Document:

exv10w18

Exhibit 10.18

FORM
OF XYLEM 

2011 OMNIBUS INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT —

GENERAL GRANT

THIS AGREEMENT (the “Agreement”), effective as of the 7th day of November, 2011, by and between
Xylem Inc. (the “Company”) and [name] (the “Optionee”), WITNESSETH:

WHEREAS, the Optionee is now employed by the Company or an Affiliate (as defined in the Company’s
2011 Omnibus Incentive Plan, (the “Plan”)) as an employee, and in recognition of the Optionee’s
valued services, the Company, through the Leadership Development and Compensation Committee of its
Board of Directors (the “Committee”), desires to provide an opportunity for the Optionee to
acquire or enlarge stock ownership in the Company, pursuant to the provisions of the Plan.

NOW, THEREFORE, in consideration of the terms and conditions set forth in this Agreement and the
provisions of the Plan, a copy of which is attached hereto and incorporated herein as part of this
Agreement, and any administrative rules and regulations related to the Plan as may be adopted by
the Committee, the parties hereto hereby agree as follows:

	1.	 	Grant of Options. In accordance with, and subject to, the terms and conditions of
the Plan and this Agreement, the Company hereby confirms the grant on November 7, 2011, (the
“Grant Date”) to the Optionee of the option to purchase from the Company all or any part of
an aggregate of #,### Shares (the “Option”), at the purchase price of $[ ] per Share (the
“Option Price” or “Exercise Price”). The Option shall be a Nonqualified Stock Option.

	2.	 	Terms and Conditions. It is understood and agreed that the Option is subject to the
following terms and conditions:

	 	(a)	 	Expiration Date. The Option shall expire on November 7, 2021, or, if the
Optionee’s employment terminates before that date, on the date specified in subsection
(f) below.
	 
	 	(b)	 	Exercise of Option. The Option may not be exercised until it has become
vested.
	 
	 	(c)	 	Vesting. Subject to subsections 2(a) and 2(f), the Option shall vest in three
installments as follows:

	 	(i)	 	1/3 of the Option shall vest on November 7, 2012,
	 
	 	(ii)	 	1/3 of the Option shall vest on November 7, 2013, and
	 
	 	(iii)	 	1/3 of the Option shall vest on November 7, 2014,

	 	 	 	Subject to subsections 2(a) and 2(f), to the extent not earlier vested pursuant to
paragraphs (i), (ii), and (iii) of this subsection (c), the Option shall vest in
full

 

 

	 	 	 	upon an Acceleration Event (as defined in the Plan).
	 
	 	(d)	 	Payment of Exercise Price. Permissible methods for payment of the Exercise
Price upon exercise of the Option are described in Section 6.6 of the Plan, or, if
the Plan is amended, successor provisions. In addition to the methods of exercise
permitted by Section 6.6 of the Plan, the Optionee may exercise all or part of the
Option by way of (i) broker-assisted cashless exercise in a manner consistent with
the Federal Reserve Board’s Regulation T, unless the Committee determines that such
exercise method is prohibited by law, or (ii) net-settlement, whereby the Optionee
directs the Company to withhold Shares that otherwise would be issued upon exercise
of the Option having an aggregate Fair Market Value on the date of the exercise equal
to the Exercise Price, or the portion thereof being exercised by way of
net-settlement (rounding up to the nearest whole Share).
	 
	 	(e)	 	Tax Withholding. The Company shall have the power and the right to deduct or
withhold, or require the Optionee to remit to the Company, all applicable federal,
state, and local taxes, domestic or foreign, required by law or regulation to be
withheld with respect to the exercise of the Option. The Optionee may elect to
satisfy the withholding requirement, in whole or in part, by having the Company
withhold Shares that otherwise would be issued upon exercise of the Option, with the
number of Shares withheld having a Fair Market Value on the date the tax is to be
determined equal to the minimum statutory total tax that could be imposed on the
transaction (rounding up to the nearest whole Share). Any such election shall be
subject to any restrictions or limitations that the Committee, in its sole discretion,
deems appropriate.
	 
	 	(f)	 	Effect of Termination of Employment.
	 
	 	 	 	If the Optionee’s employment terminates before November 7, 2021, the Option shall
expire on the date set forth below, as applicable:

	 	(i)	 	Termination due to Death. If the Optionee’s employment
is terminated as a result of the Optionee’s death, the Option shall expire on
the earlier of November 7, 2021, or the date three years after the termination
of the Optionee’s employment due to death. If all or any portion of the Option
is not vested at the time of the Optionee’s termination of employment due to
death, the Option shall immediately become 100% vested.
	 
	 	(ii)	 	Termination due to Disability. If the Optionee’s
employment is terminated as a result of the Optionee’s Disability (as defined
below), the Option shall expire on the earlier of November 7, 2021, or the
date five years after the termination of the Optionee’s employment due to
Disability. If all or any portion of the Option is not vested at the time of
the termination of the Optionee’s employment due to Disability, the Option
shall immediately become 100% vested.
	 
	 	(iii)	 	Termination due to Retirement. If the Optionee’s
employment is terminated as a result of the Optionee’s Retirement (as defined
below), the Option shall expire on the earlier of November 7, 2021, or the
date five years after the termination of the Optionee’s employment due to

 

 

	 	 	 	Retirement. If all or any portion of the Option is not vested at the time
of the Optionee’s termination of employment due to Retirement, a prorated
portion of the unvested portion of the Option shall immediately vest as of
the date of the termination of employment (see “Prorated Vesting Upon
Retirement” below). Any remaining unvested portion of the Option shall
expire as of the date of the termination of the Optionee’s employment. For
purposes of this subsection 2(f)(iii), the Optionee shall be considered
employed during any period in which the Optionee is receiving severance
payments (disregarding any delays required to comply with tax or other
requirements), and the date of the termination of the Optionee’s employment
shall be the last day of any such severance period.
	 
	 	(iv)	 	Cause. If the Optionee’s employment is terminated by
the Company (or an Affiliate, as the case may be) for cause (as determined by
the Committee), the vested and unvested portions of the Option shall expire on
the date of the termination of the Optionee’s employment.
	 
	 	(v)	 	Voluntary Termination or Other Termination by the
Company. If the Optionee’s employment is terminated by the Optionee or
terminated by the Company (or an Affiliate, as the case may be) for other than
cause (as determined by the Committee), and not because of the Optionee’s
Retirement, Disability or death, the vested portion of the Option shall expire
on the earlier of November 7, 2021, or the date three months after the
termination of the Optionee’s employment. Any portion of the Option that is
not vested (or the entire Option, if no part was vested) as of the date the
Optionee’s employment terminates shall expire immediately on the date of
termination of employment, and such unvested portion of the Option (the entire
Option, if no portion was vested on the date of termination) shall not
thereafter be exercisable. For purposes of this subsection 2(f)(v), the
Optionee shall be considered employed during any period in which the Optionee
is receiving severance payments, and the date of the termination of the
Optionee’s employment shall be the last day of any such severance period.

	 	 	 	Notwithstanding the foregoing, if an Optionee’s employment is terminated on or after
an Acceleration Event (A) by the Company (or an Affiliate, as the case may be) for
other than cause (as determined by the Committee), and not because of the Optionee’s
Retirement, Disability, or death, or (B) by the Optionee because the Optionee in
good faith believed that as a result of such Acceleration Event he or she was unable
effectively to discharge his or her present duties or the duties of the position the
Optionee occupied just prior to the occurrence of such Acceleration Event, the
Option shall in no event expire before the earlier of the date that is 7 months
after the Acceleration Event or November 7, 2021, .
	 
	 	 	 	Retirement. For purposes of this Agreement, the term “Retirement” shall mean the
termination of the Optionee’s employment if, at the time of such termination, the
Optionee is eligible to commence receipt of retirement benefits under a traditional
formula defined benefit pension plan maintained by the Company or an Affiliate (or
would be eligible to receive such benefits if he or she were a participant in such a
traditional formula defined benefit pension plan) or if no such

 

 

	 	 	 	plan is maintained, the first day of the month which coincides with or follows
the Optionee’s 65th birthday.
	 
	 	 	 	Disability. For purposes of this Agreement, the term “Disability” shall mean the
complete and permanent inability of the Optionee to perform all of his or her duties
under the terms of his or her employment, as determined by the Committee upon the
basis of such evidence, including independent medical reports and data, as the
Committee deems appropriate or necessary.
	 
	 	 	 	Prorated Vesting Upon Retirement. The prorated portion of an Option that vests upon
termination of the Optionee’s employment due to the Optionee’s Retirement shall be
determined by multiplying the total number of unvested Shares subject to the Option
at the time of the termination of the Optionee’s employment by a fraction, the
numerator of which is the number of full months the Optionee has been continually
employed since the Grant Date and the denominator of which is 36. For this purpose,
full months of employment shall be based on monthly anniversaries of the Grant Date,
not calendar months.
	 
	 	(g)	 	Compliance with Laws and Regulations. The Option shall not be exercised at
any time when its exercise or the delivery of Shares hereunder would be in violation
of any law, rule, or regulation that the Company may find to be valid and applicable.
	 
	 	(h)	 	Optionee Bound by Plan and Rules. The Optionee hereby acknowledges receipt of
a copy of the Plan and this Agreement and agrees to be bound by the terms and
provisions thereof as amended from time to time. The Optionee agrees to be bound by
any rules and regulations for administering the Plan as may be adopted by the Committee
during the life of the Option. Terms used herein and not otherwise defined shall be as
defined in the Plan.
	 
	 	(i)	 	Governing Law. This Agreement is issued, and the Option evidenced hereby is
granted, in White Plains, New York and shall be governed and construed in accordance
with the laws of the State of New York, excluding any conflicts or choice of law rule
or principle that might otherwise refer construction or interpretation of this
Agreement to the substantive law of another jurisdiction.

 

 

By signing a copy of this Agreement, the Optionee acknowledges that s/he has received a copy
of the Plan, and that s/he has read and understands the Plan and this Agreement and agrees to the
terms and conditions thereof. The Optionee further acknowledges that the Option awarded pursuant
to this Agreement must be exercised prior to its expiration as set forth herein, that it is the
Optionee’s responsibility to exercise the Option within such time period, and that the Company has
no further responsibility to notify the Optionee of the expiration of the exercise period of the
Option.

IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its President
and Chief Executive Officer, or a Vice President, as of the 7th day of November, 2011.

	 	 	 

	Agreed to:

	 	XYLEM INC.
	 
	 	 
	 

Optionee

	 	 
	(Online acceptance constitutes agreement)
	 	 
	 
	 	 
	Dated:                     

	 	Dated: November 7, 2011
	Enclosuresexv10w19

Exhibit 10.19

FORM
OF XYLEM

2011 OMNIBUS INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT — 

2010 TSR REPLACEMENT

THIS AGREEMENT (the “Agreement”), effective as of the 7th day of November, 2011, by and between
Xylem Inc. (the “Company”) and [name] (the “Grantee”), WITNESSETH:

WHEREAS, the Grantee is now employed by the Company or an Affiliate (as defined in the Company’s
2011 Omnibus Incentive Plan (the “Plan”)) as an employee, and in recognition of the Grantee’s
valued services, the Company, through the Leadership Development and Compensation Committee of its
Board of Directors (the “Committee”), desires to provide an inducement to remain in service of the
Company and as an incentive for increased efforts during such service pursuant to the provisions
of the Plan.

NOW, THEREFORE, in consideration of the terms and conditions set forth in this Agreement and the
provisions of the Plan, a copy of which is attached hereto and incorporated herein as part of this
Agreement, and any administrative rules and regulations related to the Plan as may be adopted by
the Committee, the parties hereto hereby agree as follows:

	1.	 	Grant of Restricted Stock Units. In accordance with, and subject to, the terms and
conditions of the Plan and this Agreement, the Company hereby confirms the grant on November
7, 2011 (the “Grant Date”) to the Grantee of #,### Restricted Stock Units. The Restricted
Stock Units are notional units of measurement denominated in Shares of common stock (i.e.,
one Restricted Stock Unit is equivalent in value to one share of common stock).

	 	 	The Restricted Stock Units represent an unfunded, unsecured right to receive [cash payments
equal to the Fair Market Value of such] Shares (and dividend equivalent payments pursuant
Section 2(b) hereof) in the future if the conditions set forth in the Plan and this
Agreement are satisfied.

	2.	 	Terms and Conditions. It is understood and agreed that the Restricted Stock Units
are subject to the following terms and conditions:

	 	(a)	 	Restrictions. Except as otherwise provided in the Plan and this Agreement,
neither this Award nor any Restricted Stock Units subject to this Award may be sold,
assigned, pledged, exchanged, transferred, hypothecated or encumbered, other than to
the Company as a result of forfeiture of the Restricted Stock Units.
	 
	 	(b)	 	Voting and Dividend Equivalent Rights. The Grantee shall
not have any privileges of a stockholder of the Company with respect to the Restricted
Stock Units or any Shares that may be delivered hereunder, including without
limitation any right to vote such Shares or to receive dividends, unless and until
such Shares are delivered upon vesting of the Restricted Stock Units. Dividend
equivalents shall be earned with respect to each Restricted Stock Unit that vests.
The amount of dividend equivalents earned with respect to each such Restricted Stock
Unit that vests shall be equal to the total dividends declared on a Share where the
record date of the dividend is between the Grant Date of this

 

 

	 	 	 	Award and the date [a cash payment equal to the Fair Market Value of] a Share is
[paid/issued] upon vesting of the Restricted Stock Unit. Any dividend equivalents
earned shall be paid in cash to the Grantee when the Shares subject to the vested
Restricted Stock Units are issued. No dividend equivalents shall be earned or paid
with respect to any Restricted Stock Units that do not vest. Dividend equivalents
shall not accrue interest.
	 
	 	(c)	 	Vesting of Restricted Stock Units and Payment. Subject to earlier vesting
pursuant to subsections 2(d) and 2(e) below, the Restricted Stock Units shall vest
(meaning the Period of Restriction shall lapse and the Restricted Stock Units shall
become free of the forfeiture provisions in this Agreement) on December 31, 2012,
provided the Grantee has been continuously employed by the Company or an Affiliate on
a full-time basis from the Grant Date through the date the Restricted Stock Units
vest. Except as provided in subsections 2(i)(i) and 2(i)(ii) below, upon vesting of
the Restricted Stock Units (including vesting pursuant to subsections 2(d) or 2(e)
below), the Company will deliver to the Grantee (i) [a cash amount equal to the Fair
Market Value of such Shares/one Share for each vested Restricted Stock Unit], with any
fractional Shares resulting from proration pursuant to subsection 2(e)(ii) to be
rounded to [a cash amount equal to the Fair Market Value of] the nearest whole Share
(with 0.5 to be rounded up) and (ii) an amount in cash attributable to any dividend
equivalents earned in accordance with subsection 2(b) above, less any Shares withheld
in accordance with subsection 2(f) below. For the avoidance of doubt, continuous
employment of a Grantee by the Company or an Affiliate for purposes of vesting in the
Restricted Stock Units granted hereunder shall include continuous employment with the
Company for so long as the Grantee continues working at such entity.
	 
	 	(d)	 	Effect of Acceleration Event. The Restricted Stock Units shall vest in full
upon an Acceleration Event.
	 
	 	(e)	 	Effect of Termination of Employment. If the Grantee’s employment with the
Company and its Affiliates is terminated for any reason and such termination
constitutes a “separation from service” within the meaning of Section 409A of the Code
and any related regulations or other effective guidance promulgated thereunder
(“Section 409A”), any Restricted Stock Units that are not vested at the time of such
separation from service shall be immediately forfeited except as follows:

	 	(i)	 	Separation from Service due to Death or Disability. If
the Grantee’s separation from service is due to death or Disability (as defined
below), the Restricted Stock Units shall immediately become 100% vested as of
such separation from service. For purposes of this Agreement, the term
“Disability” shall mean the complete and permanent inability of the Grantee to
perform all of his or her duties under the terms of his or her employment, as
determined by the Committee upon the basis of such evidence, including
independent medical reports and data, as the Committee deems appropriate or
necessary.
	 
	 	(ii)	 	Separation from Service due to Retirement or Separation
from Service by the Company for Other than Cause. If the Grantee’s
separation from service is due to Retirement (as defined below) or an
involuntary

2

 

	 	 	 	separation from service by the Company (or an Affiliate, as the case may be)
for other than cause (as determined by the Committee), a prorated portion of
the Restricted Stock Units shall immediately vest as of such separation from
service. For these purposes,

	 	A.	 	the prorated portion of the Restricted Stock
Units shall be determined by multiplying the total number of Restricted
Stock Units subject to this Award by a fraction, the numerator of which
is the number of full months during which the Grantee has been
continually employed since the Grant Date, together with any period
during which the Grantee is entitled to receive severance in the form
of salary continuation (not to exceed 14 in the aggregate), and the
denominator of which is 14 (for avoidance of doubt, the period during
which the Grantee may receive severance in the form of salary
continuation or otherwise shall not affect the determination of the
date of the Grantee’s separation from service or the date of delivery
of any Shares or dividend equivalent payments); and
	 
	 	B.	 	full months of employment shall be based on
monthly anniversaries of the Grant Date, not calendar months.

	 	 	 	For purposes of this Agreement, the term “Retirement” shall mean the
Grantee’s separation from service if, at the time of such separation from
service, the Grantee is eligible to commence receipt of retirement benefits
under a traditional formula defined benefit pension plan maintained by the
Company or an Affiliate (or would be eligible to receive such benefits if he
or she were a participant in such traditional formula defined benefit
pension plan) or if no such plan is maintained, the first day of the month
which coincides with or follows the Grantee’s 65th birthday.

	 	(f)	 	Tax Withholding. In accordance with Article 15 of the Plan, the Company may
make such provisions and take such actions as it may deem necessary for the
withholding of all applicable taxes attributable to the Restricted Stock Units and any
related dividend equivalents. Unless the Committee determines otherwise, the minimum
statutory tax withholding required to be withheld upon delivery of the [cash amount
equal to the Fair Market Value of such] Shares and payment of dividend equivalents
shall be satisfied by withholding a [cash amount equal to the Fair Market Value of a]
number of Shares having an aggregate Fair Market Value equal to the minimum statutory
tax required to be withheld, [with any fractional Shares to be rounded up to a cash
amount equal to the Fair Market Value of the nearest whole Share (with 0.5 to be
rounded up)/if such withholding would result in a fractional Share being withheld, the
number of Shares so withheld shall be rounded up to the nearest whole Share.
Notwithstanding the foregoing, the Grantee may elect to satisfy such tax withholding
requirements by timely remittance of such amount by cash or check or such other method
that is acceptable to the Company, rather than by withholding of Shares, provided such
election is made in accordance with such conditions and restrictions as the Company
may establish]. If FICA taxes are required to be withheld while the Award is
outstanding, such withholding shall be made in a manner determined by the Company.
	 
	 	(g)	 	Grantee Bound by Plan and Rules. The Grantee hereby acknowledges receipt of a
copy of the Plan and this Agreement and agrees to be bound by the terms and provisions
thereof. The Grantee agrees to be bound by any rules and

3

 

	 	 	 	regulations for administering the Plan as may be adopted by the Committee prior to
the date the Restricted Stock Units vest. Terms used herein and not otherwise
defined shall be as defined in the Plan.
	 
	 	(h)	 	Governing Law. This Agreement is issued, and the Restricted Stock Units
evidenced hereby are granted, in White Plains, New York, and shall be governed and
construed in accordance with the laws of the State of New York, excluding any conflicts
or choice of law rule or principle that might otherwise refer construction or
interpretation of this Agreement to the substantive law of another jurisdiction.
	 
	 	(i)	 	Section 409A Compliance. To the extent applicable, it is intended that the
Plan and this Agreement comply with the requirements of Section 409A, and the Plan and
this Agreement shall be interpreted accordingly.

	 	(i)	 	If it is determined that all or a portion of the Award
constitutes deferred compensation for purposes of Section 409A, and if the
Grantee is a “specified employee,” as defined in Section 409A(a)(2)(B)(i) of
the Code, at the time of the Grantee’s separation from service, then, to the
extent required under Section 409A, any Shares that would otherwise be
distributed [or cash payments in lieu of such Shares] (along with the cash
value of all dividend equivalents that would be payable) upon the Grantee’s
separation from service, shall instead be delivered (and, in the case of the
dividend equivalents, paid) on the earlier of (x) the first business day of the
seventh month following the date of the Grantee’s separation from service or
(y) the Grantee’s death.
	 
	 	(ii)	 	If it is determined that all or a portion of the Award constitutes
deferred compensation for purposes of Section 409A, upon an Acceleration Event
that does not constitute a “change in the ownership” or a “change in the
effective control” of the Company or a “change in the ownership of a
substantial portion of a corporation’s assets” (as those terms are used in
Section 409A), the Restricted Stock Units shall vest at the time of the
Acceleration Event, but distribution [or payments in respect] of any Restricted
Stock Units (or related dividend equivalents) that constitute deferred
compensation for purposes of Section 409A shall not be accelerated (i.e.,
distribution shall occur when it would have occurred absent the Acceleration
Event).

4

 

IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its President and
Chief Executive Officer, or a Vice President, as of the 7th day of November, 2011.

	 	 	 

	Agreed to:

	 	XYLEM INC.
	 
	 	 
	 

Grantee

	 	 
	 
	 	 
	(Online acceptance constitutes agreement)
	 	 
	 
	 	 
	Dated:                     

	 	Dated: November 7, 2011
	 
	 	 
	Enclosures
	 	 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]