Document:

Exhibit 10.3

NON-QUALIFIED
STOCK OPTION AGREEMENT

FOR COMPANY EMPLOYEES, NON-EMPLOYEE DIRECTORS

AND CONSULTANTS

UNDER THE WATTS WATER
TECHNOLOGIES, INC.

2004 STOCK INCENTIVE PLAN

The grant to the optionee
(the “Optionee”) of an option (the “Stock Option”) to purchase on or prior to
the expiration date (the “Expiration Date”) all or part of the number of shares
of Class A Common Stock, par value $.10 per share (the “Option Shares”), of
Watts Water Technologies, Inc. (the “Company”) at a price per share (the “Option
Exercise Price”), all as set forth in the Stock Option grant notification
provided on the Company’s OptionsNet website, is subject to the provisions of
the Company’s 2004 Stock Incentive Plan (the “Plan”) and the terms and
conditions contained in this Non-Qualified Stock Option Agreement (the “Agreement”).  By accepting the grant of the Stock Option on
the OptionsNet website, the Optionee agrees to the terms and conditions of this
Agreement.

1.             Exercisability Schedule.  No portion of this Stock Option may be
exercised until such portion shall have become exercisable.  Except as set forth below, and subject to the
discretion of the Administrator (as defined in Section 2 of the Plan) to
accelerate the exercisability schedule hereunder, this Stock Option shall be
exercisable in accordance with the following schedule: 25% of the Option Shares
shall become exercisable on the first anniversary of the date of grant, an
additional 25% of the Option Shares shall become exercisable on the second
anniversary of the date of grant, an additional 25% of the Option Shares shall
become exercisable on the third anniversary of the date of grant and the
remaining 25% of the Option Shares shall become exercisable on the fourth
anniversary of the date of grant.

Once exercisable, this
Stock Option shall continue to be exercisable at any time or times prior to the
close of business on the Expiration Date, unless the Stock Option is terminated
sooner as provided herein.

2.             Manner of Exercise.

(a)           The
Optionee may exercise this Stock Option only in the following manner:  from time to time on or prior to the
Expiration Date of this Stock Option, the Optionee may give written notice to
the Administrator of his or her election to purchase some or all of the Option
Shares purchasable at the time of such notice. 
This notice shall specify the number of Option Shares to be purchased.

Payment of the purchase price for the Option Shares
may be made by one or more of the following methods:  (i) in cash, by certified or bank check
or other instrument acceptable to the Administrator; (ii) through the
delivery (or attestation to the ownership) of shares of Stock that have been
purchased by the Optionee on the open market or that have been beneficially
owned by the Optionee for at least six months and are not then subject to any
restrictions under any Company plan; (iii) by the Optionee delivering to
the Company a properly executed exercise notice together with irrevocable
instructions to a broker to promptly deliver to the Company cash

or a check payable and
acceptable to the Company to pay the option purchase price, provided that in
the event the Optionee chooses to pay the option purchase price as so provided,
the Optionee and the broker shall comply with such procedures and enter into
such agreements of indemnity and other agreements as the Administrator shall
prescribe as a condition of such payment procedure; or (iv) a combination
of (i), (ii) and (iii) above.  Payment
instruments will be received subject to collection.

The delivery of certificates representing the Option
Shares will be contingent upon the Company’s receipt from the Optionee of full
payment for the Option Shares, as set forth above and any agreement, statement
or other evidence that the Company may require to satisfy itself that the
issuance of Stock to be purchased pursuant to the exercise of Stock Options
under the Plan and any subsequent resale of the shares of Stock will be in
compliance with applicable laws and regulations.  In the event the Optionee chooses to pay the purchase
price by previously-owned shares of Stock through the attestation method, the
number of shares of Stock transferred to the Optionee upon the exercise of the
Stock Option shall be net of the Shares attested to.

(b)           Certificates
for shares of Stock purchased upon exercise of this Stock Option shall be
issued and delivered to the Optionee upon compliance to the satisfaction of the
Administrator with all requirements under applicable laws or regulations in
connection with such issuance and with the requirements hereof and of the
Plan.  The determination of the
Administrator as to such compliance shall be final and binding on the
Optionee.  The Optionee shall not be
deemed to be the holder of, or to have any of the rights of a holder with
respect to, any shares of Stock subject to this Stock Option unless and until
this Stock Option shall have been exercised pursuant to the terms hereof, the
Company shall have issued and delivered the shares to the Optionee, and the
Optionee’s name shall have been entered as the stockholder of record on the
books of the Company.  Thereupon, the
Optionee shall have full voting, dividend and other ownership rights with
respect to such shares of Stock.

(c)           The
minimum number of shares with respect to which this Stock Option may be
exercised at any one time shall be 100 shares, unless the number of shares with
respect to which this Stock Option is being exercised is the total number of
shares subject to exercise under this Stock Option at the time.

(d)           Notwithstanding
any other provision hereof or of the Plan, no portion of this Stock Option
shall be exercisable after the Expiration Date hereof.

3.             Termination of Employment or
Service.  If the Optionee’s
employment by or service with the Company or a Subsidiary (as defined in the
Plan) is terminated, the period within which to exercise the Stock Option may
be subject to earlier termination as set forth below.

(a)           Termination
Due to Death.  If the Optionee’s
employment or service terminates by reason of death, any Stock Option held by
the Optionee shall become fully exercisable and may thereafter be exercised by
the Optionee’s legal representative or legatee for a period of 12 months from
the date of death or until the Expiration Date, if earlier.

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(b)           Termination
Due to Disability.  If the Optionee’s
employment or service terminates by reason of disability (as determined by the
Administrator), any Stock Option held by the Optionee shall become fully
exercisable and may thereafter be exercised by the Optionee for a period of 12
months from the date of termination or until the Expiration Date, if earlier.

(c)           Termination
for Cause.  If the Optionee’s
employment or service terminates for Cause, any Stock Option held by the
Optionee shall terminate immediately and be of no further force and
effect.  For purposes hereof, “Cause”
shall mean a vote by the Board resolving that the Optionee shall be dismissed
as a result of (i) any material breach by the Optionee of any agreement between
the Optionee and the Company; (ii) the indictment of the Optionee in connection
with a felony or a crime involving moral turpitude; or (iii) any material
misconduct or willful and deliberate non-performance (other than by reason of
disability) by the Optionee of the Optionee’s duties to the Company.

(d)           Other
Termination.  If the Optionee’s
employment or service terminates for any reason other than death, disability or
Cause, and unless otherwise determined by the Administrator, any Stock Option
held by the Optionee may be exercised, to the extent exercisable on the date of
termination, for a period of six months from the date of termination or until
the Expiration Date, if earlier.  Any
Stock Option that is not exercisable upon the Optionee’s termination of
employment or service shall terminate immediately and be of no further force or
effect.

The Administrator’s determination of the reason for
termination of the Optionee’s employment or service shall be conclusive and
binding on the Optionee and his or her representatives or legatees.

4.             Incorporation of Plan.  Notwithstanding anything herein to the
contrary, this Stock Option shall be subject to and governed by all the terms
and conditions of the Plan, including the powers of the Administrator set forth
in Section 2(b) of the Plan.  Capitalized
terms in this Agreement shall have the meaning specified in the Plan, unless a
different meaning is specified herein.

5.             Limitations on Transferability.  This Agreement is personal to the Optionee,
is non-assignable and is not transferable in any manner, by operation of law or
otherwise, other than by will or the laws of descent and distribution.  This Stock Option is exercisable, during the
Optionee’s lifetime, only by the Optionee, and thereafter, only by the Optionee’s
legal representative or legatee.

6.             Tax Withholding.  The Optionee shall, not later than the date
as of which the exercise of this Stock Option becomes a taxable event for
Federal income tax purposes, pay to the Company or make arrangements
satisfactory to the Administrator for payment of any Federal, state, and local
taxes required by law to be withheld on account of such taxable event.  The Optionee may elect to have the minimum
required tax withholding obligation satisfied, in whole or in part, by (i)
authorizing the Company to withhold from shares of Stock to be issued, or (ii)
transferring to the Company, a number of shares of Stock with an aggregate Fair
Market Value that would satisfy the withholding amount due.

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7.             Miscellaneous.

(a)           Notice
hereunder shall be given to the Company at its principal place of business, and
shall be given to the Optionee at the address set forth below, or in either
case at such other address as one party may subsequently furnish to the other
party in writing.

(b)           This
Stock Option does not confer upon the Optionee any rights with respect to
continuance of employment by or service with the Company or any Subsidiary.

 4Exhibit 10.4

RESTRICTED STOCK AWARD AGREEMENT

FOR COMPANY EMPLOYEES

UNDER THE WATTS WATER
TECHNOLOGIES, INC.

2004 STOCK INCENTIVE
PLAN

The award of shares of
restricted Class A Common Stock (the “Restricted Stock”) of Watts Water
Technologies, Inc. (the “Company”) made to the grantee (the “Grantee”), as set
forth in the Restricted Stock award notification provided on the Company’s
OptionsNet website, is subject to the provisions of the Company’s 2004 Stock
Incentive Plan (the “Plan”) and the terms and conditions contained in this
Restricted Stock Award Agreement (the “Agreement”).  By accepting the award of Restricted Stock on
the OptionsNet website, the Grantee agrees to the terms and conditions of this
Agreement.

1.             Acceptance of Award.  The Grantee shall have no rights with respect
to the Restricted Stock unless he or she shall have accepted the Restricted
Stock award through the Company’s OptionsNet website.  Upon acceptance of the award of Restricted
Stock by the Grantee, (i) the shares of Restricted Stock so accepted shall be
issued by the Company and held by the Company’s transfer agent in book entry
form in a restricted account until such Restricted Stock is vested as provided
in Paragraph 3 below, and (ii) the Grantee’s name shall be entered as the stockholder
of record on the books of the Company. 
Thereupon, the Grantee shall have all the rights of a shareholder with
respect to such shares, including voting and dividend rights, subject, however,
to the restrictions and conditions specified in Paragraph 2 below.

2.             Restrictions and Conditions.

(a)           As set forth in
Paragraph 1, the book entries representing the shares of Restricted Stock
granted herein shall bear an appropriate legend, as determined by the
Administrator in its sole discretion, to the effect that such shares are
subject to restrictions as set forth herein and in the Plan.

(b)           Shares of Restricted
Stock granted herein may not be sold, assigned, transferred, pledged or
otherwise encumbered or disposed of by the Grantee prior to vesting.

(c)           If the Grantee’s
employment with the Company and its Subsidiaries is voluntarily or
involuntarily terminated for any reason (other than death or disability) prior
to vesting of shares of Restricted Stock granted herein, the unvested shares of
Restricted Stock shall be immediately and automatically forfeited to the
Company upon termination of employment, without payment of any consideration to
the Grantee.  The Grantee shall have no
further rights with respect to any shares of Restricted Stock that are so forfeited.

3.             Vesting of Restricted Stock.  Unless otherwise provided in this Agreement
or the Plan, the Restricted Stock shall vest in accordance with the following
vesting schedule:  331/3% of the total number of shares of
Restricted Stock shall vest on the first anniversary of the date of grant, an
additional 331/3% of the total number of shares
of Restricted Stock shall vest on the second anniversary of the date of grant,
and the remaining 331/3% of the total number of shares
of Restricted Stock shall vest on the third anniversary of the date of
grant.  The restrictions and 

conditions in Paragraph 2 shall lapse with
respect to the number of shares of Restricted Stock specified as vested on each
such vesting date.

Subsequent to such
Vesting Date or Dates, the shares of Stock on which all restrictions and
conditions have lapsed shall no longer be deemed Restricted Stock.  Notwithstanding the foregoing, if the Grantee’s
employment is terminated by reason of death or disability (as determined by the
Administrator) prior to the vesting of shares of Restricted Stock granted
herein, the unvested shares of Restricted Stock held by the Grantee shall
become fully vested.  The Administrator
may at any time accelerate the vesting schedule specified in this
Paragraph 3.

4.             Dividends. 
Dividends on shares of Restricted Stock shall be paid currently to the
Grantee.

5.             Incorporation of Plan.  Notwithstanding anything herein to the
contrary, this Agreement shall be subject to and governed by all the terms and
conditions of the Plan, including the powers of the Administrator set forth in
Section 2(b) of the Plan.  Capitalized
terms in this Agreement shall have the meaning specified in the Plan, unless a
different meaning is specified herein.

6.             Limitations on Transferability.  This Agreement is personal to the Grantee, is
non-assignable and is not transferable in any manner, by operation of law or
otherwise, other than by will or the laws of descent and distribution.

7.             Tax Withholding. 
The Grantee acknowledges and agrees that the Company has the right to
deduct from payments of any kind otherwise due to the Grantee any federal,
state, local or other taxes of any kind required by law to be withheld with
respect to the vesting of the shares of Restricted Stock.  The Grantee shall satisfy such tax
withholding obligations by transferring to the Company, on each date on which
shares of Restricted Stock vest under this Agreement, such number of shares of
Restricted Stock that vest on such date as have a Fair Market Value equal to the
amount of the Company’s tax withholding obligation in connection with the
vesting of such shares of Restricted Stock. 
Such delivery of Restricted Stock to the Company shall be deemed to
happen automatically, without any action required on the part of the Grantee,
and the Company is hereby authorized to take such actions as are necessary to
effect such delivery.

8.             Miscellaneous.

(a)           Notice hereunder
shall be given to the Company at its principal place of business, and shall be
given to the Grantee at the address set forth below, or in either case at such
other address as one party may subsequently furnish to the other party in
writing.

(b)           This Agreement does
not confer upon the Grantee any rights with respect to continuation of
employment by the Company or any Subsidiary.

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