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Exhibit 4.1  

 
 

CERTIFICATE OF INCORPORATION    
    
    OF    
    
    WATTS INDUSTRIES, INC.    
    

        FIRST.    The name of the corporation is Watts Industries, Inc. 

        SECOND.    The address of the corporation's registered office in the State of Delaware is 1209 Orange Street in the City of
Wilmington, County of New Castle. The name and address of the corporation's registered agent is The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware. 

        THIRD.    The nature of the business or purposes proposed to be transacted or promoted is as follows: 

        To
engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware. 

        FOURTH.    The total number of shares of capital stock of all classes which the corporation shall have authority to issue shall
be 120,300 shares, to wit: (1) 88,000 shares of Common Stock, $1.00 par value per share ("Common Stock"), (2) 11,000 shares of Class B Common Stock, $1.00 par value per share
("Class B Common Stock"), and (3) 21,300 shares of 10% Preferred Stock, $100.00 par value per share ("10% Preferred Stock"). Each class of capital stock shall have the following
preferences, voting powers, qualifications and special or relative rights or privileges. 

        Section 1.    Common Stock and Class B Common Stock.    Except as otherwise expressly provided below in
this Section 1, the preferences, voting powers, qualifications and special or relative rights or privileges of the Common Stock and the Class B Common Stock shall be identical. 

        Section 1.1    Dividends.    Dividends may be declared by the Board of Directors upon and paid to the holders
of the Common Stock and Class B Common Stock out of funds legally available therefor; provided, however, that such dividends, when, as and if declared and paid, shall be so declared and paid to
such holders pro rata according to the number of shares of Common Stock and Class B Common Stock held by each such holder (with the number of shares of outstanding Common Stock and
Class B Common Stock being aggregated and considered a single class for this purpose); and provided further, however, that should any dividend or other distribution be declared upon Common
Stock whether payable in cash or in shares of Common Stock or otherwise, a comparable dividend shall be declared upon Class B Common Stock and vice
versa. If the dividend declared upon Common Stock is payable in shares of Common Stock, the comparable dividend declared upon Class B Common Stock shall be payable in
shares of Class B Common Stock, and vice versa. No amendment shall be made to the Certificate of Incorporation of the corporation, or other
corporate action taken, which shall split, split-up, subdivide, consolidate or combine (or have the effect thereof) shares of Common Stock without a comparable amendment being made or
comparable action being taken with respect to the Class B Common Stock, and vice versa. 

        Section 1.2    Rights Upon Liquidation and Dissolution.    Upon any liquidation, dissolution, winding up or
distribution of the assets and surplus funds of the corporation, whether voluntary or involuntary, after full payment or provision for the payment of creditors and the rights of holders of securities
having preference to the Common Stock and the Class B Common Stock (including the 10% Preferred Stock), the holders of Class B Common Stock shall be entitled to receive in preference to
the holders of the Common Stock of the corporation, or to the holders of any other stock, other than the 10% Preferred Stock, of the corporation which is not expressly ranked superior or prior to the
Class B Common Stock with respect to liquidation and dissolution (with the consent of the holders of the Class B Common Stock given in accordance with Section 1.5 

 

hereof
to the extent applicable) an amount equal to $1,122,365 per share (the "Initial Class B Common Distribution") before any payment or distribution of the assets and surplus funds of the
corporation shall be made to or set apart for the holders of any Common Stock or of any of such other stock. After the payment of such amount, the holders of the Common Stock of the corporation shall
then be entitled to an amount equal to $1,122.365 per share (the "Initial Common Distribution"). Thereafter, the holders of Common Stock and Class B Common Stock shall participate in any
payment or distribution pro rata according to the number of shares of Common Stock and Class B Common Stock held by each such holder (with the number of shares of outstanding Common Stock and
Class B Common Stock being aggregated and considered a single class for this purpose). 

        Notwithstanding
the preceding paragraph of this Section 1.2, (i) if the assets and surplus funds of the corporation available for the Initial Class B Common
Distribution to the holders of its Class B Common Stock shall be insufficient to permit payment in full of said amount, the said assets and surplus funds shall be paid or distributed ratably
among the holders of the Class B Common Stock in proportion to the amounts they would have been entitled to receive had such assets and surplus funds been sufficient to permit payment in full
of said amounts and (ii) if the assets and surplus funds of the corporation available for the Initial Common Distribution to the holders of its Common Stock shall be insufficient to permit
payment in full of such amount, the said assets and surplus funds shall be paid or distributed ratably among the holders of the Common Stock in proportion to the amounts they would have been entitled
to receive had such assets and surplus funds been sufficient to permit payment in full of said amounts. For purposes of this Section 1.2, the consolidation of the corporation with, or merger of
the corporation into, another corporation, the merger of any other corporation into it, or the sale or conveyance to another corporation of the properties of the corporation as an entirety or
substantially as an entirety (for cash, shares of stock, other securities, or other consideration), shall not be deemed to be a liquidation, dissolution, winding up, or distribution of the assets of
the corporation; provided however, that thirty (30) days' notice and opportunity to convert to shares of Common Stock have been given to the holders of the Class B Common Stock. 

        Section 1.3    Voting Rights.    For each share of Common Stock standing in his name on the books of the
corporation, the holder thereof shall have one vote. For each share of Class B Common Stock standing in his name on the books of the corporation, the holder thereof shall have one vote. Except
as otherwise provided herein, the holders of Common Stock and Class B Common Stock shall have identical voting rights and shall vote as a single class on all matters to come before the
shareholders of the corporation, but shall vote as a separate class from the holders of shares of 10% Preferred Stock. 

        1.3.1    Election of Directors.    So long as Bessemer Securities Corporation (hereinafter called "Bessemer" within
the meaning ascribed thereto in Section l.3.0) shall be the holder of (i) at least one (1) share of Class B Common Stock and (ii) at least twenty percent (20%) of
the aggregate number of outstanding shares of Common Stock and Class B Common Stock, taken as a whole, the corporation's Board of Directors shall be comprised of nine (9) members (this
number shall drop to seven (7) when Bessemer's percentage as aforesaid shall drop below twenty percent (20%)) and the holders of Class B Common Stock shall be entitled, voting as a
separate class, to elect four (4) (this number shall drop to two (2) when Bessemer's percentage as aforesaid drops below twenty percent (20%)) of the members of the Board of Directors,
and the holders of Common Stock shall be entitled, voting as a separate class, to elect the remaining five (5) members of the Board of Directors (the holders of Common Stock being entitled to
elect all of the members of the Board of Directors if at any time Bessemer's percentage as aforesaid drops below eight percent (8%) or it does not own at least one (1) share of Class B
Common Stock); provided, however, that if at any time while 

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Bessemer
still holds (i) at least one (1) share of Class B Common Stock and (ii) at least twenty percent (20%) of the aggregate number of outstanding shares of Common Stock
and Class B Common Stock, taken as a whole, the corporation's earnings (after taxes but before extraordinary items net of tax effect) ("Adjusted After-Tax Earnings") for the highest
three (3) full fiscal quarters during any period of four (4) consecutive full fiscal quarters shall be less than $500,000 per quarter (the "Trigger Level") after (a) Adjusted
After-Tax Earnings for each of the four (4) consecutive quarters shall have been increased by the amounts of any losses or reductions in earnings to the extent, and only to the
extent, that such losses or reductions in earnings were due to Acts of God or force majeure (including, without limitation, strikes or other labor disturbances) or the continuing effects of such Acts
of God or force majeure and have not already been allowed for in such earnings as "extraordinary items," and then (b) Adjusted After-Tax Earnings for each of such three
(3) highest quarters shall have been decreased by one-third of any loss after taxes but before extraordinary items net of tax effect in the remaining quarter of such period of four
(4) consecutive full fiscal quarters (as adjusted in (a)), the Secretary of the corporation shall give written notice thereof to each holder of Class B Common Stock and, whether or not
such notice is given, provided that Bessemer still holds (i) at least one (1) share of Class B Common Stock and (ii) at least twenty percent (20%) of the aggregate number
of outstanding shares of Common Stock and Class B Common Stock, taken as a whole, the corporation's Board of Directors will thereupon be increased automatically in size to ten
(10) members and the holders of Class B Common Stock shall thereafter be entitled, voting as a separate class, to elect five (5) of the then (10) members of the Board of
Directors and the holders of the Common Stock shall be entitled, voting as a separate class, to elect the remaining five (5) members of the Board of Directors. The holders of a majority of the
outstanding shares of Class B Common Stock shall designate in a writing delivered to the Secretary of the corporation their selection of the additional director elected by them pursuant to the
preceding sentence, and such person shall take office as such director immediately upon such designation in writing. Such director shall hold office until the next annual meeting of stockholders and
until his successor is elected and qualified, when he may be replaced or reelected by vote of the holders of Class B Common Stock, or until the size of the Board of Directors is decreased in
accordance with this Section 1.3.1, whichever is sooner. At such time as the corporation's Adjusted After-Tax Earnings for the highest three (3) full fiscal quarters during
any period of four (4) consecutive full fiscal quarters shall be more than the Trigger Level after (a) Adjusted After-Tax Earnings for each of such four
(4) consecutive quarters shall have been increased by the amount of any losses or reductions in earnings to the extent, and only to the extent, that such losses or reduction in earnings were
due to Acts of God or force majeure (including, without limitation, strikes of other labor disturbances) or the continuing effects of such Acts of God or force majeure and have not already been
allowed for in such earnings as "extraordinary items" and then (b) Adjusted After-Tax
Earnings for the three (3) highest such quarters shall have been decreased by one-third of any loss after taxes but before extraordinary items net of tax effect in the remaining
quarter of such period of four (4) consecutive full fiscal quarters (as adjusted in (a)), or at such time as Bessemer no longer owns (i) at least one (1) share of Class B
Common Stock or (ii) twenty percent (20%) of the corporation's outstanding shares of Common Stock and Class B Common Stock, taken as a whole, the voting rights referred to in the proviso
clause of the preceding sentence shall be automatically terminated (subject to becoming effective again should the conditions set forth in this Section 1.3.1 reoccur), one of the members of the
Board of Directors who has been elected by the holders of the Class B Common Stock shall immediately resign and upon such resignation the Board of Directors will be decreased automatically in
size to nine (9) members and the holders of Class B Common Stock shall thereafter have the right, voting as a separate class, to elect four (4) of the nine (9) members of
the Board of Directors and the holders of Common Stock shall have the right, 

3

 

voting
as a separate class, to elect the remaining five (5) members of the Board of Directors (subject to the provisions of the first sentence of this Section 1.3.1); provided however,
that if such a Director fails to resign immediately, the Secretary of the corporation shall promptly call a special meeting of stockholders at which only nine (9) Directors of the corporation
(of which five (5) shall be elected by the holders of Common Stock and four (4) shall be elected by the holders of Common Stock voting as separate classes), will be elected and the terms
of office of all persons who are then directors of the corporation shall terminate immediately upon such election. For purposes of determining Adjusted After-Tax Earnings under this
Section 1.3.1, the corporation shall make all quarterly computations of Adjusted After-Tax Earnings on a basis consistent with prior such determinations by the corporation or its
predecessor (except for such changes in accounting principles and practices as may have been required from time to time by the corporation's independent public accountants) and with a view toward
avoiding material distortions of net income from period to period. These computations shall be required to be made only when requested by Bessemer. 

        1.3.2    Election of Director by Subsequent Holders.    Should Bessemer no longer have the right to elect any director
of the corporation pursuant to Section 1.3.1, then so long as any person or persons who shall have acquired Class B Common Stock from Bessemer shall be the holder in the aggregate of
(i) at least one thousand (l,000) shares of Class B Common Stock and (ii) at least eight percent (8%) of the aggregate number of outstanding shares of Common Stock and
Class B Common Stock, taken as a whole, the holders of Class B Common Stock shall be entitled, voting as a separate class, to elect one of the members of the Board of Directors of the
corporation, and the holders of Common Stock shall be entitled, voting as a separate class, to elect all the remaining members of the Board of Directors (the holders of Common Stock being entitled to
elect all the members of the Board of Directors if at any time such assignee or assignees no longer hold (i) at least one thousand (1,000) shares of Class B Common Stock or
(ii) at least eight percent (8%) of the outstanding shares of Common Stock and Class B Common Stock, taken as a whole). 

        1.3.3    Definition of "Bessemer".    For purposes of this Section 1.3, the term "Bessemer" shall
(1) include an entity more than fifty percent (50%) of the aggregate beneficial voting interest of which is owned directly or indirectly by or for the benefit of heirs of the late Henry Phipps
and which entity succeeds to all or substantially all of the assets of Bessemer Securities Corporation, but shall (2) specifically exclude any and all other successors or assignees of said
Bessemer Securities Corporation. 

        1.3.4    Percentages.    Whenever in this Article Fourth certain rights inure to the benefit of Bessemer or certain
events occur based upon Bessemer's holdings of a certain specified percentage of all of the outstanding Class B Common Stock and Common Stock, taken as a whole, the amount of such outstanding
stock shall be determined exclusive of any shares of Common Stock which shall have been issued and sold for cash by the corporation after May 28, 1981 pursuant to a registered public offering
under the Securities Act of 1933, as amended. 

        Section 1.4    Conversion.    The holders of the Class B
Common Stock shall have conversion rights as follows (the "Conversion Rights"): 

        (a)    Right to Convert.    Each share of Class B Common Stock shall be convertible, at the option of the
holder thereof, at any time after the date of issuance of such share, at the office of the corporation or any transfer agent for the Class B Common Stock, into an equal number of fully paid and
nonassessable shares of Common Stock, as constituted at the time of conversion. 

4

 

        (b)    Mechanics of Conversion.    Before any holder of Class B Common Stock shall be entitled to convert the
same into full shares of Common Stock, he shall surrender the certificate or certificates therefor, duly endorsed, at the office of the corporation or of any transfer agent for the Class B
Common Stock, and shall give written notice to the corporation at such office that he elects to convert the same and shall state therein his name or the name or names of his nominees in which he
wishes the certificate or certificates for shares of Common Stock to be issued. The corporation shall, as soon as practicable thereafter, issue and deliver at such office to such holder of
Class B Common Stock, or to his nominee or nominees, a certificate or certificates for the number of shares of Common Stock to which he shall be entitled as aforesaid. Such conversion shall be
deemed to have been made immediately prior to the close of business on the date of such surrender of the shares of Class B Common Stock to be converted, and the person or persons entitled to
receive the shares of Common Stock issuable upon conversion shall be treated for all purposes as the record holder or holders of such shares of Common Stock on such date. 

        (c)    Common Reserved.    The corporation shall reserve and keep available out of its authorized but unissued Common
Stock such number of shares of Common Stock as shall from time to time be sufficient to effect conversion of the Class B Common Stock. 

        Section 1.5    Covenants.    So long as not less than 1,000 shares of the Class B Common Stock shall be
outstanding (as adjusted for stock splits, split-ups, sub-divisions, consolidations and combinations of such stock), the corporation shall not, without first obtaining the
affirmative vote or written consent of more than fifty percent (50%) of the outstanding shares of Class B Common Stock: 

        (a)   amend
or repeal any provision of, or add any provision to, the corporation's Certificate of Incorporation or By-Laws if such action would alter or change the
preferences, rights, privileges or powers of, or the restrictions provided for the benefit of, any shares of Class B Common Stock or if such action would change the number of directors of the
corporation (except as otherwise contemplated herein); 

        (b)   create
or reclassify any class of stock of the corporation other than the 10% Preferred Stock as shares having any preference or priority as to dividends or assets
superior to or on a parity with any such preference or priority of the Class B Common Stock; or 

        (c)   pay
or declare any dividend on any shares of any class of stock of the corporation, other than as permitted hereby with respect to the Common Stock, the Class B
Common Stock and the 10% Preferred Stock, or apply any of its assets to the redemption, retirement, purchase or other acquisition (otherwise than upon the death or a person having a family
relationship to either George B. Horne or Timothy P. Horne or upon the arising of a requirement or an option to redeem or repurchase shares pursuant to stock restriction agreements with employees of
the corporation existing on May 15, 1981, or agreements with substantially similar provisions subsequently entered into with employees of the corporation) directly or indirectly, through
subsidiaries or otherwise, of any shares of any class of stock of the corporation, except as permitted hereby with respect to the 10% Preferred Stock. For purposes of the preceding sentence, the term
"family relationship" shall mean any relationship by blood, marriage or adoption. 

        Section 2.    10% Preferred Stock.    

        Section 2.1    Dividends.    The holders of 10% Preferred Stock shall be entitled to receive, when and as
declared by the Board of Directors, cumulative cash dividends ("Cumulative Dividends") at the rate of $8.00 per share per annum and non-cumulative cash dividends
("Non-Cumulative Dividends") at the rate of $2.00 per share per annum and no more. Dividends 

5

 

shall
be payable quarterly on the first day of January, April, July and October of each year (the "Dividend Payment Date(s)") out of the funds of this corporation legally available therefor.
Cumulative Dividends shall have been paid or declared and set apart for payment before any cash dividends, payment or distribution (other than a dividend or distribution upon Common Stock payable in
shares of Common Stock or a dividend or distribution upon Class B Common Stock payable in shares of Class B Common Stock) shall be made with respect to any of the Common Stock or
Class B Common Stock of the corporation as may from time to time be issued and outstanding. Cumulative Dividends shall accrue from the Dividend Payment Date immediately preceding the date of
issue, or from the date of issue if it is a Dividend Payment Date, and shall be cumulative so that if Cumulative Dividends in respect of any dividend period shall not have been paid upon or declared
and set apart for the 10% Preferred Stock, the deficiency shall be fully paid or declared and set apart before any dividend (other than a dividend or distribution upon Common Stock payable in shares
of Common Stock or a dividend or distribution upon Class B Common Stock payable in shares of Class B Common Stock) shall be paid upon or declared or set apart for the Common Stock or the
Class B Common Stock and before any Non-Cumulative Dividend shall be paid upon or declared or set apart for the 10% Preferred Stock. Non-Cumulative Dividends upon the
10% Preferred Stock shall be non-cumulative, whether or not in any fiscal year there shall be net income or surplus available for the payment of dividends in such fiscal year, so that if
in any fiscal year or years, Non-Cumulative Dividends in whole or in part are not paid on the 10% Preferred Stock, unpaid Non-Cumulative Dividends shall not accumulate as
against the holders of the Common Stock or the Class B Common Stock of the corporation, so that no sums for Non-Cumulative Dividends in any later years shall be paid to the holders
of the 10% Preferred Stock with respect to any prior year or years when Non-Cumulative Dividends were not paid. In no event shall the holders of the 10% Preferred Stock receive aggregate
dividends of more than $10.00 per share with respect to any fiscal year. 

        Section 2.2    Redemption of 10% Preferred Stock.    In accordance with the vote of the Board of Directors, all
or any part of the 10% Preferred Stock then outstanding may be called for redemption at any time after its date of issuance at $100 per share plus all accrued and unpaid Cumulative Dividends. Notice
of the election of the corporation to redeem the 10% Preferred Stock shall be mailed not less than thirty (30) days before the designated redemption date to the holders of the 10% Preferred
Stock so called for redemption at their addresses as last recorded on the books of the corporation. In case less than all of the 10% Preferred Stock at the time outstanding is to be called for
redemption, the Board of Directors may order that the stock to be called be selected by lot or pro rata or in any other manner it deems appropriate (whether or not such procedure is by lot or on a pro
rata basis). The decision of the Board of Directors as to the time and method of redemption and the method of determining the particular shares of 10% Preferred Stock to be redeemed shall be
conclusive. After the designated redemption date, the holders of the 10% Preferred Stock so called for redemption shall have none of the rights of stockholders with respect to the shares so called
except to receive the redemption value thereof upon surrender, endorsed in blank, of the certificate(s) representing the shares of 10% Preferred Stock so called. Nothing herein contained shall be
deemed to limit the right of the corporation to purchase or otherwise acquire at any time any shares of its capital stock of any class. 

        Section 2.3    Rights Upon Liquidation and Dissolution.    Upon any liquidation, dissolution, winding up, or
distribution of the assets and surplus funds of the corporation, whether voluntary or involuntary, after full provision for creditors, the holders of 10% Preferred Stock shall be entitled to receive
in preference to the holders of any other class of stock of the corporation an amount equal to $100 per share plus accrued and unpaid Cumulative Dividends before any payment or distribution of the
assets and surplus funds of the corporation shall be made to or set apart for the holders of any Common Stock or Class B Common Stock and shall not thereafter participate in any of the assets
and surplus funds of the corporation or in any proceeds thereof; provided, 

6

 

however
, that if the assets and surplus funds of the corporation available for distribution to the holders of its 10% Preferred Stock shall be insufficient to permit payment in full of said amount,
the said assets and surplus funds shall be distributed ratably among the holders of the 10% Preferred Stock in proportion to the amounts they would have been entitled to receive had such assets and
surplus funds been sufficient to permit payment in full of said amounts. For the purposes of this Section 2.3, the consolidation of the corporation with, or merger of the corporation into,
another corporation, the merger of any other corporation into it, or the sale or conveyance to another corporation of the properties of the corporation as an entirety or substantially as an entirety
(for cash, shares of stock, other securities, or other consideration), shall not be deemed to be a liquidation, dissolution, winding up, or distribution of the assets of the corporation. 

        Section 2.4    Voting Rights.    Except as provided below or as otherwise provided by law or from time to time
by the provisions of the Certificate of Incorporation of the corporation, the holders of 10% Preferred Stock shall have no right to vote on any matters presented to the corporation's shareholders for
action and shall not be entitled to notice of any stockholders' meeting; provided, however, that when such holders shall be so entitled to vote, they shall vote as a separate class and each holder of
10% Preferred Stock shall be entitled to one-tenth of one (1/10 of 1) vote for each share of 10% Preferred Stock standing in his name on the books of the corporation. 

        So
long as any shares of 10% Preferred Stock are outstanding, the corporation shall not create or authorize any other class of stock (except common Stock and Class B Common Stock)
ranking superior or prior to the 10% Preferred Stock without the consent (given by a vote at a meeting called for the purpose) of the holders of at least two-thirds of the total number of
shares of the 10% Preferred Stock then outstanding, voting as a separate class. 

        In
case at any time an aggregate of twelve (12) quarterly payments of Cumulative Dividends on the shares of 10% Preferred Stock shall be unpaid, the holders of the shares of 10%
Preferred Stock shall be entitled to notice of all stockholders' meetings and shall have the same voting rights as the holders of the Common Stock, voting as a single class with the holders of the
Common Stock; provided, however, that the holders of the 10% Preferred Stock shall have one-tenth of one (1/10 of 1) vote for each share held. Such rights shall
terminate when all accumulated unpaid Cumulative Dividends to and including the last preceding Dividend Date shall have been declared and paid in full,
but such rights shall be reinstated as aforesaid when and if twelve (12) quarterly payments of Cumulative Dividends shall again be unpaid. 

        Section 2.5    Residual Rights.    All preferences, voting powers, qualifications, special or relative rights
or privileges accruing to the outstanding shares of the corporation's capital stock not expressly provided for to the contrary in this Section 2 shall be vested on a
share-for-share basis in the Common Stock and Class B Common Stock. 

        FIFTH.    The name and mailing address of the sole incorporator is as follows: 

	Name
 
	 	Address
 

	Paul R. Rugo	 	Goodwin, Procter & Hoar

Exchange Place

Boston, Massachusetts 02109

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        SIXTH.    The names and mailing addresses of the persons who are to serve as directors until the first annual meeting of the
stockholders or until the successor are elected and qualified are as follows: 

	Timothy P. Horne	 	94 Porter Road

Andover, MA 01810
	

Frederic B. Horne	
 	

940 Great Pond Road

North Andover, MA 01845
	

Robert T. McLaurin	
 	

Pleasant Street

Loudon, NH 03301
	

Charles W. Grigg	
 	

56 Damien Road

Wellesley Hills, MA 02181
	

Noah T. Herndon	
 	

60 Fernwood Road

Chestnut Hill, MA 02167
	

Alastair B. Martin	
 	

"The Belfry" — Holly Branch Road

New York, NY
	

Paul Bancroft, III	
 	

249 E. 45th St., Apt. 20A

New York, NY 10017
	

John I. Wechsler	
 	

1641 3rd Avenue, Suite 28D

New York, NY 10028
	

Thomas N. Begel	
 	

Hunts Horse Farm

Province Line Road

Hopewell, NJ 08525

        SEVENTH.    Elections of directors need not be by written ballot unless the By-Laws of the corporation so provide. 

        EIGHTH.    The Board of Directors, as well as the stockholders, may adopt, amend or repeal the By-Laws of the
corporation, to the extent permitted by such By-Laws. 

        NINTH.    The corporation is to have perpetual existence. 

        TENTH.    Meetings of stockholders may be held within or without the State of Delaware as the By-Laws may provide.
The books of the corporation may be kept outside of the State of Delaware at such place or places as may be designated from time to time by the Board of Directors or in the By-Laws of the
corporation. 

        ELEVENTH.    The corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of
Incorporation, in the manner now or hereafter prescribed herein or by statute, and all rights conferred upon stockholders herein are granted subject to this reservation. 

8

 

        I,
the undersigned, being the sole incorporator, for the purpose of forming a corporation pursuant to the General Corporation Law of the State of Delaware, do make this certificate,
hereby declaring and certifying that this is my act and deed and the facts herein stated are true, and accordingly have hereunto set my hand this 24th day of December, 1985. 

	 	/s/  PAUL R. RUGO      
 Paul R. Rugo

9

 
 

CERTIFICATE OF AMENDMENT    
    
    TO    
    
    CERTIFICATE OF INCORPORATION    
    

        Watts Industries, Inc., a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, DOES HEREBY
CERTIFY: 

        FIRST:    That
the Board of Directors of Watts Industries, Inc., at a meeting duly held, duly adopted resolutions setting forth a proposed amendment to the Certificate
of Incorporation of said Corporation, declaring said amendment to be advisable and submitting said amendment to the stockholders of the Corporation for their consideration. The proposed amendment is
set forth in Exhibit A attached hereto. 

        SECOND:    That
the holders of a majority of each class of the issued and outstanding capital stock of the Corporation entitled to vote thereon have given written consent to
said amendment and written notice of said written consent and amendment has been given to those stockholders who have not consented in writing, in accordance with the provisions of Sections 228 and
242 of the General Corporation Law of the State of Delaware. 

        THIRD:    That
the aforesaid amendment was duly adopted in accordance with the applicable provisions of Sections 228 and 242 of the General Corporation Law of the State of
Delaware. With the exception of the provisions amended hereby, all provisions of the Certificate of Incorporation of the Corporation shall remain in full force and effect as previously adopted. 

        IN
WITNESS WHEREOF, the Corporation has caused its corporate seal to be hereto affixed and this Certificate of Amendment to the Certificate of Incorporation to be signed by its Executive
Vice President and attested by its Secretary this 13th day of June, 1986. 

	 	 	WATTS INDUSTRIES, INC.
	

 	
 	

 	

 
	 	 	By:	/s/  CHARLES W. GRIGG      
 Charles W. Grigg,
 Executive Vice
President
	

ATTEST:	
 	

 	

 
	

 	
 	

 	

 
	/s/  KENNETH J. MCAVOY      
 Kenneth J. McAvoy, Secretary	 	 	 

  

 
 

EXHIBIT A    
    

        FOURTH: 

        1.3.1    Election of Directors.    So long as Bessemer Securities Corporation (hereinafter called "Bessemer" within
the meaning ascribed thereto in Section 1.3.3) shall be the holder of (i) at least one (1) share of Class B Common Stock and (ii) at least twenty percent (20%) of
the aggregate number of outstanding shares of Common Stock and Class B Common Stock, taken as a whole, the corporation's Board of Directors shall be comprised of seven (7) members (this
number shall drop to five (5) when Bessemer's percentage as aforesaid shall drop below twenty percent (20%)) and the holders of Class B Common Stock shall be entitled, voting as a
separate class, to elect three (3) (this number shall drop to one (1) when Bessemer's percentage as aforesaid drops below twenty percent (20%)) of the members of the Board of Directors,
and the holders of Common Stock shall be entitled, voting as a separate class, to elect the remaining four (4) members of the Board of Directors (the holders of Common Stock being entitled to
elect all of the members of the Board of Directors if at any time Bessemer's percentage as aforesaid drops below eight percent (8%) or it does not own at least one (1) share of Class B
Common Stock); provided, however, that if at any time while Bessemer still holds (i) at least one
(1) share of Class B Common Stock and (ii) at least twenty percent (20%) of the aggregate number of outstanding shares of Common Stock and Class B Common Stock, taken as a
whole, the corporation's earnings (after taxes but before extraordinary items net of tax effect) ("Adjusted After-Tax Earnings") for the highest three (3) full fiscal quarters
during any period of four (4) consecutive full fiscal quarters shall be less than $500,000 per quarter (the "Trigger Level") after (a) Adjusted After-Tax Earnings for each of
the four (4) consecutive quarters shall have been increased by the amounts of any losses or reductions in earnings to the extent, and only to the extent, that such losses or reductions in
earnings were due to Acts of God or force majeure (including, without limitation, strikes or other labor disturbances) or the continuing effects of such Acts of God or force majeure and have not
already been allowed for in such earnings as "extraordinary items," and then (b) Adjusted After-Tax Earnings for each of such three (3) highest quarters shall have been
decreased by one-third of any loss after taxes but before extraordinary items net of tax effect in the remaining quarter of such period of four (4) consecutive full fiscal quarters
(as adjusted in (a)), the Secretary of the corporation shall give written notice thereof to each holder of Class B Common Stock and, whether or not such notice is given, provided that Bessemer
still holds (i) at least one (1) share of Class B Common Stock and (ii) at least twenty percent (20%) of the aggregate number of outstanding shares of Common Stock and
Class B Common Stock, taken as a whole, the corporation's Board of Directors will thereupon be increased automatically in size to eight (8) members and the holders of Class B
Common Stock shall thereafter be entitled, voting as a separate class, to elect four (4) of the then eight (8) members of the Board of Directors and the holders of the Common Stock shall
be entitled, voting as a separate class, to elect the remaining four (4) members of the Board of Directors. The holders of a majority of the outstanding shares of Class B Common Stock
shall designate in a writing delivered to the Secretary of the corporation their selection of the additional director elected by them pursuant to the preceding sentence, and such person shall take
office as such director immediately upon such designation in writing. Such director shall hold office until the next annual meeting of stockholders and until his successor is elected and qualified,
when he may be replaced or reelected by vote of the holders of Class B Common Stock, or until the size of the Board of Directors is decreased in accordance with this Section 1.3.1,
whichever is sooner. At such time as the corporation's Adjusted After-Tax Earnings for the highest three (3) full fiscal quarters during any period of four (4) consecutive
full fiscal quarters shall be more than the Trigger Level after (a) Adjusted After-Tax Earnings for each of such four (4) consecutive quarters shall have been increased by
the amount of any losses or reductions in earnings to the extent, and only to the extent, that such losses or reduction in earnings were due to Acts of God or force majeure (including, without
limitation, strikes or other labor disturbances) or the continuing effects of such Acts of God or force majeure and have not already been allowed for in such earnings as "extraordinary items" and then
(b) Adjusted After-Tax Earnings for the three (3) highest 

1

 

such
quarters shall have been decreased by one-third of any loss after taxes but before extraordinary items net of tax effect in the remaining quarter of such period of four
(4) consecutive full fiscal quarters (as adjusted in (a)), or at such time as Bessemer no longer owns (i) at least one (l) share of Class B Common Stock or
(ii) twenty percent (20%) of the corporation's outstanding shares of Common Stock and Class B Common Stock, taken as a whole, the voting rights referred to in the proviso clause of the
proceeding sentence shall be automatically terminated (subject to becoming effective again should the conditions set forth in this Section 1.3.1 reoccur), one of the members of the Board of
Directors who has been elected by the holders of the Class B Common Stock shall immediately resign and upon such resignation the Board of Directors will be decreased automatically in size to
seven (7) members and the holders of Class B Common Stock shall thereafter have the right, voting as a separate class, to elect three (3) of the seven (7) members of the
Board of Directors and the holders of Common Stock shall have the right, voting as a separate class, to elect the remaining four (4) members of the Board of Directors (subject to the provisions
of the first sentence of this Section 1.3.1); provided, however, that if such a Director fails to
resign immediately, the Secretary of the corporation shall promptly call a special meeting of stockholders at which only seven (7) Directors of the corporation (of which four (4) shall
be elected by the holders of Common Stock and three (3) shall be elected by the holders of Class B Common Stock voting as separate classes), will be elected and the terms of office of
all persons who are then directors of the corporation shall terminate immediately upon such election. For purposes of determining Adjusted After-Tax Earnings under this
Section 1.3.1, the corporation shall make all quarterly computations of Adjusted After-Tax Earnings on a basis consistent with prior such determinations by the corporation or its
predecessor (except for such changes in accounting principles and practices as may have been required from time to time by the corporation's independent public accountants) and with a view toward
avoiding material distortions of net income from period to period. These computations shall be required to be made only when requested by Bessemer. 

2

 
 

RESTATED CERTIFICATE OF INCORPORATION    
    
    OF    
    
    WATTS INDUSTRIES, INC.    
    

Pursuant to Sections 242 and 245 of the
  General Corporation Law of the State of Delaware  

        Watts Industries, Inc. (hereinafter called the "Corporation"), a corporation organized and existing under the General Corporation Law of the State of
Delaware, the Certificate of Incorporation of which was filed in the Office of the Secretary of State of Delaware on December 27, 1985 and recorded in the office of the Recorder of Deeds of New
Castle County, State of Delaware, on December 27, 1985, which Certificate of Incorporation was amended pursuant to a Certificate of Amendment filed in the Office of the Secretary of State of
Delaware on June 13, 1986 and recorded in the Office of the Recorder of Deeds of New Castle County, State of Delaware, on June 18, 1986, does hereby certify that this Restated
Certificate of Incorporation has been duly adopted pursuant to Sections 242 and 245 of the General Corporation Law of the State of Delaware. 

        FIRST:    The name of the Corporation is Watts Industries, Inc. 

        SECOND:    The address of the Corporation's registered office in the State of Delaware is 1209 Orange Street in the City of
Wilmington, County of New Castle. The name of its registered agent at such address is The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware. 

        THIRD:    The nature of the business or purpose to be conducted or promoted is as follows: 

        To
conduct or engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware. 

        FOURTH:    The total number of shares of capital stock which the Corporation shall have authority to issue shall be thirty-eight
million (38,000,000) shares, of which twenty million (20,000,000) shall be Class A Common Stock, par value $.10 per share ("Class A Common Stock"), thirteen million (13,000,000) shall be
Class B Common Stock, par value $.10 per share ("Class B Common Stock"), and five million (5,000,000) shall be Preferred Stock, par value $.10 per share, issuable in series ("Preferred
Stock"). 

        As
of the date and time this Restated Certificate of Incorporation shall become effective under the laws of the State of Delaware (the "Effective Time"), each share of Common Stock, par
value $1.00 per share ("Old Common Stock"), issued and outstanding immediately prior to the Effective Time shall be automatically converted (without any further act) into 330 fully paid and
non-assessable shares of Class B Common Stock, each share of Class B Common Stock, par value $1.00 per share ("Old Class B Stock"), issued and outstanding immediately
prior to the Effective Time shall be automatically converted (without any further act) into 330 fully paid and non-assessable shares of Class A Common Stock, and each share of 10%
Preferred Stock, par value $100.00 per share ("Old Preferred Stock"), issued and outstanding immediately prior to the Effective Time shall be automatically converted (without any further act) into
such number of fully paid and non-assessable shares of Class B Common Stock as is equal to a fraction, the numerator of which shall equal 100 plus the number which is equal to the
dollar value of all accrued and unpaid dividends, if any, on such share and the denominator of which shall be 16.5; provided,  however, that no fractional
shares shall be issued on account of such conversion of Old Preferred Stock and that cash shall be paid in lieu thereof.
Until presented and surrendered for cancellation, each certificate for shares of the Old Common Stock, Old Class B Stock and Old Preferred Stock, respectively, outstanding as of the Effective
Time shall be deemed to represent the number of shares of Class A Common Stock of Class B Common Stock determined in accordance with this paragraph, and upon such presentation and
surrender each holder of a certificate or certificates for such Old Common Stock, Old Class B Stock or Old Preferred Stock, as applicable, shall be entitled to receive a certificate for such
number of shares of Class A Common Stock or Class B Common Stock. 

 

        Except
as otherwise specifically stated in this Article Fourth, shares of Class A Common Stock and shares of Preferred Stock may be issued by the Corporation from time to time as
approved by its Board of Directors without the approval of the stockholders. Subsequent to the Effective Time, no shares of Class B Common Stock may be issued by the Board of Directors without
the prior approval of a majority in interest of the holders of Class B Common Stock and the Class A Common Stock, voting as separate classes, except as provided in Sections A.3 and A.4
of this Article Fourth. The consideration for the issuance of shares shall be paid in full before their issuance and shall not be less than the par value per share. The consideration for the shares
shall be such consideration as is lawful under the General Corporation Law of the State of Delaware at the time of issue, and the value of
such property, labor or services, as determined by the Board of Directors of the Corporation, shall be conclusive. Upon payment of such consideration, such shares shall be deemed to be fully paid and
non-assessable. In the case of a stock dividend, that part of the surplus or retained earnings of the Corporation which is transferred to stated capital upon the issuance of shares as a
share dividend shall be deemed to be the consideration for such issuance. 

        A
description of the different classes of the Corporation's capital stock and a statement of the powers, designations, preferences and relative, participating, optional or other
specified rights of each class of capital stock or series thereof and the qualifications, limitations or restrictions appertaining thereto are as follows: 

        A.    Class A Common Stock and Class B Common Stock.    

        1.    Voting.    

        (a)   At
every meeting of the stockholders of the Corporation (or with respect to any action by written consent in lieu of a meeting of stockholders), each share of
Class A Common Stock shall be entitled to one (1) vote (whether voted in person by the holder thereof or by proxy or pursuant to a stockholders' consent) and each share of Class B
Common Stock shall be entitled to ten (10) votes (whether voted in person by the holder thereof or by proxy or pursuant to a stockholders' consent), voting together as one class on all matters
which may lawfully be submitted to a vote of stockholders, except to the extent otherwise required by law and except as otherwise provided in this Restated Certificate of Incorporation or any
amendment hereof. 

        (b)   In
determining whether any resolution has been adopted by the vote of a specified percentage of the holders of shares of the Corporation pursuant to the Corporation's
By-laws or otherwise, such percentage shall be calculated as a percentage of the total number of votes entitled to be cast by the holders of the Class A Common Stock and the
Class B Common Stock (and any other shares entitled to vote thereon) except to the extent such holders vote as separate classes as required by law or as otherwise provided in this Restated
Certificate of Incorporation. 

        2.    Conversion.    

        (a)   Each
share of Class B Common Stock may at any time be converted into one (1) fully paid and non-assessable share of Class A Common
Stock. Such conversion right shall be exercised by the surrender of the certificate representing such share of Class B Common Stock to be converted by the record holder thereof at any time
during normal business hours at the principal executive offices of the Corporation or, if an agent for the registration of the transfer of shares of Class A Common Stock is then duly appointed
and acting (the "Transfer Agent"), then at the office of the Transfer Agent, accompanied by a written notice of the election by the record holder thereof to convert, and (if so required by the
Corporation or the Transfer Agent) by instruments of transfer, in form satisfactory to the Corporation or the Transfer Agent. A conversion shall be deemed to have occurred at the close of business on 

2

 

the
date when the Corporation or the Transfer Agent has received the prescribed written notice, the required certificate or certificates and any such instruments of transfer;  provided, however, that any
such conversions within five (5) business days after the Effective Time shall be deemed to have occurred at the time
the Corporation or Transfer Agent, as applicable, receives all such documentation in proper form. The Corporation or the Transfer Agent shall deliver a certificate or certificates representing the
shares of Class A Common Stock issuable upon such conversion to the record holder requesting such conversion as soon as practicable thereafter. Any such conversion shall be made without charge
for any stamp or similar tax in respect of the issuance of the certificate or certificates for the shares of Class A Common Stock issued in connection with such conversion, unless such
certificate or certificates are to be issued in a name other than that of the record holder of the share or shares of Class B Common Stock converted, in which case such record holder shall pay
to the Corporation or the Transfer Agent the amount of any stamp or similar tax which may be payable in respect of any transfer involved in such conversion. 

        (b)   The
Corporation shall not be required to convert Class B Common Stock and no surrender of Class B Common Stock shall be effective for that purpose while
the stock transfer books of the Corporation are closed for any purpose; but the valid presentation of Class B Common Stock for conversion during any period such books are so closed shall become
effective for conversion immediately upon the re-opening of such books, as if the conversion had been made on the data such Class B Common Stock was surrendered. 

        (c)   The
Corporation covenants that it will at all times reserve and keep available, solely for the purpose of issuance upon conversion of the outstanding shares of
Class B Common Stock, such number of shares of Class A Common Stock as shall be issuable upon the conversion of all such outstanding shares, provided that nothing contained herein shall
be construed to preclude the Corporation from satisfying its obligations in respect of the conversion of the outstanding shares of Class B Common Stock by delivery of shares of Class A
Common Stock which are held in the treasury of the Corporation. The Corporation covenants that if any shares of Class A Common Stock required to be reserved for purposes of conversion hereunder
require registration with or approval of any governmental authority under any federal or state law before such shares of Class A Common Stock may be issued upon conversion, the Corporation will
use its best efforts to cause such shares to be duly registered or approved, as the case may be. The Corporation will endeavor to list the shares of Class A Common Stock required to be
delivered upon conversion prior to such delivery upon each national securities exchange or listing service, if any, upon which the outstanding Class A Common Stock is listed at the time of such
delivery. The Corporation covenants that all shares of Class A Common Stock which
shall be issued upon conversion of the shares of Class B Common Stock, will, upon issuance, be fully paid and non-assessable and not entitled to any preemptive rights. 

        (d)   At
such time as the total number of shares of Class B Common Stock issued and outstanding shall constitute less than five percent (5%) of the aggregate number of
shares of Class A Common Stock and Class B Common Stock issued and outstanding, all of the outstanding shares of Class B Common Stock shall be automatically converted (without any
further act) into an equal number of shares of Class A Common Stock pursuant to the terms of this Section A.2. Such conversion shall be deemed to be effective at such time, regardless of
whether the certificate or certificates for such outstanding shares of Class B Common Stock shall have been duly surrendered for conversion. 

        (e)   All
shares of Class B Common Stock converted pursuant to this Section A.2 shall thereupon be retired and revert to the status of authorized and unissued
shares, and may not be reissued except as provided in Section A.3 or A.4 of this Article Fourth. 

3

 

        3.    Further Issuance and Authorization of Class B Common Stock.    

        Following
the Effective Time, no additional shares of Class B Common Stock shall be issued or authorized without the affirmative vote of a majority of all votes entitled to be
cast by the holders of the Class A Common Stock and Class B Common Stock, voting as separate classes, except as provided in Section A.4 of this Article Fourth. 

        4.    Dividends.    

        Dividends
may be declared by the Board of Directors upon and paid to the holders of the Class A Common Stock and Class B Common Stock out of funds legally available
therefor; provided, however, that such dividends, when, as and if declared and paid, shall be so
declared and paid to such holders pro rata according to the number of shares of Class A Common Stock and Class B Common Stock held by each such holder (with the number of shares of
outstanding Class A Common Stock and Class B Common Stock being aggregated and considered a single class for this purpose); and provided
further, however, that no dividend or other distribution may be declared upon the Class A Common Stock, whether payable
in cash or in shares of Class A Common Stock or otherwise, unless a comparable dividend shall be declared upon the Class B Common Stock and vice
versa. If the dividend declared upon the Class A Common Stock is payable in shares of Class A Common Stock, the comparable dividend declared upon the
Class B Common Stock shall be payable in shares of Class B Common Stock, and vice versa. No dividend declared on shares of Class A
Common Stock shall be payable in shares of Class B Common Stock, and vice versa. 

        5.    Stock Splits and Other Transactions.    

        Shares
of Class A Common Stock or Class B Common Stock may not be split up, subdivided, combined or reclassified, unless at the same time the shares of such other class are
proportionately so split up, subdivided, combined or reclassified in a manner which maintains the same proportionate equity ownership (i.e., the same proportion of shares of Class A Common
Stock and Class B Common Stock held by each class) between the holders of Class A Common Stock and Class B Common Stock as comprised on the record date for any such transaction. 

        6.    Liquidation Rights.    

        In
the event of a liquidation or dissolution of the Corporation, or a winding up of its affairs, whether voluntary or involuntary, or a merger or consolidation of the Corporation, after
payment or provision for payment of the debts or liabilities of the Corporation and the amounts to which holders of Preferred Stock, if any, may be entitled, holders of Class A Common Stock and
Class B Common Stock shall be entitled to share ratably as one class for this purpose (i.e., an equal amount of assets for each share of either Class A Common Stock or Class B
Common Stock) in the remaining assets of the Corporation. 

        7.    Restriction on Transfer of Class B Common Stock.    

        (a)   No
person holding shares of Class B Common Stock of record (hereinafter called a "Class B Holder") may transfer, and the Corporation shall not register the
transfer of, such shares of Class B Common Stock, whether by sale, assignment, gift, bequest, appointment or otherwise, except to a Permitted Transferee (as hereinafter defined). A Permitted
Transferee 

4

 

shall
mean, with respect to each person from time to time shown as the record holder of shares of Class B Common Stock, as follows: 

          (i)  In
the case of a Class B Holder who is a natural person, a Permitted Transferee shall mean: 

        (A)  The
spouse of such Class B Holder, any lineal descendant of a grandparent of such Class B Holder, and any spouse of such lineal descendant (which lineal
descendants, their spouses, the Class B Holder, and his or her spouse are herein collectively referred to as the "Class B Holder's Family Members"); 

        (B)  The
trustee of a trust for the benefit of such Class B Holder and/or one or more of his or her Permitted Transferees described in each subclause of this
clause (i) other than this subclause (B), provided that such trust may also grant a general or special power of appointment to one or more of such Class B Holder's Family Members and may
permit trust assets to be used to pay taxes, legacies and other obligations of the trust or of the estates of one or more of such Class B Holder's Family Members payable by reason of the death
of any of such Family Members; 

        (C)  A
corporation of which all of the beneficial ownership of outstanding capital stock entitled to vote for the election of directors is owned by, or a partnership of which
all of the beneficial ownership of the partnership interests entitled to participate in the management of the partnership are held by, the Class B Holder or his or her Permitted Transferees
determined under this clause (i), provided that if by reason of any change in the ownership of such stock or partnership interests, such corporation or partnership would no longer qualify as a
Permitted Transferee, all shares of Class B Common Stock then held by such corporation or partnership shall, upon the election of the Corporation given by written notice to such corporation or
partnership, without further act on anyone's part, be converted into shares of Class A Common Stock effective upon the date of the giving of such notice, and stock certificates formerly
representing such shares of Class B Common Stock shall thereupon and thereafter be deemed to represent the like number of shares of Class A Common Stock; 

        (D)  The
estate of such Class B Holder; and 

        (E)  The
trustee or trustees of a voting trust established by one or more Class B Holders and/or one or more of his or her Permitted Transferees described in each
subclause of this clause (i) other than this subclause (E). 

         (ii)  In
the case of a Class B Holder holding the shares of Class B Common Stock in question as trustee pursuant to a trust (including a voting trust) other
than an irrevocable trust as provided in subsection (iii) below, "Permitted Transferee" means (A) any person who originally transferred such Class B Common Stock to such trust and
(B) any Permitted Transferee of any such transferor determined pursuant to clause (i) above. 

        (iii)  In
the case of a Class B Holder holding the shares of Class B Common Stock in question as trustee pursuant to a trust which is irrevocable, "Permitted
Transferee" means (A) any person to whom or for whose benefit principal may be distributed either during or at the end of the term of such trust whether by power of appointment or otherwise and
(B) any Permitted Transferee of any such person determined pursuant to clause (i) above. 

5

 

        (iv)  In
the case of a Class B Holder which is a corporation or partnership holding record and beneficial ownership of the shares of Class B Common Stock in
question, "Permitted Transferee" means (a) any person transferring such shares of Class B Common Stock to such corporation or partnership and (b) any Permitted Transferee of any
such transferor determined pursuant to clause (i) above. 

         (v)  In
the case of a Class B Holder which is the estate of a deceased Class B Holder, or which is the estate of a bankrupt or insolvent Class B Holder,
which holds record and beneficial ownership of the shares of Class B Common Stock in question, "Permitted Transferee" means a Permitted Transferee of such deceased, bankrupt or insolvent
Class B Holder as determined pursuant to clause (i), (ii), (iii) or (iv) above, as the case may be. 

        (b)   Notwithstanding
anything to the contrary set forth herein, any Class B Holder may pledge such Holder's shares of Class B Common Stock to a pledgee pursuant
to a bona fide pledge of such shares as collateral security for indebtedness due to the pledgee, provided that such shares shall not be transferred to, or registered in, the name of the pledgee and
shall remain subject to the provisions of this Section A.7. In the event of foreclosure or other similar action by the pledgee, such pledged shares of Class B Common Stock may only be
transferred to a Permitted Transferee of the pledgor or converted into shares of Class A Common Stock, as the pledgee may elect. 

        (c)   For
purposes of this Section A.7: 

          (i)  The
relationship of any person that is derived by or through legal adoption shall be considered a natural one. 

         (ii)  Each
joint owner of shares of Class B Common Stock shall be considered a "Class B Holder" of such shares. 

        (iii)  A
minor for whom shares of Class B Common Stock are held pursuant to a Uniform Gifts to Minors Act or similar law shall be considered a Class B Holder of
such shares. 

        (iv)  Unless
otherwise specified, the term "person" means both natural persons and legal entities. 

         (v)  Without
derogating from the election conferred upon the Corporation pursuant to subclause (C) of clause (i) above, each reference to a corporation shall
include any successor corporation resulting from merger or consolidation; and each reference to a partnership shall include any successor partnership resulting from the death, admission or withdrawal
of a partner. 

        (d)   Any
transfer of shares of Class B Common Stock not permitted hereunder shall result in the automatic conversion of those shares of Class B Common Stock
into an equal number of shares of Class A Common Stock without any further act, effective as of the date on which certificates representing such shares are presented for transfer on the books
of the Corporation. The Corporation may, in connection with preparing a list of stockholders entitled to vote at any meeting of stockholders, or as a condition to the transfer or the registration of
shares of Class B Common Stock on the Corporation's books, require the furnishing of such affidavits or other proof as it deems necessary to establish that any person is the beneficial owner of
shares of Class B Common Stock or is a Permitted Transferee. 

        (e)   Shares
of Class B Common Stock shall be registered in the names of the beneficial owners thereof and not in "street" or "nominee" name. For this purpose, a
"beneficial owner" of any shares of Class B Common Stock shall mean a person who, or an entity which, 

6

 

possesses
the power, either singly or jointly, to direct the voting or disposition of such shares (including any voting trustee under a voting trust). The Corporation shall note on the certificates
for shares of Class B Common Stock the restrictions on transfer and registration of transfer imposed by this Section A.7 or otherwise. 

        B.    Preferred Stock.    

        The
Board of Directors is hereby authorized from time to time to provide by resolution for the issuance of shares of Preferred Stock in one or more series not exceeding the aggregate
number of shares of Preferred Stock authorized by this Restated Certificate of Incorporation, as amended from time to time; and to determine with respect to each such series the designations,
preferences and relative, participating, optional or other special rights, and the qualifications, limitations or restrictions appertaining thereto, including without limiting the generality of the
foregoing, the voting rights appertaining to shares of Preferred Stock of any series (which may be applicable generally or only upon the happening and continuance of stated events or conditions), the
rate of dividend to which holders of Preferred Stock of any series may be entitled (which may be cumulative or non-cumulative), the rights of holders of Preferred Stock of any series in
the event of liquidation, dissolution or winding up of the affairs of the Corporation, and the rights (if any) of holders of Preferred Stock of any series to convert or exchange such shares of
Preferred Stock of such series for shares of any other class of capital stock (including the determination of the price or prices or the rate or rates applicable to such rights to convert or exchange
and the adjustment thereof, the time or times during which the right to convert or exchange shall be applicable and the time or times during which a particular price or rate shall be applicable);  provided, however, that the Corporation shall not issue any shares of Preferred Stock carrying in excess
of one vote per share or Preferred Stock convertible into Class B Common Stock without the prior approval of a majority in interest of the holders of the Class B Common Stock and the
Class A Common Stock, voting as separate classes. 

        Before
the Corporation shall issue any shares of Preferred Stock of any series, a certificate setting forth a copy of the resolution or resolutions of the Board of Directors, fixing the
powers, designations, preferences and relative, participating, optional or other rights, if any, and the qualifications, limitations and restrictions, if any, appertaining to the shares of Preferred
Stock of such series, and the number of shares of Preferred Stock of such series authorized by the Board of Directors to be issued, shall be made under seal of the Corporation and signed by Chairman
of the Board or the President or a Vice President and attested to by the Secretary or an Assistant Secretary and acknowledged by such Chairman of the Board or President or Vice President as provided
by the laws of the State of Delaware and shall be filed and a copy thereof recorded in the manner prescribed by the laws of the State of Delaware. 

        FIFTH:    In furtherance of and not in limitation of powers conferred by statute, it is further provided: 

        1.     The
number of Directors shall be fixed in the manner provided in the By-laws of the Corporation. 

        2.     Election
of Directors need not be by written ballot. 

        3.     The
Board of Directors is expressly authorized to adopt, amend or repeal the By-laws of the Corporation to the extent specified therein. 

        SIXTH:    The Corporation is to have perpetual existence. 

        SEVENTH:    The private property of the stockholders shall not be subject to the payment of corporate debts to any extent
whatever. 

7

 

        EIGHTH:    Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them
and/or between this Corporation and its stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in a summary way of this Corporation
or of any creditor or stockholder thereof, or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 291 of Title 8 of the Delaware Code
or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 279 of Title 8 of the Delaware Code order a
meeting of the creditors or class of creditors, and/or of the stockholders or class of stockholders of this Corporation, as the case may be, to be summoned in such manner as the said court
directs. If a majority in number representing three-fourths in value of the creditors or class of creditors, and/or of the stockholders or class of stockholders of this Corporation, as the case may
be, agree to any compromise or arrangement and to any reorganization of this Corporation as consequence of such compromise or arrangement, the said compromise or arrangement and the said
reorganization shall, if sanctioned by the court to which the said application has been made, be binding on all the creditors or class of creditors, and/or on all the stockholders or class of
stockholders, of this Corporation, as the case may be, and also on this Corporation. 

        NINTH:    The Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision
contained in this Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Delaware at the time in effect may be added or inserted, in the manner now or
hereafter prescribed by statute, and all rights, preferences and privileges of whatsoever nature conferred upon stockholders herein are granted subject to this reservation;  provided, however, that the provisions of Articles Fourth and Ninth of this Restated Certificate of
Incorporation shall not be modified, revised, altered, amended, repealed or rescinded, in whole or in part, except by the affirmative vote of the holders of a majority in interest of each class of the
Corporation's outstanding capital stock entitled to vote generally in the election of the Directors, voting as separate classes. 

        TENTH:    No Director of the Corporation shall be personally liable to the Corporation or its stockholders for monetary damages
for breach of fiduciary duty as a Director; provided, however, that the foregoing clause shall not apply to any liability of a Director (i) for any breach of the Director's duty of loyalty to
the Corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of
the General Corporation Law of the State of Delaware, or (iv) for any transaction from which the Director derived an improper personal benefit. This Article shall not eliminate or limit the
liability of a Director for any act or omission occurring prior to the effective date of this Restated Certificate of Incorporation under the laws of the State of Delaware. 

8

 

        IN
WITNESS WHEREOF, the Corporation has caused its corporate seal to be hereto affixed and this Restated Certificate of Incorporation to be signed by its Chairman of the Board and
attested by its Secretary this 28th day of August, 1986. 

	 	 	WATTS INDUSTRIES, INC.
	

 	
 	

 	

 
	 	 	By:	/s/  TIMOTHY P. HORNE      
 Timothy P. Horne, Chairman of the Board
	

ATTEST:	
 	

 	

 
	

 	
 	

 	

 
	/s/  KENNETH J. MCAVOY      
 Kenneth J. McAvoy, Secretary	 	 	 

9

 
 

CERTIFICATE OF AMENDMENT    
    
    OF    
    
    RESTATED CERTIFICATE OF INCORPORATION    
    
    OF    
    
    WATTS INDUSTRIES, INC.    
    

        Watts Industries, Inc., a corporation organized and existing under the laws of the State of Delaware (the "Corporation"), does hereby certify as follows: 

        1.     The
name of the Corporation is Watts Industries, Inc. 

        2.     The
first paragraph of Article FOURTH of the Restated Certificate of Incorporation of the Corporation is hereby amended and restated to read in its entirety as follows: 

FOURTH:    The total number of shares of capital stock which the Corporation shall have authority to issue shall be fifty-eight million
(58,000,000) shares, of which forty million (40,000,000) shall be Class A Common Stock, par value $.10 per share ("Class A Common Stock"), thirteen million (13,000,000) shall be
Class B Common Stock, par value $.10 per share ("Class B Common Stock"), and five million (5,000,000) shall be Preferred Stock, par value $.10 per share, issuable in series ("Preferred
Stock"). 

        3.     At
a meeting duly held on August 17, 1990 after notice duly given, the Board of Directors of the Corporation adopted resolutions declaring the advisability of the
foregoing amendment and directing the officers of the Corporation to submit the amendment to the stockholders of the Corporation for their approval at its 1990 Annual Meeting of the stockholders or by
written consent of the stockholders. 

        4.     The
stockholders of the Corporation approved the foregoing amendment by the favorable votes of (i) the holders of a majority of the issued and outstanding shares
of the Class A Common Stock of the Corporation and (ii) the holders of a majority of the issued and outstanding shares of the Class B Common Stock of the Corporation as required
by Article 4 Section A.3 of the Company's Restated Certificate of Incorporation. No other class of securities of the Corporation is entitled to vote on the foregoing amendment. 

        5.     The
amendment was duly adopted in accordance with Section 242 of the General Corporation Law of the State of Delaware. 

        6.     The
capital of the Corporation will not be reduced under or by reason of the amendment. 

        IN
WITNESS WHEREOF, Watts Industries, Inc. has caused its corporate seal to be affixed and this Certificate to be signed on its behalf by Timothy P. Horne, Chairman of the Board
and attested by Kenneth J. McAvoy, Secretary, and does hereby affirm that the facts stated therein are true, this 18th day of October, 1990. 

	ATTEST:	 	WATTS INDUSTRIES INC.
	[Corporate Seal].	 	 	 
	

 	
 	

By:	

/s/  TIMOTHY P. HORNE      
 Timothy P. Horne
 Chairman of the Board
	/s/  KENNETH J. MCAVOY      
 Kenneth J. McAvoy
 Secretary	 	 	 

 
 

CERTIFICATE OF AMENDMENT    
    
    TO THE    
    
    RESTATED CERTIFICATE OF INCORPORATION    
    
    OF    
    
    WATTS INDUSTRIES, INC.    
    

        Watts Industries, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware, 

        DOES
HEREBY CERTIFY: 

        FIRST:    That
at a meeting of the Board of Directors of Watts Industries, Inc., resolutions were duly adopted setting forth a proposed amendment of the Restated
Certificate of Incorporation of said corporation, declaring said amendment to be advisable and placing said amendment on the agenda of the next annual meeting of the stockholders of said corporation
for consideration thereof. The resolution setting forth the proposed amendment is as follows: 

        RESOLVED,
that the Restated Certificate of Incorporation of this corporation be amended by changing Section A.7 of the Article thereof numbered "FOURTH" so that, as amended, said
Section A.7 shall be and read as follows: 

        7.    Restriction on Transfer of Class B Common Stock.    

        (a)   No
person holding shares of Class B Common Stock of record (hereinafter called a "Class B Holder") may transfer, and the Corporation shall not register the
transfer of, such shares of Class B Common Stock, whether by sale, assignment, gift, bequest, appointment or otherwise, except to a Permitted Transferee (as hereinafter defined). A Permitted
Transferee shall mean, with respect to each person from time to time shown as the record holder of shares of Class B Common Stock, as follows: 

          (i)  In
the case of a Class B Holder who is a natural person, a Permitted Transferee shall mean: 

        (A)  The
spouse of such Class B Holder, any lineal descendant of a grandparent of such Class B Holder, and any spouse of such lineal descendant (which lineal
descendants, their spouses, the Class B Holder, and his or her spouse are herein collectively referred to as the "Class B Holder's Family Members"); 

        (B)  The
trustee or trustees of a trust for the benefit of such Class B Holder and/or one or more of his or her Permitted Transferees described in any subclause of
this clause (i) other than this subclause (B), provided that such trust may also grant a general or special power of appointment to one or more of such Class B Holder's Family Members
and may permit trust assets to be used to pay taxes, legacies and other obligations of the trust or of the estates of one or more of such Class B Holder's Family Members payable by reason of
the death of any of such Family Members; 

        (C)  A
corporation of which all of the beneficial ownership of outstanding capital stock entitled to vote for the election of directors is owned by, or a partnership of which
all of the beneficial ownership of the partnership interests entitled to participate in the management of the partnership are held by, the Class B Holder or his or her Permitted Transferees
determined under this clause (i), provided that if by reason of any change in the ownership of such stock or partnership interests, such corporation or partnership would no longer qualify as a
Permitted Transferee, all shares of Class B Common Stock then held by such corporation or partnership shall, upon the election of the Corporation given by written notice to such corporation or
partnership, without further act on anyone's part, be converted into shares of Class A 

 

Common
Stock effective upon the date of the giving of such notice, and stock certificates formerly representing such shares of Class B Common Stock shall thereupon and thereafter be deemed to
represent the like number of shares of Class A Common Stock; 

        (D)  Any
private charitable foundation, the trustee or trustees of any private charitable foundation (in the event such foundation is organized as a trust) or the trustee or
trustees of any charitable remainder
trust, which foundation or trust was established by one or more Class B Holders and/or one or more of his or her Permitted Transferees described in any subclause of this clause (i) other
than this subclause (D); 

        (E)  The
estate of such Class B Holder; and 

        (F)  The
trustee or trustees of a voting trust established by one or more Class B Holders and/or one or more of his or her Permitted Transferees described in any
subclause of this clause (i) other than this subclause (F). 

         (ii)  In
the case of a Class B Holder holding the shares of Class B Common Stock in question as trustee or trustees pursuant to a revocable trust (for this
purpose, any voting trust and any trust that is revocable with the consent of the trustee shall be deemed to constitute a revocable trust), other than any charitable remainder trust, "Permitted
Transferee" means (A) any person who originally transferred such shares of Class B Common Stock to such trust (or, in the event such transferor is a trust which has been revoked or
dissolved, such transferor shall be deemed to be any original settlor or settlors of such trust) and (B) any Permitted Transferee of any such transferor determined pursuant to this
Section A.7(a). 

        (iii)  In
the case of a Class B Holder holding the shares of Class B Common Stock in question as trustee or trustees pursuant to a trust which is irrevocable,
other than any charitable remainder trust, "Permitted Transferee" means (A) any person to whom or for whose benefit principal may be distributed either during or at the end of the term of such
trust whether by power of appointment or otherwise and (B) any Permitted Transferee of any such person determined pursuant to this Section A.7(a). 

        (iv)  In
the case of a Class B Holder holding the shares of Class B Common Sock in question as trustee or trustees pursuant to a charitable remainder trust,
"Permitted Transferee" means (A) any person who originally transferred such shares of Class B Common Stock to such trust and (B) any Permitted Transferee of any such transferor
determined pursuant to this Section A.7(a). 

         (v)  In
the case of a Class B Holder which is a private charitable foundation, corporation or partnership holding record and beneficial ownership of the shares of
Class B Common Stock in question, "Permitted Transferee" means (A) any person transferring such shares of Class B Common Stock to such private charitable foundation, corporation
or partnership and (B) any Permitted Transferee of any such transferor determined pursuant to this Section A.7(a). 

        (vi)  In
the case of a Class B Holder which is the estate of a deceased Class B Holder, or which is the estate of a bankrupt or insolvent Class B Holder,
which holds record and beneficial ownership of the shares of Class B Common Stock in question, "Permitted Transferee" means a Permitted Transferee of such deceased, bankrupt or insolvent
Class B Holder as determined pursuant to this Section A.7(a). 

2

 

        For
purposes of applying the provisions of this Section A.7(a) in connection with any transfer of shares of Class B Common Stock, (i) any Permitted Transferee of a
person who is deceased or otherwise no longer in existence shall be determined as if such person were then living or otherwise in existence (except as contemplated in clause (ii)(A) of
this Section A.7(a)) and (ii) determination of the Permitted Transferees of any person may be made by successive applications of any of the provisions of this Section A.7(a) as
provided herein (as in the case, for example, of a determination of the Permitted Transferees of a trust involving analysis of the original transferor to such trust and the Permitted Transferees of
such transferor). 

        (b)   Notwithstanding
anything to the contrary set forth herein, any Class B Holder may pledge such Holder's shares of Class B Common Stock to a pledgee pursuant
to a bona fide pledge of such shares as collateral security for indebtedness due to the pledgee, provided that such shares shall not be transferred to, or registered in, the name of the pledgee and
shall remain subject to the provisions of this Section A.7. In the event of foreclosure or other similar action by the pledgee, such pledged shares of Class B Common Stock may only be
transferred to a Permitted Transferee of the pledgor or converted into shares of Class A Common Stock, as the pledgee may elect. 

        (c)   For
purposes of this Section A.7: 

          (i)  The
relationship of any person that is derived by or through legal adoption shall be considered a natural one. 

         (ii)  Each
joint owner of shares of Class B Common Stock shall be considered a "Class B Holder" of such shares. 

        (iii)  A
minor for whom shares of Class B Common Stock are held pursuant to a Uniform Gifts to Minors Act or similar law shall be considered a Class B Holder of
such shares. 

        (iv)  Unless
otherwise specified, the term "person" means both natural persons and legal entities. 

         (v)  The
term "Class B Common Stock" shall be deemed to include any securities of the Corporation or its predecessors in respect of which Class B Common Stock
was issued. 

        (iv)  Without
derogating from the election conferred upon the Corporation pursuant to subclause (C) of clause (i) above, each reference to a corporation shall
include any successor corporation resulting from merger or consolidation; and each reference to a partnership shall include any successor partnership resulting from the death, admission or withdrawal
of a partner. 

        (d)   Any
transfer of shares of Class B Common Stock not permitted hereunder shall result in the automatic conversion of those shares of Class B Common Stock
into an equal number of shares of Class A Common Stock without any further act, effective as of the date on which certificates representing such shares are presented for transfer on the books
of the Corporation. The Corporation may, in connection with preparing a list of stockholders entitled to vote at any meeting of stockholders, or as a condition to the transfer or the registration of
shares of Class B Common Stock on the Corporation's books, require the furnishing of such affidavits or other proof as it deems necessary to establish that any person is the beneficial owner of
shares of Class B Common Stock or is a Permitted Transferee. 

        (e)   Shares
of Class B Common Stock shall be registered in the names of the beneficial owners thereof and not in "street" or "nominee" name. For this purpose, a
"beneficial owner" 

3

 

of
any shares of Class B Common Stock shall mean a person who, or an entity which, possesses the power, either singly or jointly, to direct the voting or disposition of such shares (including
any voting trustee or trustees under a voting trust). The Corporation shall note on the Certificates for shares of Class B Common Stock the restrictions on transfer and registration of transfer
imposed by this Section A.7 or otherwise. 

        SECOND:    That
thereafter, pursuant to resolution of its Board of Directors, the annual meeting of the stockholders of said corporation was duly called and held, upon notice
in accordance with Section 222 of the General Corporation Law of the State of Delaware, at which meeting the necessary number of shares as required by statute were voted in favor of the
amendment. 

        THIRD:    That
said amendment was duly adopted in accordance with the provisions of Section 242 of the General Corporation Law of the State of Delaware. 

        IN
WITNESS WHEREOF, said Watts Industries, Inc. has caused this certificate to be signed by Charles W. Grigg, its President, and Kenneth J. McAvoy, its Secretary, this 15th day of
October, 1991. 

	

 	

 	
 	

By	

/s/  CHARLES W. GRIGG      
 Charles W. Grigg, President
	

ATTEST:	
 	

 	

 
	

 	

 	
 	

 	

 
	By	/s/  KENNETH J. MCAVOY      
 Kenneth J. McAvoy, Secretary	 	 	 

4

 
 

CERTIFICATE OF AMENDMENT    
    
    OF    
    
    RESTATED CERTIFICATE OF INCORPORATION    
    
    OF    
    
    WATTS INDUSTRIES, INC.    
    

        Watts Industries, Inc., a corporation organized and existing under the laws of the State of Delaware (the "Corporation"), does hereby certify as follows: 

        1.     The
name of the Corporation is Watts Industries, Inc. 

        2.     The
first paragraph of Article FOURTH of the Restated Certificate of Incorporation of the Corporation is hereby amended and restated to read in its entirety as follows: 

FOURTH:    The total number of shares of capital stock which the Corporation shall have authority to issue shall be one hundred ten million
(110,000,000) shares, of which eighty million (80,000,000) shall be Class A Common Stock, par value $.10 per share ("Class A Common Stock"), twenty-five million (25,000,000)
shall be Class B Common Stock, par value $.10 per share ("Class B Common Stock"), and five million (5,000,000) shall be Preferred Stock, par value $.10 per share, issuable in series
("Preferred Stock"). 

        3.     At
a meeting duly held on August 9, 1994 after notice duly given, the Board of Directors of the Corporation adopted resolutions declaring the advisability of the
foregoing amendment and directed the officers of the Corporation to submit the amendment to the stockholders of the Corporation for their approval at its 1994 Annual Meeting of the stockholders. The
Annual Meeting was called and
held upon notice in accordance with Section 222 of the General Corporation Law of the State of Delaware. 

        4.     The
stockholders of the Corporation approved the foregoing amendment by the favorable votes of (i) the holders of a majority of the issued and outstanding shares
of the Class A Common Stock of the Corporation and (ii) the holders of a majority of the issued and outstanding shares of the Class B Common Stock of the Corporation as required
by Article FOURTH Section A.3 and Article NINTH of the Corporation's Restated Certificate of Incorporation. No other class of securities of the Corporation is entitled to vote on the foregoing
amendment. 

        5.     The
amendment was duly adopted in accordance with Section 242 of the General Corporation Law of the State of Delaware. 

        6.     The
capital of the Corporation will not be reduced under or by reason of the amendment. 

        IN
WITNESS WHEREOF, Watts Industries, Inc. has caused its corporate seal to be affixed and this Certificate to be signed on its behalf by Timothy P. Horne, Chairman of the Board
and attested by Kenneth J. McAvoy, Secretary, and does hereby affirm that the facts stated therein are true, this 18th day of October, 1994. 

	ATTEST:	 	 	 
	

[Corporate Seal]	
 	

WATTS INDUSTRIES, INC.

  
	

/s/  KENNETH J. MCAVOY      
 Kenneth J. McAvoy
 Secretary	
 	

By:	

/s/  TIMOTHY P. HORNE      
 Timothy P. Horne
 Chairman of the Board

 
 

CERTIFICATE OF OWNERSHIP AND MERGER    
    
    MERGING    
    
    WATTS INVESTMENT COMPANY,
  A DELAWARE CORPORATION    
    
    WITH AND INTO    
    
    WATTS INDUSTRIES, INC.,
  A
DELAWARE CORPORATION    
    

        Watts Industries, Inc. ("Watts Industries"), a corporation organized and existing under the laws of the State of Delaware, DOES HEREBY CERTIFY: 

        FIRST:    That
Watts Industries was incorporated on December 27, 1985, pursuant to the laws of the State of Delaware; 

        SECOND:    That
Watts Industries owns one hundred percent (100%) of the issued and outstanding shares of the common stock of Watts Investment Company ("Watts Investment"), a
Delaware corporation, which was incorporated on July 22, 1991, pursuant to the Delaware General Corporation Law (the "DGCL"); 

        THIRD:    That
Watts Industries by the following resolutions of its Board of Directors, duly adopted by consent of the Board of Directors as of December 20, 2002, did
determine to merge Watts Investment with and into itself, which resolutions are as follows: 

        RESOLVED:    That, effective upon the filing of an appropriate Certificate of Ownership and Merger (the "Certificate of
Ownership and Merger") embodying these resolutions with the Secretary of State of Delaware, Watts Investment Company, a Delaware corporation and wholly owned subsidiary of the
Company (the "Subsidiary"), shall be merged (the "Merger") with and into the Company, and the Company shall be the surviving corporation possessed of all the estate, property, rights, privileges and
franchises of the Subsidiary, and the Corporation shall assume all of the liabilities and obligations of the Subsidiary pursuant to and in the manner prescribed by Section 253 of the DGCL. 

        RESOLVED:    That the President and Chief Financial Officer, Treasurer and Secretary or other proper officer of the Company (the
"Authorized Officers") be, and each of them acting singly hereby is, authorized, empowered and directed in the name and on behalf of the Company, to execute and file or cause to be filed with the
Secretary of State of Delaware, the Certificate of Ownership and Merger as required by Section 253 of the DGCL, and any and all additional documents and information required to be filed
therewith. 

        RESOLVED:    That the Merger shall be effective upon the filing of the Certificate of Ownership and Merger, or at such later
date provided therein, with the Secretary of State of Delaware. 

        RESOLVED:    That upon the proposed Merger becoming effective, each outstanding share of capital stock of Subsidiary owned of
record by the Company shall cease to be outstanding, without any payment being made in respect thereof. 

        RESOLVED:    That any and all actions heretofore taken by any officer or director of the Company contemplated by or in
connection with the Merger be, and each of them hereby is, ratified, confirmed and approved in all respects. 

        RESOLVED:    That, anything in these resolutions or elsewhere to the contrary notwithstanding, the Merger may be amended or
terminated and abandoned by the Board of Directors of the Company at any time prior to the date of filing the Certificate of Ownership and Merger with the Secretary of State of Delaware. 

        FOURTH:    That
the Certificate of Incorporation of Watts Industries, which is the surviving corporation, shall continue in full force and effect as the Certificate of
Incorporation of the surviving corporation; and 

        FIFTH:    That
this Certificate of Merger shall be effective as of 5:00 p.m., Eastern time, on December 20, 2002. 

 

        IN
WITNESS WHEREOF, said Watts Industries has caused this Certificate to be signed by its duly elected, qualified and acting Chief Financial Officer, this 20th day of December, 2002. 

	 	 	WATTS INDUSTRIES, INC.
	

 	
 	
By:	

/s/  WILLIAM C. MCCARTNEY      
 Name: William C. McCartney
 Title: Chief Financial Officer

2

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CERTIFICATE OF INCORPORATION OF WATTS INDUSTRIES, INC.

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EXHIBIT A

RESTATED CERTIFICATE OF INCORPORATION OF WATTS INDUSTRIES, INC.

CERTIFICATE OF AMENDMENT OF RESTATED CERTIFICATE OF INCORPORATION OF WATTS INDUSTRIES, INC.

CERTIFICATE OF AMENDMENT TO THE RESTATED CERTIFICATE OF INCORPORATION OF WATTS INDUSTRIES, INC.

CERTIFICATE OF AMENDMENT OF RESTATED CERTIFICATE OF INCORPORATION OF WATTS INDUSTRIES, INC.

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Exhibit 4.2  

 
  EXHIBIT A    
    

Amendment

Of July 24, 2002

The By-Laws of Watts Industries, Inc.

As Amended and Restated on April 21, 1992,

And Amended May 11, 1999  

        The By-Laws of Watts Industries, Inc. are hereby amended as follows: 

	1.
	Article III.
Article III of the By-Laws is hereby amended by:

	(a)
	Striking
"a Chairman of the Board of Directors" from Section 1; and

	(b)
	Striking
Section 7 in its entirety.

	2.
	Article II.
Article II of the By-Laws is hereby amended by:

	(a)
	adding
the following section in its entirety: 

        "Section 15.
Chairman of the Board. The Chairman of the Board shall, subject to the direction of the Board of Directors, have general supervision and control of its business. The
Chairman of the Board shall preside, when present, at all meetings of the Board of Directors, unless the Board of Directors shall otherwise provide, and at meetings of the stockholders as provided in
Section 11 of Article I hereof. The Chairman is not an officer of the Corporation." 

 
 

BY-LAWS    
    
    of    
    
    WATTS INDUSTRIES, INC.    
    

Amended and Restated as of April 21, 1992, amended as of May 11, 1999 and August 7, 2002  

  
 

    ARTICLE I    
    
    Stockholders    
    

        Section 1.    Annual Meeting.    The annual meeting of stockholders shall be held at the hour, date and place
within or without the United States which is fixed by the Board of Directors or the Chairman of the Board, which hour, date and place may subsequently be changed at any time by vote of the Board of
Directors. If no annual meeting has been held for a period of thirteen months after the Corporation's last annual meeting of stockholders, a special meeting in lieu thereof may be held, and such
special meeting shall have, for the purposes of these By-laws or otherwise, all the force and effect of an annual meeting. Any and all references hereafter in these By-laws to
an annual meeting or annual meetings also shall be deemed to refer to any special meeting(s) in lieu thereof. 

        Section 2.    Matters to be Considered at Annual Meeting.    At an annual meeting of stockholders, only such
business shall be conducted, and only such proposals shall be acted upon, as shall have been properly brought before the annual meeting (a) by, or at the direction of, the Board of Directors or
a designated committee thereof or (b) by any holder of record (both as of the time notice of such proposal is given by the stockholder as set forth below and as of the record date for the
annual meeting in question) of any shares of capital stock of the Corporation entitled to vote at such annual meeting who complies with the procedures set forth in this Section 2 (or, with
respect to nominations of candidates for election as Directors, as set forth in Section 3 of Article II hereof). In addition to any other applicable requirements, for business to be
properly brought before an annual meeting by a holder of record of any shares of capital stock entitled to vote at such annual meeting, the stockholder must have given timely notice thereof in writing
to the Secretary of the Corporation as set forth in this Section 2 and such stockholder or his representative must be present at the annual meeting. To be timely, a stockholder's notice must be
delivered to, or mailed to and received at, the principal executive offices of the Corporation (a) not less than 75 days nor more than 120 days prior to the anniversary date of
the immediately preceding annual meeting of stockholders (the "Anniversary Date") or (b) in the event that the annual meeting of stockholders is called for a date more than 10 days prior
to the Anniversary Date, not later than the close of business on (i) the 20th day (or if that day is not a business day of the Corporation, on the next succeeding business day) following the
first date on which the date of such meeting was publicly disclosed or (ii) if such date of public disclosure occurs more than 75 days prior to such scheduled date of such meeting, then
the later of (1) the 20th day (or if that day is not a business day for the Corporation, on the next succeeding business day) following the first date of public disclosure or (2) the
75th day prior to such scheduled date of such meeting (or if that day is not a business day for the Corporation, on the next succeeding business day). Any public disclosure of the scheduled date of
the meeting made by the Corporation by means of a press release, a report or other document filed with the Securities and Exchange Commission, or a letter or report sent to stockholders of record of
the Corporation, shall be deemed to be sufficient public disclosure of the date of such meeting for purposes of these By-laws. 

        A
stockholder's notice to the Secretary shall set forth as to each matter the stockholder proposes to bring before the annual meeting (a) a brief description of the proposal
desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (b) the name and address, as they appear on the Corporation's stock transfer
books, of the stockholder proposing such business and of the beneficial owners (if any) of the stock registered in such stockholder's name and the name and address of other stockholders known by such
stockholder to be supporting such proposal on the date of such stockholder's notice, (c) the class and number of shares of the Corporation's capital stock which are held of record, beneficially
owned or represented by proxy by the stockholder and by any other stockholders known by such stockholder to be supporting such proposal on the record date for the annual meeting in question (if such
date shall then have been made publicly available) and on the date of such stockholder's notice, and (d) any material interest of the stockholder in such proposal. 

        If
the Board of Directors, or a designated committee thereof, determines that any stockholder proposal was not timely made in accordance with the provisions of this Section 2, or
that the 

 

information
provided in a stockholder's notice does not satisfy the informational requirements of this Section 2 in any material respect, then such proposal shall not be presented for action at
the annual meeting in question. If neither the Board of Directors nor such committee makes a determination as to the validity of any stockholder proposal, the presiding officer of the annual meeting
shall determine and declare at the annual meeting whether the stockholder proposal was made in accordance with the terms of this Section 2. If the presiding officer determines that a
stockholder proposal was made in accordance with the terms of this Section 2, he shall so declare at the annual meeting and ballots shall be provided for use at the meeting with respect to any
such proposal. If the presiding officer determines that a stockholder proposal was not made in accordance with the terms of this Section 2, he shall so declare at the annual meeting and any
such proposal shall not be acted upon at the annual meeting. 

        The
provisions of this By-law shall not prevent the consideration and approval or disapproval at the annual meeting of reports of officers, Directors and committees of the
Board of Directors, but in connection with such reports, no new business shall be acted upon at such annual meeting unless stated, filed and received as herein provided. 

        Notwithstanding
the foregoing provisions of this By-law, a stockholder shall also comply with all applicable requirements of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), and the rules and regulations thereunder with respect to the matters set forth in this By-law. Nothing in this By-law shall be deemed to affect any rights
of stockholders to request inclusion of proposals in the Corporation's proxy statement pursuant to Rule 14a-8 under the Exchange Act. 

        Section 3.    Special Meetings.    Except as otherwise required by law, special meetings of the stockholders of
the Corporation may be called only by the Board of Directors pursuant to a resolution approved by the affirmative vote of a majority of the Directors then in office or the Chairman of the Board. 

        Section 4.    Matters to be Considered at Special Meetings.    Only those matters set forth in the notice of
the special meeting may be considered or acted upon at a special meeting of stockholders of the Corporation, unless otherwise provided by law. 

        Section 5.    Notice of Meetings; Adjournments.    A written notice of each annual meeting of stockholders
stating the place, date and hour of such annual meeting shall be given by the Secretary (or other person authorized by these By-laws or by law) not less than 10 days nor more than
60 days before the meeting, to each stockholder entitled to vote thereat and to each stockholder who, by law or under the Restated Certificate of Incorporation or under these
By-laws, is entitled to such notice, by delivering such notice to him or by mailing it, postage prepaid, and addressed to such stockholder at the address of such stockholder as it appears
in the records of the Corporation. Such notice shall be deemed to be delivered when hand delivered to such address or deposited in the mail so addressed, with postage prepaid. 

        Notice
of all special meetings of stockholders shall be given in the same manner as provided for annual meetings of the stockholders, except that the written notice of all special
meetings shall state the purpose or purposes for which the meeting has been called. 

        Notice
of an annual or special meeting of stockholders need not be given to a stockholder if a written waiver of notice is executed before or after such meeting by such stockholder or
such stockholder's authorized attorney, if communication with such stockholder is unlawful, or if such stockholder attends such meeting, unless such attendance was for the express purpose of objecting
at the beginning of the meeting to the transaction of any business because the meeting was not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or
special meeting of the stockholders need be specified in any written waiver of notice. 

2

 

        The
Board of Directors may postpone and reschedule any previously scheduled annual or special meeting of stockholders and any record date with respect thereto, regardless of whether any
notice or public disclosure with respect to any such meeting has been sent or made pursuant to Section 2 of this Article I or Section 3 of Article II hereof or otherwise.
When any meeting is convened, the presiding officer may adjourn the meeting if (a) no quorum is present for the transaction of business, (b) the Board of Directors determines that
adjournment is necessary or appropriate to enable the stockholders to consider fully information which the Board of Directors determines has not been made sufficiently or timely available to
stockholders, or (c) the Board of Directors determines that adjournment is otherwise in the best interests of the Corporation. When any annual or special meeting of stockholders is adjourned to
another hour, date or place, notice need not be given of the adjourned meeting other than an announcement at the meeting at which the adjournment is taken of the hour, date and place to which the
meeting is adjourned; provided, however, that if the adjournment is for more than 30 days, or if
after the adjournment a new record date is fixed for the adjourned meeting, notice of the adjourned meeting shall be given to each stockholder of record entitled to vote thereat and each stockholder
who, by law or under the Restated Certificate of Incorporation or these By-laws, is entitled to such notice. 

        Section 6.    Quorum.    At any annual or special meeting of stockholders, the holders of a majority of the
voting power of all classes of stock issued, outstanding and entitled to vote at such meeting, represented in person or by proxy, shall constitute a quorum at such meeting; but if less than a quorum
is present at such meeting, the holders of a majority of the voting power of all classes of stock issued, outstanding and entitled to vote at such meeting that are present in person or by proxy at
such meeting or the presiding officer may adjourn the meeting from time to time, and the meeting may be held as adjourned without further notice, except as provided in Section 5 of this
Article I. At such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally noticed. The stockholders present
at a duly constituted meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum. 

        Section 7.    Voting and Proxies.    The voting power of each share of capital stock of the Corporation shall
be as set forth in the Restated Certificate of Incorporation, with a proportionate vote for each fraction of any share. Stockholders may vote either in person or by written proxy, but no proxy shall
be voted or acted upon after three years from its date, unless the proxy provides for a longer period. Proxies shall be filed with the Secretary of the meeting before being voted. Except as otherwise
limited therein or as otherwise provided by law, proxies shall entitle the persons authorized thereby to vote at any adjournment of such meeting, but they shall not be valid after final adjournment of
such meeting. A proxy with respect to stock held in the name of two or more persons shall be valid if executed by or on behalf of any one of them unless at or prior to the exercise of such proxy the
Corporation receives a specific written notice to the contrary from any one of them. A proxy purporting to be executed by or on behalf of a stockholder shall be deemed valid, and the burden of proving
invalidity shall rest on the challenger. 

        Section 8.    Action at Meeting.    When a quorum is present, any matter before any annual or special meeting
of stockholders shall be decided by vote of the holders of all classes of stock present in person or by proxy representing a majority of the votes of all classes of stock entitled to be cast at the
meeting, except where a larger vote is required by law, by the Restated Certificate of Incorporation or by these By-laws. Any election by stockholders shall be determined by a plurality of
the votes of all classes of stock cast, except where a larger vote is expressly required by law, by the Restated Certificate of Incorporation or by these By-laws. The Corporation shall not
directly or indirectly vote any shares of its own stock; provided, however, that the Corporation may
vote shares which it holds in a fiduciary capacity to the extent permitted by law. 

        Section 9.    Action by Consent.    Any action required or permitted by law to be taken at any annual or
special meeting of stockholders may be taken without a meeting, without prior notice and without a 

3

 

vote,
if a consent in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to
authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the corporate action without a meeting by less than unanimous written
consent shall be given to those stockholders who have not consented in writing. 

        Section 10.    Stockholder Lists.    The Secretary (or the Corporation's transfer agent or other person
authorized by these By-laws or by law) shall prepare and make, at least 10 days before every annual or special meeting of stockholders, a complete list of the stockholders entitled
to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares of each class of stock registered in the name of each stockholder. Such
list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least 10 days prior to the meeting, either
at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held. The list
shall also be produced and kept at the hour, date and place of the meeting during the whole time thereof, and may be inspected by any stockholder who is present. 

        Section 11.    Presiding Officer.    The Chairman of the Board, or in his absence, the President, shall preside
at all annual or special meetings of stockholders and shall have the power, among other things, to adjourn such meeting at any time and from time to time, subject to Sections 5 and 6 of this
Article I. The order of business and all other matters of procedure at any meeting of the stockholders shall be determined by the presiding officer. 

        Section 12.    Voting Procedures and Inspectors of Elections.    The Corporation shall, in advance of any
meeting of stockholders, appoint one or more inspectors to act at the meeting and make a written report thereof. The Corporation may designate one or more persons as alternate inspectors to replace
any inspector who fails to act. If no inspector or alternate is able to act at a meeting of stockholders, the presiding officer shall appoint one or more inspectors to act at the meeting. Any
inspector may, but need not, be an officer, employee or agent of the Corporation. Each inspector, before entering upon the discharge of his duties, shall take and sign an oath faithfully to execute
the duties of inspector with strict impartiality and according to the best of his ability. The inspectors shall perform such duties as are required by the Delaware General Corporation Law, as amended
from time to time, including the counting of all votes and ballots. The inspectors may, with the approval of the presiding officer, appoint or retain other persons or entities to assist the inspectors
in the performance of the duties of the inspectors. The presiding officer may review all determinations made by the inspector(s), and in so doing the presiding officer shall be entitled to exercise
his sole judgment and discretion and he shall not be bound by any determinations made by the inspector(s). All determinations by the inspector(s) and, if applicable, the presiding officer shall be
subject to further review by any court of competent jurisdiction. 

 
 

ARTICLE II    
    
    Directors    
    

        Section 1.    Powers.    All the power of the Corporation shall be exercised by or under the direction of the
Board of Directors except as otherwise provided by the Restated Certificate of Incorporation or as required by law. In the event of a vacancy in the Board of Directors, the remaining Directors, except
as otherwise provided by law, may exercise the powers of the full Board until the vacancy is filled. 

        Section 2.    Number; Election; Qualification.    The Board of Directors shall consist of not more than fifteen
(15) nor less than three (3) members. The exact number of Directors within the maximum and minimum limitations specified herein may be fixed from time to time by resolution of a majority
of the Board of Directors then in office or by the stockholders at the annual meeting of stockholders. The 

4

 

Directors
shall be elected by the stockholders at each annual meeting, except as provided in Section 5 of this Article II. No Director need be a stockholder. 

        Section 3.    Director Nominations.    Nominations of candidates for election as Directors of the Corporation
at any annual meeting of stockholders may be made (a) by, or at the direction of, a majority of the Board of Directors or a designated committee thereof, or (b) by any holder of record
(both as of the time notice of such nomination is given by the stockholder as set forth below and as of the record date for the annual meeting in question) of any shares of the capital stock of the
Corporation entitled to vote at such annual meeting who complies with the procedures set forth in this Section 3. Any stockholder who seeks to make such a nomination, or his representative,
must be present in person at the annual meeting. Only persons nominated in accordance with the procedures set forth in this Section 3 shall be eligible for election as Directors at an annual
meeting of stockholders. 

        Nominations,
other than those made by, or at the direction of, the Board of Directors or a designated committee thereof, shall be made pursuant to timely notice in writing to the
Secretary of the Corporation as set forth in this Section 3. To be timely, a stockholder's notice shall be delivered to, or mailed and received, at the principal executive offices of the
Corporation (a) not less than 75 days nor more than 120 days prior to the Anniversary Date or (b) in the event that the annual meeting of stockholders is called for a date
more than seven days prior to the Anniversary Date, not later than the close of business on (i) the 20th day (or if that day is not a business day for the Corporation, on the next succeeding
business day) following the first date on which the date of such meeting was publicly disclosed or (ii) if such date of public disclosure occurs more than 75 days prior to such scheduled
date of such meeting, then the later of (1) the 20th day (or if that day is not a business day for the Corporation, on the next succeeding business day) following the first date of public
disclosure of the date of such meeting or (2) the 75th day prior to such scheduled date of such meeting (or if that day is not a business day for the Corporation, on the next succeeding
business day). Any public disclosure of the scheduled date of the meeting made by the Corporation by means of a press release, a report or other document filed with the Securities and Exchange
Commission, or a letter or report sent to stockholders of record of the Corporation, shall be deemed to be sufficient public disclosure of the date of such meeting for purposes of these
By-laws. 

        Such
stockholder's notice shall set forth (a) as to each person whom the stockholder proposes to nominate for election or re-election as a director (i) the
name, age, business address and residential address of such person, (ii) the principal occupation or employment of such person during the past five years, (iii) the class and number of
shares of the Corporation's capital stock which are beneficially owned by such person on the date of such stockholder notice, (iv) a description of any of the following events that has occurred
within the last five years and that is material to the evaluation of the ability or integrity of such proposed nominee: (1) a petition under federal bankruptcy laws or any state insolvency laws
was filed by or against such person, (2) a conviction of such person in a criminal proceeding or the naming of such person as a subject of a criminal proceeding (excluding traffic violations
and other minor offenses), (3) a finding by any court of competent jurisdiction that such person has violated any federal or state securities law or federal commodities law, which judgment or
finding has not been subsequently reversed, suspended or vacated, or (4) the entry of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent
jurisdiction or of any federal or state governmental or quasi-governmental agency, authority or commission enjoining such person or otherwise limiting him from engaging in any type of business
practice or in any activity in connection with the purchase or sale of any security or commodity, and (v) the consent of each nominee to serve as a Director if so elected and (b) as to
the stockholder giving the notice (i) the name and address, as they appear on the Corporation's stock transfer books, of such stockholder and of the beneficial owners (if any) of the stock
registered in such stockholder's name and the name and address of other stockholders known by such stockholder to be supporting 

5

 

such
nominee or nominees, (ii) the class and number of shares of the Corporation's capital stock which are beneficially owned by such stockholder and such beneficial owners (if any) on the date
of such stockholder's notice and by any other stockholders known by such stockholder to be supporting such nominee or nominees on the date of such stockholder's notice, (iii) a representation
that the stockholder or his representative intends to appear in person at the meeting to nominate the person or persons specified in the notice, (iv) a description of all arrangements or
understandings between such stockholder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made by such
stockholders; provided, that nothing in this Section 3 shall require the stockholder giving such notice to provide to the Corporation copies of
such stockholder's preliminary or definitive proxy, proxy statement, or other soliciting material filed with the Securities and Exchange Commission. At the request of the Board of Directors, any
person nominated by, or at the direction of, the Board of Directors for election as a Director at an annual meeting shall furnish to the Secretary of the Corporation that information required to be
set forth in a stockholder's notice of nomination which pertains to such nominee. 

        No
person shall be elected by the stockholders as a Director of the Corporation unless nominated in accordance with the procedures set forth in this Section 3. Election of
Directors at the annual meeting need not be by written ballot, unless otherwise provided by the Board of Directors or presiding officer at such annual meeting. If written ballots are to be used,
ballots bearing the names of all the persons who have been nominated for election as Directors at the annual meeting in accordance with the procedures set forth in this Section 3 shall be
provided for use at the annual meeting. 

        If
the Board of Directors, or a designated committee thereof, determines that any stockholder nomination was not timely made in accordance with the terms of this Section 3 or that
the information provided in a stockholder's notice does not satisfy the informational requirements of this Section 3 in
any material respect, then such nomination shall not be considered at the annual meeting in question. If neither the Board of Directors nor such committee makes a determination as to the validity of
any nominations by a stockholder as set forth above, the presiding officer of the annual meeting shall determine and declare at the annual meeting whether a nomination was made in accordance with the
terms of this Section 3. If the presiding officer determines that a nomination was made in accordance with the terms of this Section 3, he shall so declare at the annual meeting and
ballots shall be provided for use at the meeting with respect to such nomination. If the presiding officer determines that a nomination was not made in accordance with the terms of this
Section 3, he shall so declare at the annual meeting and such nomination shall be disregarded. 

        Section 4.    Tenure.    Except as otherwise provided by law, by the Restated Certificate of Incorporation or
by these By-laws, Directors shall hold office until the next annual meeting of stockholders and until their successors are elected and qualified or until their earlier resignation or
removal. 

        Section 5.    Vacancies.    Any vacancy occurring on the Board of Directors, including any vacancy resulting
from death, resignation, retirement, disqualification, removal or other cause or created by reason of an increase in the authorized number of Directors shall be filled by the affirmative vote of a
majority of the remaining Directors then in office, even if such majority is less than a quorum of the Board of Directors. Any Director appointed in accordance with the preceding sentence shall hold
office subject to the provisions of these By-laws until the next annual meeting of stockholders and until such Director's successor is elected and qualified or until such Director resigns
or is removed. In the event of a vacancy in the Board of Directors, the remaining Directors, except as otherwise provided by law, may exercise the powers of the full Board of Directors until the
vacancy is filled. 

        Section 6.    Removal.    Any Director (including persons elected by Directors to fill vacancies in the Board
of Directors) or the entire Board of Directors may be removed with or without cause by the affirmative vote of the holders of at least a majority of the voting power of the shares of the 

6

 

Corporation
then entitled to vote at an election of Directors, voting together as a single class. Any Director may be removed for cause by vote of a majority of the Directors then in office. A
Director may be removed for cause only after reasonable notice and opportunity to be heard before the body proposing to remove him. 

        Section 7.    Resignation.    A Director may resign at any time by giving written notice to the Chairman of the
Board, the President or the Secretary. A resignation shall be effective upon receipt, unless the resignation otherwise provides. 

        Section 8.    Regular Meetings.    The regular annual meeting of the Board of Directors shall be held, without
other notice than this By-law, on the same date and at the same place as the annual meeting of stockholders following the close of such meeting of stockholders. Other regular meetings of
the Board of Directors may be held without call or notice at such hour, date and place as the Board of Directors may from time to time determine. 

        Section 9.    Special Meetings.    Special meetings of the Board of Directors may be called, orally or in
writing, by or at the request of the Chairman of the Board, the Treasurer, or two or more Directors designating the hour, date and place thereof. 

        Section 10.    Notice of Special Meetings.    Notice of the hour, date and place of all special meetings of the
Board of Directors shall be given to each Director by the Secretary or an Assistant Secretary, or in case of the death, absence, incapacity or refusal of such persons, by the President. Notice of any
special meeting of the Board of Directors shall be given to each Director in person or by telephone, telex, telecopy or other written form of electronic communication, or by telegram sent to his
business or home address at least 24 hours in advance of the meeting, or by written notice mailed to his business or home address at least 48 hours in advance of the meeting. Such notice
shall be deemed to be delivered when hand delivered to such address, read to such Director by telephone, deposited in the mail so addressed, with postage thereon prepaid if mailed, dispatched or
transmitted if telexed or telecopied, or when delivered to the telegraph company if sent by telegram. 

        When
any Board of Directors meeting, either regular or special, is adjourned for 30 days or more, notice of the adjourned meeting shall be given as in the case of an original
meeting. It shall not be necessary to give any notice of the hour, date or place of any meeting adjourned for less than 30 days or of the business to be transacted thereat, other than an
announcement at the meeting at which such adjournment is taken of the hour, date and place to which the meeting is adjourned. 

        A
written waiver of notice executed before or after a meeting by a Director and filed with the records of the meeting shall be deemed to be equivalent to notice of the meeting. The
attendance of a Director at a meeting shall constitute a waiver of notice of such meeting, except where a Director attends a meeting for the express purpose of objecting to the transaction of any
business because such meeting is not lawfully called or convened. Except as otherwise required by law, by the Restated Certificate of Incorporation or by these By-laws, neither the
business to be transacted at, nor the purpose of, any meeting of the Board of Directors need be specified in the notice or waiver of notice of such meeting. 

        Section 11.    Quorum.    At any meeting of the Board of Directors, a majority of the Directors then in office
shall constitute a quorum for the transaction of business, but if less than a quorum is present at a meeting, a majority of the Directors present may adjourn the meeting from time to time, and the
meeting may be held as adjourned without further notice, except as provided in Section 10 of this Article II. Any business which might have been transacted at the meeting as originally
noticed may be transacted at such adjourned meeting at which a quorum is present. 

        Section 12.    Action at Meeting.    At any meeting of the Board of Directors at which a quorum is present, a
majority of the Directors present may take any action on behalf of the Board of Directors, unless a
larger number is required by law, by the Restated Certificate of Incorporation or by these By-laws. 

7

  

        Section 13.    Action by Consent.    Any action required or permitted to be taken at any meeting of the Board
of Directors may be taken without a meeting if all members of the Board of Directors consent thereto in writing. Such written consent shall be filed with the records of the meetings of the Board of
Directors and shall be treated for all purposes as a vote at a meeting of the Board of Directors. 

        Section 14.    Manner of Participation.    Directors may participate in meetings of the Board of Directors by
means of conference telephone or similar communications equipment by means of which all Directors participating in the meeting can hear each other, and participation in a meeting in accordance
herewith shall constitute presence in person at such meeting for purposes of these By-laws. 

        Section 15.    Chairman of the Board.    The Chairman of the Board shall, subject to the direction of the Board
of Directors, have general supervision and control of its business. The Chairman of the Board shall preside, when present, at all meetings of the Board of Directors, unless the Board of Directors
shall otherwise provide, and at meetings of the stockholders as provided in Section 11 of Article I hereof. The Chairman is not an officer of the Corporation. 

        Section 16.    Committees.    The Board of Directors, by vote of a majority of the Directors then in office,
may elect from its number one or more committees, including an Executive Committee and an Audit Committee, and may delegate thereto some or all of its powers except those which by law, by the Restated
Certificate of Incorporation, or by these By-laws may not be delegated. Except as the Board of Directors may otherwise determine, any such committee may make rules for the conduct of its
business, but unless otherwise provided by the Board of Directors or in such rules, its business shall be conducted so far as possible in the same manner as is provided by these By-laws
for the Board of Directors. All members of such committees shall hold such offices at the pleasure of the Board of Directors. The Board of Directors may abolish any such committee at any time. Any
committee to which the Board of Directors delegates any of its powers or duties shall keep records of its meetings and shall report its action to the Board of Directors. The Board of Directors shall
have power to rescind any action of any committee, but no such rescission shall have retroactive effect. 

 
 

ARTICLE III    
    
    Officers    
    

        Section 1.    Enumeration.    The officers of the Corporation shall consist of a President, a Secretary, a
Treasurer, and such other officers, including without limitation one or more Executive Vice Presidents, Vice Presidents, Assistant Secretaries and Assistant Treasurers, as the Board of Directors may
determine. 

        Section 2.    Election.    At the regular annual meeting of the Board of Directors following the annual meeting
of stockholders, the Board of Directors shall elect the President, the Secretary, and the Treasurer. Other officers may be elected by the Board of Directors at such regular annual meeting or at any
other regular or special meeting. 

        Section 3.    Qualification.    No officer need be a stockholder or a Director. Any person may occupy more than
one office of the Corporation at any time. Any officer may be required by the Board of Directors to give bond for the faithful performance of his duties in such amount and with such sureties as the
Board of Directors may determine. 

        Section 4.    Tenure.    Except as otherwise provided by the Restated Certificate of Incorporation or by these
By-laws, each officer of the Corporation shall hold office until the regular annual meeting of the Board of Directors following the next annual meeting of stockholders and until such
officer's successor is elected and qualified or until such officer's earlier resignation or removal. Any officer may resign by delivering a written resignation to the Board of Directors, and such
resignation shall be 

8

 

effective
upon receipt unless it is specified to be effective at some other time or upon the happening of some other event. 

        Section 5.    Removal.    Except as otherwise provided by law, the Board of Directors may remove any officer
with or without cause by the affirmative vote of a majority of the Directors then in office. 

        Section 6.    Vacancies.    Any vacancy in any office may be filled for the unexpired portion of the term by
the Board of Directors. 

        Section 7.    President.    The President shall be the chief operating officer of the Corporation and shall
perform such duties as the Board of Directors or the Chairman of the Board may from time to time determine. In the absence of the Chairman of the Board, the President shall preside, when present, at
meetings of the Board of Directors, unless the Board of Directors shall otherwise provide, and at meetings of the stockholders as provided in Section 11 of Article I hereof. 

        Section 8.    Executive Vice Presidents; Vice Presidents.    Any Executive Vice President or Vice President
shall have such powers and shall perform such duties as the Board of Directors, the Chairman of the Board or the President may from time to time designate. 

        Section 9.    Treasurer and Assistant Treasurers.    The Treasurer shall, subject to the direction of the Board
of Directors, have general charge of the financial affairs of the Corporation and shall cause to be kept accurate books of account. He shall have custody of all funds, securities, and valuable
documents of the Corporation, except as the Board of Directors may otherwise provide. 

        Any
Assistant Treasurer shall have such powers and perform such duties as the Board of Directors may from time to time designate. 

        Section 10.    Secretary and Assistant Secretaries.    The Secretary shall record all the proceedings of the
meetings of the stockholders and the Board of Directors (including committees of the Board) in books kept for that purpose. In his absence from any such meeting, a temporary secretary chosen at the
meeting shall record the proceedings thereof. The Secretary shall have charge of the stock ledger (which may, however, be kept by any transfer or other agent of the Corporation). He shall have custody
of the seal of the Corporation, and he, or an Assistant Secretary, shall have authority to affix it to any instrument requiring it, and, when so affixed, the seal may be attested by his signature or
that of an Assistant Secretary. He shall have such other duties and powers as may be designated from time to time by the Board of Directors, the Chairman of the Board or the President. 

        Any
Assistant Secretary shall have such powers and perform such duties as the Board of Directors may from time to time designate. 

        Section 11.    Other Powers and Duties.    Subject to these By-laws and to such limitations as the
Board of Directors may from time to time prescribe, the officers of the Corporation shall each have such powers and duties as generally pertain to their respective offices, as well as such powers and
duties as from time to time may be conferred by the Board of Directors. 

        Section 12.    Compensation.    The compensation of the officers of the Corporation shall be fixed from time to
time by the Board of Directors; provided, however, that the Board of Directors may authorize any officer
or committee to fix the compensation of officers and employees. No officer shall be prevented from receiving compensation by reason of the fact that such officer is also a Director of the Corporation. 

 
 

ARTICLE IV    
    
    Capital Stock    
    

        Section 1.    Certificates of Stock.    Each stockholder shall be entitled to a certificate of the capital
stock of the Corporation in such form as may from time to time be prescribed by the Board of 

9

 

Directors.
Such certificate shall bear the Corporation seal and shall be signed by the Chairman of the Board or the President or a Vice President and by the Treasurer or an Assistant Treasurer or the
Secretary or an Assistant Secretary. The Corporation seal and the signatures by Corporation officers may be facsimiles if the certificate is manually countersigned by an authorized person on behalf of
a transfer agent or registrar other than the Corporation or its employee. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed on such
certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if such officer, transfer
agent or registrar were such officer, transfer agent or registrar at the time of its issue. Every certificate for shares of stock which are subject to any restriction on transfer and every certificate
issued when the Corporation is authorized to issue more than one class or series of stock shall contain such legend with respect thereto as is required by law. The Corporation shall be permitted to
issue fractional shares. 

        Section 2.    Transfers.    Subject to any restrictions on transfer and unless otherwise provided by the Board
of Directors, shares of stock may be transferred only on the books of the Corporation by the surrender to the Corporation or its transfer agent of the certificate therefor properly endorsed or
accompanied by a written assignment or power of attorney properly executed, with transfer stamps (if necessary) affixed, and with such proof of the authenticity of signature as the Corporation or its
transfer agent may reasonably require. 

        Section 3.    Record Holders.    Except as may otherwise be required by law, by the Restated Certificate of
Incorporation or by these By-laws, the Corporation shall be entitled to treat the record
holder of stock as shown on its books as the owner of such stock for all purposes, including the payment of dividends and the right to vote with respect thereto, regardless of any transfer, pledge or
other disposition of such stock, until the shares have been transferred on the books of the Corporation in accordance with the requirements of these By-laws. 

        It
shall be the duty of each stockholder to notify the Corporation of his, her or its post office address and any changes thereto. 

        Section 4.    Record Date.    In order that the Corporation may determine the stockholders entitled to receive
notice of or to vote at any meeting of stockholders or any adjournments thereof, or to express consent to corporate action in writing without a meeting, or entitled to receive payment of any dividend
or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board
of Directors may fix, in advance, a record date, which, (i) with respect to any meeting of stockholders, shall be not more than 60 nor less than 10 days (except as otherwise required by
law) before the date of such meeting, (ii) with respect to corporate action without a meeting, shall be not more than 10 days after the date on which the resolution fixing the record
date is adopted by the Board of Directors and (iii) with respect to any other lawful action, shall be not more than 60 days prior to such action. In such case, only stockholders of
record on such record date shall be so entitled, notwithstanding any transfer of stock on the books of the Corporation after the record date. 

        If
no record date is fixed: (i) the record date for determining stockholders entitled to receive notice of or to vote at a meeting of stockholders shall be at the close of
business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held; (ii) the
record date for determining stockholders entitled to express consent to corporate action in writing without a meeting, when no prior action by the Board of Directors is necessary, shall be the day on
which the first written consent is expressed; and (iii) the record date for determining stockholders for any other purpose shall be at the close of business on the day on which the Board of
Directors adopts the resolution relating thereto. 

10

 

        Section 5.    Replacement of Certificates.    In case of the alleged loss, destruction or mutilation of a
certificate of stock, a duplicate certificate may be issued in place thereof, upon such terms as the Board of Directors may prescribe. 

 
 

ARTICLE V    
    
    Indemnification of Directors, Officers and Others    
    

        Section 1.    Indemnifiable Events; Extent of Indemnification.    

        (a)   The
Corporation shall indemnify, to the fullest extent permitted by the General Corporation Law of the State of Delaware (as presently in effect or as hereafter
amended): 

          (i)  Any
person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action or suit by or in the right of the Corporation) by reason of the fact that he is or was a Director or officer of the Corporation, or is or was
serving at the request of the Corporation as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such suit, action or proceeding if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall
not, of itself, create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Corporation or, with
respect to any criminal action or proceeding, that the person had reasonable cause to believe that his conduct was unlawful. 

         (ii)  Any
person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Corporation to
procure a judgment in its favor by reason of the fact that he is or was a Director or officer of the Corporation, or is or was serving at the request of the Corporation as a director or officer of
another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees) actually and reasonably incurred by him in connection with the defense or
settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation and except that no indemnification
shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his duty to the Corporation
unless, and only to the extent that, the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court
shall deem proper. 

        (iii)  To
the extent that a Director or officer of the Corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in
paragraphs (i) and (ii), or in defense of any claim, issue or matter therein, he shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by him in
connection therewith. 

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        (b)   The
Board of Directors, in its discretion, may authorize the Corporation to indemnify: 

          (i)  Any
person who was or is a party or is threatened to be made a party to any threatened pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the Corporation) by reason of the fact that he is or was an employee or agent of the Corporation, or is or was serving at
the request of the Corporation as a Director or as an employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall
not, of itself, create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Corporation or, with
respect to any criminal action or proceeding, that the person had reasonable cause to believe that his conduct was unlawful. 

         (ii)  Any
person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Corporation to
procure a judgment in its favor by reason of the fact that he is or was an employee or agent of the Corporation, or is or was serving at the request of the Corporation as a employee or agent of
another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees) actually and reasonably incurred by him in connection with the defense or
settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation and except that no indemnification
shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his duty to the Corporation
unless, and only to the extent that, the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnify for such expenses which the Court of Chancery or such other court
shall deem proper. 

        Section 2.    Determination of Entitlement.    Any indemnification hereunder (unless required by law or ordered
by a court) shall be made by the Corporation only as authorized in the specific case upon a determination that indemnification of the Director, officer, employee or agent is proper in the
circumstances because he has met the applicable standard of conduct set forth in Section 1 of this Article V. Such determination shall be made (a) by the Board of Directors by a
majority vote of a quorum consisting of Directors who were not parties to such action, suit or proceeding, or (b) if such a quorum is not obtainable, or, even if obtainable a quorum of
disinterested Directors so directs, by independent legal counsel in a written opinion, or (c) by the stockholders of the Corporation. 

        Section 3.    Advance Payments.    Expenses incurred in defending a civil or criminal action, suit or
proceeding may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding, only as authorized by the Board of Directors in the specific case (including by one or
more Directors who may be parties to such action, suit or proceeding), upon receipt of an undertaking by or on behalf of the Director, officer, employee or agent to repay such amount unless it shall
ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article V. 

        Section 4.    Non-Exclusive Nature of Indemnification.    The indemnification provided herein shall
not be deemed exclusive of any other rights to which any person, whether or not entitled to be 

12

 

indemnified
hereunder, may be entitled under any statute, by-law, agreement, vote of stockholders or Directors or otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office, and shall continue as to a person who has ceased to be a Director, officer, employee or agent and shall inure to the benefit of the heirs, executors and
administrators of such a person. Each person who is or becomes a Director or officer as aforesaid shall be deemed to have served or to have continued to serve in such capacity in reliance upon the
indemnity provided for in this Article V. 

        Section 5.    Insurance.    To the extent obtainable, the Corporation may purchase and maintain insurance with
reasonable limits on behalf of any person who is or was a Director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity, or
arising out of such person's status as such, whether or not the Corporation would have the power to indemnify such person against such liability under the provisions of the General Corporation Law of
the State of Delaware (as presently in effect or hereafter amended), the Restated Certificate of Incorporation of the Corporation or these By-laws. 

        Section 6.    No Duplicate Payments.    The Corporation's indemnification under Section 1 of this
Article V of any person who is or was a Director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent
of another Corporation, partnership, joint venture, trust or other enterprise, shall be reduced by any amounts such person receives as indemnification (i) under any policy of insurance
purchased and maintained on such person's behalf by the Corporation, (ii) from such other Corporation, partnership, joint venture, trust or other enterprise, or (iii) under any other
applicable indemnification provision. 

        Section 7.    Amendment.    This Article V may be amended only so as to have a prospective effect. Any
amendment to this Article V which would result in any person having a more limited entitlement to indemnification may be approved only by the stockholders. 

 
 

ARTICLE VI    
    
    Transactions with Related Parties    
    

        Section 1.    Transactions Not Void.    No contract or transaction between the Corporation and one or more of
its Directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of its Directors or officers are directors or
officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the Director or officer is present at or participates in the meeting of the Board of
Directors or committee thereof, which authorizes the contract or transaction, or solely because his or their votes are counted for such purpose, if: 

        (a)   The
material facts as to his relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors, or the committee, and
the Board of Directors or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested Directors, even though the disinterested Directors
be less than a quorum; or 

        (b)   The
material facts as to his relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and
the contract or transaction is specifically approved in good faith by vote of the stockholders; or 

        (c)   The
contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the
stockholders. 

13

 

        Section 2.    Quorum.    Common or interested Directors may be counted in determining the presence of a quorum
at a meeting of the Board of Directors or of a committee which authorizes the contract or transaction. 

        Section 3.    Limitation.    Nothing herein contained shall protect or purport to protect any Director or
officer of the Corporation against any liability to the Corporation or its security holders to which he would otherwise be subject by reason of his willful misfeasance, bad faith, gross negligence, or
reckless disregard of the duties involved in the conduct of his office. 

 
 

ARTICLE VII    
    
    Miscellaneous Provisions    
    

        Section 1.    Fiscal Year.    Except as otherwise determined by the Board of Directors, the fiscal year of the
Corporation shall end on December 31 of each year. 

        Section 2.    Seal.    The Board of Directors shall have power to adopt and alter the seal of the Corporation. 

        Section 3.    Execution of Instruments.    All deeds, leases, transfers, contracts, bonds, notes and other
obligations to be entered into by the Corporation in the ordinary course of its business without Director action may be executed on behalf of the Corporation by the Chairman of the Board, the
President, the Treasurer or any Vice President. 

        Section 4.    Voting of Securities.    Unless the Board of Directors otherwise provides, the Chairman of the
Board, the President or the Treasurer may waive notice of and act on behalf of this Corporation, or appoint another person or persons to act as proxy or attorney in fact for this Corporation with or
without discretionary power and/or power of substitution, at any meeting of stockholders or stockholders of any other corporation or organization, any of whose securities are held by this Corporation. 

        Section 5.    Resident Agent.    The Board of Directors may appoint a resident agent upon whom legal process
may be served in any action or proceeding against the Corporation. 

        Section 6.    Corporate Records.    The original or attested copies of the Restated Certificate of
Incorporation, By-laws and records of all meetings of the incorporators, stockholders and the Board of Directors and the stock and transfer records, which shall contain the names of all
stockholders, their record addresses and the amount of stock held by each, shall be kept at the principal office of the Corporation, at the office of its counsel, or at an office of its transfer
agent. 

        Section 7.    Restated Certificate of Incorporation.    All references in these By-laws to the
Restated Certificate of Incorporation shall be deemed to refer to the Restated Certificate of Incorporation of the Corporation, as amended and in effect from time to time. 

        Section 8.    Amendments.    These By-laws may be altered, amended or repealed, to the extent
permitted by applicable law, the Restated Certificate of Incorporation and agreements to which the Corporation may from time to time be a party, by the affirmative vote of the holders of a majority of
the voting power of all classes of the stock of the Corporation then entitled to vote, voting together as a single class, at any regular or special meeting of the stockholders of the Corporation, or
by the vote of a majority of the Board of Directors at any regular or special meeting thereof, without any action on the part of the stockholders, unless otherwise provided herein;  provided,
however, that (i) the Board of Directors may not amend or repeal this Section 8
nor may it amend or repeal any other provision of these By-laws to the extent such amendment or repeal requires action by the stockholders, and (ii) any amendment or repeal of these
By-laws by the Board of Directors and any provision to these By-laws adopted by the Board of Directors may be amended or repealed by the stockholders. 

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QuickLinks

EXHIBIT A

BY-LAWS of WATTS INDUSTRIES, INC.

ARTICLE I Stockholders

ARTICLE II Directors

ARTICLE III Officers

ARTICLE IV Capital Stock

ARTICLE V Indemnification of Directors, Officers and Others

ARTICLE VI Transactions with Related Parties

ARTICLE VII Miscellaneous Provisions

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