Document:

Exhibit
10.3

 

SUBSIDIARY
GUARANTY

 

THIS GUARANTY (this “Guaranty”)
dated as of April 27, 2006 is made by the undersigned (each, a “Guarantor”), in
favor of the holders from time to time of the Notes hereinafter referred to,
including each purchaser named in the Note Purchase Agreement hereinafter
referred to, and their respective successors and assigns (collectively, the “Holders”
and each individually, a “Holder”).

 

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS, WATTS WATER
TECHNOLOGIES, INC., a Delaware corporation (the “Company”), and the initial
Holders have entered into a Note Purchase Agreement dated as of April 27,
2006 (the Note Purchase Agreement, as amended, supplemented, restated or
otherwise modified from time to time in accordance with its terms and in
effect, the “Note Purchase Agreement”);

 

WHEREAS, the Note
Purchase Agreement provides for the issuance by the Company of $225,000,000
aggregate principal amount of Notes (as defined in the Note Purchase
Agreement);

 

WHEREAS, the Company
owns, directly or indirectly, all or a substantial portion of the issued and
outstanding capital stock or partnership interests of each Guarantor and, by
virtue of such ownership and otherwise, each Guarantor will derive substantial
benefits from the issuance and sale of the Company’s Notes;

 

WHEREAS, it is a
condition precedent to the obligation of the Holders to purchase the Notes that
each Guarantor shall have executed and delivered this Guaranty to the Holders;
and

 

WHEREAS, each Guarantor
desires to execute and deliver this Guaranty to satisfy the conditions
described in the preceding paragraph;

 

NOW, THEREFORE, in
consideration of the premises and other benefits to each Guarantor, and of the
purchase of the Company’s Notes by the Holders, and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, each
Guarantor makes this Guaranty as follows:

 

SECTION 1. Definitions.
Any capitalized terms not otherwise herein defined shall have the meanings
attributed to them in the Note Purchase Agreement.

 

SECTION 2. Guaranty.
Each Guarantor, jointly and severally with each other Guarantor,
unconditionally and irrevocably guarantees to the Holders the due, prompt and
complete payment by the Company of the principal of, Make-Whole Amount, if any,
and interest on, and each other amount due under, the Notes or the Note
Purchase Agreement, when and as the same shall become due and payable (whether
at stated maturity or by required or optional prepayment or by declaration or
otherwise) in accordance with the terms of the Notes and the Note Purchase
Agreement (the Notes and the Note Purchase Agreement being sometimes
hereinafter collectively referred to as the “Note Documents” and the amounts
payable by the

 

 

Company under the Note
Documents, and all other monetary obligations of the Company thereunder
(including any attorneys’ fees and expenses), being sometimes collectively
hereinafter referred to as the “Obligations”). This Guaranty is a guaranty of
payment and not just of collectibility and is in no way conditioned or
contingent upon any attempt to collect from the Company or upon any other
event, contingency or circumstance whatsoever. If for any reason whatsoever the
Company shall fail or be unable duly, punctually and fully to pay such amounts
as and when the same shall become due and payable, each Guarantor, without
demand, presentment, protest or notice of any kind, will forthwith pay or cause
to be paid such amounts to the Holders under the terms of such Note Documents,
in lawful money of the United States, at the place specified in the Note
Purchase Agreement, or perform or comply with the same or cause the same to be
performed or complied with, together with interest (to the extent provided for
under such Note Documents) on any amount due and owing from the Company. Each
Guarantor, promptly after demand, will pay to the Holders the reasonable costs
and expenses of collecting such amounts or otherwise enforcing this Guaranty,
including the reasonable fees and expenses of counsel. Notwithstanding the foregoing,
the right of recovery against each Guarantor under this Guaranty is limited to
the extent it is judicially determined with respect to any Guarantor that
entering into this Guaranty would violate Section 548 of the United States
Bankruptcy Code or any comparable provisions of any state law, in which case
such Guarantor shall be liable under this Guaranty only for amounts aggregating
up to the largest amount that would not render such Guarantor’s obligations
hereunder subject to avoidance under Section 548 of the United States
Bankruptcy Code or any comparable provisions of any state law.

 

SECTION 3. Guarantor’s
Obligations Unconditional. The obligations of each Guarantor under this
Guaranty shall be primary, absolute and unconditional obligations of each
Guarantor, shall not be subject to any counterclaim, set-off, deduction,
diminution, abatement, recoupment, suspension, deferment, reduction or defense
based upon any claim each Guarantor or any other person may have against the
Company or any other person, and to the full extent permitted by applicable law
shall remain in full force and effect without regard to, and shall not be
released, discharged or in any way affected by, any circumstance or condition
whatsoever (whether or not each Guarantor or the Company shall have any
knowledge or notice thereof), including:

 

(a)           any
termination, amendment or modification of or deletion from or addition or
supplement to or other change in any of the Note Documents or any other
instrument or agreement applicable to any of the parties to any of the Note
Documents;

 

(b)           any
furnishing or acceptance of any security, or any release of any security, for
the Obligations, or the failure of any security or the failure of any person to
perfect any interest in any collateral;

 

(c)           any
failure, omission or delay on the part of the Company to conform or comply with
any term of any of the Note Documents or any other instrument or agreement
referred to in paragraph (a) above, including, without limitation, failure to
give notice to any Guarantor of the occurrence of a “Default” or an “Event of
Default” under any Note Document;

 

2

 

(d)           any
waiver of the payment, performance or observance of any of the obligations,
conditions, covenants or agreements contained in any Note Document, or any
other waiver, consent, extension, indulgence, compromise, settlement, release
or other action or inaction under or in respect of any of the Note Documents or
any other instrument or agreement referred to in paragraph (a) above or any
obligation or liability of the Company, or any exercise or non-exercise of any
right, remedy, power or privilege under or in respect of any such instrument or
agreement or any such obligation or liability;

 

(e)           any
failure, omission or delay on the part of any of the Holders to enforce, assert
or exercise any right, power or remedy conferred on such Holder in this
Guaranty, or any such failure, omission or delay on the part of such Holder in
connection with any Note Document, or any other action on the part of such
Holder;

 

(f)            any
voluntary or involuntary bankruptcy, insolvency, reorganization, arrangement,
readjustment, assignment for the benefit of creditors, composition,
receivership, conservatorship, custodianship, liquidation, marshaling of assets
and liabilities or similar proceedings with respect to the Company, any
Guarantor or to any other person or any of their respective properties or
creditors, or any action taken by any trustee or receiver or by any court in
any such proceeding;

 

(g)           any
discharge, termination, cancellation, frustration, irregularity, invalidity or
unenforceability, in whole or in part, of any of the Note Documents or any
other agreement or instrument referred to in paragraph (a) above or any term
hereof;

 

(h)           any
merger or consolidation of the Company or any Guarantor into or with any other
corporation, or any sale, lease or transfer of any of the assets of the Company
or any Guarantor to any other person;

 

(i)            any
change in the ownership of any shares of capital stock of the Company or any
change in the corporate relationship between the Company and any Guarantor, or
any termination of such relationship;

 

(j)            any
release or discharge, by operation of law, of any Guarantor from the
performance or observance of any obligation, covenant or agreement contained in
this Guaranty; or

 

(k)           any
other occurrence, circumstance, happening or event whatsoever, whether similar
or dissimilar to the foregoing, whether foreseen or unforeseen, and any other
circumstance which might otherwise constitute a legal or equitable defense or
discharge of the liabilities of a guarantor or surety or which might otherwise
limit recourse against any Guarantor.

 

3

 

SECTION 4. Full
Recourse Obligations. The obligations of each Guarantor set forth herein
constitute the full recourse obligations of such Guarantor enforceable against
it to the full extent of all its assets and properties.

 

SECTION 5. Waiver.
Each Guarantor unconditionally waives, to the extent permitted by applicable
law, (a) notice of any of the matters referred to in Section 3,
(b) notice to such Guarantor of the incurrence of any of the Obligations,
notice to such Guarantor or the Company of any breach or default by such
Company with respect to any of the Obligations or any other notice that may be
required, by statute, rule of law or otherwise, to preserve any rights of the
Holders against such Guarantor, (c) presentment to or demand of payment
from the Company or the Guarantor with respect to any amount due under any Note
Document or protest for nonpayment or dishonor, (d) any right to the
enforcement, assertion or exercise by any of the Holders of any right, power,
privilege or remedy conferred in the Note Purchase Agreement or any other Note
Document or otherwise, (e) any requirement of diligence on the part of any
of the Holders, (f) any requirement to exhaust any remedies or to mitigate
the damages resulting from any default under any Note Document, (g) any
notice of any sale, transfer or other disposition by any of the Holders of any
right, title to or interest in the Note Purchase Agreement or in any other Note
Document and (h) any other circumstance whatsoever which might otherwise
constitute a legal or equitable discharge, release or defense of a guarantor or
surety or which might otherwise limit recourse against such Guarantor.

 

SECTION 6. Subrogation,
Contribution, Reimbursement or Indemnity. Until one year and one day after
all Obligations have been indefeasibly paid in full, each Guarantor agrees not
to take any action pursuant to any rights which may have arisen in connection
with this Guaranty to be subrogated to any of the rights (whether contractual,
under the United States Bankruptcy Code, as amended, including Section 509
thereof, under common law or otherwise) of any of the Holders against the
Company or against any collateral security or guaranty or right of offset held
by the Holders for the payment of the Obligations. Until one year and one day after
all Obligations have been indefeasibly paid in full, each Guarantor agrees not
to take any action pursuant to any contractual, common law, statutory or other
rights of reimbursement, contribution, exoneration or indemnity (or any similar
right) from or against the Company which may have arisen in connection with
this Guaranty. So long as the Obligations remain, if any amount shall be paid
by or on behalf of the Company to any Guarantor on account of any of the rights
waived in this paragraph, such amount shall be held by such Guarantor in trust,
segregated from other funds of such Guarantor, and shall, forthwith upon
receipt by such Guarantor, be turned over to the Holders (duly endorsed by such
Guarantor to the Holders, if required), to be applied against the Obligations,
whether matured or unmatured, in such order as the Holders may determine. The
provisions of this paragraph shall survive the term of this Guaranty and the
payment in full of the Obligations.

 

SECTION 7. Effect of
Bankruptcy Proceedings, etc. This Guaranty shall continue to be effective
or be automatically reinstated, as the case may be, if at any time payment, in
whole or in part, of any of the sums due to any of the Holders pursuant to the
terms of the Note Purchase Agreement or any other Note Document is rescinded or
must otherwise be restored or returned by such Holder upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the

 

4

 

Company or any other
person, or upon or as a result of the appointment of a custodian, receiver,
trustee or other officer with similar powers with respect to the Company or
other person or any substantial part of its property, or otherwise, all as
though such payment had not been made. If an event permitting the acceleration
of the maturity of the principal amount of the Notes shall at any time have
occurred and be continuing, and such acceleration shall at such time be
prevented by reason of the pendency against the Company or any other person of
a case or proceeding under a bankruptcy or insolvency law, each Guarantor
agrees that, for purposes of this Guaranty and its obligations hereunder, the
maturity of the principal amount of the Notes and all other Obligations shall
be deemed to have been accelerated with the same effect as if any Holder had
accelerated the same in accordance with the terms of the Note Purchase
Agreement or other applicable Note Document, and such Guarantor shall forthwith
pay such principal amount, Make-Whole Amount, if any, and interest thereon and
any other amounts guaranteed hereunder without further notice or demand.

 

SECTION 8. Term of
Agreement. This Guaranty and all guaranties, covenants and agreements of
each Guarantor contained herein shall continue in full force and effect and
shall not be discharged until the earlier to occur of (i) such time as all of
the Obligations shall be paid and performed in full and all of the agreements
of such Guarantor hereunder shall be duly paid and performed in full and (ii) such
Guarantor is released by the Holders.

 

SECTION 9. Representations
and Warranties. Each Guarantor represents and warrants to each Holder that:

 

(a)           such
Guarantor is duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization and has the requisite power and
authority to own and operate its property, to lease the property it operates as
lessee and to conduct the business in which it is currently engaged;

 

(b)           such
Guarantor has the requisite power and authority and the legal right to execute
and deliver, and to perform its obligations under, this Guaranty, and has taken
all necessary action to authorize its execution, delivery and performance of
this Guaranty;

 

(c)           this
Guaranty constitutes a legal, valid and binding obligation of such Guarantor
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (regardless of whether such enforceability is considered
in a proceeding in equity or at law);

 

(d)           the
execution, delivery and performance of this Guaranty will not
(i) contravene, result in any breach of, or constitute a default under, or
result in the creation of any Lien in respect of any property of such Guarantor
under any indenture, mortgage, deed of trust, loan, credit agreement, corporate
charter or by-laws, or any other agreement evidencing Debt, (ii) contravene,
result in any breach of, or constitute a default under, or result in the
creation of any Lien in respect of any property of such Guarantor

 

5

 

under, any other
agreement or instrument to which such Guarantor is bound or by which such
Guarantor or any of its properties may be bound or affected, except as would
not reasonably be expected to have a Material Adverse Effect, (iii) conflict
with or result in a breach of any of the terms, conditions or provisions of any
order, judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to such Guarantor, except as would not reasonably be
expected to have a Material Adverse Effect, or (iv) violate any provision of
any statute or other rule or regulation of any Governmental Authority
applicable to such Guarantor, except as would not reasonably be expected to
have a Material Adverse Effect;

 

(e)           no
consent, approval or authorization of, or registration, filing or declaration
with, any Governmental Authority is required in connection with the execution,
delivery or performance by such Guarantor of this Guaranty;

 

(f)            except
as disclosed in writing to the Holders, no litigation, investigation or
proceeding of or before any arbitrator or governmental authority is pending or,
to the knowledge of such Guarantor, threatened by or against such Guarantor or
any of its properties or revenues (i) with respect to this Guaranty or any
of the transactions contemplated hereby or (ii) which would reasonably be
expected to have a Material Adverse Effect;

 

(g)           such
Guarantor (after giving due consideration to any rights of contribution) has
received fair consideration and reasonably equivalent value for the incurrence
of its obligations hereunder or as contemplated hereby and after giving effect
to the transactions contemplated herein, (i) the fair value of the assets
of such Guarantor (both at fair valuation and at present fair saleable value)
exceeds its liabilities, (ii) such Guarantor is able to and expects to be able
to pay its debts as they mature, and (iii) such Guarantor has capital
sufficient to carry on its business as conducted and as proposed to be
conducted.

 

SECTION 10. Notices.
All notices and communications provided for hereunder shall be in writing and
sent by telecopy if the sender on the same day sends a confirming copy of such
notice by a recognized overnight delivery service (charges prepaid), or by
registered or certified mail with return receipt requested (postage prepaid),
or by a recognized overnight delivery service (with charges prepaid)
(a) if to the Company or any Holder at the address set forth in the Note
Purchase Agreement or (b) if to a Guarantor, in care of the Company at the
Company’s address set forth in the Note Purchase Agreement, or in each case at
such other address as the Company, any Holder or such Guarantor shall from time
to time designate in writing to the other parties. Any notice so addressed
shall be deemed to be given when actually received.

 

SECTION 11. Survival.
All warranties, representations and covenants made by each Guarantor herein or
in any certificate or other instrument delivered by it or on its behalf
hereunder shall be considered to have been relied upon by the Holders and shall
survive the execution and delivery of this Guaranty, regardless of any
investigation made by any of the

 

6

 

Holders. All statements
in any such certificate or other instrument shall constitute warranties and
representations by such Guarantor hereunder.

 

SECTION 12. Submission
to Jurisdiction. Each Guarantor irrevocably submits to the jurisdiction of
the courts of the Commonwealth of Massachusetts and of the courts of the United
States of America having jurisdiction in the Commonwealth of Massachusetts for
the purpose of any legal action or proceeding in any such court with respect
to, or arising out of, this Guaranty, the Note Purchase Agreement or the Notes.
Each Guarantor consents to process being served in any suit, action or
proceeding by mailing a copy thereof by registered or certified mail, postage
prepaid, return receipt requested. Each Guarantor agrees that such service upon
receipt (i) shall be deemed in every respect effective service of process upon
it in any such suit, action or proceeding and (ii) shall, to the fullest extent
permitted by law, be taken and held to be valid personal service upon and
personal delivery to such Guarantor.

 

SECTION 13. Miscellaneous.
Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.
To the extent permitted by applicable law, each Guarantor hereby waives any
provision of law that renders any provisions hereof prohibited or unenforceable
in any respect. The terms of this Guaranty shall be binding upon, and inure to
the benefit of, each Guarantor and the Holders and their respective successors
and assigns. No term or provision of this Guaranty may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by
each Guarantor and the Required Holders. The section and paragraph headings in
this Guaranty are for convenience of reference only and shall not modify,
define, expand or limit any of the terms or provisions hereof, and all
references herein to numbered sections, unless otherwise indicated, are to
sections in this Guaranty. This Guaranty shall in all respects be governed by,
and construed in accordance with, the laws of the Commonwealth of
Massachusetts, including all matters of construction, validity and performance.

 

7

 

IN WITNESS WHEREOF, each
Guarantor has caused this Guaranty to be duly executed as of the day and year
first above written.

 

 

	
   

  	
  WATTS REGULATOR CO.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name:

  	
  William C. McCartney

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ANDERSON-BARROWS METALS

  
	
   

  	
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name:

  	
  William C. McCartney

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WEBSTER VALVE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name:

  	
  William C. McCartney

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WATTS DISTRIBUTION
  COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name:

  	
  William C. McCartney

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HUNTER INNOVATIONS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name:

  	
  William C. McCartney

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CORE INDUSTRIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name:

  	
  William C. McCartney

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
								

 

8

 

	
   

  	
  DORMONT MANUFACTURING
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name:

  	
  William C. McCartney

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FLOWMATIC SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name:

  	
  William C. McCartney

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
							

 

9

 

FORM OF JOINDER TO
SUBSIDIARY GUARANTY

 

The undersigned (the “Guarantor”),
joins in the Subsidiary Guaranty dated as of April 27, 2006 from the Guarantors
named therein in favor of the Holders, as defined therein, and agrees to be
bound by all of the terms thereof and represents and warrants to the Holders
that:

 

(a)           the
Guarantor is duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization and has the requisite power and
authority to own and operate its property, to lease the property it operates as
lessee and to conduct the business in which it is currently engaged;

 

(b)           the
Guarantor has the requisite power and authority and the legal right to execute
and deliver this Joinder to Subsidiary Guaranty (“Joinder”) and to perform its
obligations hereunder and under the Subsidiary Guaranty and has taken all
necessary action to authorize its execution and delivery of this Joinder and
its performance of the Subsidiary Guaranty;

 

(c)           the
Subsidiary Guaranty constitutes a legal, valid and binding obligation of the
Guarantor enforceable in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors’ rights generally and by general
equitable principles (regardless of whether such enforceability is considered
in a proceeding in equity or at law);

 

(d)           the
execution, delivery and performance of this Joinder will not
(i) contravene, result in any breach of, or constitute a default under, or
result in the creation of any Lien in respect of any property of such Guarantor
under any indenture, mortgage, deed of trust, loan, credit agreement, corporate
charter or by-laws, or any other agreement evidencing Debt, (ii) contravene,
result in any breach of, or constitute a default under, or result in the
creation of any Lien in respect of any property of such Guarantor under, any
other agreement or instrument to which such Guarantor is bound or by which such
Guarantor or any of its properties may be bound or affected, except as would
not reasonably be expected to have a Material Adverse Effect, (iii) conflict
with or result in a breach of any of the terms, conditions or provisions of any
order, judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to such Guarantor, except as would not reasonably be
expected to have a Material Adverse Effect, or (iv) violate any provision of
any statute or other rule or regulation of any Governmental Authority
applicable to such Guarantor, except as would not reasonably be expected to
have a Material Adverse Effect;

 

(e)           no
consent, approval or authorization of, or registration, filing or declaration
with, any Governmental Authority is required in connection with the execution,
delivery or performance by such Guarantor of this Joinder;

 

10

 

(f)            except
as disclosed in writing to the Holders, no litigation, investigation or
proceeding of or before any arbitrator or governmental authority is pending or,
to the knowledge of the Guarantor, threatened by or against the Guarantor or
any of its properties or revenues (i) with respect to this Joinder, the
Subsidiary Guaranty or any of the transactions contemplated hereby or
(ii) that would reasonably be expected to have a Material Adverse Effect;

 

(g)           such
Guarantor (after giving due consideration to any rights of contribution) has
received fair consideration and reasonably equivalent value for the incurrence
of its obligations hereunder or as contemplated hereby and after giving effect
to the transactions contemplated herein, (i) the fair value of the assets
of such Guarantor (both at fair valuation and at present fair saleable value)
exceeds its liabilities, (ii) such Guarantor is able to and expects to be able
to pay its debts as they mature, and (iii) such Guarantor has capital
sufficient to carry on its business as conducted and as proposed to be
conducted.

 

Capitalized Terms used
but not defined herein have the meanings ascribed in the Subsidiary Guaranty.

 

IN WITNESS WHEREOF, the
undersigned has caused this Joinder to Subsidiary Guaranty to be duly executed
as of                       ,
          .

 

 

	
   

  	
  [Name of Guarantor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

11Exhibit
10.4

 

Execution
Copy

 

WATTS
WATER TECHNOLOGIES, INC.

 

FIRST
AMENDMENT

TO NOTE
PURCHASE AGREEMENT

 

$50,000,000

4.87% Senior
Notes, Series A

Due May 15, 2010

 

$75,000,000

5.47% Senior
Notes, Series B

Due May 15, 2013

 

Dated as of April
27, 2006

 

To the Holders of
the Senior Notes

of Watts Water Technologies, Inc.

Named in the Attached Schedule I

 

Ladies and
Gentlemen:

 

Reference is made to the Note Purchase Agreement dated
as of May 15, 2003 (the “Note Agreement”) among Watts Water Technologies, Inc.,
a Delaware corporation (formerly, Watts Industries, Inc., the “Company”), and
each of the Purchasers named in Schedule A thereto pursuant to which the
Company issued $50,000,000 aggregate principal amount of its 4.87% Senior
Notes, Series A, due May 15, 2010 and $75,000,000 aggregate principal amount of
its 5.47% Senior Notes, Series B, due May 15, 2013 (together, the “Notes”). You
are referred to herein individually as a “Holder” and collectively as the
“Holders.”  Capitalized terms used and
not otherwise defined in this First Amendment to Note Purchase Agreement (this
“Amendment”) shall have the meanings ascribed to them in the Note Agreement, as
amended hereby.

 

The Company has authorized the issuance and sale of
$200,000,000 aggregate principal amount of its 5.85% Senior Notes, due April
30, 2016 (the “2006 Notes”), pursuant to a Note Purchase Agreement dated as of
April 27, 2006 among the Company and each of the Purchasers named in Schedule A
thereto (the “2006 Note Agreement”). The 2006 Notes will be guaranteed by each
domestic Subsidiary that is now or in the future becomes a borrower under the
Credit Agreement or a signatory to the Bank Guaranties (individually, a
“Subsidiary Guarantor” and, collectively, the “Subsidiary Guarantors”). The
Subsidiary Guarantors executed and delivered a Subsidiary Guaranty in favor of
the Holders dated as of February 22, 2006 substantially in the

 

 

form of Exhibit B-1 to
the Note Agreement. It is necessary to amend portions of the Note Agreement to
reflect the existence of such Subsidiary Guaranty. The Company also has
requested the amendment of certain provisions in the Note Agreement to conform
such provisions to the equivalent provisions in the 2006 Note Agreement. The
Holders have agreed to modify the Note Agreement on the terms and conditions
set forth herein.

 

In consideration of the premises and for good and
valuable consideration, the receipt and sufficiency of which are acknowledged,
the Company and the Holders agree as follows:

 

1.             AMENDMENTS
TO NOTE AGREEMENT

 

1.1.          Amendment
of Section 7.1.

 

1.1.1.       The
last paragraph of Section 7.1(a) of the Note Agreement is amended to read in
its entirety as follows:

 

“setting forth in each case in comparative form the
figures for the corresponding periods in the previous fiscal year, all in
reasonable detail, prepared in accordance with GAAP applicable to quarterly
financial statements generally, and certified by a Senior Financial Officer as
fairly presenting, in all material respects, the financial position of the
companies being reported on and their results of operations and cash flows,
subject to changes resulting from year-end adjustments, provided that delivery
within the time period specified above of copies of the Company’s Quarterly
Report on Form 10-Q prepared in compliance with the requirements therefor and
filed with the Securities and Exchange Commission shall be deemed to satisfy
the requirements of this Section 7.1(a), provided, further,
that the Company shall be deemed to have made such delivery of such
Form 10-Q if it shall have timely made such Form 10-Q available on
“EDGAR” and on its home page on the worldwide web (at the date of this
Agreement located at: 
http//www.wattswater.com) and shall have given each Purchaser prior
notice of such availability on EDGAR and on its home page in connection with
each delivery (such availability and notice thereof being referred to as
“Electronic Delivery”);”

 

1.1.2.       The
last paragraph of Section 7.1(b) of the Note Agreement is amended to read in
its entirety as follows:

 

“setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail, prepared in
accordance with GAAP, and accompanied by an opinion of independent certified
public accountants of recognized national standing, which opinion shall state
that such financial statements present fairly, in all material respects, the
financial position of the companies being reported upon and their results of
operations and cash flows and have been prepared in conformity with

 

2

 

GAAP, and that the examination of such accountants in
connection with such financial statements has been made in accordance with
generally accepted auditing standards, and that such audit provides a reasonable
basis for such opinion in the circumstances, provided that the delivery within
the time period specified above of the Company’s Annual Report on Form 10-K for
such fiscal year (together with the Company’s annual report to shareholders, if
any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in
accordance with the requirements therefor and filed with the Securities and
Exchange Commission shall be deemed to satisfy the requirements of this Section
7.1(b), provided, further, that the Company shall be deemed to have made such
delivery of such Form 10-K if it shall have timely made Electronic
Delivery thereof;”

 

1.2.          Amendment
of Section 7.2.

 

1.2.1       The
first paragraph of Section 7.2 of the Note Agreement is amended to read in its
entirety as follows:

 

 “Each set of financial statements delivered to
a holder of Notes pursuant to Section 7.1(a) or (b) shall be accompanied
by a certificate of a Senior Financial Officer setting forth (which, in the
case of Electronic Delivery of any such financial statements, shall be by
separate concurrent delivery of such certificate to each holder of Notes):”

 

1.2.2.      Section
7.2(a) of the Note Agreement is amended to read in its entirety as follows:

 

“(a)       Covenant
Compliance — the information (including detailed calculations) required in
order to establish whether the Company was in compliance with the requirements
of Section 10.1 through Section 10.9, inclusive, during the quarterly or
annual period covered by the statements then being furnished (including with respect
to each such Section, where applicable, the calculations of the maximum or
minimum amount, ratio or percentage, as the case may be, permissible under the
terms of such Sections, and the calculation of the amount, ratio or percentage
then in existence); and”

 

1.3.          Amendment
of Section 10.2. Section 10.2 of the Note Agreement is amended to read in
its entirety as follows:

 

“10.2     Priority
Debt.

 

The Company will not permit Priority Debt to exceed
20% of Consolidated Total Assets at any time.”

 

3

 

1.4.          Amendment
of Section 10.3. Section 10.3(i) of the Note Agreement is amended to read
in its entirety as follows:

 

“(i)          Liens
securing Debt not otherwise permitted by paragraphs (a) through (h) above,
provided that, after giving effect to the incurrence of the Debt so secured,
Priority Debt does not exceed 20% of Consolidated Total Assets.”

 

1.5.          Addition
of Section 10.9. New Section 10.9 is added to the Note Agreement to read as
follows:

 

“10.9.     Subsidiary Guaranty.

 

The Company will not permit any domestic Subsidiary to
become a borrower under the Credit Agreement or a party to the Bank Guaranties
or to directly or indirectly guaranty any of the Company’s obligations under
the Credit Agreement unless such Subsidiary is, or concurrently therewith
becomes, a party to the Subsidiary Guaranty.”

 

1.6.          Amendment
of Section 11.

 

1.6.1. Section
11(c) of the Note Agreement is amended to read in its entirety as follows:

 

“(c)         the Company
defaults in the performance of or compliance with any term contained in
Sections 10.1 through 10.9; or”

 

1.6.2. Section 11(f) of the Note Agreement is amended
to read in its entirety as follows:

 

“(f)          (i) the
Company or any Restricted Subsidiary is in default (as principal or as
guarantor or other surety) in the payment of any principal of or premium or
make-whole amount or interest on any Debt that is outstanding in an aggregate
principal amount greater than $30,000,000 beyond any period of grace provided
with respect thereto, or (ii) the Company or any Restricted Subsidiary is in
default in the performance of or compliance with any term of any evidence of
any Debt that is outstanding in an aggregate principal amount greater than
$30,000,000 or of any mortgage, indenture or other agreement relating thereto
or any other condition exists, and as a consequence of such default or
condition such Debt has become, or has been declared (or one or more Persons
are entitled to declare such Debt to be), due and payable before its stated
maturity or before its regularly scheduled dates of payment, or (iii) as a
consequence of the occurrence or continuation of any event or condition (other
than the passage of time or the right of the holder of Debt to convert such
Debt into equity interests), (x) the Company or any Restricted Subsidiary
has become obligated to purchase or repay Debt

 

4

 

before its regular maturity or before its regularly
scheduled dates of payment in an aggregate outstanding principal amount greater
than $30,000,000, or (y) one or more Persons have the right to require the
Company or any Restricted Subsidiary so to purchase or repay such Debt; or”

 

1.6.3. Section 11(i) of the Note Agreement is amended
to read in its entirety as follows:

 

“(i)           a
final judgment or judgments for the payment of money aggregating more than
$30,000,000 are rendered against one or more of the Company and its Restricted
Subsidiaries, which judgments are not, within 60 days after entry thereof,
bonded, discharged or stayed pending appeal, or are not discharged within 60
days after the expiration of such stay; or”

 

1.6.4. Section 11(j) of the Note Agreement is amended
to read in its entirety as follows:

 

“(j)           if
(i) any Plan shall fail to satisfy the minimum funding standards of ERISA
or the Code for any plan year or part thereof or a waiver of such standards or
extension of any amortization period is sought or granted under
section 412 of the Code, (ii) a notice of intent to terminate any
Plan shall have been or is reasonably expected to be filed with the PBGC or the
PBGC shall have instituted proceedings under ERISA section 4042 to terminate or
appoint a trustee to administer any Plan or the PBGC shall have notified the
Company or any ERISA Affiliate that a Plan may become a subject of any such
proceedings, (iii) the aggregate “amount of unfunded benefit liabilities”
(within the meaning of section 4001(a)(18) of ERISA) under all Plans determined
in accordance with Title IV of ERISA, shall be greater than $30,000,000,
(iv) the Company or any ERISA Affiliate shall have incurred or is
reasonably expected to incur any liability pursuant to Title I or IV of ERISA
or the penalty or excise tax provisions of the Code relating to employee
benefit plans, (v) the Company or any ERISA Affiliate withdraws from any
Multiemployer Plan, or (vi) the Company or any Restricted Subsidiary
establishes or amends any employee welfare benefit plan that provides
post-employment welfare benefits in a manner that would increase the liability
of the Company or any Restricted Subsidiary thereunder; and any such event or
events described in clauses (i) through (vi) above, either individually or
together with any other such event or events, would reasonably be expected to
have a Material Adverse Effect; or”

 

5

 

1.7.          Amendment
of Section 15. Section 15.1 of the Note Agreement is amended to read in its
entirety as follows:

 

“15.1      Transaction
Expenses.

 

Whether or not the transactions contemplated hereby
are consummated, the Company will pay all costs and expenses (including
reasonable attorneys’ fees of a special counsel and, if reasonably required,
local or other counsel) incurred by you and each Other Purchaser or holder of a
Note in connection with such transactions and in connection with any
amendments, waivers or consents under or in respect of this Agreement, the
Notes or the Subsidiary Guaranty (whether or not such amendment, waiver or
consent becomes effective), including: (a) the costs and expenses incurred
in enforcing or defending (or determining whether or how to enforce or defend)
any rights under this Agreement, the Notes or the Subsidiary Guaranty or in
responding to any subpoena or other legal process or informal investigative
demand issued in connection with this Agreement, the Notes or the Subsidiary
Guaranty, or by reason of being a holder of any Note, and (b) the costs and
expenses, including financial advisors’ fees, incurred in connection with the
insolvency or bankruptcy of the Company or any Subsidiary or in connection with
any work-out or restructuring of the transactions contemplated hereby and by
the Notes. The Company will pay, and will save you and each other holder of a
Note harmless from, all claims in respect of any fees, costs or expenses if
any, of brokers and finders (other than those retained by you).”

 

1.8.          Addition
of Section 23. New Section 23 is added to the Note Agreement to read as
follows:

 

“23.         RELEASE
OF SUBSIDIARY GUARANTOR.

 

You and each subsequent holder of a Note agree to
release any Subsidiary Guarantor from the Subsidiary Guaranty (i) if such
Subsidiary Guarantor ceases to be such as a result of a Disposition permitted
by Section 10.4 or 10.5, or (ii) at such time as the banks party to the Credit
Agreement release such Subsidiary as a borrower under the Credit Agreement
and/or as a guarantor under the Bank Guaranties; provided, however, that you
and each subsequent holder will not be required to release a Subsidiary
Guarantor from the Subsidiary Guaranty upon such Subsidiary’s release from the
Bank Guaranties if (A) a Default or Event of Default has occurred and is
continuing, (B) such Subsidiary Guarantor is to become a borrower under the
Credit Agreement, or (C) such release is part of a plan of financing that
contemplates such Subsidiary Guarantor guaranteeing any other Debt of the
Company. Such Subsidiary Guarantor shall automatically be released from the
Subsidiary Guaranty upon the delivery to the holders of the Notes of a
certificate from a Senior Financial Officer of the Company stating that the
requirements of this Section 23 have been met. If any fee or other form of
consideration is given to any holder of Debt of the Company expressly for the

 

6

 

purpose of such release, holders of the Notes shall
receive equivalent consideration.”

 

1.9.          Amendment
of Schedule B.

 

1.9.1.       The
definitions of Adjusted Consolidated Net Worth and Restricted Investments are
deleted from Schedule B.

 

1.9.2.       The
following definitions are added to Schedule B in the appropriate alphabetical
order:

 

“Bank Guaranties” means the
Guaranties of domestic Subsidiaries of Debt outstanding under the Credit
Agreement, as such Guaranties or agreements may be amended, restated or
otherwise modified, and any successors thereto.

 

“Company” means Watts Water
Technologies, Inc., a Delaware corporation.

 

“Credit Agreement”
means the Credit Agreement dated as of April 27, 2006 among the Company,
certain subsidiaries of the Company, the Lenders (as defined therein) and Bank
of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, as
such agreement may be hereafter amended, restated, supplemented, refinanced,
increased or reduced from time to time, and any successor credit agreement or
similar facility.

 

“Electronic Delivery” is defined
in Section 7.1(a).

 

“Material Subsidiary Guarantor” means,
at any time, any Subsidiary Guarantor that would at such time account for more
than 5% of (i) Consolidated Total Assets as of the end of the most
recently completed fiscal quarter or (ii) consolidated revenue of the
Company and its Restricted Subsidiaries for the four fiscal quarters ending as
of the end of the most recently completed fiscal quarter.

 

1.9.3.       The
following terms are amended to read in their entirety as follows:

 

“Material Adverse Effect” means
a material adverse effect on (a) the business, operations, affairs, financial
condition, assets or properties of the Company and its Restricted Subsidiaries
taken as a whole, or (b) the ability of the Company to perform its obligations
under this Agreement and the Notes, or (c) the ability of any Material
Subsidiary Guarantor to perform its obligations under the Subsidiary Guaranty,
or (d) the validity or enforceability of this Agreement, the Notes or the
Subsidiary Guaranty.

 

“Priority Debt” means, as of any
date, the sum (without duplication) of (a) outstanding unsecured Debt of
Restricted Subsidiaries that are not Subsidiary Guarantors other than
(i) Debt owed to the Company or another Restricted 

 

7

 

Subsidiary and (ii) unsecured Debt of a Person
outstanding at the time it becomes a Restricted Subsidiary, provided that
(A) such Person is not an Unrestricted Subsidiary and (B) such Debt was
not incurred in contemplation of such Person becoming a Restricted Subsidiary,
and (b) Debt of the Company and its Restricted Subsidiaries secured by Liens
not otherwise permitted by the introductory clause of Section 10.3 and Sections
10.3 (a) through (h).

 

2.             CONSENT
TO RELEASE OF TWO SUBSIDIARY GUARANTORS

 

The Holders consent to release Watts Premier, Inc.
(“Premier”) and Watts Radiant, Inc. (“Radiant”) as guarantors under the
Subsidiary Guaranty as of the date set forth above upon the satisfaction of the
following conditions:

 

2.1.          Release
of Premier and Radiant by Banks. The banks shall have released Premier and
Radiant as guarantors under the Bank Guaranties.

 

2.2.          Certificate
of Senior Financial Officer. The Holders shall have received a certificate
from a Senior Financial Officer of the Company certifying that (a) a Default or
Event of Default has not occurred and is not continuing, (b) neither Premier
nor Radiant will become a borrower under the Credit Agreement, and (c) such
release is not part of a plan of financing that contemplates Premier or Radiant
guaranteeing any other Debt of the Company.

 

3.             REAFFIRMATION;
REPRESENTATIONS AND WARRANTIES

 

3.1.          Reaffirmation
of Note Agreement. The Company reaffirms its agreement to comply with each
of the covenants, agreements and other provisions of the Note Agreement and the
Notes, including the additions and amendments of such provisions effected by
this Amendment.

 

3.2.          Note
Agreement. The Company represents and warrants that the representations and
warranties contained in the Note Agreement are true and correct as of the date
hereof, except (a) to the extent that any of such representations and
warranties specifically relate to an earlier date, (b) for such changes, facts,
transactions and occurrences that have arisen since May 15, 2003 in the
ordinary course of business, (c) such other matters as have been previously
disclosed in writing by the Company (including in its financial statements and
notes thereto) to the Holders and (d) other changes that could not reasonably be
expected to have a Material Adverse Effect.

 

3.3.          No
Default or Event of Default. After giving effect to the transactions
contemplated hereby, there will exist no Default or Event of Default.

 

3.4.          Authorization.
The execution, delivery and performance by the Company of this Amendment have
been duly authorized by all necessary corporate action and, except as provided
herein, do not require any registration with, consent or approval of, notice to
or action by, any Person (including any Governmental Authority) in order to be
effective and enforceable. The Note Agreement and this Amendment each
constitute the legal, valid and binding obligations of the Company enforceable
against the Company in accordance with their respective terms, except

 

8

 

as such enforceability
may be limited by (i) applicable bankruptcy, insolvency, reorganization,
fraudulent conveyance, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and (ii) general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

 

4.             EFFECTIVE
DATE

 

This Amendment shall become effective as of the date
set forth above upon the satisfaction of the following conditions:

 

4.1.          Consent
of Holders to Amendment. Execution by the Holders of at least a majority of
the aggregate principal amount of the Notes outstanding and receipt by the
Holders of a counterpart of this Amendment duly executed by the Company.

 

4.2.          Credit
Facility. The Holders shall have received a copy of the executed Credit
Agreement.

 

4.3.          Expenses.
The Company shall have paid all fees and expenses of special counsel to the
Holders.

 

5.             MISCELLANEOUS

 

5.1.          Ratification.
The Note Agreement, as amended hereby, shall remain in full force and effect
and is ratified, approved and confirmed in all respects.

 

5.2.          Reference
to and Effect on the Note Agreement. Upon the final effectiveness of this
Amendment, each reference in the Note Agreement and in other documents
describing or referencing the Note Agreement to the “Agreement,” “Note
Agreement,” “hereunder,” “hereof,” “herein,” or words of like import referring
to the Note Agreement, shall mean and be a reference to the Note Agreement, as
amended hereby.

 

5.3.          Binding
Effect. This Amendment shall be binding upon and inure to the benefit of
the respective successors and assigns of the parties hereto.

 

5.4.          Governing
Law. This Amendment shall be governed by and construed in accordance with
Massachusetts law, excluding choice-of-law principles of the law of such
Commonwealth that would require the application of the laws of a jurisdiction
other than such Commonwealth.

 

5.5.          Counterparts.
This Amendment may be executed in any number of counterparts, each executed
counterpart constituting an original, but altogether only one instrument.

 

9

 

IN WITNESS WHEREOF, the Company
and the Holders have caused this Amendment to be executed and delivered by
their respective officer or officers thereunto duly authorized.

 

	
   

  	
  WATTS WATER
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
     /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name: 

  	
  William C.
  McCartney

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
					

 

S-1

 

	
  HOLDERS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CONNECTICUT GENERAL LIFE INSURANCE

  COMPANY

  	
   

  	
   

  
	
  By: CIGNA Investments, Inc. (authorized agent)

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lori E.
  Hopkins

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Lori E. Hopkins

  	
   

  	
   

  
	
   

  	
  Title:

  	
     Vice President

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  HARTFORD FIRE
  INSURANCE COMPANY

  	
   

  	
   

  
	
  HARTFORD LIFE
  INSURANCE COMPANY

  	
   

  	
   

  
	
  By: HARTFORD INVESTMENT SERVICES, INC.

  Its Agent and Attorney in Fact

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
     /s/
  Ronald A. Mendel

  	
   

  	
   

  
	
  Name: 

  	
  Ronald A. Mendel

  	
   

  	
   

  
	
  Title:

  	
  Managing
  Director

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  PHYSICIAN’S LIFE
  INSURANCE COMPANY

  	
   

  	
   

  
	
  By: HARTFORD INVESTMENT SERVICES,

  INC. Its Agent and Attorney in Fact

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Ronald A. Mendel

  	
   

  	
   

  
	
  Name: 

  	
  Ronald A. Mendel

  	
   

  	
   

  
	
  Title:

  	
  Managing
  Director

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  NATIONWIDE LIFE
  INSURANCE COMPANY

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Wayne T. Frisbee

  	
   

  	
   

  
	
  Name: 

  	
  Wayne T. Frisbee

  	
   

  	
   

  
	
  Title:

  	
  Authorized
  Signatory

  	
   

  	
   

  
													

 

S-2

 

	
  NATIONWIDE LIFE
  INSURANCE COMPANY

  	
   

  
	
  NATIONWIDE
  MUTUAL INSURANCE

  	
   

  
	
  COMPANY

  	
   

  
	
  NATIONWIDE LIFE
  AND ANNUITY

  	
   

  
	
  INSURANCE COMPANY

  	
   

  
	
  NATIONWIDE
  INDEMNITY COMPANY

  	
   

  
	
  SCOTTSDALE
  INSURANCE COMPANY

  	
   

  
	
  NATIONWIDE LIFE
  INSURANCE COMPANY

  	
   

  
	
  OF AMERICA

  	
   

  
	
   

  	
   

  
	
  By:

  	
       /s/
  Wayne T. Frisbee

  	
   

  	
   

  
	
  Name: 

  	
  Wayne T. Frisbee

  	
   

  	
   

  
	
  Title:

  	
  Authorized
  Signatory

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE TRAVELERS
  INSURANCE COMPANY

  	
   

  
	
   

  
	
  By:

  	
     /s/
  Judith A. Gulotta

  	
   

  
	
  Name: 

  	
  Judith A.
  Gulotta

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
	
   

  
	
   

  
	
  NATIONAL BENEFIT LIFE INSURANCE

  COMPANY

  	
   

  
	
  By: Conning
  Asset Management Company, its 

  	
   

  
	
  Investment Manager

  	
   

  
	
   

  
	
  By:

  	
     /s/
  David R. Miller

  	
   

  
	
  Name: 

  	
  David R. Miller

  	
   

  
	
  Title: 

  	
  Managing
  Director

  	
   

  
	
   

  
	
   

  
	
  PRIMERICA LIFE
  INSURANCE COMPANY

  	
   

  
	
  By: Conning
  Asset Management Company, its 

  	
   

  
	
  Investment Manager

  
	
   

  
	
  By:

  	
     /s/
  David R. Miller

  	
   

  
	
  Name: 

  	
  David R. Miller

  	
   

  
	
  Title: 

  	
  Managing
  Director

  	
   

  
								

 

S-3

 

	
  SWISS RE LIFE
  & HEALTH AMERICA, INC.

  	
   

  	
   

  
	
  By: Swiss Re
  Asset Management (Americas) Inc.

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  John H. DeMallier

  	
   

  	
   

  
	
  Name: 

  	
  John H.
  DeMallier

  	
   

  	
   

  
	
  Title: 

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  FORT WAYNE
  HEALTH & CASUALTY 

  	
   

  	
   

  
	
  INSURANCE COMPANY

  	
   

  	
   

  
	
  By: Swiss Re
  Asset Management (Americas) Inc.

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  John H. DeMallier

  	
   

  	
   

  
	
  Name: 

  	
  John H. DeMallier

  	
   

  	
   

  
	
  Title: 

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SOUTHWESTERN
  LIFE INSURANCE 

  	
   

  	
   

  
	
  COMPANY

  	
   

  	
   

  
	
  By: Swiss Re
  Asset Management (Americas) Inc.

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  John H. DeMallier

  	
   

  	
   

  
	
  Name: 

  	
  John H.
  DeMallier

  	
   

  	
   

  
	
  Title: 

  	
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AMERICAN
  INVESTORS LIFE INSURANCE 

  	
   

  	
   

  
	
  COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: AmerUs Capital Management Group, Inc., its

  authorized attorney-in-fact

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Roger D. Fors

  	
   

  	
   

  
	
  Name: 

  	
  Roger D. Fors

  	
   

  	
   

  
	
  Title:

  	
  Vice President –
  Private Placements

  	
   

  	
   

  
							

 

S-4

 

	
  BANKERS LIFE INSURANCE COMPANY OF 

  	
   

  	
   

  
	
  NEW YORK

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: AmerUs Capital Management Group, Inc., its 

  authorized attorney-in-fact

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Roger D. Fors

  	
   

  	
   

  
	
  Name: 

  	
  Roger D. Fors

  	
   

  	
   

  
	
  Title:

  	
  Vice President –
  Private Placements

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  INDIANAPOLIS
  LIFE INSURANCE COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: AmerUs Capital Management Group, Inc., its

  authorized attorney-in-fact

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Roger D. Fors

  	
   

  	
   

  
	
  Name: 

  	
  Roger D. Fors

  	
   

  	
   

  
	
  Title:

  	
  Vice President –
  Private Placements

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AMERICAN UNITED
  LIFE INSURANCE 

  	
   

  	
   

  
	
  COMPANY

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Keith R. Adams

  	
   

  	
   

  
	
  Name:

  	
  Keith R. Adams

  	
   

  	
   

  
	
  Title:

  	
  V. P. Fixed
  Income Securities

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  PIONEER MUTUAL LIFE
  INSURANCE COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Keith R. Adams

  	
   

  	
   

  
	
  Name:

  	
  Keith R. Adams

  	
   

  	
   

  
	
  Title:

  	
  V. P. Fixed
  Income Securities

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE STATE LIFE
  INSURANCE COMPANY

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Keith R. Adams

  	
   

  	
   

  
	
  Name:

  	
  Keith R. Adams

  	
   

  	
   

  
	
  Title:

  	
  V. P. Fixed
  Income Securities

  	
   

  	
   

  
						

 

S-5

 

	
  ASSURITY LIFE
  INSURANCE COMPANY

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Victor Weber

  	
   

  	
   

  
	
  Name: 

  	
  Victor Weber

  	
   

  	
   

  
	
  Title:

  	
  Senior Director
  - Investments

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ASSURITY LIFE
  INSURANCE COMPANY,

  	
   

  	
   

  
	
  successor in interest to Woodmen Accident and

  Life Company

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/
  Victor Weber

  	
   

  	
   

  
	
  Name: 

  	
  Victor Weber

  	
   

  	
   

  
	
  Title:

  	
  Senior Director
  - Investments

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECURITY
  FINANCIAL LIFE INSURANCE CO.

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
       /s/
  Kevin W. Hammond

  	
   

  	
   

  
	
  Name: 

  	
  Kevin W. Hammond

  	
   

  	
   

  
	
  Title:

  	
  Senior Director
  - Investments

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  PRUDENTIAL RETIREMENT INSURANCE

  AND ANNUITY COMPANY

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Prudential
  Investment Management, Inc., as

  	
   

  
	
   

  	
  investment
  manager

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:  Vice President

  	
   

  	
   

  
						

 

S-6

 

Consent by Subsidiary Guarantors

 

The undersigned Subsidiary
Guarantors hereby consent to the foregoing First Amendment to Note Purchase
Agreement dated as of April 27, 2006 among Watts Water Technologies, Inc. and
the Purchasers listed in Schedule A attached thereto.

 

	
   

  	
  WATTS REGULATOR CO.

  
	
   

  	
  ANDERSON-BARROWS METALS

  
	
   

  	
  CORPORATION

  
	
   

  	
  WEBSTER VALVE, INC.

  
	
   

  	
  HUNTER INNOVATIONS, INC.

  
	
   

  	
  WATTS DISTRIBUTION COMPANY, INC.

  
	
   

  	
  CORE INDUSTRIES, INC.

  
	
   

  	
  DORMONT MANUFACTURING COMPANY

  
	
   

  	
  FLOWMATIC
  SYSTEMS, INC.

  

 

	
   

  	
  By:

  	
    /s/
  William C. McCartney

  	
   

  
	
   

  	
  Name: 

  	
  William C.
  McCartney

  
	
   

  	
  Title: 

  	
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]