustee will be required to promptly authenticate
and mail (or cause to be transferred by book entry) to each such Holder a new Note equal in
principal amount to any unpurchased portion of the Notes surrendered, if any; provided,

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that each new Note will be in a principal amount of $2,000 or a multiple of $1,000 in excess
thereof.

     The Company will not be required to make a Change of Control Offer upon a Change of Control
Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in
compliance with the requirements for an offer made by the Company and such third party purchases
all Notes properly tendered and not withdrawn under its offer. In the event that such third party
terminates or defaults its offer, the Company will be required to make a Change of Control Offer
treating the date of such termination or default as though it were the date of the Change of
Control Triggering Event.

     In addition, the Company will not repurchase any Notes if there has occurred and is continuing
on the Change of Control Payment Date an Event of Default under the Indenture, other than a default
in the payment of the Change of Control Payment upon a Change of Control Triggering Event.

     “Change of Control” means the occurrence of any one of the following after the Distribution
Date: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than
by way of merger, amalgamation, arrangement or consolidation), in one or a series of related
transactions, of all or substantially all of the Company’s properties or assets and those of the
Company’s subsidiaries, taken as a whole, to one or more persons, other than to the Company or one
of the Company’s subsidiaries; (2) the first day on which a majority of the members of the Board of
Directors is not composed of Continuing Directors (as defined below); (3) the consummation of any
transaction including, without limitation, any merger, amalgamation, arrangement or consolidation
the result of which is that any person becomes the beneficial owner, directly or indirectly, of
more than 50% of the Company’s Voting Stock; (4) the Company consolidates with, or merges with or
into, any person, or any person consolidates with, or merges with or into, the Company, in any such
event pursuant to a transaction in which any of the outstanding Voting Stock of the Company or of
such other person is converted into or exchanged for cash, securities or other property, other than
any such transaction where the shares of the Company’s Voting Stock outstanding immediately prior
to such
transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock
of the surviving person immediately after giving effect to such transaction; or (5) the adoption of
a plan relating to the Company’s liquidation or dissolution (other than the Company’s liquidation
into a newly formed holding company). Notwithstanding the foregoing, a transaction described in
clause (3) above will not be deemed to involve a Change of Control if (1) the Company becomes a
direct or indirect wholly-owned subsidiary of a holding company (which will include a parent
company) and (2)(A) the direct or indirect holders of the Voting Stock of such holding company
immediately following that transaction are substantially the same as, and hold in substantially the
same proportions as, the holders of the Company’s Voting Stock immediately prior to that
transaction or (B) immediately following that transaction no person (other than a holding company
satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly of
more than 50% of the then outstanding Voting Stock, measured by voting power, of such holding
company. Following any such transaction, references in this definition to the Company shall be
deemed to refer to such holding company. For the purposes of this definition, “person” and
“beneficial owner” have the meanings used in Section 13(d) of the Exchange Act.

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     “Change of Control Triggering Event” means the Notes cease to be rated Investment Grade by
each of the Rating Agencies on any date during the 60-day period (the “Trigger Period”) commencing
upon the earlier of (1) the first public announcement of the Change of Control or the Company’s
intention to effect a Change of Control and (2) the consummation of such Change of Control, which
Trigger Period will be extended following consummation of a Change of Control for so long as the
rating of the Notes is under publicly announced consideration for possible downgrade by any of the
Rating Agencies. Unless at least one Rating Agency is providing a rating for the Notes at the
commencement of any Trigger Period, the Notes will be deemed to have ceased to be rated Investment
Grade during that Trigger Period. Notwithstanding the foregoing, no Change of Control Triggering
Event will all be deemed to have occurred in connection with any particular Change of Control
unless and until such Change of Control has actually been consummated.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors who (1) was a member of the Board of Directors on the issue date of the Notes; or (2) was
nominated for election, elected or appointed to the Board of Directors with the approval of a
majority of the Continuing Directors who were members of the Board of Directors at the time of such
nomination, election or appointment (either by a specific vote or by approval by such directors of
the Company’s proxy statement in which such member was named as a nominee for election as a
director).

     “Fitch” means Fitch Inc., and its successors.

     “Investment Grade” means a rating equal to or higher than BBB- (or the equivalent) by Fitch,
Baa3 (or the equivalent) by Moody’s or BBB- (or the equivalent) by S&P, and the equivalent
investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by
the Company.

     “Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation,
and its successors.

     “Rating Agencies” means (a) each of Fitch, Moody’s and S&P; and (b) if any of the Rating
Agencies ceases to provide rating services to issuers or investors, a “nationally recognized
statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange
Act that is selected by the Company (as certified by the Company’s Chief Executive Officer or Chief
Financial Officer) as a replacement for Fitch, Moody’s or S&P, or all of them, as the case may be.

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.,
and its successors.

     “Voting Stock” of any specified person as of any date means the capital stock of such person
that is at the time entitled to vote generally in the election of the board of directors of such
person.

-9-

 

Defeasance

     The Indenture contains provisions for defeasance at any time of the entire principal of all
the Securities of any series upon compliance by the Company with certain conditions set forth
therein.

     Certain of the Company’s obligations under the Indenture with respect to the Notes may be
terminated if the Company irrevocably deposits with the Trustee money or U.S. Government
Obligations or Equivalent Government Securities sufficient to pay and discharge the entire
indebtedness on the Indenture.

Events of Default

     If an Event of Default with respect to the Notes shall occur and be continuing, the principal
amount hereof may be declared due and payable or may be otherwise accelerated in the manner and
with the effect provided in the Indenture.

Payment

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency,
herein prescribed.

Amendments

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of not less than a majority of the aggregate principal amount of the
Securities at the time Outstanding of each series to be affected by such amendment or modification.
The Indenture also contains provisions permitting the Holders of not less than a majority of the
aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of
the Holders of Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Note.

Transfer, Registration and Exchange

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registerable in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in any Place of Payment duly
endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed, by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or transferees.

-10-

 

     No service charge shall be made for any such registration or transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to the presentment of this Note for registration of transfer, the Company, the Trustee,
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for the purpose of receiving payment as herein provided and for all
other purposes, whether or not this Note is overdue, and neither the Company, the Trustee, nor any
such agent shall be affected by notice to the contrary.

Other Terms

     The Indenture contains provisions setting forth certain conditions to the institution of
proceedings by Holders of Securities with respect to the Indenture or for any remedy under the
Indenture.

     The Notes are issuable only in registered form without coupons in denominations of $2,000 and
integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain
limitations therein set forth, this Note is exchangeable for a like aggregate principal amount of
Notes of different authorized denominations as requested by the Holder surrendering the same.

     The Notes are not subject to a sinking fund.

     This Note shall be governed by, and construed in accordance with, the laws of the State of New
York.

     All terms used in this Note which are defined in the Indenture and are not otherwise defined
herein shall have the meanings assigned to them in the Indenture.

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ASSIGNMENT FORM

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

 

 

 

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
ASSIGNEE]

the within Note and all rights thereunder, hereby irrevocably constituting and appointing
_________________________ attorney to transfer such Note on the books of the Issuer, with full
power of substitution in the premises.

Dated:_______________________

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Note in every particular without alteration or enlargement or any change whatsoever.

-12-

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