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                                 EXHIBIT 10.23

                        SEPARATION AND RELEASE AGREEMENT

     This Separation and Release Agreement ("Agreement") is entered into by and
between Michael O. Fifer ("Employee"), of 14 Woodcrest Road, Manchester,
Massachusetts 01944 and Watts Industries, Inc., including its subsidiaries and
affiliates (hereinafter referred to individually and collectively as "the
Company"), with a principal office at 815 Chestnut Street, North Andover,
Massachusetts 01845. The purpose of this Agreement is to establish an amicable
arrangement for ending Employee's employment relationship with the Company as of
May 31, 2003.

     Employee acknowledges that he is entering into this Agreement voluntarily
and that the Company has advised him in writing to seek the advice of an
attorney prior to executing this Agreement. Employee further acknowledges that
he has carefully read and fully understands all aspects of this Agreement,
including that he is voluntarily giving up his right to bring any and all
possible legal claims against the Company, including but not limited to claims
relating to his employment or the termination thereof. By entering into this
Agreement, Employee acknowledges that the Company is not admitting in any way
that it violated any legal obligation that it owed to him or to any person.

     In exchange for the Company's payment of severance and other valuable
consideration as set forth in this Agreement, and Employee's execution of this
Agreement and agreement to terminate his employment with the Company effective
May 31, 2003 (hereinafter referred to as the "Termination Date") and the
Employee's agreement to release and waive any and all claims against the
Company, as set forth in Paragraphs 13 and 14 below, the Company and Employee
mutually agree as follows:

     (1)      The Company will consider Employee as an inactive employee of the
              Company for the period from November 25, 2002 to May 31, 2003
              ("Inactive Employee Period"). During the Inactive Employee Period,
              Employee will be paid his regular base salary, less the usual
              deductions for taxes and benefits. Such salary payments shall take
              place on the following dates in accordance with the Company's
              usual payroll cycle: December 16, 2002; and on or about the 16th
              day of January through May, 2003. As an inactive employee,
              Employee will not perform any duties for or on behalf of the
              Company unless expressly authorized by the Company in writing.
              During this period, Employee agrees that he will provide services
              to the Company on an as-needed basis.

     (2)      Commencing effective June 1, 2003, the Company agrees to pay
              severance payments to Employee consisting of continuation of
              Employee's base salary rate in effect on the Termination Date,
              less appropriate federal, state, FICA and other payroll
              deductions, for seven (7) months through December 31, 2003 ("the
              Severance Pay Period"). The severance payments will be made on a
              monthly basis on or about the 16th day of each month in the
              Severance Pay Period in accordance with the Company's normal
              payroll cycle.

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     (3)      Employee has already been paid his salary wages, less the usual
              deductions, up to and including November 29, 2002. Employee will
              not report to work after November 25, 2002. Employee will be
              considered to have resigned from active employment and as an
              officer of the Company and any of its subsidiaries and affiliates
              effective as of November 25, 2002.

     (4)      Medical and dental plan participation will continue under the
              Company's plans until May 31, 2003 at which point Employee's
              eligibility to participate in such plans cease unless Employee
              exercises extension rights under the COBRA law as will be
              explained under separate cover. Upon Employee's election of COBRA
              coverage, the Company agrees to pay Employee's medical and dental,
              if any, COBRA premium for the Severance Pay Period, subject to his
              continued eligibility for COBRA coverage.

     (5)      Employee's participation in the Company's other benefit plans
              shall cease in accordance with their terms on May 31, 2003. This
              includes, without limitation, the termination of Employee's
              participation in the following Company Plans in accordance with
              the terms of the respective plan provisions: Stock Option Plans;
              Management Stock Purchase Plan; Short-Term Disability Plan;
              Long-Term Disability Plan; Pension Plan; Supplemental Pension
              Plan; 401(k) Plan; and Life Insurance Plan.

     (6)      Employee will separately receive a payment equal to fourteen (14)
              days accrued vacation, less appropriate tax withholdings. As an
              inactive employee, no vacation will accrue to Employee for fiscal
              year 2004.

     (7)      In accordance with the provisions of the Executive Bonus Plan in
              which Employee participates, the Company will pay Employee his
              bonus earned for fiscal year 2002, less the usual tax deductions,
              in accordance with the established performance goals and
              guidelines, if and when such bonuses are awarded in the normal
              course of the Company's business. Mr. Fifer will not be eligible
              to participate in the Executive Bonus Plan for fiscal year 2003.

     (8)      The Company will provide the Employee with a senior executive
              outplacement program through Lee Hecht Harrison for a period of
              one (1) year.

     (9)      Mr. Fifer's outstanding loan under the Executive Stock Purchase
              Loan Plan ("Loan Plan") will be handled in accordance with the
              terms of the Loan Plan and the Promissory Note executed by
              Employee.

     (10)     Except for the Company cell phone, computer equipment, and
              automobile (all of which Employee agrees to return to the Company
              on or before December 31, 2002), Employee hereby represents that
              he has delivered, or will deliver, to the Company any Company
              property previously provided to him by the Company together with
              any and all documents, tapes, computer discs, software,

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              information, records, drawings, data or any other Company
              information and materials in any format which were in his
              possession or under his control.

     (11)     Employee also acknowledges and agrees that during the course of
              his employment with the Company he obtained or was otherwise
              provided with confidential and proprietary information from the
              Company in confidence for use in connection with his work for the
              Company. Employee agrees not to use such information or to
              disclose such information to others. "Confidential Information"
              shall include, but not be limited to, customer lists, brochures,
              drawings, techniques, processes, "know-how", reports, and other
              such information of any nature made available to Employee by
              virtue of Employee's association with the Company. This
              Confidential Information shall be held in strict confidence for as
              long as this Confidential Information is not known or available to
              the general public.

     (12)     The parties agree that Employee's employment with the Company will
              be terminated effective May 31, 2003. Employee understands that in
              exchange for his release of claims, and other consideration set
              forth in this Agreement, against the Company and others, he is
              eligible to receive the severance pay and other valuable
              consideration as set forth in this Agreement. Employee
              acknowledges that he is entitled to no other compensation or
              benefits, other than as expressly set forth in this Agreement, and
              he hereby waives all claims thereto.

     (13)     Except for certain vested pension benefits, if any, Employee, of
              his own free will, hereby voluntarily releases and forever
              discharges the Company, its subsidiaries and affiliates, and its
              and their predecessors, successors and assigns and its and their
              current and former directors, officers, shareholders, employees
              and agents, both individually and in their official capacities
              with those entities, of and from any and all actions or causes of
              action, suits, claims, demands, liabilities, charges, complaints,
              contracts, agreements and promises, whatsoever, in law or equity,
              which against any of them, Employee, his heirs, executors,
              administrators, successors, and assigns may now have or hereafter
              can, shall or may have for, upon or by reason of any matter, cause
              or action whatsoever, whether or not known to him, that has
              occurred up to the date of his execution of this Agreement,
              including without limitation those claims arising out of (a) his
              employment by the Company (except only such matter as to which
              Employee is entitled to coverage as an insured, pursuant to the
              terms of any insurance policy owned by the Company at the time
              that matter shall be deemed to have occurred), (b) the
              compensation, benefits, terms and conditions of his employment and
              (c) the decision that his employment shall cease, including but
              not limited to, any alleged violation of TITLE VII OF THE CIVIL
              RIGHTS ACT OF 1964, AS AMENDED, THE CIVIL RIGHTS ACT OF 1991,
              SECTIONS 1981 THROUGH 1988 OF TITLE 42 OF THE UNITED STATES CODE,
              AS AMENDED, THE NATIONAL LABOR RELATIONS ACT, THE AMERICANS WITH
              DISABILITIES ACT OF 1990, THE FAMILY MEDICAL LEAVE ACT (29 U.S.C.
              SEC. 2601, ET SEQ.), THE OCCUPATIONAL SAFETY

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              AND HEALTH ACT, THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
              1974, AS AMENDED, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF
              1967, AS AMENDED, THE OLDER WORKERS BENEFIT PROTECTION ACT, 29
              U.S.C. SECTION 626(f) (1997) and any other federal, state or local
              laws, regulations or ordinances, and/or public policy, contract or
              tort law, having any bearing whatsoever on the terms and
              conditions and/or cessation of his employment with the Company, or
              any of its subsidiaries and affiliates and any predecessors or
              successors thereof, he ever had or has as of the date of his
              execution of this Agreement.

     (14)     Employee waives the right to file any charge or complaint on his
              own behalf and/or to participate in any charge or complaint which
              may be made by any other person or organization on his behalf
              before any federal, state, or local court or administrative agency
              against the Company, or any of its subsidiaries and affiliates and
              its predecessors, successors, assigns, current and former
              directors, officers, shareholders, employees or agents, except as
              such waiver is prohibited by law. Should any such charge or
              complaint be filed, Employee agrees that he will not accept any
              relief or recovery therefrom. Employee confirms that no charge,
              complaint, or action exists in any forum or form.

     (15)     Employee acknowledges that he has been given the opportunity to
              consider this Agreement for twenty-one (21) days before signing
              it. In the event that Employee signs this Agreement within less
              than twenty-one (21) days of his receiving it, he acknowledges
              that he did so voluntarily and with knowledge of the opportunity
              to consider this Agreement for the entire twenty-one (21) day
              period. Employee also acknowledges that for a period of seven (7)
              days following the date he signs this Agreement he may revoke its
              terms by written notice sent to RONALD W. GORSKI, CORPORATE
              ATTORNEY AT 815 CHESTNUT STREET, NORTH ANDOVER, MA 01845 and
              postmarked within seven (7) days of execution. This Agreement
              shall not become effective or enforceable until the seven (7) day
              period following his execution hereof has expired, unless the
              seventh (7th) day is a Saturday, Sunday or legal holiday in
              Massachusetts, in which event the revocation period shall not
              expire until the next following day which is not a Saturday,
              Sunday or legal holiday. No payments will be made under this
              Agreement until the seven-day period has expired following
              Employee's execution of this Agreement.

     (16)     Employee agrees to not make any disparaging statements concerning
              the Company or any of its subsidiaries or affiliates or current or
              former officers, directors, employees or agents. Employee further
              agrees not to take any actions or conduct himself in any way that
              could reasonably be expected to adversely affect the reputation or
              goodwill of the Company or any of its current or former officers,
              directors, employees or agents. Employer agrees to direct all
              employees whom it informs the terms of this Agreement (other than
              as a result of a financial disclosure) not to make any disparaging
              statements concerning the Employee.

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     (17)     Employee agrees that he will not solicit any of Employer's
              employees for a competing business or otherwise induce or attempt
              to induce such employees to terminate their employment with
              Employer for the period of time through December 31, 2003.

     (18)     This Agreement shall be construed to be a contract to be governed
              by the laws of the Commonwealth of Massachusetts, excluding its
              conflicts of laws principles. The parties agree that this
              Agreement represents the entire agreement of the parties and
              supersedes (except as set forth in Paragraph 6) all prior
              communications, agreements or understandings, either oral or
              written, if any, regarding the terms of his termination.

     (19)     The parties have read and fully considered each and every
              paragraph of the foregoing Agreement and are mutually desirous of
              entering into such Agreement, provided Employee shall have
              executed, notarized and returned three (3) originals of this
              Agreement to the attention of Ronald W. Gorski, Corporate Attorney
              at the address set forth in paragraph 15 NO LATER THAN MONDAY,
              DECEMBER 30, 2002. No severance payments shall be made or other
              valuable consideration extended under this Agreement unless and
              until the Employee executes the Agreement and returns it to the
              Company as provided in the immediately preceding sentence.

     (20)     Employee agrees to keep the existence and terms of this Agreement
              and the negotiations leading to this Agreement in the strictest
              confidence at all times and not reveal the existence or terms of
              this Agreement or such negotiations to any persons except his
              immediate family members, his attorney, and his financial
              advisors, and to them only provided that they also agree to keep
              such information completely confidential. Notwithstanding the
              foregoing, Employee may make disclosure to the extent required by
              law or to the extent reasonably necessary to enforce his rights
              under this Agreement, PROVIDED, HOWEVER, that he gives as much
              advance notice as reasonably possible to the Company concerning
              any such anticipated disclosure. Employee further represents that
              at all times before signing this Agreement, he has kept the
              negotiations leading to this Agreement completely confidential
              except for permitted disclosures as set forth in the first
              sentence of this Paragraph.

     (21)     If any term, covenant, condition or provision of this Agreement is
              held by a court of competent jurisdiction to be invalid, void, or
              unenforceable, the remaining terms, covenants and conditions shall
              remain in full force and effect.

EMPLOYEE HAS BEEN ADVISED THAT HE HAS AT LEAST TWENTY-ONE (21) DAYS TO CONSIDER
THIS AGREEMENT AND HAS BEEN ADVISED IN WRITING TO CONSULT WITH AN ATTORNEY PRIOR
TO EXECUTION OF THIS AGREEMENT. EMPLOYEE FURTHER UNDERSTANDS THAT HE MAY REVOKE
THIS AGREEMENT

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FOR A PERIOD OF SEVEN (7) DAYS FOLLOWING THE DAY HE EXECUTES THE AGREEMENT AND
SAID AGREEMENT SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION
PERIOD HAS EXPIRED. EMPLOYEE UNDERSTANDS THAT THIS AGREEMENT WILL BE A BINDING
LEGAL DOCUMENT AND THAT HIS SIGNATURE WILL COMMIT HIM TO ITS TERMS. HAVING
ELECTED TO EXECUTE THIS AGREEMENT, TO FULFILL THE PROMISES SET FORTH HEREIN, AND
TO RECEIVE THEREBY THE SUMS AS SET FORTH IN PARAGRAPH 1 AND 2 ABOVE AND OTHER
SUMS AND BENEFITS TO WHICH HE WOULD NOT OTHERWISE BE ENTITLED, EMPLOYEE FREELY
AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING
TO WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST THE COMPANY
AND RELATED PERSONS AND ENTITIES.

     NOW THEREFORE, the parties to this Agreement hereby set their hands and
seals on this 30 day of DECEMBER, 2002.

                              /s/ Michael O. Fifer
                              -------------------------
                                  Michael O. Fifer

Sworn to before me this 30th day of DECEMBER, 2002

        /s/ Kathy Bradley
        -----------------------------
        Notary Public
        My Commission Expires: 9-7-02

                              WATTS INDUSTRIES, INC.

                              By: /s/ William C. McCartney
                                  ------------------------

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Exhibit 10.20    
  

 
  FORM OF EMPLOYMENT AGREEMENT OF THOMAS COLRAINE    
  

        The information contained in this document constitutes the principal statement of the terms and conditions of your employment in accordance with the requirements
of the Trade Union Reform & Employment Rights Act 1993. 

        This
Agreement is made on 7 January 1997 and is between 

	

Name	
 	

Thomas Colraine
	

and	
 	

 
	

Company	
 	

WILLIS FABER & DUMAS LIMITED

        The
main terms and conditions of your employment are set out below. For further details of these and other matters, including the Code of Conduct, please refer to the Staff Handbook. 

        For
the purposes of this contract, the term "Group" means "Willis Corroon Group plc and its subsidiaries". 

	

Date this Employment Begins	
 	

3 May 1988
	

Date Continuous Employment Begins	
 	

3 May 1988
	

 	
 	

Employment prior to this date with any previous employer does not count as part of your employment with the Company. This date is not necessarily the date used to determine your entitlement to certain benefits.
	

Current Job Title	
 	

Director—Change Management Programme
	

 	
 	

You may be transferred to any other job in the Group which in the reasonable opinion of the Company would be suitable, on terms and conditions no less favourable than those set out in this document.
	

Location	
 	

Ten Trinity Square, London
	

 	
 	

You may be transferred to any other office in the Group. Your agreement to such a transfer will be sought unless in the reasonable opinion of the Company the transfer does not necessitate you having to move home address.
	

Salary	
 	

£                    per annum (subject to annual review)
	

 	
 	

Your salary will be paid monthly in arrears by direct transfer to your bank account. Your salary will be reviewed annually.
	

Hours of Work	
 	

35 hours per week, 9.30 am to 5.30 pm Monday to Friday each week excluding public holidays with one hour for lunch to be taken at a time agreed with your Manager or Director.
	

 	
 	

You will be expected to work such additional hours as are necessary to meet the demands of the business. You may also be required to vary the pattern of your working hours as necessitated by changing commercial needs, if in the reasonable opinion of
the Company it is practicable for you to comply.
	

Employment Obligations	
 	

During your normal hours of work you must devote the whole of your time, attention and ability to the business of the Company and at all times promote the interests and general welfare of the Group.
	
 	
 	

 	

 

	

 	
 	

Whilst this Contract is in force you may not take any outside employment without prior agreement of your Senior Director unless one of the exemptions contained in the Code of Conduct applies.
	

 	
 	

If the position for outside employment is that of director or consultant to any other entity or in the opinion of the Company is a position that may conflict with the interests of the Group then permission must be granted in accordance with the Code
of Conduct.
	

Duty of Confidence	
 	

During and after the termination of this Contract you must keep with inviolable secrecy and may not use for any purpose nor reveal to anyone (other than those whose province it is to know the same) any secret or confidential information entrusted to
or discovered by you. This includes but is not limited to, information concerning the Company's business, operations, products, markets, clients or prospective clients and their insurance or commercial affairs or any other matters pertaining to them
and revealed to you in the course of your employment. This Duty also applies to any information that is or may be price sensitive in relation to the share price of Willis Corroon Group plc or any of the Group's clients.
	

 	
 	

Further details of this Duty are set out in the Code of Conduct.
	

Other Obligations	
 	

You shall not for a period of 12 months after the termination of your employment, other than after an unlawful termination by the Company, whether on behalf of yourself or any other person, firm or company in competition with the Company or the
Group:
	

 	
 	

(i)	

directly or indirectly solicit business from;
	

 	
 	

(ii)	

transact or handle business or otherwise deal with;
	

 	
 	

any client for the Group with whom you have had personally dealt in the course of your duties at any time during the 12 months prior to the termination of your employment.
	

 	
 	

You shall not for a period of 6 months after the lawful termination of your employment directly or indirectly induce or seek to induce any employee of the Group to leave its employment where the departure of that employee would do material harm
to the Group and where the departure is intended for the benefit of you or your new employer.
	

 	
 	

The details of all your Obligations are contained in the Staff Handbook and the terms herein should be read in conjunction with those in the Staff Handbook.
	

Pension Scheme	
 	

The Group operates the Willis Faber Pension Scheme for which membership is voluntary. Full details regarding the current eligibility conditions, contributions and benefits are provided in the Staff Handbook and Addendum.
	

Absence from Work	
 	

Your entitlement of payments whilst you are absent from work, and the procedure that you should follow if you are unable to attend the office for any reason are contained in the Staff Handbook.
	

Medical Examination	
 	

The Company reserves the right to require you at any time to submit yourself for examination by a doctor appointed by the Company at the Company's expense.
	
 	
 	

 	

 

	

Holidays	
 	

Your holiday entitlement is 25 days per complete holiday year, which runs from 1 January to 31 December. Please refer to the Staff Handbook for your pro rata entitlement in the year of joining and of leaving, and for details of service related
accrual. Payment will be made for Public Holidays.
	

 	
 	

Holiday entitlement for part-time staff is pro-rata, as outlined in the Staff Handbook.
	

Employee Benefits	
 	

The Details and eligibility rules of Employee Benefits to which you may by entitled are contained in the Staff Handbook.
	

Termination of Employment	
 	

a)	

You may terminate your employment by giving 6 months written notice.
	

 	
 	

b)	

If your employment is terminated by the Company you will receive 12 months written notice
	

 	
 	

c)	

This agreement will automatically terminate at the end of the month in which your 60th birthday falls
	

 	
 	

d)	

In the event of notice of termination being given in accordance with the Contract of Employment, the Company reserves the right to require you to work out your notice period from home, or undertake different duties within the office.
	

 	
 	

e)	

On termination of the Contract for whatever reason you must return to the Company all reports, documents, computer disks, working papers and any other information (in whatever form) received in the course or your employment. In addition all other
Group property must be returned.
	

Company Procedures	
 	

Details of the Company Procedures affecting you terms and conditions of employment, including the Code of Conduct, Equal Opportunities Policy, Performance Improvement, Disciplinary, Appeals and Grievance procedures, are contained in the Staff
Handbook.

        This
Agreement cancels any existing arrangements between you and the Company or any subsidiary or associated Company of Willis Corroon Group plc. 

	

Signed for and on behalf of the Company	
 	

/s/ T. BAGGOTT

        I
have read and understood the Terms and Conditions stated in the Contract of Employment document and I confirm my acceptance of them. 

	

Signed	
 	

/s/ THOMAS COLRAINE
	

Date	
 	

10 February, 1997

QuickLinks

Exhibit 10.20

FORM OF EMPLOYMENT AGREEMENT OF THOMAS COLRAINE

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