Document:

Document

Restated, with administrative changes only, on July 11, 2022

XYLEM
SPECIAL SENIOR EXECUTIVE SEVERANCE PAY PLAN

1.Purpose
The purpose of this Xylem Special Senior Executive Severance Pay Plan (“Plan”) is to assist in occupational transition by providing Severance Benefits for employees covered by this Plan whose employment is terminated under conditions set forth in this Plan.

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”), and the Plan was created to continue service accruals under the Predecessor Plan. The Plan will remain in effect as provided in Section 9 hereof, and covered employees will receive full credit for their service and participation with the Predecessor Corporation as provided in Section 5 hereof.

2.Covered Employees
Covered employees under this Plan (“Executives”) are active full-time, regular salaried employees of Xylem Inc., (“Xylem”) and of any subsidiary company (“Xylem Subsidiary”) (collectively or individually as the context requires “Company”; provided, however, that for purposes of service under the Predecessor Plan, Company will include the Predecessor Corporation) (including Executives who are short term disabled as of a Potential Change in Control within the meaning of the Company’s short term disability plans) (other than Executives on periodic severance as of a Potential Change in Control) who are in Band A or were in Band A at any time within the two year period immediately preceding a Change in Control and such other employees of the Company who will be designated as covered employees in Band A under the Plan by the Leadership Development and Compensation Committee of Xylem’s Board of Directors. Executives who are employed outside of the United States are eligible for country specific severance benefits (only) if the country specific severance benefits are higher than the severance benefits listed below. 

“Band A” will have the meaning given such terms under the executive classification system of the Xylem Human Resources Department as in effect immediately preceding a Change in Control. 

After the occurrence of a Change in Control, the terms “Xylem”, “Xylem Subsidiary” and “Company” as used herein will also include, respectively and as the context requires, any successor company to Xylem or any successor company to any Xylem Subsidiary and any affiliate of any such successor company.

3.Definitions
“Cause” means (i) the Executive’s willful and continued failure to substantially perform his or her duties with the Company (other than any such failure resulting from the Executive’s incapacity due to physical or mental illness) or (ii) the Executive willfully engaging in conduct that demonstrably and materially injures the Company or its Affiliates, monetarily or otherwise. “Willful” means the action is done or omitted in bad faith or without reasonable belief that the action or omission was in the best interests of the Company.

“Change in Control” means the occurrence of any of the following:
(i)a person or group (as defined in Sections 13(d) and 14(d) of the Exchange Act) (other than the Company or a subsidiary of the Company or any employee benefit plan sponsored by the Company or a subsidiary) becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Act) of 30% or more of the outstanding common stock of Xylem Inc. (the “Stock”); 
(ii)any person or group (other than the Company or a subsidiary of the Company, or any employee benefit plan sponsored by the Company or a subsidiary) purchases shares to acquire Stock (or securities convertible into Stock) through a tender offer or exchange offer where after consummation of the offer, the person in question will be the beneficial owner, directly or indirectly, of 30% or more of Stock;
(iii)the consummation of (A) any consolidation, business combination or merger involving the Company, except where holders of Stock immediately prior to the consolidation, business combination or merger (x) continue to hold 50% or more of the combined voting power of the Company (or the corporation resulting from the merger or consolidation or the parent of such corporation) after the merger and (y) have the same proportionate ownership of Stock of the Company (or the corporation resulting from the merger or consolidation or the parent of such corporation), relative to other holders of Stock immediately after the 
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transaction as immediately before, or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets of the Company;
(iv)there is a change in a majority of the members of the Board of Directors of the Company within a 12-month period unless the election or nomination by the Company’s stockholders of each new director during such 12-month period was approved by the vote of 2/3rds of the directors then still in office who (x) were directors at the beginning of the 12-month period or (y) whose nomination or election as directors was recommended or approved by a majority of the directors who were directors at the beginning of the 12-month period; or
(v)approval by the Company’s shareholders of a plan of complete liquidation or dissolution of the Company, other than a plan of liquidation or dissolution which results in the acquisition of all or substantially all of the assets by an Affiliate of the Company.

“Code” means the Internal Revenue Code of 1986, as amended.

“Good Reason” means, without the Participant’s express written consent (i) a reduction in annual target total cash compensation (base salary and target bonus), (ii) the assignment of any duties inconsistent in any material adverse respect with the Executive’s position, authority, duties or responsibilities, (iii) any other action by the Company or an Affiliate which results in a material diminution in such position, authority, duties or responsibilities; or (iv) the Company or an Affiliate requiring the Executive to relocate to a work location 50 miles or more from the location where the Executive was principally working immediately prior to the Change in Control. The Executive must give notice within 90 days of any Good Reason event. 

Good Reason excludes an isolated, insubstantial and inadvertent action not taken in bad faith that is resolved by the Company or an Affiliate within 30 days of receiving notice.

“Potential Change in Control” means any execution of an agreement, the commencement of a tender offer or any other transaction or event that if consummated would result in a Change in Control.

4.Severance Benefits Upon Termination of Employment

If an Executive’s employment with the Company is terminated due to a Qualifying Termination, he or she will receive the severance benefits set forth in Section 5 hereof (“Severance Benefits”). “Qualifying Termination” means a termination of an Executive’s employment with the Company either;
(i)by the Company without Cause (A) within the two (2) year period commencing on the date of the occurrence of a Change in Control or (B) prior to the occurrence of a Change in Control and either (1) following the public announcement of the transaction or event which ultimately results in such Change in Control or (2) at the request of a party to, or participant in, the transaction or event which ultimately results in a Change in Control; or
(ii)by an Executive for Good Reason within the two (2) year period commencing with the date of the occurrence of a Change in Control.

5.Severance Benefits 

Severance Benefits for Executives (i) in Band A at the time of a Qualifying Termination or at any time during the two (2) year period immediately preceding the Change in Control or (ii) designated as a covered employee in Band A in accordance with Section 2 hereof:
A.Accrued Rights – The Executive’s base salary through the date of termination of employment, any annual bonus earned but unpaid as of the date of termination for any previously completed fiscal year, reimbursement for any unreimbursed business expenses properly incurred by the Executive in accordance with Company policy prior to the date of the Executive’s termination of employment and such employee benefits, if any, as to which the Executive may be entitled under the employee benefit plans of the Company, including without limitation, the payment of any accrued or unused vacation under the Company’s vacation policy.
B.Severance Pay – The sum of:
(i)three (3) times (for hire or promotion date prior to May 1, 2012) or two (2) times (for hire or promotion date on or after May 1, 2012) the current annual base salary rate paid or in effect 
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(whether or not deferred) with respect to the Executive at the time of the Executive’s termination of employment, and
(ii)three (3) times (for hire or promotion date prior to May 1, 2012) or two (2) times (for hire or promotion date on or after May 1, 2012) the most recent annual bonus paid to or earned (target annual bonus for new hire without a full performance year) by the Executive (whether or not deferred) in respect of the Company’s most recent completed fiscal year prior to the date of the Executive’s termination of employment.
C.Benefits
(i)Continued health and life insurance benefits for a three (3) year period (for hire or promotion date prior to May 1, 2012) or two (2) year period (for hire or promotion date on or after May 1, 2012) following the Executive’s termination of employment at the same cost to the Executive, and at the same coverage levels, as provided to the Executive (and the Executive’s eligible dependents) immediately prior to his or her termination of employment. In the event the Company changes health and/or life insurance programs, coverage levels, benefit providers and/or modifies benefit contributions, the Executive would be treated consistent with other Band A executives. In the event continuation of health and/or life insurance is not permissible, the Company may provide alternative benefits or payments as described under the subheading “General” below.
(ii)Payment of a lump sum amount (“Savings Plan Lump Sum Amount”) equal to three (3) times (for hire or promotion date prior to May 1, 2012) or two (2) times (for hire or promotion date on or after May 1, 2012) the following amount: the product of (x) the current annual base salary rate and annual bonus as determined above as “Severance Pay” and (y) the current aggregate percentage used to determine company contributions which the Executive would have been eligible for under the Xylem Retirement Savings Plan and Xylem Supplemental Retirement Savings Plan (or corresponding savings plan arrangements outside of the United States or any successor plans thereto) in respect of the plan year during which the Executive’s termination of employment occurs. 
D.Outplacement – Outplacement services for one year.

General

If, for any reason at any time the Company is unable to treat the Executive as being eligible for ongoing participation in any Company employee benefit plans in existence immediately prior to the termination of employment of the Executive, and if, as a result, the Executive does not receive a benefit or receives a reduced benefit, the Company will provide such benefits by making available equivalent benefits from other sources or making cash payments providing equivalent value (as reasonably determined in good faith by the Company) in a manner consistent with Section 15 below.

Notwithstanding any other provision of the Plan to the contrary, all prior service and participation by an Executive with the Predecessor Corporation will be credited in full towards an Executive’s service and participation with the Company.
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6.Form of Payment of Severance Pay and Lump Sum Payments
Severance Pay and the Savings Plan Lump Sum Amount will be paid in cash within thirty (30) calendar days after the date the employment of the Executive terminates. The timing of payments will be subject to Section 15, in all respects.

7.Termination of Employment — Other
The Severance Benefits will only be payable upon an Executive’s termination of employment due to a Qualifying Termination; provided, that if, following the occurrence of a Change in Control, an Executive is terminated due to the Executive’s death or disability (as defined in the long-term disability plan that the Executive is entitled to participate (whether or not the Executive voluntarily participates in such plan)) and, at the time of such termination, the Executive had grounds to resign with Good Reason, such termination of employment will be deemed to be a Qualifying Termination.

8.Administration of Plan
This Plan will be administered by the Company’s Human Resources Department, who will have the exclusive right to interpret this Plan, adopt any rules and regulations for carrying out this Plan as may be appropriate and decide any and all matters arising under this Plan, including but not limited to the right to determine appeals. Subject to applicable Federal and state law, all interpretations and decisions by the Company will be final, conclusive and binding on all parties affected thereby.
Notwithstanding the preceding paragraph, following a Change in Control, any controversy or claim arising out of or relating to this Plan, or the breach thereof, will be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules and the entire cost thereof will be borne by the Company. The location of the arbitration proceedings will be reasonably acceptable to the Executive. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The Company will pay all legal fees, costs of litigation, prejudgment interest, and other expenses which are incurred in good faith by the Executive as a result of the Company’s refusal to provide any of the Severance Benefits to which the Executive becomes entitled under this Plan, or as a result of the Company’s (or any third party’s) contesting the validity, enforceability, or interpretation of this Plan, or as a result of any conflict between the Executive and the Company pertaining to this Plan. The Company will pay such fees and expenses from the general assets of the Company.

9.Termination or Amendment
Xylem may terminate or amend this Plan (“Plan Change”) at any time except that following the occurrence of (i) Change in Control or (ii) a Potential Change in Control, no Plan Change that would adversely affect any Executive may be made without the prior written consent of such Executive affected thereby; provided, however, that (ii) above will cease to apply if such Potential Change in Control does not result in the occurrence of a Change in Control.

10.Offset
Any Severance Benefits provided to an Executive under this Plan will be offset in a manner consistent with Section 15 by reducing (x) any Severance Pay hereunder by any severance pay, salary continuation pay, termination pay or similar pay or allowance and (y) any other Severance Benefits hereunder by corresponding employee benefits, or outplacement services, which the Executive receives or is entitled to receive, (i) under the Xylem Senior Executive Severance Pay Plan; (ii) pursuant to any other Company policy, practice, program or arrangement; (iii) pursuant to any Company employment agreement or other agreement with the Company; or (iv) by virtue of any law, custom or practice excluding, however, any unemployment compensation in the United States, unless the Executive voluntarily expressly waives (which the Executive will have the exclusive right to do) in writing any such respective entitlement.
11.Excise Tax
If it is determined that any Payment would constitute an “excess parachute payment” within the meaning of Section 280G of the Code, the aggregate of all Payments will be reduced so that the Present Value of the aggregate of all Payments does not exceed the Safe Harbor Amount; provided, however, that no such reduction will be effected if the Net After-tax Benefit to the Executive of receiving all of the Payments exceeds the Net After-tax Benefit to the Executive resulting from having such Payments so reduced. In the event a reduction is required pursuant hereto, the order of reduction will be first all cash payments on a pro rata basis, then any equity compensation on a pro rata basis, and lastly medical and dental coverage. 

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For purposes of this Section 11, the following terms have the following meanings: 
(i)“Net After-tax Benefit” will mean the Present Value of a Payment net of all federal state and local income, employment and excise taxes imposed on Executive with respect thereto, determined by applying the highest marginal rate(s) applicable to an individual for the Executive’s taxable year that the Qualifying Termination occurs. 
(ii)“Payment” means any payment or distribution or provision of benefits by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise, but determined without regard to any reductions required by this Section 11. 
(iii)“Present Value” will mean such value determined in accordance with Section 280G(d)(4) of the Code. 
(iv)“Safe Harbor Amount” will be an amount expressed in Present Value which maximizes the aggregate Present Value of Payments without causing any Payment to be subject to excise tax under Section 4999 of the Code or the deduction limitation of Section 280G of the Code. 
All determinations required to be made under this Section 11, including whether and when a reduction is required and the amount of such reduction and the assumptions to be utilized in arriving at such determination, will be made by a nationally recognized accounting firm mutually agreed to by the Executive and the Company (the “Accounting Firm”) which will provide detailed supporting calculations both to the Company and the Executive within ten (10) business days of the receipt of notice from the Executive that there has been a Payment, or such earlier time as is requested by the Company; provided that for purposes of determining the amount of any reduction, the Executive will be deemed to pay federal income tax at the highest marginal rates applicable to individuals in the calendar year that any such Qualifying Termination occurs.

All fees and expenses of the Accounting Firm will be borne solely by the Company. If the Accounting Firm determines that no excise tax is payable by the Executive, it will so indicate to the Executive in writing. Any determination by the Accounting Firm will be binding upon the Company and the Executive. 

12.Miscellaneous
The Executive will not be entitled to any notice of termination or pay in lieu thereof.
Severance Benefits under this Plan are paid entirely by the Company from its general assets.
This Plan is not a contract of employment, does not guarantee the Executive employment for any specified period and does not limit the right of the Company to terminate the employment of the Executive at any time.
If an Executive should die while any amount is still payable to the Executive hereunder had the Executive continued to live, all such amounts will be paid in accordance with this Plan to the Executive’s designated heirs or, in the absence of such designation, to the Executive’s estate.
The numbered section headings contained in this Plan are included solely for convenience of reference and will not in any way affect the meaning of any provision of this Plan.
If, for any reason, any one or more of the provisions or part of a provision contained in this Plan will be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision or part of a provision of this Plan not held so invalid, illegal or unenforceable, and each other provision or part of a provision will to the full extent consistent with law remain in full force and effect.
The Plan will be governed by and construed in accordance with the laws of the State of New York without regard to the conflicts of law provisions thereof.
The Plan will be binding on all successors and assigns of the Xylem Inc. and an Executive. 

13.Notices
Any notice and all other communication provided for in this Plan will be in writing and will be deemed to have been duly given when delivered via email, by hand, or overnight courier or three (3) days after it has been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address will be effective only upon receipt.
						
	If to the Company:
	If to Executive:

	Xylem Office of General Counsel at 
 General.Counsel@xylem.com
	To the most recent address of Executive set forth in the personnel records of the Company.

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14.Adoption and Amendments
This Plan was initially adopted by Xylem Inc. on October 31, 2011 (the “Adoption Date”) and subsequently amended on each of March 26, 2012, October 14, 2014, February 24, 2016, and July 11, 2022 (administrative updates only).

15.Section 409A
This Plan is intended to comply with Section 409A of the Code and will be interpreted in a manner intended to comply with Section 409A of the Code. Notwithstanding anything herein to the contrary, (i) if at the time of the Executive’s termination of employment with the Company the Executive is a “specified employee” as defined in Section 409A of the Code (and any related regulations or other pronouncements thereunder) and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Executive) until the date that is the earlier of (a) the 1st day of the 7th month following the Executive’s termination of employment with the Company and (b) the Executive’s death, at which point all payments deferred pursuant to this Section 15 will be paid to the Executive in a lump sum and (ii) if any other payments of money or other benefits due hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits will be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits will be restructured, to the extent possible, in a manner, determined by the Company, that does not cause such an accelerated or additional tax. To the extent any reimbursements or in-kind benefits due under this Plan constitute “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits will be paid in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Each payment made under this Plan will be designated as a “separate payment” within the meaning of Section 409A of the Code. The Company will consult with Executives in good faith regarding the implementation of the provisions of this Section; provided that neither the Company nor any of its employees or representatives will have any liability to Executives with respect to this Section.
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Xylem Inc.
1 International Drive 
Rye Brook, NY 10573

Personal and Confidential

Date:    May 4, 2022
To:    Colin Sabol
From:    Claudia Toussaint and Shan Jarvis
Subject:    Separation Memorandum

The purpose of this Separation Memorandum (the "Memorandum") is to confirm our mutual understanding regarding your severance arrangements and separation from employment from Xylem Inc. ("Xylem" or the "Company") as set forth in this Memorandum and the accompanying Separation Agreement and General Release (the "Release"), and in accordance with the terms of the Xylem Inc. Senior Executive Severance Pay Plan (the "Severance Plan"). The Severance Plan accompanies these documents and is incorporated herein. We suggest that you review the Severance Plan carefully, along with the Memorandum and the Release, and have them reviewed by your attorney, particularly since these documents specify eligibility requirements for the receipt of severance pay, and other important provisions. Upon the execution of the Release and expiration of the review and revocation period set forth therein, Xylem agrees to make the payments and provide the benefits to you as set forth herein.
Expiration of Service and Severance Arrangements
Termination Date – Your last day of employment will be November 1, 2022 or an earlier date as mutually agreed in writing by you and the Company (“Termination Date”). Effective May 4, 2022, you will step down from the SVP & President, M&CS role and continue to report to and support the CEO as Strategic Advisor to the Chief Executive Officer until Termination Date.
Severance Pay – You will be eligible for Severance Pay of 24 months’ salary continuation (“Severance Payments”). Xylem will make these Severance Payments on the Company's regular payroll schedule (currently bi-weekly) for the period from the Termination Date through 24 months thereafter ("Severance Period"). Provided you do not become eligible for disability payments on or prior to your Termination Date, you will continue to receive the Severance Payments at the rate of your current annual base salary of $522,180 through the "Severance End Date", which is the earlier of (i) 24 months from the Termination Date or (ii) the date your Severance Payments end in accordance with the "Right to Terminate Benefits" section of the Severance Plan. In the event that you become disabled on or prior to your Termination Date, your entitlement to any short-term disability and/or long-term disability benefits shall be determined in accordance with the applicable short-term or long-term disability plans, and the treatment of any such benefits in coordination with the Severance Payments will be in accordance with the terms of such disability plans.
You will not be entitled to receive any other pay or any other compensation from Xylem except as described in this Memorandum.

			
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Annual Incentive (Bonus)
You will receive a pro-rated bonus payout based on the Annual Incentive Plan’s actual performance for fiscal year 2022 and your Termination Date. The Actual performance will be based 100% on the Company’s financial performance. Payment will be provided to you in early March 2023.

Long Term Incentive Awards
Details regarding your long-term incentive grants are provided in Exhibit A of the attached Separation Agreement and General Release. You will receive the net vested shares after settlement of shares in respect of your tax liability.

			
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You will continue to have access to your equity grants and holdings through Xylem's plan administrator, Morgan Stanley. Their contact information is www.stockplanconnect.com or 1-800-477-7522, ext. 8850. Kim Rehm can also assist with any questions. Kim can be reached at kimberly.rehm@xylem.com or 1-914- 323-5742.
Paid Time Off (“PTO”)
You will not accrue PTO during the Severance Period. In your final regular paycheck, you will be paid a lump sum for any unused but accrued PTO for 2022 as of your Termination Date. The PTO payout will not be impacted by any changes in the Company PTO policy that may occur after the effective date of this Memorandum and Agreement.
Outplacement Services
The Company will arrange for you to receive Outplacement Services through the offices of Lee Hecht Harrison (“LHH”) for a period of 12 months, as per the terms of Xylem’s current agreement. We encourage you to engage these services as soon as possible in an effort to expedite your securing an alternate position. Services must be initiated no later than 90 days after your Termination Date.
Workday
You will continue to have access to the Workday Employee Self-Service Portal for 3 years after your Termination Date. You can access the portal at https://wd5.myworkday.com/wday/authgwy/xylem/login.htmld. We encourage you to update your address, as necessary, so that important documents, including year-end W-2 forms, are sent to the correct address in the future.
Benefit Plans
Benefit Plan Eligibility – Your eligibility for certain employee benefit plans outlined in subsequent paragraphs of this Memorandum is subject to the actual terms of the applicable plan documents. You will not be entitled to any benefits or perquisites beyond those specifically described in this Memorandum. In the event of revisions to any or all of the subject benefit plans, your benefits will not be diminished except in accordance with the changes that are generally applicable to all similarly-situated benefit plan participants.
Xylem Retirement Savings Plan (“RSP”) – Your contributions and Company matching and core contributions to the RSP will cease as of your Termination Date. Please contact Fidelity at 1-800-835-5095 or online at www.netbenefits.com to review your distribution options.
Xylem Supplemental Retirement Savings Plan (“SRSP”) – Company contributions will cease as of your Termination Date. The balance will be automatically disbursed on the first business day of the month following six (6) months from your Termination Date and will be paid to you on the next regular payroll date, subject to applicable tax withholding. The balance is not rollover-eligible. The disbursement will be included as ordinary income on your Form W-2 from Xylem.
Medical, Dental and Vision Plans – You are eligible to continue coverage under the same terms as an active employee through the last day of the month in which your Severance End Date occurs, as long as all terms and conditions of the Agreement and Release have been met. Premium contributions will be deducted from your Severance Payments.
After the Severance End Date, you may elect to continue coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). Within 45 days of the coverage termination date, you will receive COBRA Election paperwork directly from PayFlex, our COBRA administrator. If you wish to continue your coverage, please complete the COBRA Enrollment Form and return it to PayFlex within the timeframe indicated in the letter you will receive.
To continue coverage under COBRA, you will be required to make monthly payments to our COBRA Administrator. Should you want to contact PayFlex regarding COBRA, the number is 844-PAYFLEX.
Group Life Insurance Conversion – Your Company-paid Group Life Insurance coverage terminates on your

			
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Severance End Date. However, you may elect to convert this life insurance coverage to an individual policy issued by The Hartford. If you are interested in converting your policy, please contact Shan Jarvis on/about 45 days prior to the Severance End Date so that her team can provide you the conversion details. Conversions must be completed within 31 days of your Severance End Date.
Health Savings Account (“HSA") – If enrolled, your HSA account belongs to you and will remain active for as long as you prefer. You will continue to have access to your account at www.mybenefitwallet.com. There will be a nominal monthly administrative fee after your Termination Date. For assistance with your account, please contact Benefit Wallet directly at 1-877-472-4200.
Disability Insurance – Your coverage for both Short-Term and Long-Term Disability ends on your Termination Date. You may convert your coverage under the Long-Term Disability Plan to an individual policy issued by The Hartford if you have been participating in this plan for at least the prior 12 consecutive months. If you are interested in learning more, please complete the attached conversion form and submit it to The Hartford as directed on the form. You may also contact The Hartford directly at 1-877-320-0484 to learn more. Conversions must be completed within 31 days of your Termination Date.
There is no conversion available under the Short-Term Disability Plan.
Business Travel Accident Insurance Plan – Coverage terminates on your Termination Date.
Employee Assistance Program (“EAP”) – Your coverage in the EAP ends 30 days after your Termination Date.
Payroll Deductions
To the extent applicable, payroll deductions currently authorized by you, as well as appropriate tax withholding, will continue until your Severance End Date. If you wish to change your deductions after your Termination Date but before the Severance End Date, please make this change through Workday.
Miscellaneous
Conference Attendance – Your attendance at the Reach conference, October 9 - 12 will be at the CEO’s request.
Company Equipment – Please plan on returning all Company-provided equipment such as credit cards, access badges and office keys, computer, smartphone, tablet and any other Company equipment by your Termination Date. If you are unable to return the equipment in person, instructions will be provided to you on how to send them back via UPS.
Final Expenses – If you have an outstanding Company-issued credit card and/or cash expenses due to you for reimbursement, please be sure to clear these items through your Concur expense account by your Termination Date.
The parties hereby indicate their agreement with the terms and conditions of this Memorandum and the attached Agreement and Release by signing and dating this Memorandum in the space provided below.

EMPLOYEE: Colin Sabol

 /s/ Colin R. Sabol                                             May 5, 2022               
Employee Signature                                                     Date

EMPLOYER: Xylem Inc.

 /s/ Shan Jarvis    
Shan Jarvis, Vice President, Global Compensation & Benefits, Xylem Inc.

			
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Xylem Inc.
1 International Drive 
Rye Brook, NY10573

Personal and Confidential
Date:    May 4, 2022
To:    Colin Sabol
From:    Shan Jarvis
Subject:    Separation Documents

Enclosed please find the Separation Memorandum ("Memorandum") and Separation Agreement and General Release ("the Release"). These documents set out the terms and benefits we are offering you relative to the termination of your employment from Xylem Inc., and the conditions under which you will be eligible to receive severance benefits from Xylem Inc.
These are confidential legal documents, which we encourage you to read very carefully. You are also encouraged to have them reviewed by an attorney of your choice. You have 21 calendar days during which to consider the Release, although you may sign and return it sooner if you choose to do so. Additionally, you also have 7 calendar days to revoke the Release after signing it. Should you decide to accept the benefits described in the Memorandum, please sign both copies, and return them to me no later than May 5, 2022. We will then forward a signed copy back to you for your records.
While your acceptance of the terms of the Memorandum and Release is voluntary, to receive these benefits you must return the signed Release on or before the date indicated in that document.
Please call me should you have any questions related to this matter. Lastly, please sign one copy of this letter below, signifying your receipt of this information.

Sincerely,

Shan Jarvis
Shan Jarvis
Vice President, Global Compensation & Benefits

Enclosures

EMPLOYEE: Colin Sabol

 /s/ Colin R. Sabol                                             May 5, 2022               
Employee Signature                                                                     Date

			
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Separation Agreement and General Release
This Separation Agreement and General Release ("Release") is made and entered into by and between Xylem Inc. ("Xylem" or the "Company") and Employee (referred to herein in the first person). Capitalized terms herein are defined as specified in this Release or the Separation Memorandum (“Memorandum”) entered into between Xylem and me (the “Memorandum”) to which this Release is attached and incorporated by reference. In consideration of the mutual promises contained herein, it is agreed as follows:
1.I will be employed with Xylem through the Termination Date set forth in the Memorandum.
2.I agree to the following:
a)I am not eligible and will not receive any compensation, fringe benefits, employee benefits, any pay in lieu of notice, or any severance or termination pay except as provided in the Memorandum. I agree and acknowledge that the payments and benefits set forth in the Memorandum constitute good and sufficient consideration for all of my promises, obligations, and covenants set forth in the Memorandum and in this Release.
b)On behalf of myself and my heirs, executors, administrators, personal and legal representatives, successors and assigns, I waive, release and forever discharge Xylem, its current and former subsidiaries, affiliates, divisions and related entities and their predecessors, successors and assigns, and all of their past and present officers, directors, shareholders, agents, representatives, administrators, employees, insurers, attorneys, and benefit plans (collectively "Releasees") from any and all claims, demands, debts, liabilities, obligations, expenses (including attorney's fees and costs), promises, covenants, controversies, grievances, claims, suits, actions or causes of action, in law or in equity, known or unknown to me, foreseen or unforeseen, contingent or not contingent, liquidated or not liquidated, which I may have had in the past, may have now, or may in the future claim to have against Releasees, arising with respect to any incident, event, act or omission occurring at any time prior to my signing of this Release. This Release shall not operate as a release or waiver of claims or rights that may arise after the date of its execution, for vested benefits or other applicable benefit plan entitlements, for indemnification pursuant to Company policy or applicable law, for coverage under any directors' and officers' liability or any fiduciary liability insurance policies in accordance with the terms of such policy, or any rights I may have as a shareholder in a public company (collectively, the "Reserved Rights") and this Release shall not affect my right to seek enforcement of the terms and conditions of the Memorandum, this Release or the Reserved Rights.
c)This Release specifically includes, but is not limited to, any and all claims and causes of action arising under tort or contract law, other common law claims, including without limitation wrongful discharge claims, and claims under specific statutes prohibiting discrimination based on sex, color, race, national origin, religion, disability, veteran status, age, gender identity, sexual orientation, marital status, genetic information, citizenship status or other protected characteristics including without limitation, the Americans With Disabilities Act, the Age Discrimination in Employment Act of 1967, Title VII of the Civil Rights Act of 1964, the Civil Rights Acts of 1866 and 1871, the Equal Pay Act, Fair Labor Standards Act of 1938, the Worker Adjustment and Retraining Notification Act of 1988, the Employee Retirement Income Security Act of 1974, the Family Medical Leave Act of 1993; (all as amended); or any other federal, state, city, or local laws. This Release specifically includes but is not limited to all claims and causes of action under these laws and any contractual or tort claims arising under common law, including but not limited to wrongful discharge.
d)In consideration of the benefits provided to me under the Memorandum and this Release, I agree to waive, and will not assert any of the claims or causes of action I have waived in this Release, before any federal or state court, any federal or state agency, or in any public or private arbitration. This prohibition does not apply if it would be a violation of applicable law or regulation. If this prohibition does not apply, however, and a charge or lawsuit is filed by or on behalf of me, I agree not to seek or accept any personal relief, award, monetary damages or other benefits in connection with or based on such charge or lawsuit. This paragraph is not intended to limit my right to commence and maintain legal action for the sole purpose of enforcing the Memorandum, this Release or the Reserved Rights.
e)I also agree to waive, release and forever discharge the Releasees from any and all claims, causes of action and/or lawsuits that may arise from any incident, event, act or omission occurring prior to my Termination

			
	PRIVILEGED

Date or during my Severance Period, as those terms are defined in the Memorandum, except for the purpose of enforcing the Memorandum, this Release or the Reserved Rights.
3.Long-Term Incentives: Outstanding long-term incentive equity-based awards from the Company are set forth in Exhibit A attached hereto. Upon and following the Termination Date, each such award will be treated in accordance with the terms of applicable grant agreements (including, without limitation, any such applicable terms requiring execution of this Release) with respect to termination of my employment.
4.Except as may be required under applicable law or the rules of a stock exchange or national securities quotation system, I agree to keep the Memorandum and this Release confidential and not disclose their contents to anyone except my immediate family, my financial or legal consultants, and appropriate governmental agencies that may subpoena this information. If I receive a subpoena that calls for the production of this Release, the Memorandum or related documents, I will advise Xylem in writing before I respond to any subpoena, and give Xylem an opportunity to move to quash any such subpoena.
5.I agree not to disparage, slander, defame or otherwise intentionally injure the reputation of Xylem or its Subsidiaries (as defined in 6 b) below) (collectively, the “Xylem Entities”), their officers, directors, employees, agents, representatives, products or services. I agree that any restricted covenants that I agreed to with respect to my employment with Xylem Entities, including but not limited to obligations with respect to confidentiality, will remain in effect following my Termination Date. I agree to keep confidential and not disclose, without Xylem’s prior written consent, any proprietary information concerning matters relating to the business or strategy of the Xylem Entities, including trade secrets and other intellectual property, products, services, methods of manufacture, pricing or business models. I agree that for 24 months following my Termination Date, I will not, directly or indirectly, or by action in concert with others: (i) solicit or induce or attempt to solicit or induce, any person who is employed as an employee by Xylem Entities, to leave his or her employment with Xylem Entities and/or to perform services of any kind for any other person, firm or corporation, (ii) divert or take away, or call-on, solicit or attempt to call-on or solicit, any of the Xylem Entities’ current customers or clients, including those whom I called or who I solicited, or with whom I became acquainted while engaged as an employee of the Xylem Entities, and (iii) engage in, become affiliated with, or become employed by any business competitive with Xylem Entities. I agree that Xylem shall be entitled to enforce these covenants through an injunction or otherwise through specific performance (in addition to any other remedies) as money damages will not be sufficient.

6.Xylem agrees to the following:
f)Xylem waives, releases and forever discharges me and my heirs (collectively "Sabol Releasees") from any and all claims, demands, debts, liabilities, obligations, expenses (including attorney's fees and costs), promises, covenants, controversies, grievances, claims, suits, actions or causes of action, in law or in equity, known or unknown, foreseen or unforeseen, contingent or not contingent, liquidated or not liquidated, which they or any of them may have had in the past, may have now, or may in the future claim to have against any Sabol Releasees arising out of, in relation to or with respect to any incident, event, act or omission occurring at any time prior to the signing of this Release. The release in this paragraph 6(a) shall not operate as a release or waiver of claims or rights that may arise after the date of the execution of this Release or any rights under the agreements and plans described in paragraph 5 (collectively, the "Xylem Reserved Rights") and the release in this paragraph 6(a) shall not affect Xylem’s right to seek enforcement of the terms and conditions of the Memorandum, this Release and/or the Xylem Reserved Rights.
g)From and after the date of this Release, Xylem Inc. agrees, and agrees to cause each of its direct and indirect wholly or partially owned subsidiaries and other affiliates worldwide (collectively, “Subsidiaries”), to jointly and severally indemnify and hold harmless Employee in respect of his service as an officer and/or director of Xylem Inc. and any of its Subsidiaries to the same extent Employee is indemnified by Xylem Inc. or its Subsidiaries as of the date hereof pursuant to the governing documents of Xylem Inc. or its Subsidiaries or any agreement between Xylem Inc. or its Subsidiaries and Employee, for acts or omissions occurring at or prior to the date of this Release.
h)Xylem, including on behalf of its Subsidiaries, agrees not to slander, defame or otherwise intentionally injure my reputation.

			
	PRIVILEGED

7.I acknowledge: (i) I have been advised in writing to consult with an attorney of my own choice regarding this Release and the Memorandum and have had an opportunity to do so; (ii) I have been advised in writing I have at least 21 calendar days from my receipt of this Release and the Memorandum to review and consider them;
(iii) I fully understand those terms and conditions; (iv) I am voluntarily and of my own free will executing this Release and the Memorandum on the date reflected below and I was not subjected to any duress or undue influence in connection with my decision to execute them; and (v) during a period of 7 calendar days following my execution of this Release and the Memorandum, I may revoke such executions and this Release and the Memorandum shall not be effective or enforceable until such 7 calendar-day period has expired. Should I desire to revoke this Release and the Memorandum, my revocation must be made in writing and sent to the attention of Shan Jarvis, Vice President, Global Compensation & Benefits, via email to shan.jarvis@xylem.com within the 7 calendar-day revocation period.
8.This Release and the Memorandum, which is incorporated herein, contain the entire agreement between me, Xylem, and all Releasees relating to the subject matter thereof. I represent and acknowledge in signing this Release and the Memorandum, I have not relied upon any representation or statement, oral or written, not otherwise set forth herein. No amendment to this Release or the Memorandum shall be binding unless it is in writing, expressly designated as an amendment, dated, and signed by the parties.
9.Nothing in this Release or the Memorandum constitutes an admission of liability by Xylem or any Releasees or me, and this Release and/or the Memorandum will not be used by me, Xylem or any other entity or person as evidence in any administrative or legal proceeding or trial, except to enforce the terms of this Release, Memorandum and/or the Reserved Rights.
10.This Release and the Memorandum shall be construed in accordance with the laws of the State of Indiana. Should any provision of this Release or the Memorandum be determined invalid or unenforceable, the validity of the remaining provisions shall not be affected and shall remain in full force and effect to the maximum extent permitted by law. Any claim or dispute involving the Memorandum and/or Release shall be resolved in Indiana state courts or federal courts, both located in Marion County, Indiana. The parties mutually agree to waive a jury trial in any such proceeding.
11.The Memorandum and Release may be assigned to the successors and assigns of Xylem Inc.
12.In the event of my death during the Severance Period, the unpaid amount of Severance Pay remaining shall be paid in a discounted lump sum to such beneficiary or beneficiaries designated by me in writing, or if such designation has not been made, to my estate.
13.I have carefully read this Release and the Memorandum, fully understand their provisions, and my signature below indicates my understanding and agreement with their terms and conditions.
A scanned copy of the signed Release and Memorandum must be emailed to Shan Jarvis, Vice President, Global Compensation & Benefits at Shan.Jarvis@xylem.com.

EMPLOYEE: Colin Sabol
                    

 /s/ Colin R. Sabol                                             May 5, 2022               
Employee Signature                                                     Date

EMPLOYER: Xylem Inc.

 /s/ Shan Jarvis    
Shan Jarvis, Vice President, Global Compensation & Benefits Xylem Inc. 1 International Drive, Rye Brook, NY 10573

Exhibit A
Long-Term Incentive Awards
Termination Date: November 1, 2022 or earlier date as mutually agreed by you and the Company Age as of Termination: 55
Years of Service as of Termination Date: 16 Stock Options
Unvested stock options are forfeited and cancelled upon termination on the Termination Date. Vested stock options must be exercised by 3 years after the Termination Date.

																		
	Grant
Date
	Grant
Price
	Shares
Granted
	Exercised
	Available for
Exercise
	Cancelled
Shares

	2/21/2017
	$48.33
	17,606	10,000
	7,606	0

	2/21/2018
	$75.18
	14,552	0
	14,552	0

	2/20/2019
	$74.07
	16,120	0
	16,120	0

	2/27/2020
	$80.66
	18,715	0
	16,594	2,121

	3/1/2021
	$102.23
	12,931	0
	7,113	5,818

	3/1/2022
	$86.76
	15,106	0
	3,323	11,783

Restricted Stock Units (RSUs)
Unvested RSUs are forfeited and cancelled upon termination on the Termination Date.

															
	Grant
Date
	Type
	Units
Granted
	Vested
Units
	Cancelled
Units

	2/27/2020
	RSU
	3,719
	3,298
	421

	3/1/2021
	RSU
	2,935
	1,615
	1,320

	3/1/2022
	RSU
	3,458
	761
	2,697

Performance Share Units (PSUs)
Prorated portion of PSUs will vest and be paid out based on actual performance on the original vesting date.

																		
	Grant
Date
	Type	Units
Granted
	Prorata
Vesting
	Payout
Date
	Cancelled
Units

	2/27/2020
	PSU-TSR
	3,719
	3,512
	2/27/2023
	207

	2/27/2020
	PSU-ROIC
	3,719
	3,512
	2/27/2023
	207

	3/1/2021
	PSU-TSR
	2,935
	1,794
	3/1/2024
	1,141

	3/1/2021
	PSU-ROIC
	2,935
	1,794
	3/1/2024
	1,141

	3/1/2021
	PSU-ESG
	2,935
	1,076
	3/1/2026
	1,859

	3/1/2022
	PSU-TSR
	3,458
	961
	3/1/2025
	2,497

	3/1/2022
	PSU-REVG
	1,729
	480
	3/1/2025
	1,249

	3/1/2022
	PSU-ROIC
	1,729
	480
	3/1/2025
	1,249

The information above is a summary of the treatment of Employee's long-term incentive grants upon termination on the Termination Date. If there is a conflict between this summary and the applicable plan documents and grant agreements, the plan documents and grant agreements will govern.
As an insider of Xylem, you are subject to the Xylem's Trading Windows through your Termination Date. Xylem's trading window is anticipated to re-open on May 6th. After your Termination Date, you will no longer be subject to Xylem's Trading Windows. However, please note that per the Company’s Insider Trading policy (Policy 40-04) and Securities and Exchange Commission regulations you are not permitted to trade any securities at any time, including after your Termination Date, on the basis of material, non-public information.

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