Document:

exv10w11

Exhibit 10.11

XYLEM

SUPPLEMENTAL RETIREMENT SAVINGS PLAN FOR

SALARIED EMPLOYEES

Effective as of October 31, 2011 including amendments effective as of

January 1, 2012

 

 

INTRODUCTION

The Xylem Supplemental Retirement Savings Plan for Salaried Employees Plan (the “Plan”) first
became effective as of October 31, 2011 (the “Effective Date”) following the spin-off of Xylem Inc.
from ITT Corporation (the “Predecessor Corporation”) on October 31, 2011. The Predecessor
Corporation maintained a similar plan, the ITT Excess Savings Plan prior to the spin-off (the
“Predecessor Plan”). Under the terms of the Benefits and Compensation Matters Agreement dated
October 25, 2011, the Predecessor Corporation agreed that the spinoff of Xylem Inc. from ITT
Corporation would not trigger a separation from service for purposes of IRC Section 409A for Xylem
Employees. The Plan was created as a spin-off of the Predecessor Plan and to provide a means of
restoring the contributions lost under the Xylem Retirement Savings Plan for Salaried Employees due
to the application of the limitations imposed on qualified plans by Section 401(a)(17) of the of
the Internal Revenue Code.

The Plan shall remain in effect as provided in Section 6.01 hereof, and Members shall be deemed to
receive full credit for their service and participation with the Predecessor Corporation as
provided in Section 3.03 hereof. Further, the Plan shall not deprive a Member of the right to
payment of deferred compensation credited as of the date of termination or amendment, in accordance
with the terms of the Plan as of the date of such termination or amendment.

Effective as of January 1, 2012, the Plan is further amended to reflect the enhanced employer
contribution formula provided under the Xylem Retirement Savings Plan for Salaried Employees
(successor plan to the ITT Salaried Investment and Savings Plan) and to cease Salary Deferrals by
eligible employees effective as of January 1, 2012.

The Predecessor Plan was effective as of January 1, 1987. The purpose of the Plan was to provide a
means of restoring the contributions lost under the ITT Investment and Savings Plan for Salaried
Employees due to the application of the limitations imposed on qualified plans by Section 415 of
the Internal Revenue Code.

 

 

As of January 1, 1989, the Predecessor Plan was amended to provide (i) a means for restoring, for
an employee participating in the ITT Investment and Savings Plan for Salaried Employees (the
“Savings Plan”), the matching and other employer contributions lost under said Plan due to the
application of the limitations imposed on qualified plans by Section 401(a)(17) and Section
402(g)(1) of the Internal Revenue Code (the “Code”) and (ii) a means of providing such employees
with an opportunity to defer a portion of their salary in accordance with the terms of said Plan as
hereinafter set forth.

As of January 1, 1995, the Predecessor Plan was further amended to provide a means of restoring,
for an employee participating in the ITT Investment and Savings Plan for Salaried Employees,
matching and other employer contributions lost due to the deferral of base compensation under
another nonqualified deferred compensation program. As of December 19, 1995, the Predecessor Plan
was renamed and continued as the ITT Industries Excess Savings Plan.

As of January 1, 1996, the Predecessor Plan was further amended to solely provide to individuals
who are designated as Eligible Employees under the Plan on and after January 1, 1996, a means to
restore the contributions lost under the Savings Plan due to the application of the limitations
imposed by Sections 415 and 401(a)(17) of the Code and providing such employees with an opportunity
to defer a portion of their base salary and to transfer any liabilities not attributable to such
benefits to the ITT Industries Deferred Compensation Plan. The Predecessor Plan was further
amended, effective as of (i) January 1, 1997, to provide additional optional forms of distributions
and to revise the participation requirements, (ii) July 1, 1997, to revise the eligibility
requirements to permit an Eligible Employee to participate in his first year of employment, and
(iii) September 1, 1997, to further expand the distribution options available under the Plan.

In July, 2004, the Predecessor Plan was amended and restated to make certain changes regarding the
effect of an Acceleration Event and to unify the definition of Acceleration Event with other
employee benefit plans of ITT Industries, and to make certain other technical amendments.

 

 

Effective as of July 1, 2006, the plan name was revised to the ITT Excess Savings Plan. Effective
as of January 1, 2008, the Predecessor Plan was amended to make certain administrative changes.

Effective as of December 31, 2008, the Predecessor Plan was amended and restated to comply with the
provisions of Section 409A of the Code and the regulations promulgated thereunder.

All benefits payable under this Plan, which is intended to constitute both an unfunded excess
benefit plan under Section 3(36) of Title I of the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”), and a nonqualified, unfunded deferred compensation plan for a select group of
management employees under Title I of ERISA, shall be paid out of the general assets of the
Corporation. The Corporation may establish and fund a trust in order to aid it in providing
benefits due under the Plan.

 

 

XYLEM
SUPPLEMENTAL RETIREMENT SAVINGS PLAN FOR SALARIED EMPLOYEES

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	XYLEM
SUPPLEMENTAL RETIREMENT SAVINGS PLAN FOR SALARIED EMPLOYEES
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I — DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II — PARTICIPATION
	 	 	8	 
	 
	 	 	 	 
	2.01 Eligibility
	 	 	8	 
	2.02 Participation and Filing Requirements
	 	 	9	 
	2.03 Termination of Participation
	 	 	9	 
	 
	 	 	 	 
	ARTICLE
III — SUPPLEMENTAL SAVINGS PLAN CONTRIBUTIONS
	 	 	10	 
	 
	 	 	 	 
	3.01 Amount of Contributions
	 	 	10	 
	3.02 Investment of Accounts
	 	 	12	 
	3.03 Vesting of Accounts
	 	 	13	 
	3.04 Individual Accounts
	 	 	13	 
	3.05 Valuation of Accounts
	 	 	14	 
	 
	 	 	 	 
	ARTICLE IV — PAYMENT OF CONTRIBUTIONS
	 	 	15	 
	 
	 	 	 	 
	4.01 Commencement of Payment
	 	 	15	 
	4.02 Method of Payment
	 	 	15	 
	4.03 Payment upon the Occurrence of a Change in Control
	 	 	15	 
	 
	 	 	 	 
	ARTICLE V — GENERAL PROVISIONS
	 	 	16	 
	 
	 	 	 	 
	5.01 Funding
	 	 	16	 
	5.02 No Contract of Employment
	 	 	16	 
	5.03 Unsecured Interest
	 	 	16	 
	5.04 Facility of Payment
	 	 	17	 
	5.05 Withholding Taxes
	 	 	17	 
	5.06 Nonalienation
	 	 	17	 
	5.07 Transfers
	 	 	17	 
	5.08 Claims Procedure
	 	 	18	 
	5.09 Compliance
	 	 	20	 
	5.10 Acceleration of or Delay in Payments
	 	 	20	 
	5.11 Construction
	 	 	20	 
	 
	 	 	 	 
	ARTICLE VI — AMENDMENT OR TERMINATION
	 	 	22	 
	 
	 	 	 	 
	6.01 Right to Terminate
	 	 	22	 
	6.02 Right to Amend
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VII — ADMINISTRATION
	 	 	23	 

 

 

Page 1

XYLEM
SUPPLEMENTAL RETIREMENT SAVINGS PLAN FOR SALARIED

EMPLOYEES

ARTICLE I — DEFINITIONS

	1.01	 	“Acceleration Event” shall mean “Acceleration Event” as that term is defined under the
provisions of the Predecessor Plan as in effect on October 3, 2004.
	 
	1.02	 	“Accounts” shall mean the Deferral Account, the Floor Contribution Account, Core Contribution
Account, the Matching Contribution Account and the Transition Credit Contribution Account.
	 
	1.03	 	“Associated Company” shall mean any division, unit, subsidiary, or affiliate of the
Corporation which is an Associated Company as such term is defined in the Savings Plan.
	 
	1.04	 	“Beneficiary” shall mean the person or persons designated pursuant to the provisions of the
Savings Plan to receive benefits under said Savings Plan after a Member’s death.
	 
	1.05	 	“Change of Control” shall mean an event which shall occur if there is: (i) a change in the
ownership of the Corporation; (ii) a change in the effective control of the Corporation; or
(iii) a change in the ownership of a substantial portion of the assets of the Corporation.
	 
	 	 	For purposes of this Section, a change in the ownership occurs on the date on which any one
person, or more than one person acting as a group (as defined in Treasury Regs.
1.409A-2(i)(5)(v)(B)), acquires ownership of stock that, together with stock held by such
person or group constitutes more than 50% of the total fair market value or total voting
power of the stock of the Corporation.
	 
	 	 	A change in the effective control occurs on the date on which either (i) a person, or more
than one person acting as a group (as defined in Treasury Regs. 1.409A-2(i)(5)(v)(B)),

 

Page 2

	 	 	acquires ownership of stock possessing 30% or more of the total voting power of the stock of
the Corporation, taking into account all such stock acquired during the 12-month
period ending on the date of the most recent acquisition, or (ii) a majority of the members
of the Board of Directors is replaced during any 12-month period by directors whose
appointment or election is not endorsed by a majority of the members of such Board of
Directors prior to the date of the appointment or election, but only if no other corporation
is a majority shareholder.

	 	 	A change in the ownership of a substantial portion of assets occurs on the date on which any
one person, or more than one person acting as a group (as defined in Treasury Regs.
1.409A-2(i)(5)(v)(B)), other than a person or group of persons that is related to the
Corporation, acquires assets that have a total gross fair market value equal to or more than
40% of the total gross fair market value of all of the assets of the Corporation immediately
prior to such acquisition or acquisitions, taking into account all such assets acquired
during the 12-month period ending on the date of the most recent acquisition.
	 
	 	 	The determination as to the occurrence of a Change in Control shall be based on objective
facts and in accordance with the requirements of Code Section 409A and the regulations
promulgated thereunder.
	 
	1.06	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.
	 
	1.07	 	“Committee” shall mean the Benefits Administration Committee under the Savings Plan.
	 
	1.08	 	“Company” shall mean the Corporation with respect to its employees or any Participating
Corporation or Participating Division (as such terms are defined in the Savings Plan)
authorized to participate in the Plan by the Corporation, with respect to each of its
employees.
	 
	1.09	 	“Corporation” shall mean Xylem Inc., an Indiana corporation, or any successor by merger,
purchase or otherwise.

 

Page 3

	1.10	 	“Company Core Contribution Rate” shall mean the rate of Company Core Contributions (as such
term in defined under the provisions of the Savings Plan) for a particular Plan Year.
	 
	1.11	 	“Company Transition Credit Contribution Rate” shall mean the rate of Company Transition
Credit Contributions (as such term in defined under the provisions of the Savings Plan) for a
particular Plan Year.
	 
	1.12	 	“Core Contribution Account” shall mean the bookkeeping account (or subaccount(s)) maintained
for each Member to record all amounts credited on his behalf under Section 3.01(d) and
earnings on those amounts pursuant to Section 3.02.
	 
	1.13	 	“Deferral Account” shall mean the bookkeeping account (or subaccount(s)) maintained for each
Member to record the amounts credited on his behalf under Section 3.01(a) and earnings on
those amounts pursuant to Section 3.02, and with respect to an individual who become a Member
of Plan on the Effective Date and who immediately prior to the Effective Date was a member in
the Predecessor Plan, the amount deferred under Section 3.01(a) of the Predecessor Plan by
such member adjusted as provided in Section 3.02.
	 
	1.14	 	“Effective Date” shall mean October 31, 2011.
	 
	1.15	 	“Eligible Employee” shall mean an Employee of the Company who is eligible to participate in
the Plan as provided in Section 2.01.
	 
	1.16	 	“Employee” shall have the meaning set forth in the Savings Plan.
	 
	1.17	 	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time
to time.

 

Page 4

	1.18	 	“Excess Matching Contributions” shall mean the amount of contributions credited on a Member’s
behalf under Section 3.01(b).
	 
	1.19	 	“Excess Floor Contributions” shall mean the amount of contributions credited on a Member’s
behalf under Section 3.01(c) of the Predecessor Plan.
	 
	1.20	 	“Excess Core Contributions” shall mean the amount of contributions credited on a Member’s
behalf under Section 3.01(d).
	 
	1.21	 	“Excess Transition Credit Contributions” shall mean the amount of contributions credited on a
Member’s behalf under 
Section 3.01(e).
	 
	1.22	 	“Floor Contribution Account” shall mean the bookkeeping account (or subaccount(s)) maintained
for each individual who become a Member on the Effective Date and who immediately prior to the
Effective Date was a member in the Predecessor Plan, to record the amount credited on the
Member’s behalf under Section 3.01(c) of the Predecessor Plan adjusted as provided in Section
3.02.
	 
	1.23	 	“Matching Company Contribution” shall have the meaning set forth in the Savings Plan.
	 
	1.24	 	“Matching Contribution Account” shall mean the bookkeeping account (or subaccount(s))
maintained for each Member to record all amounts credited on his behalf under Section 3.01(b)
and earnings on those amounts pursuant to Section 3.02 and with respect to an
individual who becomes a Member of the Plan on the Effective Date and who immediately prior to
the Effective Date was a member in the Predecessor Plan, the amount credited on the Member’s
behalf under Section 3.01(b) of the Predecessor Plan adjusted as
provided in Section 3.02.
	 
	1.25	 	“Member” shall mean each Eligible Employee who participates in the Plan pursuant to Article
II and each individual who was a member in the Predecessor Plan immediately

 

Page 5

	 	 	prior to the
Effective Date and had amounts transferred from the Predecessor Plan to this Plan effective as
of the Effective Date.

	1.26	 	“Plan” shall mean the Xylem Supplemental Savings Plan for Salaried Employees as set forth in
this document, as it may be amended from time to time; provided, however, that the term “Plan”
shall include the Predecessor Plan with respect to all prior service and participation by
Member with the Predecessor Corporation.
	 
	1.27	 	“Plan Year” shall mean the calendar year.
	 
	1.28	 	“Predecessor Plan” shall mean the ITT Excess Savings Plan as effective immediately prior to
the Effective Date.
	 
	1.29	 	“Reporting Date” shall mean each business day on which the New York Stock Exchange is open
for business, or such other day as the Committee may determine.
	 
	1.30	 	“Salary” shall mean (i) with respect to Plan Years beginning prior to January 1, 2012, an
Eligible Employee’s “Salary” as such term is defined in the ITT Salaried Investment and
Savings Plan as in effect prior to the Effective Date disregarding any reduction required due
to the application of the Statutory Compensation Limitation and (ii) with respect to Plan
Years beginning on and after January 1, 2012, an Eligible Employee’s “Salary” as such term is
defined in the Savings Plan as in effect on and after the Effective Date disregarding any
reduction required due to the application of the Statutory Compensation Limitation.
Notwithstanding the foregoing, solely for purposes of calculating the Employer contribution
amounts pursuant to the provisions of Section 3.02(b), (d) and (e) on and after the Effective
Date the term “Salary” shall mean “Salary” as such term is defined in the Savings Plan as in
effect on and after the Effective Date disregarding any reduction required due to the
application of the Statutory Compensation Limitation. Salary shall be determined before any
reduction pursuant to an Eligible Employee’s election to make Salary Deferrals under this
Plan, but after reduction for deferrals under any other nonqualified deferred compensation
program maintained by the Company.

 

Page 6

	1.31	 	“Salary Deferrals” shall mean the amount of Salary a Member has elected to defer for a Plan
Year beginning prior to January 1, 2012 pursuant to a Salary Reduction Agreement in accordance
with the provisions of Section 3.01(a).
	 
	1.32	 	“Salary Reduction Agreement” shall mean with respect to an individual who becomes a Member
effective as of the Effective Date and who immediately prior to the Effective Date was a
Member in the Predecessor Plan the completed Agreement entered into by said Member pursuant to
Section 2.02 of the Predecessor Plan under which be elected to deferred a portion of his
Salary under the provisions of Section 3.01(a) of the Predecessor Plan.
	 
	1.33	 	“Savings” shall have the meaning set forth in the Savings Plan.
	 
	1.34	 	“Savings Plan” shall mean the Xylem Retirement Savings Plan for Salaried Employees (successor
plan to the ITT Salaried Investment and Savings Plan) as amended from time to time.
	 
	1.35	 	“Special DC Credit Contribution Rate” shall mean the rate of Special DC Credit Contributions
(as such term is defined under the provisions of the Savings Plan) for a particular Plan Year.
	 
	1.36	 	“Statutory Compensation Limitation” shall mean the limitations set forth in Section
401(a)(17) of the Code as in effect each calendar year for the Savings Plan.
	 
	1.37	 	“Termination of Employment” shall mean a “Separation from Service” as such term is defined in
the Treasury Regs. under Section 409A of the Code, as modified by the rules described below:

	 	(a)	 	An Employee who is absent from work due to military leave, sick leave, or other
bona fide leave of absence pursuant to Company policies shall incur a

 

Page 7

	 	 	 	Termination of
Employment on the first date immediately following the later of (i) the six-month
anniversary of the commencement of the leave (eighteen month
anniversary for a disability leave of absence) or (ii) the expiration of the
Employee’s right, if any, to reemployment under statute or contract or pursuant to
Company policies. For this purpose, a “disability leave of absence” is an absence
due to any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less
than 6 months, where such impairment causes the employee to be unable to perform the
duties of his job or a substantially similar job.;

	 	(b)	 	For purposes of determining whether another organization is an Associated
Company of the Corporation, common ownership of at least 50% shall be determinative;
	 
	 	(c)	 	The Corporation specifically reserves the right to determine whether a sale or
other disposition of substantial assets to an unrelated party constitutes a Termination
of Employment with respect to the executive providing services to the seller
immediately prior to the transaction and providing services to the buyer after the
transaction. Such determination shall be made in accordance with the requirements of
Code Section 409A.

	 	 	Whether Termination of Employment has occurred shall be determined by the Committee in
accordance with Code Section 409A, the regulations promulgated thereunder, and other
applicable guidance, as modified by rules described above. The terms or phrases “terminates
employment,” “termination of employment,” “employment is terminated,” or any other similar
terminology shall have the same meaning as a “Termination of Employment.”
	 
	1.38	 	“Transition Credit Contribution Account” shall mean the bookkeeping account (or
subaccount(s)) maintained for each Member to record all amounts credited on his behalf under
Section 3.01(e) and earnings on those amounts pursuant to Section 3.02.

 

Page 8

ARTICLE II — PARTICIPATION

	2.01	 	Eligibility

	 	(a)	 	(i) An Employee shall be an Eligible Employee as of the Effective Date with
respect to the period beginning on the Effective Date and ending on December 31, 2011
(the “2011 Plan Year”) if the Employee (A) is eligible to participate in the Savings
Plan during that period, (B) was an Eligible Employee under the terms of the
Predecessor Plan with respect to the during that particular calendar year beginning
January 1, 2011 and (C) his Salary in that calendar year exceeds the Statutory
Compensation Limitation in effect for that particular year.

	 	(ii)	 	Notwithstanding the foregoing effective as of the Effective Date,
an Employee who was not a member of the Predecessor Plan shall be an Eligible
Employee solely for the purposes of applying the provisions of Section 3.02(b),
(d) and (e) hereof with respect to the 2011 Plan Year, provided the Employee (A)
is eligible to participate in the Savings Plan during the 2011 Plan Year and (B)
his Salary during the 2011 Plan Year causes his total Salary for the calendar
year ending December 31, 2011 to exceed the Statutory Compensation Limitation in
effect for that particular year.
	 
	 	(iii)	 	Effective as of January 1, 2012, an Employee shall be an Eligible
Employee for the portion of a particular Plan Year during which (A) the Employee
is eligible to participate in the Savings Plan and (B) the Eligible Employee’s
Salary in that particular Plan Year exceeds the Statutory Compensation Limitation
in effect for that particular Plan Year.

	 	(b)	 	Upon reemployment by the Company, an Employee shall become an Eligible Employee
again only upon completing the eligibility requirement described in Section 2.01(a).

 

Page 9

	2.02	 	Participation and Filing Requirements

	 	(a)	 	An Eligible Employee shall become a Member when contributions are credited on
his behalf pursuant to Article 3.
	 
	 	(b)	 	Subject to the provisions of this Section, with respect to the Plan Year
beginning on the Effective Date and ending as of December 31, 2011, any Eligible
Employee who has met the eligibility requirements of Section 2.01(a)(i) for that Plan
Year shall have Salary Deferrals credited to his Deferral Account in the 2011 Plan Year
in accordance with the Salary Reduction Agreement executed by such Eligible Employee
under the provision of the Predecessor Plan with respect to the calendar year beginning
January 1, 2011 which authorized Salary Deferrals under the Predecessor Plan for that
year in accordance with the provisions of Section 3.01(a) thereto.
	 
	 	(c)	 	Notwithstanding the foregoing, if a Member receives a hardship withdrawal of
elective deferrals from the Savings Plan or any other plan which is maintained by the
Company or an Associated Company and which meets the requirements of Section 401(k) of
the Code (or any successor thereof), the Member’s Salary Reduction Agreement in effect
at that time shall be cancelled. Any subsequent Salary payment which would have been
deferred pursuant to that Salary Reduction Agreement, but for the application of this
Section 2.02(b), shall be paid to the Member as if he had not entered into the Salary
Reduction Agreement.

	2.03	 	Termination of Participation

	 	(a)	 	A Member’s participation in the Plan shall terminate when the vested values of
the Member’s Accounts under the Plan are totally distributed to, or on behalf of, the
Member.
	 
	 	(b)	 	Upon reemployment by the Company, a former Member shall become a Member again
only upon completing, subsequent to his reemployment, the eligibility and participation
requirements of Section 2.01 and 2.02, respectively.

 

Page 10

ARTICLE
III — SUPPLEMENTAL SAVINGS PLAN CONTRIBUTIONS

	3.01	 	Amount of Contributions
	 
	 	 	For any Plan Year, the amount of contributions credited under the Plan on behalf of a Member
pursuant to this Article 3 shall be equal to the sum of the Salary Deferrals, Excess
Matching Contributions, Excess Core Contributions and Excess Transition Credit Contributions
determined under (a), (b), (c) and (d) below:

	 	(a)	 	Salary Deferrals
	 
	 	 	 	The amount of Salary Deferrals for the period beginning on the Effective Date and
ending on December 31, 2011 (the “2011 Plan Year”) shall be equal to the designated
percentage of Salary elected by the Member in his Salary Reduction Agreement executed
under the provisions of the Predecessor Plan, provided that the allocation under the
Plan and the reduction in the Eligible Employee’s Salary corresponding to such
election shall be made only with respect to Salary that is otherwise earned and
payable to such Member during the portion of Plan Year beginning on the Effective Date
and ending as of December 31, 2011 in excess of the Statutory Compensation Limitation
for that year.
	 
	 	 	 	Notwithstanding any Plan provision to the contrary, effective with respect to Plan
Years beginning on and after January 1, 2012, Salary Deferrals are no longer permitted
under the provision of the Plan and a Member shall not be eligible to defer any Salary
earned on and after January 1, 2012.

 

Page 11

	 	(b)	 	Excess Matching Contributions
	 
	 	 	 	The amount of Excess Matching Contributions credited to a Member’s Matching
Contribution Account for the portion of the Plan Year beginning on the Effective Date
and ending on December 31, 2011 shall be equal to three percent (3%) of the portion of
an Eligible Employee’s Salary paid during that portion of the Plan Year which causes
his Salary for the calendar year ending December 31, 2011 to exceed the Statutory
Compensation Limitation for that Plan Year.
	 
	 	 	 	With respect to Plan Years commencing on and after January 1, 2012, the amount of
Excess Matching Contributions credited to a Member’s Matching Contribution Account for
each particular Plan Year shall be equal to three percent (3%) of the portion of an
Eligible Employee’s Salary in that particular Plan Year that exceeds the Statutory
Compensation Limitation for that year.
	 
	 	(c)	 	Excess Core Contributions
	 
	 	 	 	With respect to Plan Years commencing on and after January 1, 2012, the amount of
Excess Core Contributions credited to a Member’s Core Contribution Account for each
particular Plan Year shall be equal to Company Core Contribution Rate applicable to
the Eligible Employee for that particular Plan Year applied to the portion of such
Eligible Employee’s Salary in that particular Plan Year that exceeds the Statutory
Compensation Limitation for that Plan Year.
	 
	 	 	 	Notwithstanding the forgoing, the Excess Core Contributions for the portion of the
2011 Plan Year beginning on the Effective Date and ending on December 31, 2011 shall
be equal to the Eligible Employee’s Company Core Contribution Rate for 2011 multiplied
by such Eligible Employee’s Salary for that portion of the Plan Year which causes his
Salary for the calendar year beginning January 1, 2011 to exceed the Statutory
Compensation Limitation for that year.

 

Page 12

	 	(d)	 	Excess Transition Credit Contributions
	 
	 	 	 	With respect to Plan Years commencing on and after January 1, 2012, the amount of
Excess Transition Credit Contributions credited to a Member’s Company Transition
Credit Contribution Account for each particular Plan Year shall be equal to Company
Transition Credit Contribution Rate applicable to the Eligible Employee for that
particular Plan Year applied to the portion of an Eligible Employee’s Salary in that
particular Plan Year that exceeds the Statutory Compensation Limitation for that Plan
Year.
	 
	 	 	 	Notwithstanding the forgoing, the Excess Transition Credit Contributions credited to a
Member’s Company Transition Credit Contribution Account for the portion of the Plan
Year beginning on the Effective Date and ending on December 31, 2011 shall be equal to
the Eligible Employee’s Company Transition Credit Contribution Rate for 2011
multiplied by such Eligible Employee’s Salary for that portion of the Plan Year which
causes his Salary for the total 2011 Plan Year to exceed the Statutory Compensation
Limitation for that year.
	 
	 	 	 	Notwithstanding the forgoing, there shall be credited to a Member’s Transition Credit
Contribution Account an amount equal to the Special DC Credit Contribution Rate, if
any, applicable to the Eligible Employee for a particular Plan Year applied to the
portion of such Eligible Employee’s Salary in that particular Plan Year that exceeds
the Statutory Compensation Limitation for that year.
	 
	 	(e)	 	The contributions credited on a Member’s behalf pursuant to paragraphs (a),
(b), (c), and (d) above shall be credited to a Member’s Accounts at the same time as
they would have been credited to his accounts under the Savings Plan if not for the
application of the Statutory Compensation Limitations.

	 	3.02	 	Investment of Accounts
	 
	 	 	 	A Member shall have no choice or election with respect to the investments of his Accounts.
As of each Reporting Date, there shall be credited or debited an amount of

 

Page 13

	 	 	 	earnings or losses on the balance of the Member’s Accounts as of such Reporting Date which
would have been credited had the Member’s Accounts been invested in the stable value fund
maintained under the Savings Plan, or such other fund as determined by the “PFTIC”, as such
term is defined in the Savings Plan.

	3.03	 	Vesting of Accounts

	 	(a)	 	The Member shall be fully vested in his Excess Floor Contributions Account and
the Salary Deferrals, Excess Matching Contributions, Excess Core Contributions and
Excess Transition Credit Contributions (and earnings thereon) made on his behalf under
Section 3.01(a), (b), (c), and (d) respectively. Effective as of the Effective Date, a
Member who is employed by the Company on or after the Effective Date shall be fully
vested in the Excess Matching Contributions held in his Matching Contribution Account
which were made on his behalf under Section 3.01(b) of the Predecessor Plan (and
earnings thereon).
	 
	 	(b)	 	Notwithstanding any other provision of the Plan to the contrary, all prior
service and participation by a Member with the Predecessor Corporation shall be deemed
credited in full towards a Member’s service and participation with the Company.

	3.04	 	Individual Accounts

	 	(a)	 	The Committee shall maintain, or cause to be maintained, on the book of the
Corporation records showing the individual balances of each Member’s Accounts (or
subaccounts). At least once a year, each Member shall be furnished with a statement
setting forth the value of his Accounts.
	 
	 	(b)	 	Accounts established under this Plan shall be hypothetical in nature and shall
be maintained for bookkeeping purposes only so that hypothetical earnings or losses on
the amounts credited on a Member’s behalf under this Plan can be credited or debited,
as the case may be.

 

Page 14

	3.05	 	Valuation of Accounts

	 	(a)	 	The Committee shall value or cause to be valued each Member’s Accounts at least
quarterly. On each Reporting Date there shall be allocated to the Accounts of each
Member the appropriate amount determined in accordance with Section 3.02.
	 
	 	(b)	 	Whenever an event requires a determination of the value of a Member’s Accounts,
the value shall be computed as of the Reporting Date immediately preceding the date of
the event, except as otherwise specified in this Plan.

 

Page 15

ARTICLE IV — PAYMENT OF CONTRIBUTIONS

	4.01	 	Commencement of Payment

	 	(a)	 	Except as otherwise provided below, a Member shall be entitled to receive
payment of his Deferral Account, his Floor Contribution Account, his Core Contribution
Account and his Transition Credit Contribution Account and the vested portion of his
Matching Contribution Account as determined under Section 3.03 upon his Termination of
Employment with the Company and all Associated Companies for any reason, other than
death. The distribution of such Accounts shall be made in the seventh month following
the date the Member’s Termination of Employment occurs.
	 
	 	(b)	 	In the event of the death of a Member prior to the full payment of his
Accounts, the unpaid portion of his Accounts shall be paid to his Beneficiary in the
month following the month in which the Member’s date of death occurs.

	4.02	 	Method of Payment
	 
	 	 	The payment of such Member’s Deferral Account, his Floor Contribution Account, his Core
Contribution Account and his Transition Credit Contribution Account and the vested portion
of his Matching Contribution Account shall be made in a single lump sum payment.
	 
	4.03	 	Payment upon the Occurrence of a Change in Control
	 
	 	 	Upon the occurrence of a Change in Control, all Members shall automatically receive the
balance of their Deferral Account, Floor Contribution Account, Core Contribution Account and
Transition Credit Contribution Account and the vested portion of their Matching Contribution
Account in a single lump sum payment. Such lump sum payment shall be made within 90 days of
the date the Change in Control occurs. If the Member dies after such Change in Control, but
before receiving such payment, it shall be made to his Beneficiary.

 

Page 16

ARTICLE V — GENERAL PROVISIONS

	5.01	 	Funding
	 
	 	 	All amounts payable in accordance with this Plan shall constitute a general unsecured
obligation of the Corporation. Such amounts, as well as any administrative costs relating
to the Plan, shall be paid out of the general assets of the Corporation.
	 
	5.02	 	No Contract of Employment
	 
	 	 	The Plan is not a contract of employment and the terms of employment of any Member shall not
be affected in any way by this Plan or related instruments, except as specifically provided
therein. The establishment of the Plan shall not be construed as conferring any legal
rights upon any person for a continuation of employment, nor shall it interfere with the
rights of the Company or an Associated Company to discharge any person and to treat him
without regard to the effect which such treatment might have upon him under this Plan. Each
Member and all persons who may have or claim any right by reason of his participation shall
be bound by the terms of this Plan and all agreements entered into pursuant thereto.
	 
	5.03	 	Unsecured Interest
	 
	 	 	Neither the Corporation nor the Board of Directors nor the Committee in any way guarantees
the performance of the investment fund designated under Section 3.02. No special or
separate fund shall be established, and no segregation of assets shall be made, to assure
the payments thereunder. No Member hereunder shall have any right, title, or interest
whatsoever in any specific assets of the Corporation. Nothing contained in this Plan and no
action taken pursuant to its provisions shall create or be construed to create a trust of
any kind or a fiduciary relationship between the Corporation and a Member or any other
person. To the extent that any person acquires a right to receive payments under this Plan,
such right shall be no greater than the right of any unsecured creditor of the Corporation.

 

Page 17

	5.04	 	Facility of Payment
	 
	 	 	In the event that the Committee shall find that a Member or Beneficiary is unable to care
for his affairs because of illness or accident or has died, or if a Beneficiary is a minor
the Committee may direct that any benefit payment due him, unless claim shall have been made
therefore by a duly appointed legal representative, be paid on his behalf to his spouse, a
child, a parent or other blood relative, or to a person with whom he resides, and any such
payment so made shall thereby be a complete discharge of the liabilities of the Corporation
and the Plan for that payment.
	 
	5.05	 	Withholding Taxes
	 
	 	 	The Company or an Associated Company shall have the right to deduct from each payment to be
made under the Plan any required withholding taxes.
	 
	5.06	 	Nonalienation
	 
	 	 	Subject to any applicable law, no benefit under the Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any
attempt to do so shall be void, nor shall any such benefit be in any manner liable for or
subject to garnishment, attachment, execution or levy, or liable for or subject to the
debts, contracts, liabilities, engagements or torts of a person entitled to such benefits.
	 
	5.07	 	Transfers

	 	(a)	 	In the event the Corporation (i) sells, causes the sale of, or sold the stock
or assets of any employing company in the controlled group of the Corporation to a
third party or (ii) distributes or distributed to the holders of shares of the
Corporation’s common stock all of the outstanding shares of common stock of a
subsidiary or subsidiaries of the Corporation, and, as a result of such sale or
distribution, such company or its employees are no longer eligible to participate
hereunder, the liabilities with respect to the benefits accrued under this Plan for a
Member who, as a result of such sale or distribution, is no longer eligible to
participate in this Plan, shall, at the discretion and direction of the Corporation
(and approval by the new employer), be transferred to a similar plan of such new
employer and become a

 

Page 18

	 	 	 	liability thereunder. Upon such transfer (and acceptance thereof) the liabilities for
such transferred benefits shall become the obligation of the new employer and the
liability under this Plan for such benefits shall cease.

	 	(b)	 	Notwithstanding any Plan provision to the contrary, at the discretion and
direction of the Corporation, liabilities with respect to benefits accrued by a Member
under a plan maintained by such Member’s former employer may be transferred to this
Plan and upon such transfer become the obligation of the Corporation.

	5.08	 	Claims Procedure

	 	(a)	 	Submission of Claims
	 
	 	 	 	Claims for benefits under the Plan shall be submitted in writing to the Committee or
to an individual designated by the Committee for this purpose.

	 	(b)	 	Denial of Claim
	 
	 	 	 	If any claim for benefits is wholly or partially denied, the claimant shall be given
written notice within 90 days following the date on which the claim is filed, which
notice shall set forth

	 	(i)	 	the specific reason or reasons for the denial;
	 
	 	(ii)	 	specific reference to pertinent Plan provisions on which the denial
is based;
	 
	 	(iii)	 	a description of any additional material or information necessary
for the claimant to perfect the claim and an explanation of why such material or
information is necessary; and
	 
	 	(iv)	 	an explanation of the Plan’s claim review procedure, including information as to the steps to be taken if the claimant wishes to submit the
claim for review and the time limits for requesting a review.

 

Page 19

	 	 	 	If special circumstances require an extension of time for processing the claim,
written notice of an extension shall be furnished to the claimant prior to the end of
the initial period of 90 days following the date on which the claim is filed. Such an
extension may not exceed a period of 90 days beyond the end of said initial period.
	 
	 	 	 	If the claim has not been granted and written notice of the denial of the claim is not
furnished within 90 days following the date on which the claim is filed, the claim
shall be deemed denied for the purpose of proceeding to the claim review procedure.
	 
	 	(c)	 	Claim Review Procedure
	 
	 	 	 	The claimant or his authorized representative shall have 60 days after receipt of
written notification of denial of a claim to request a review of the denial by making
written request to the Committee, and may review pertinent documents and submit issues
and comments in writing within such 60-day period.
	 
	 	 	 	Not later than 60 days after receipt of the request for review, the Committee (or the
committee designated by the Company to hear such appeals, the “Appeals Committee)
shall render and furnish to the claimant a written decision, which shall include
specific reasons for the decision and shall make specific references to pertinent Plan
provisions on which it is based. If special circumstances require an extension of
time for processing, the decision shall be rendered as soon as possible, but not later
than 120 days after receipt of the request for review, provided that written notice
and explanation of the delay are given to the claimant prior to commencement of the
extension. Such decision by the Appeals Committee shall not be subject to further
review. If a decision on review is not furnished to a claimant within the specified
time period, the claim shall be deemed to have been denied on review.

 

Page 20

	 	(d)	 	Exhaustion of Remedy
	 
	 	 	 	No claimant shall institute any action or proceeding in any state or federal court of
law or equity or before any administrative tribunal or arbitrator for a claim for
benefits under the Plan until the claimant has first exhausted the procedures set
forth in this section.

	5.09	 	Compliance
	 
	 	 	The Plan is intended to comply with the requirements of Code Section 409A and the provisions
hereof shall be interpreted in a manner that satisfies the requirements of Code Section 409A
and the regulations thereunder, and the Plan shall be operated accordingly. If any
provision of the Plan would otherwise frustrate or conflict with this intent, the provision
will be interpreted and deemed amended so as to avoid this conflict.
	 
	5.10	 	Acceleration of or Delay in Payments
	 
	 	 	The Committee, in its sole and absolute discretion, may elect to
accelerate the time or form of payment of a benefit owed to the
Member hereunder, provided such acceleration is permitted under
Treas. Regs. Section 1.409A-3(j)(4). The Committee may also, in its
sole and absolute discretion, delay the time for payment of a benefit
owed to the Member hereunder, to the extent permitted under Treas.
Regs. Section 1.409A-2(b)(7).
	 
	5.11	 	Construction

	 	(a)	 	The Plan is intended to constitute an unfunded deferred compensation
arrangement maintained for a select group of management or highly compensated employees
within the meaning of Sections 201(2), 301(a)(3), and 401(a)(1) of ERISA, and all
rights under this Plan shall be governed by ERISA. Subject to the preceding sentence,
the Plan shall be construed, regulated and administered in accordance with the laws of
the State of New York, to the extent such laws are not superseded by applicable federal
laws.
	 
	 	(b)	 	The masculine pronoun shall mean the feminine wherever appropriate.

 

Page 21

	 	(c)	 	The illegality of any particular provision of this document shall not affect
the other provisions and the document shall be construed in all respects as if such
invalid provision were omitted.
	 
	 	(d)	 	The headings and subheadings in the Plan have been inserted for convenience of
reference only and are to be ignored in any construction of the provisions thereof.

 

Page 22

ARTICLE VI — AMENDMENT OR TERMINATION

	6.01	 	Right to Terminate
	 
	 	 	Notwithstanding any Plan provision to the contrary, the Corporation may, by action of the
Board of Directors, terminate this Plan and the related Deferral Agreements at any time. To
the extent consistent with the rules relating to Plan terminations and liquidation in
Treasury Regulations Section 1.409A-3(j)(4)(ix) or otherwise consistent with Code Section
409A, the Corporation may provide that each Member or Beneficiary shall receive a single sum
payment in cash equal to the balance of the Member’s Accounts. The single sum payment shall
be made within 90 days following the date the Plan is terminated and shall be in lieu of any
other benefit which may be payable to the Member or Beneficiary under this Plan. Unless so
distributed, in the event of a Plan termination, the Corporation shall continue to maintain
the Deferral Account, the Floor Contribution Account, the Matching Contribution Account, the
Core Contribution Account and the Transition Credit Contribution Account until distributed
pursuant to the terms of the Plan.
	 
	6.02	 	Right to Amend
	 
	 	 	The Board of Directors or its delegate may amend or modify this Plan and the related
Deferral Agreements in any way either retroactively or prospectively. However, except that
without the consent of the Member or Beneficiary, if applicable, no amendment or
modification shall reduce or diminish such person’s right to receive any benefit accrued
hereunder prior to the date of such amendment or modification, and after the occurrence of
an Acceleration Event, no modification or amendment shall be made to Sections 3.03(b) and
4.03.

 

Page 23

ARTICLE VII — ADMINISTRATION

	7.01	 	Administration

	 	(a)	 	The Committee shall have the exclusive responsibility and complete
discretionary authority to control the operation, management and administration of the
Plan, with all powers necessary to enable it properly to carry out such
responsibilities, including, but not limited to, the power to interpret the Plan and
any related documents, to establish procedures for making any elections called for
under the Plan, to make factual determinations regarding any and all matters arising
hereunder, including, but not limited to, the right to determine eligibility for
benefits, the right to construe the terms of the Plan, the right to remedy possible
ambiguities, inequities, inconsistencies or omissions, and the right to resolve all
interpretive, equitable or other questions arising under the Plan. The decisions of
the Committee on all matters shall be final, binding and conclusive on all persons to
the extent permitted by law.
	 
	 	(b)	 	To the extent permitted by law, all agents and representatives of the Committee
shall be indemnified by the Corporation and held harmless against any claims and the
expenses of defending against such claims, resulting from any action or conduct
relating to the administration of the Plan, except claims arising from gross
negligence, willful neglect or willful misconduct.exv10w13

 

Exhibit
10.13

XYLEM

DEFERRED COMPENSATION PLAN

FOR NON-EMPLOYEE DIRECTORS

The Xylem Deferred Compensation Plan for Non-Employee Directors (the “Plan”) first became effective
as of October 31, 2011 following the spin-off of Xylem Inc. from ITT Corporation (the “Predecessor
Corporation”) on October 31, 2011. The Predecessor Corporation maintained a similar plan prior to
the spin-off (the “Predecessor Plan”). The Plan was created as a spin-off of the Predecessor Plan
to govern prior deferrals by Non-Employee Directors made under the Predecessor Plan and to provide
Non-Employee Directors with a means of deferring director fees in accordance with the terms of the
Plan.

The Plan shall remain in effect as provided in Section 6.01 hereof, and Participants shall be
deemed to receive full credit for their service and participation with the Predecessor Corporation
as provided in Section 4.06(c) hereof. Further, the Plan shall not deprive a Participant of the
right to payment of deferred compensation credited as of the date of termination or amendment, in
accordance with the terms of the Plan as of the date of such termination or amendment.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1. — DEFINITIONS
	 	 	1	 
	1.01 Adoption Date
	 	 	1	 
	1.02 Administrative Committee
	 	 	1	 
	1.03 Beneficiary
	 	 	1	 
	1.04 Board
	 	 	1	 
	1.05 Business Day
	 	 	1	 
	1.06 Code
	 	 	1	 
	1.07 Corporation
	 	 	1	 
	1.08 Deferral Account
	 	 	1	 
	1.09 Deferral Agreement
	 	 	1	 
	1.10 Deferral Election Deadline
	 	 	2	 
	1.11 Deferrals
	 	 	2	 
	1.12 Director Fees
	 	 	2	 
	1.13 Grandfathered Deferrals
	 	 	2	 
	1.14 In-Service Subaccount
	 	 	2	 
	1.15 Non-Employee Director
	 	 	2	 
	1.16 Participant
	 	 	2	 
	1.17 Plan
	 	 	3	 
	1.18 Predecessor Corporation
	 	 	3	 
	1.19 Predecessor Plan
	 	 	3	 
	1.20 Prior Deferrals
	 	 	3	 
	1.21 Prior Deferrals Agreement
	 	 	3	 
	1.22 Reporting Date
	 	 	3	 
	1.23 Retirement
	 	 	4	 
	1.24 Retirement Subaccount
	 	 	4	 
	1.25 Service Year
	 	 	4	 
	1.26 Specified Distribution Date
	 	 	4	 
	1.27 Unforeseeable Emergency
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 2. — INTRODUCTION AND PARTICIPATION
	 	 	5	 
	2.01 Introduction
	 	 	5	 
	2.02 Participation
	 	 	5	 
	2.03 Termination of Participation
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 3. — DEFERRALS
	 	 	6	 
	3.01 Deferral Elections
	 	 	6	 
	3.02 Amount of Deferral
	 	 	7	 
	3.03 Crediting to Deferral Account
	 	 	7	 
	3.04 Vesting
	 	 	7	 
	3.05 Unforeseeable Emergency
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 4. — MAINTENANCE OF ACCOUNTS
	 	 	8	 
	4.01 Adjustment of Account
	 	 	8	 

 

 

	 	 	 	 	 
	 	 	Page	 
	4.02 Investment Elections
	 	 	8	 
	4.03 Changing Investment Elections of Amounts Held in Deferral Accounts
	 	 	9	 
	4.04 Compliance with Securities Laws and Trading Policies and Procedures
	 	 	9	 
	4.05 Individual Accounts
	 	 	10	 
	4.06 Valuation of Accounts
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 5. — PAYMENT OF BENEFITS
	 	 	11	 
	5.01 Time of Payment
	 	 	11	 
	5.02 Method of Payment
	 	 	14	 
	5.03 Unforeseeable Emergency
	 	 	14	 
	5.04 Designation of Beneficiary
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 6. AMENDMENT OR TERMINATION
	 	 	16	 
	6.01 Right to Amend or Terminate
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 7. GENERAL PROVISIONS
	 	 	17	 
	7.01 Funding and Payment of Expense
	 	 	17	 
	7.02 Unsecured Interest
	 	 	17	 
	7.03 Facility of Payment
	 	 	17	 
	7.04 Withholding Taxes
	 	 	18	 
	7.05 Nonalienation
	 	 	18	 
	7.06 Construction and Governing Law
	 	 	18	 
	7.07 Discharge of Corporation’s Obligation
	 	 	18	 
	7.08 Successors
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 8. ADMINISTRATION
	 	 	20	 
	8.01 Administration
	 	 	20	 

 

 

ARTICLE 1. DEFINITIONS

	1.01	 	“Adoption Date” shall have the meaning set forth in Section 2.01(a).
	 
	1.02	 	“Administrative Committee” shall mean the Board’s Leadership Development and Compensation
Committee or the person or persons appointed by the Board’s Leadership Development and
Compensation Committee pursuant to Article 8 hereof to administer the Plan.
	 
	1.03	 	“Beneficiary” shall mean the person or persons designated by a Participant pursuant to the
provisions of Section 5.04.
	 
	1.04	 	“Board” shall mean the Board of Directors of the Corporation.
	 
	1.05	 	“Business Day” shall mean any day on which the New York Stock Exchange, or a successor
thereto, is open.
	 
	1.06	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.
	 
	1.07	 	“Corporation” shall mean Xylem Inc., an Indiana corporation, or any successor by merger,
purchase or otherwise; provided, however, that for purposes of deferrals made under the
Predecessor Plan, Corporation shall mean the Predecessor Corporation as the original deferral
recorder.
	 
	1.08	 	“Deferral Account” shall mean the bookkeeping account (or subaccounts) maintained for each
Participant to record the amount of Director Fees such Participant has elected to defer in
accordance with Article 3 and/or pursuant to a Prior Deferral Agreement, adjusted pursuant to
Article 4.
	 
	1.09	 	“Deferral Agreement” shall mean the completed agreement, including any amendments,
attachments and appendices thereto, in such form and with such title as is approved by the
Leadership Development and Compensation Committee of the Board or the

 

2

	 	 	Administrative Committee, between a Non-Employee Director and the Corporation, under which
the Non-Employee Director agrees to defer a portion of his or her Director Fees earned for a
specified Service Year.
	 
	1.10	 	“Deferral Election Deadline” shall have the meaning set forth in Section 3.01(a).

	1.11	 	“Deferrals” shall mean the amount of deferrals credited to a Participant’s Deferral Account
pursuant to Section 3.03.
	 
	1.12	 	“Director Fees” shall mean the fees paid in cash, including, without limitation, any annual
retainer, monthly fee, Board meeting fee or committee meeting fee that a Non-Employee Director
may be entitled to receive for services as a member of the Board or a committee thereof.
	 
	1.13	 	“Grandfathered Deferrals” shall mean deferred Director Fees (and any earnings thereon,
including amounts attributable to dividends on such deferred Director Fees) that were
initially deferred prior to 2005. For avoidance of doubt, an amount will be treated as
initially deferred prior to 2005 if the amount would have been paid before 2005 had it not
been deferred.
	 
	1.14	 	“In-Service Subaccount” shall mean the bookkeeping account described in Section 5.01(a)
maintained to record Deferrals (and related gains and losses on such Deferrals) that a
Participant has elected to have paid upon the first to occur of the Specified Distribution
Date, the Participant’s Retirement or the Participant’s death.
	 
	1.15	 	“Non-Employee Director” shall mean a member of the Board who is not concurrently an employee
of the Corporation.
	 
	1.16	 	“Participant” shall mean, except as otherwise provided in Section 2.02, each Non-Employee
Director who has executed a Deferral Agreement pursuant to the requirements of Articles 2 and
3.

 

3

	1.17	 	“Plan” shall mean the Xylem Deferred Compensation Plan For Non-Employee Directors, as set
forth in this document, as it may be amended from time to time; provided, however, that the
term “Plan” shall include the Predecessor Plan with respect to all prior service and
participation by a Participant with the Predecessor Corporation and preserving all rights by
Participants regarding Grandfathered Deferrals.
	 
	1.18	 	“Predecessor Corporation” shall mean the Corporation as such term was defined under the
Predecessor Plan immediately prior to October 31, 2011.
	 
	1.19	 	“Predecessor Plan” shall mean the ITT Corporation Deferred Compensation Plan for Non-Employee
Directors as in effect prior to October 31, 2011.
	 
	1.20	 	“Prior Deferrals” shall mean Deferrals relating to annual cash retainers that were (a)
initially deferred after 2004 pursuant to a Prior Deferral Agreement, (b) not yet distributed
as of the Adoption Date and (c) deferred by Non-Employee Directors who consent to have their
Prior Deferrals become subject to the terms of the Plan. For avoidance of doubt, (a) an amount
will be treated as initially deferred after 2004 if the amount would have been paid after 2004
had it not been deferred and (b) the term Prior Deferrals shall not include any restricted
stock, restricted stock units or Grandfathered Deferrals.
	 
	1.21	 	“Prior Deferral Agreement” shall mean a deferral agreement and/or document that was effective
prior to the Adoption Date and that governs the Directors’ Prior Deferrals. For avoidance of
doubt, the term Prior Deferral Agreement shall not include any agreement or document governing
(a) restricted stock or restricted stock unit awards or a Non-Employee Director’s election to
receive restricted stock or restricted stock unit awards or (b) Grandfathered Deferrals.
	 
	1.22	 	“Reporting Date” shall mean the first Business Day of each calendar month following the
Adoption Date, or such other day as the Administrative Committee may determine.

 

4

	1.23	 	“Retirement” shall mean, subject to Section 8.01(c), the termination of a Non-Employee
Director’s service as a member of the Board.
	 
	1.24	 	“Retirement Subaccount” shall mean the bookkeeping account described in Section 5.01(a)
maintained to record Deferrals (and related gains and losses on such Deferrals) that a
Participant has elected to have paid upon the first to occur of the Participant’s Retirement
or death.
	 
	1.25	 	“Service Year” shall mean the period beginning on the date of the Annual Meeting of
Shareholders in any year and ending on the day immediately preceding the date of the Annual
Meeting of Shareholders for the subsequent year, or such other period as shall be specified
from time to time by the Administrative Committee.
	 
	1.26	 	“Specified Distribution Date” shall mean a Business Day selected by a Participant pursuant to
Section 5.01(a).
	 
	1.27	 	“Unforeseeable Emergency” shall mean a severe financial hardship to a Participant resulting
from (a) an illness or accident of the Participant or the Participant’s spouse, beneficiary or
dependent (as defined in Code Section 152, without regard to Section 152(b)(1), (b)(2) and
(d)(1)(B)), (b) loss of the Participant’s property due to casualty (including the need to
rebuild a home following damage to the home not otherwise covered by insurance) or (c) other
similar extraordinary and unforeseeable circumstances arising as a result of events beyond the
control of the Participant; provided, however, that an Unforeseeable Emergency shall only
exist to the extent the severe financial hardship would constitute an Unforeseeable Emergency
under Code Section 409A, related regulations and other applicable guidance.

 

5

ARTICLE 2. INTRODUCTION AND PARTICIPATION

	2.01	 	Introduction

	 	(a)	 	The Plan was adopted by the Board on October 11, 2011 (the “Adoption Date”).
	 
	 	(b)	 	The Plan shall govern (i) Deferrals (as adjusted pursuant to Article 4) made
pursuant to a Deferral Agreement executed after the Adoption Date and (ii) Prior
Deferrals (as adjusted pursuant to Article 4). All Prior Deferral Agreements will be
deemed amended to the extent the terms of the Prior Deferral Agreement are inconsistent
with the terms of the Plan so that, to the extent of any such inconsistency, the terms
of the Plan will govern.

	2.02	 	Participation

	 	(a)	 	All Non-Employee Directors shall be eligible to participate in the Plan. An
individual who is determined to be a Non-Employee Director with respect to a Service
Year and who desires to have Deferrals credited on his or her behalf pursuant to
Article 3 must execute a Deferral Agreement with the Administrative Committee
authorizing Deferrals under the Plan in accordance with the provisions of Sections
2.02(b) and 3.01.
	 
	 	(b)	 	The Deferral Agreement shall be in writing and properly completed upon a form
approved by the Administrative Committee, which shall be the sole judge of the proper
completion thereof. Such Deferral Agreement shall provide for the deferral of all or a
portion of the Non-Employee Director’s Director Fees and shall include such other
provisions as the Administrative Committee deems appropriate.

	2.03	 	Termination of Participation
	 
	 	 	Participation shall cease when all benefits to which a Participant or Beneficiary is
entitled to hereunder are distributed.

 

6

ARTICLE 3. DEFERRALS

	3.01	 	Deferral Elections

	 	(a)	 	Except as provided in Section 3.01(d), a Non-Employee Director may elect to
defer Director Fees that will be earned in the Service Year that begins in the
following calendar year by filing a Deferral Agreement with the Administrative
Committee on or before (i) the close of business on the last Business Day of the
calendar year preceding the calendar year in which such Service Year begins or (ii)
such earlier date as may be specified by the Administrative Committee (the “Deferral
Election Deadline”).
	 
	 	(b)	 	Except as provided in Sections 3.01(d) and 3.05 and subject to such
restrictions as the Administrative Committee may establish from time to time, a
Non-Employee Director’s election to defer Director Fees earned in any Service Year
shall become irrevocable on the Deferral Election Deadline. A Non-Employee Director may
revoke or change his or her election to defer Director Fees at any time prior to the
date the election becomes irrevocable, subject to such restrictions as the
Administrative Committee may establish from time to time. Any such revocation or change
shall be made in a form and manner determined by the Administrative Committee.
	 
	 	(c)	 	Except as provided in Section 3.01(d), a Participant’s Deferral Agreement shall
apply only with respect to Director Fees earned in the Service Year that begins in the
calendar year following the calendar year in which the Deferral Agreement is filed with
the Administrative Committee. A Non-Employee Director must file, in accordance with the
provisions of Section 3.01(a), a new Deferral Agreement to defer Director Fees earned
in any subsequent Service Year.
	 
	 	(d)	 	Notwithstanding anything in this Section 3.01 to the contrary, if a
Non-Employee Director first becomes eligible to participate in the Plan after the
Deferral Election Deadline, but before the first day of the Service Year that begins in
the calendar year in which the Non-Employee Director first becomes eligible to
participate in the

 

7

	 	 	 	Plan, the Non-Employee Director may, within the period beginning on the date the
Non-Employee Director first becomes eligible to participate in the Plan and ending on
the earlier of (i) 30 days after such date or (ii) the first day of such Service Year,
elect to defer Director Fees that will be earned in such Service Year.

	3.02	 	Amount of Deferral
	 
	 	 	Unless the Administrative Committee provides otherwise, a Non-Employee Director may defer
all or none of his or her Director Fees, but not a portion of such Director Fees.
	 
	3.03	 	Crediting to Deferral Account
	 
	 	 	Except as provided below with respect to Prior Deferrals, Deferrals shall be credited to a
Participant’s Deferral Account on the day such Director Fees would have otherwise been paid
to the Participant in the absence of a Deferral Agreement. Deferrals credited to a
Participant’s Deferral Account which are deemed invested in a Corporation phantom stock fund
will be credited based on the closing price of the Corporation’s common stock on the New
York Stock Exchange (or a successor thereto) on that day or the next Business Day if such
day is not a Business Day. Prior Deferrals shall be credited to a Participant’s Deferral
Account as of the Adoption Date.
	 
	3.04	 	Vesting
	 
	 	 	A Participant shall at all times be 100% vested in his or her Deferral Account.
	 
	3.05	 	Unforeseeable Emergency
	 
	 	 	Notwithstanding the foregoing provisions of this Article 3, in the event a distribution is
made to the Participant due to an Unforeseeable Emergency, a Participant’s Deferral
Agreement in effect at that time shall be cancelled and subsequent Deferrals under that
Deferral Agreement shall cease.

 

8

ARTICLE 4. MAINTENANCE OF ACCOUNTS

	4.01	 	Adjustment of Account

	 	(a)	 	The Administrative Committee shall designate at least one investment fund or
index of investment performance and may designate additional investment funds or
investment indices (including a Corporation phantom stock fund) to be used to measure
the investment performance of a Participant’s Deferral Account. The designation of any
such investment funds or indices shall not require the Corporation to invest or earmark
its general assets in any specific manner. The Administrative Committee may change the
designation of investment funds or indices from time to time, in its sole discretion,
and any such change shall not be deemed to be an amendment affecting Participants’
rights under Section 6.01.
	 
	 	(b)	 	As of each Reporting Date, each Deferral Account shall be credited or debited
with the amount of earnings or losses with which such Deferral Account would have been
credited or debited, assuming it had been invested in one or more investment funds, or
earned the rate of return of one or more indices of investment performance, designated
by the Administrative Committee and elected by the Participant pursuant to Section 4.02
for purposes of measuring the investment performance of his or her Deferral Account.
Any portion of a Participant’s Deferral Account deemed invested in a Corporation
phantom stock fund shall be credited with dividend equivalents, as and when dividends
are paid on the Corporation’s common stock. Any such dividend equivalents shall be
deemed invested in additional shares of Corporation phantom stock, and such shares of
phantom stock shall be deemed to be purchased on the day the dividends are paid by the
Corporation.

	4.02	 	Investment Elections
	 
	 	 	If the Administrative Committee designates more than one investment fund or indices under
Section 4.01, Participants may designate the investment fund or indices that will be used to
measure the investment performance of their Deferrals. Unless the Administrative
Committee provides otherwise, such elections shall be made when the Deferral

 

9

	 	 	Agreement is
executed. Unless the Administrative Committee provides otherwise, a Participant’s investment
election made with respect to Prior Deferrals shall continue to govern such Prior Deferrals

	4.03	 	Changing Investment Elections of Amounts Held in Deferral Accounts
	 
	 	 	Unless the Administrative Committee provides otherwise, Participants may not change
investment elections for amounts already deferred. If the Administrative Committee allows
Participants to change their investment elections, such changes may only be made in
accordance with Section 4.04 and such other terms and conditions as may be established by
the Administrative Committee from time to time.
	 
	4.04	 	Compliance with Securities Laws and Trading Policies and Procedures
	 
	 	 	A Participant’s ability to direct investments into or out of a Corporation phantom stock
fund shall be subject to such terms, conditions and procedures as the Plan Administrator may
prescribe from time to time to assure compliance with Rule 16b-3 promulgated under Section
16(b) of the Securities Exchange Act of 1934, as amended (“Rule 16b-3”), and other
applicable requirements. Such procedures also may limit or restrict a Participant’s ability
to make (or modify previously made) deferral and distribution elections under the Plan. In
furtherance, and not in limitation, of the foregoing, to the extent a Participant acquires
any interest in an equity security under the Plan for purposes of Section 16(b), the
Participant shall not dispose of that interest within six (6) months, unless such
disposition is exempted by Section 16(b) or any rules or regulations promulgated thereunder
or with respect thereto. Any election by a Participant to invest any amount in a Corporation
phantom stock fund, and any elections to transfer amounts from or to the Corporation phantom
stock fund to or from any other investment fund or indices, shall be subject to all
applicable securities law requirements, including but not limited to the those reflected in
the prior sentence and Rule 16b-3, as well as all applicable stock trading policies and
procedures of the Corporation. To the extent any election violates any securities law
requirement, applicable trading policies and procedures of the Corporation, or any terms or
conditions established from time to time

 

10

	 	 	by the Administrative Committee relating to such elections (whether or not reflected in the
Plan), the election shall be void.

	4.05	 	Individual Accounts
	 
	 	 	The Administrative Committee shall maintain, or cause to be maintained on its books, records
showing the individual balance of each Participant’s Deferral Account. At least once a year
each Participant shall be furnished with a statement setting forth the value of his or her
Deferral Account.
	 
	4.06	 	Valuation of Accounts

	 	(a)	 	The Administrative Committee shall value or cause to be valued each
Participant’s Deferral Account as the Administrative Committee determines is necessary
for the proper administration of the Plan.
	 
	 	(b)	 	Whenever an event requires a determination of the value of a Participant’s
Deferral Account, the value shall be computed as of the date of the event, or if the
date of the event is not a Business Day, the close of the next Business Day, except as
otherwise specified in this Plan.
	 
	 	(c)	 	Notwithstanding any other provision of the Plan to the contrary, all prior
service and participation by a Participant with the Predecessor Corporation shall be
deemed credited in full towards a Participant’s service and participation with the
Company.

 

11

ARTICLE 5. PAYMENT OF BENEFITS

	5.01	 	Time of Payment

	 	(a)	 	Subject to the limitations in Section 5.01(b), each time a Participant elects
to defer Director Fees, the Participant shall specify whether the deferred Director
Fees will be allocated to the Participant’s Retirement Subaccount or In-Service
Subaccount.

	 	(1)	 	Retirement Subaccount. Except as otherwise provided in the Plan,
amounts allocated to the Retirement Subaccount (after adjustment to reflect gains
and losses during the deferral period) will be paid upon the first to occur of
the Participant’s Retirement or death.
	 
	 	(2)	 	In-Service Subaccount. Except as otherwise provided in the Plan,
amounts allocated to the In-Service Subaccount (after adjustment to reflect gains
and losses during the deferral period) will be paid upon the first to occur of
(A) a Business Day designated by the Participant (the “Specified Distribution
Date”), (B) the Participant’s Retirement or (C) the Participant’s death. The
Specified Distribution Date for the In-Service Subaccount shall be the Business
Day designated by the Participant on his or her initial Deferral Agreement
establishing the In-Service Subaccount; unless otherwise modified in accordance
with the provisions of Section 5.01(c) or (e) below.

	 	 	Unless the Administrative Committee provides otherwise, Participants may not bifurcate any
one Service Year’s deferred Director Fees between the Retirement Subaccount and the
In-Service Subaccount.
	 
	 	 	Prior Deferrals will be allocated to the Participants’ Retirement Subaccount and/or
In-Service Subaccount as of the Adoption Date based on the payment election(s) then in
effect with respect to such Prior Deferrals. If a Participant’s payment election(s) in
effect with respect to Prior Deferrals as of the Adoption Date provides for payment at a
specified date, that specified date shall be the Participant’s “Specified Distribution Date”
for the Participant’s In-Service Subaccount.

 

12

	 	(b)	 	Unless the Administrative Committee provides otherwise, (i) a Participant may
have only one In-Service Subaccount established on his or her behalf (and only one
Specified Distribution Date) at any one time and (ii) once a Participant has selected a
Specified Distribution Date, the Participant may not select an additional Specified
Distribution Date until the amounts in the Participant’s In-Service Subaccount have
been distributed.
	 
	 	(c)	 	In accordance with such procedures as the Administrative Committee may
prescribe, Participants may elect to delay the payment of amounts in the Participant’s
In-Service Subaccount by specifying a new Specified Distribution Date, subject to the
following limitations:

	 	(1)	 	such election must be made at least 12 months prior to the
Specified Distribution Date then in effect and such election will not become
effective until at least 12 months after the date on which the election is made;
and
	 
	 	(2)	 	the new Specified Distribution Date shall be a Business Day that is
not less than five (5) years from the Specified Distribution Date then in effect.

	 	 	Once a Participant’s election of a new Specified Distribution Date becomes effective, all
amounts in the Participant’s In-Service Subaccount (whether allocated before or after the
election of the new Specified Distribution Date) will be paid upon the first to occur of the
new Specified Distribution Date, the Participant’s Retirement or the Participant’s death. A
Participant may elect to delay a Specified Distribution Date pursuant to this Section
5.01(c) more than once, provided that all such elections comply with the provisions of this
Section 5.01(c).
	 
	 	 	It is the Corporation’s intent that the provisions of this Section 5.01(c) comply with the
subsequent election provisions in Code Section 409A(a)(4)(C), related regulations and other
applicable guidance, and this Section 5.01(c) shall be interpreted accordingly. The
Administrative Committee may impose additional restrictions or conditions on a Participant’s
ability to elect a new Specified Distribution Date pursuant to this Section

 

13

	 	 	5.01(c). The Participant may revoke or change his or her election pursuant to this Section
5.01(c) at any time prior to the deadline for making such election, subject to such
restrictions as the Administrative Committee may establish from time to time. Any such
revocation or change shall be made in a form and manner determined by the Administrative
Committee. For avoidance of doubt, a Participant may not elect to delay payment of amounts
in the Participant’s Retirement Subaccount or transfer amounts between his or her Retirement
Subaccount and his or her In-Service Subaccount.

	 	(d)	 	Notwithstanding anything in the Plan to the contrary, if it is not possible to
make payment on the date of the Participant’s Retirement or death, or the Specified
Payment Date, as the case may be, payment shall be made as soon as practicable
thereafter, but in all events subject to the following limitations:

	 	(1)	 	payments to be made upon the Participant’s Retirement or death
shall in no event be made later than (90) days after the date of Retirement or
death, as the case may be, and
	 
	 	(2)	 	payments to be made on a Specified Distribution Date shall in no
event be made later than the 15th day of the third calendar month following such
Specified Distribution Date.

	 	 	If payment is made within one of the periods described in this Section 5.01(d), neither the
Participant nor any Beneficiary may elect, directly or indirectly, when within such period
payment shall be made.

	 	(e)	 	Notwithstanding anything in the Plan to the contrary, the Administrative
Committee may, in its discretion and subject to such terms and conditions as it may
from time to time prescribe, allow Participants to change the time of payment of all or
a portion of their Deferral Accounts in accordance with applicable transition relief
provided with respect to Code Section 409A.

 

14

	5.02	 	Method of Payment
	 
	 	 	The distribution of the Participant’s Deferral Account shall be made to the Participant or,
if the Participant dies, to the Participant’s Beneficiary, in the form of a single lump sum
cash payment.
	 
	5.03	 	Unforeseeable Emergency
	 
	 	 	Notwithstanding anything in the Plan or in a Deferral Agreement to the contrary, the
Administrative Committee may, if it determines an Unforeseeable Emergency exists which
cannot be satisfied from other sources, approve a request by the Participant for a
withdrawal from his or her Deferral Account. Such request shall be made in a time and manner
determined by the Administrative Committee. The payment made from a Participant’s Deferral
Account pursuant to the provisions of this Section 5.03 shall be limited to the amount
reasonably necessary to satisfy the emergency need (which may include amounts necessary to
pay any Federal, state, local or foreign income taxes or penalties reasonably anticipated to
result from the distribution). Determinations of amounts necessary to satisfy the emergency
need must take into account any additional compensation that is available, other than
additional compensation that, due to the Unforeseeable Emergency, is available under another
nonqualified deferred compensation plan but that has not actually been paid. This Section
5.03 is intended to comply with Code Section 409A, related regulations and any other
applicable guidance and shall be interpreted accordingly so that distributions shall be
permitted under this Section 5.03 only to the extent they comply with Code Section 409A.
	 
	5.04	 	Designation of Beneficiary
	 
	 	 	Each Participant shall file with the Administrative Committee a written designation of one
or more persons as the Beneficiary who shall be entitled to receive the amount, if any,
payable under the Plan upon his or her death pursuant to Article 5. A Participant may, from
time to time, revoke or change his or her Beneficiary designation without the consent of any
prior Beneficiary by filing a new designation with the Administrative Committee. The last
such designation received by the Administrative Committee shall be controlling; provided,
however, that no designation, or change or revocation thereof, shall

 

15

	 	 	be effective unless received by the Administrative Committee prior to the Participant’s
death, and in no event shall it be effective as of a date prior to such receipt. If no such
Beneficiary designation is in effect at the time of a Participant’s death, or if no
designated Beneficiary survives the Participant, the Participant’s surviving spouse, if any,
shall be the Participant’s Beneficiary, otherwise the Participant’s estate shall be the
Participant’s Beneficiary, and shall receive the payment of the amount, if any, payable
under the Plan upon the Participant’s death.

 

16

ARTICLE 6. AMENDMENT OR TERMINATION

	6.01	 	Right to Amend or Terminate
	 
	 	 	Notwithstanding any Plan provision to the contrary, the Corporation may, by action of the
Board, amend or terminate the Plan at any time; provided, however, that no such amendment or
termination of the Plan that reduces a Participant’s Deferral Account shall be effective
without the prior written consent of the Participants whose Deferral Accounts are reduced by
the amendment or termination. To the extent consistent with the rules relating to plan
terminations and liquidations in Treasury Regulation Section 1.409A-3(j)(4)(ix) or otherwise
consistent with Code Section 409A, the Board may provide that, without the prior written
consent of Participants, all of the Participants’ Deferral Accounts shall be distributed in
a lump sum upon termination of the Plan. Unless so distributed, in the event of a Plan
termination, the Corporation shall continue to maintain the Deferral Accounts until
distributed pursuant to the terms of the Plan and Participants shall remain 100% vested in
all amounts credited to their Deferral Accounts.

 

17

ARTICLE 7. GENERAL PROVISIONS

	7.01	 	Funding and Payment of Expenses
	 
	 	 	All amounts payable in accordance with this Plan shall constitute a general unsecured
obligation of the Corporation. Such amounts, as well as any administrative costs relating to
the Plan, shall be paid out of the general assets of the Corporation. The Administrative
Committee may decide that a Participant’s Deferral Account may be reduced to reflect
allocable administrative expenses.
	 
	7.02	 	Unsecured Interest
	 
	 	 	Neither the Corporation nor the Administrative Committee in any way guarantees the
performance of the investment funds or indices a Participant may designate under Article 4.
No special or separate fund shall be established, and no segregation of assets shall be
made, to assure the payments hereunder. No Participant hereunder shall have any right,
title, or interest whatsoever in any specific assets of the Corporation. Nothing contained
in this Plan and no action taken pursuant to its provisions shall create or be construed to
create a trust of any kind or a fiduciary relationship between the Corporation and a
Participant or any other person. To the extent that any person acquires a right to receive
payments under this Plan, such right shall be no greater than the right of any unsecured
creditor of the Corporation.
	 
	7.03	 	Facility of Payment
	 
	 	 	In the event that the Administrative Committee shall find that a Participant or Beneficiary
is incompetent to care for his or her affairs or if a Beneficiary is a minor, the
Administrative Committee may direct that any benefit payment due him or her, unless claim
shall have been made therefor by a duly appointed legal representative, be paid on his or
her behalf to his or her spouse, a child, a parent or other relative, and any such payment
so made shall thereby be a complete discharge of the liability of the Corporation and the
Plan for that payment.

 

18

	7.04	 	Withholding Taxes
	 
	 	 	The Corporation shall have the right to deduct from each payment to be made under the Plan
any required withholding taxes.
	 
	7.05	 	Noalienation
	 
	 	 	Subject to any applicable law and except as provided in Section 5.04, no benefit under the
Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge, and any attempt to do so shall be void, nor shall any such
benefit be in any manner liable for or subject to garnishment, attachment, execution or
levy, or liable for or subject to the debts, contracts, liabilities, engagements or torts of
a person entitled to such benefits.
	 
	7.06	 	Construction and Governing Law

	 	(a)	 	The Plan shall be construed, regulated and administered in accordance with the
laws of the State of New York, subject to the provisions of applicable federal laws.
	 
	 	(b)	 	The masculine pronoun shall mean the feminine wherever appropriate. To the
extent any section of the Code, Treasury Regulations or the Securities Exchange Act of
1934 or any rule promulgated under the Securities Exchange Act of 1934 that is
referenced in the Plan shall be amended or superseded, such reference shall be deemed
to be to the amended or superseding section or rule.
	 
	 	(c)	 	The illegality of any particular provision of this document shall not affect
the other provisions, and the document shall be construed in all respects as if such
invalid provision were omitted.

	7.07	 	Discharge of Corporation’s Obligation
	 
	 	 	The payment by the Corporation of the benefits due under the Plan and/or any Deferral
Agreement or Prior Deferral Agreement to the Participant or his or her Beneficiary shall
discharge the Corporation’s obligation with respect thereto, and the Participant or

 

19

	 	 	Beneficiary shall have no further rights under this Plan or the Deferral Agreements or Prior
Deferral Agreements upon receipt by the appropriate person of all such benefits.

	7.08	 	Successors
	 
	 	 	The Plan shall be binding upon the successors and assigns of the Corporation, whether such
succession is by purchase, merger or otherwise.

 

20

ARTICLE 8. ADMINISTRATION

	8.01	 	Administration

	 	(a)	 	The Plan shall be administered by the Administrative Committee. The
Administrative Committee shall have the exclusive responsibility and complete
discretionary authority to control the operation, management and administration of the
Plan, with all powers necessary to enable it properly to carry out such
responsibilities, including, but not limited to, the power to interpret the Plan and
any related documents, to establish procedures for making any elections called for
under the Plan, to make factual determinations regarding any and all matters arising
under the Plan, including, but not limited to, the right to determine eligibility for
benefits, the right to construe the terms of the Plan, the right to remedy possible
ambiguities, inequities, inconsistencies or omissions, and the right to resolve all
interpretive, equitable or other questions arising under the Plan.
	 
	 	(b)	 	The Administrative Committee may delegate all or part of its administrative
duties to one or more persons, whether or not such person or persons are members of the
Administrative Committee or employees of the Corporation. The Administrative Committee
(and, to the extent consistent with the scope of delegated administrative authority,
the person or persons delegated authority hereunder) may engage agents and
representatives, including recordkeepers and legal counsel, in connection with the
administration of the Plan. To the extent permitted by law, the Administrative
Committee and the person or persons delegated administrative authority under the Plan
shall be indemnified by the Corporation and held harmless against any claims and the
expenses of defending against such claims, resulting from any action or conduct
relating to the administration of the Plan, except claims arising from gross
negligence, willful neglect or willful misconduct.
	 
	 	(c)	 	It is the intent of the Corporation that the Plan complies with Code Section
409A, related regulations and other applicable guidance promulgated with respect
thereto and the provisions of the Plan shall be interpreted to be consistent therewith.

 

21

	 	 	 	Without limiting the foregoing, a Participant shall not be deemed to have experienced
a Retirement until the Participant has had a “separation from service,” as that term
is used in Code Section 409A(a)(2)(A)(i) and defined in related regulations or other
applicable guidance.

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