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Exhibit 10.1    
    

 
  INDEMNIFICATION AGREEMENT    
    

        This Agreement made and entered into this    day
of                        , (the "Agreement"), by and between Watts Water Technologies, Inc., a
Delaware corporation (the "Company," which term shall include, where appropriate, any Entity (as hereinafter defined) controlled directly or indirectly by the Company)
and                        (the
"Indemnitee"): 

        WHEREAS,
it is essential to the Company that it be able to retain and attract as directors and officers the most capable persons available; 

        WHEREAS,
increased corporate litigation has subjected directors and officers to litigation risks and expenses, and the limitations on the availability of directors and officers liability
insurance have made it increasingly difficult for the Company to attract and retain such persons; 

        WHEREAS,
the Company's Certificate of Incorporation and By-laws (the "Certificate of Incorporation" and "By-laws," respectively) require it to indemnify its
directors and officers to the fullest extent permitted by law and permit it to make other indemnification arrangements and agreements; 

        WHEREAS,
the Company desires to provide Indemnitee with specific contractual assurance of Indemnitee's rights to full indemnification against litigation risks and expenses (regardless,
among other things, of any amendment to or revocation of the Certificate of Incorporation or By-laws or any change in the ownership of the Company or the composition of its Board of
Directors); 

        WHEREAS,
the Company intends that this Agreement provide Indemnitee with greater protection than that which is provided by the Company's Certificate of Incorporation and
By-laws; and 

        WHEREAS,
Indemnitee is relying upon the rights afforded under this Agreement in continuing as a director or officer of the Company. 

        NOW,
THEREFORE, in consideration of the promises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows: 

        1.    Definitions.    

        (a)   "Corporate
Status" describes the status of a person who is serving or has served (i) as a director or officer of the Company, (ii) in any capacity with
respect to any employee benefit plan of the Company, or (iii) as a director, partner, trustee, officer, employee, or agent of any other Entity at the request of the Company. For purposes of
subsection (iii) of this Section 1(a), if Indemnitee is serving or has served as a director, partner, trustee, officer, employee or agent of a Subsidiary, Indemnitee shall be deemed to
be serving at the request of the Company. 

        (b)   "Entity"
shall mean any corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization or other legal entity. 

        (c)   "Expenses"
shall mean all fees, costs and expenses incurred by Indemnitee in connection with any Proceeding (as defined below), including, without limitation, attorneys'
fees, disbursements and retainers (including, without limitation, any such fees, disbursements and retainers incurred by Indemnitee pursuant to Sections 10 and 11(c) of this Agreement), fees and
disbursements of expert witnesses, private investigators and professional advisors (including, without limitation, accountants and investment bankers), court costs, transcript costs, fees of experts,
travel expenses, duplicating, printing and binding costs, telephone and fax transmission charges, postage, delivery services, secretarial services, and other disbursements and expenses. 

        (d)   "Indemnifiable
Expenses," "Indemnifiable Liabilities" and "Indemnifiable Amounts" shall have the meanings ascribed to those terms in Section 3(a) below. 

        (e)   "Liabilities"
shall mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement. 

 

        (f)    "Proceeding"
shall mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation, administrative
hearing, appeal, or any other proceeding, whether civil, criminal, administrative, arbitrative or investigative, whether formal or informal, including a proceeding initiated by Indemnitee pursuant to
Section 10 of this Agreement to enforce Indemnitee's rights hereunder. 

        (g)   "Subsidiary"
shall mean any corporation, partnership, limited liability company, joint venture, trust or other Entity of which the Company owns (either directly or
through or together with another Subsidiary of the Company) either (i) a general partner, managing member or other similar interest or (ii) (A) 50% or more of the voting power of
the voting capital equity interests of such corporation, partnership, limited liability company, joint venture or other Entity, or (B) 50% or more of the outstanding voting capital stock or
other voting equity interests of such corporation, partnership, limited liability company, joint venture or other Entity. 

        2.    Services of Indemnitee.    In consideration of the Company's covenants and commitments
hereunder, Indemnitee agrees to serve or continue to serve as a director and/or officer of the Company. However, this Agreement shall not impose any obligation on Indemnitee or the Company to continue
Indemnitee's service to the Company beyond any period otherwise required by law or by other agreements or commitments of the parties, if any. 

        3.    Agreement to Indemnify.    The Company agrees to indemnify Indemnitee as follows: 

        (a)    Proceedings Other Than By or In the Right of the Company.    Subject to the exceptions contained in
Section 4(a) below, if Indemnitee was or is a party or is threatened to be made a party to any Proceeding (other than an action by or in the right of the Company) by reason of Indemnitee's
Corporate Status, Indemnitee shall be indemnified by the Company against all Expenses and Liabilities incurred or paid by Indemnitee in connection with such Proceeding (referred to herein as
"Indemnifiable Expenses" and "Indemnifiable Liabilities," respectively, and collectively as "Indemnifiable Amounts"). 

        (b)    Proceedings By or In the Right of the Company.    Subject to the exceptions contained in Section 4(b)
below, if Indemnitee was or is a party or is threatened to be made a party to any Proceeding by or in the right of the Company by reason of Indemnitee's Corporate Status, Indemnitee shall be
indemnified by the Company against all Indemnifiable Expenses. 

        (c)    Conclusive Presumption Regarding Standard of Care.    In making any determination required to be made under
Delaware law with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this
Agreement if Indemnitee submitted a request therefor in accordance with Section 5 of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection
with the making by any person, persons or entity of any determination contrary to that presumption. 

        4.    Exceptions to Indemnification.    Indemnitee shall be entitled to indemnification under
Sections 3(a) and 3(b) above in all circumstances other than with respect to any specific claim, issue or matter involved in the Proceeding out of which Indemnitee's claim for indemnification has
arisen, as follows: 

        (a)    Proceedings Other Than By or In the Right of the Company.    If indemnification is requested under
Section 3(a) and it has been finally adjudicated by a court of competent jurisdiction that, in connection with such specific claim, issue or matter, Indemnitee failed to act (i) in good
faith and (ii) in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal Proceeding, Indemnitee had reasonable
cause to believe that Indemnitee's conduct was unlawful, Indemnitee shall not be entitled to payment of Indemnifiable Amounts hereunder. 

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        (b)    Proceedings By or In the Right of the Company.    If indemnification is requested under Section 3(b) and 

	(i)
	it
has been finally adjudicated by a court of competent jurisdiction that, in connection with such specific claim, issue or matter, Indemnitee failed to act
(A) in good faith and (B) in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, Indemnitee shall not be entitled to payment of
Indemnifiable Expenses hereunder; or

	(ii)
	it
has been finally adjudicated by a court of competent jurisdiction that Indemnitee is liable to the Company with respect to such specific claim, Indemnitee shall not
be entitled to payment of Indemnifiable Expenses hereunder with respect to such claim, issue or matter unless the Court of Chancery or another court in which such Proceeding was brought shall
determine upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such
Indemnifiable Expenses which such court shall deem proper; or

	(iii)
	it
has been finally adjudicated by a court of competent jurisdiction that Indemnitee is liable to the Company for an accounting of profits made from the purchase or
sale by the Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, the rules and regulations promulgated thereunder and
amendments thereto or similar provisions of any federal, state or local statutory law, Indemnitee shall not be entitled to payment of Indemnifiable Expenses hereunder. 

        (c)    Insurance Proceeds.    To the extent payment is actually made to the Indemnitee under a valid and collectible
insurance policy in respect of Indemnifiable Amounts in connection with such specific claim, issue or matter, Indemnitee shall not be entitled to payment of Indemnifiable Amounts hereunder except in
respect of any excess beyond the amount of payment under such insurance. 

        5.    Procedure for Payment of Indemnifiable Amounts.    Indemnitee shall submit to the
Company a written request specifying the Indemnifiable Amounts for which Indemnitee seeks payment under Section 3 of this Agreement and the basis for the claim. The Company shall pay such
Indemnifiable Amounts to Indemnitee within sixty (60) calendar days of receipt of the request. At the request of the Company, Indemnitee shall furnish such documentation and information as are
reasonably available to Indemnitee and necessary to establish that Indemnitee is entitled to indemnification hereunder. 

        6.    Indemnification for Expenses of a Party Who is Wholly or Partly
Successful.    Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee is, by reason of
Indemnitee's Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified against all Expenses reasonably incurred by Indemnitee or on
Indemnitee's behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with each successfully resolved
claim, issue or matter. For purposes of this Agreement, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, by reason of settlement, judgment,
order or otherwise, shall be deemed to be a successful result as to such claim, issue or matter. 

        7.    Effect of Certain Resolutions.    Neither the settlement or termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that indemnification is payable shall 

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create
a presumption that Indemnitee is not entitled to indemnification hereunder. In addition, the termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent shall not create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests
of the Company or, with respect to any criminal Proceeding, had reasonable cause to believe that Indemnitee's action was unlawful. 

        8.    Agreement to Advance Expenses; Undertaking.    The Company shall advance all Expenses
incurred by or on behalf of Indemnitee in connection with any Proceeding, including a Proceeding by or in the right of the Company, in which Indemnitee is involved by reason of such Indemnitee's
Corporate Status within ten (10) calendar days after the receipt by the Company of a written statement from Indemnitee requesting such advance or advances from time to time, whether prior to or
after final disposition of such Proceeding. To the extent required by Delaware law, Indemnitee hereby undertakes to repay any and all of the amount of Indemnifiable Expenses paid to Indemnitee if it
is finally determined by a court of competent jurisdiction that Indemnitee is not entitled under this Agreement to indemnification with respect to such Expenses. This undertaking is an unlimited
general obligation of Indemnitee. 

        9.    Procedure for Advance Payment of Expenses.    Indemnitee shall submit to the Company a
written request specifying the Indemnifiable Expenses for which Indemnitee seeks an advancement under Section 8 of this Agreement, together with documentation evidencing that Indemnitee has
incurred such Indemnifiable Expenses. Payment of Indemnifiable Expenses under Section 8 shall be made no later than ten (10) calendar days after the Company's receipt of such request. 

        10.    Remedies of Indemnitee.    

        (a)    Right to Petition Court.    In the event that Indemnitee makes a request for payment of Indemnifiable Amounts
under Sections 3 and 5 above or a request for an advancement of Indemnifiable Expenses under Sections 8 and 9 above and the Company fails to make such payment or advancement in a timely manner
pursuant to the terms of this Agreement, Indemnitee may petition the Court of Chancery to enforce the Company's obligations under this Agreement. 

        (b)    Burden of Proof.    In any judicial proceeding brought under Section 10(a) above, the Company shall have
the burden of proving that Indemnitee is not entitled to payment of Indemnifiable Amounts hereunder. 

        (c)    Expenses.    The Company agrees to reimburse Indemnitee in full for any Expenses incurred by Indemnitee in
connection with investigating, preparing for, litigating, defending or settling any action brought by Indemnitee under Section 10(a) above, or in connection with any claim or counterclaim
brought by the Company in connection therewith, whether or not Indemnitee is successful in whole or in part in connection with any such action. 

        (d)    Failure to Act Not a Defense.    The failure of the Company (including its Board of Directors or any committee
thereof, independent legal counsel, or stockholders) to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the advancement of Indemnifiable Expenses under
this Agreement shall not be a defense in any action brought under Section 10(a) above, and shall not create a presumption that such payment or advancement is not permissible. 

        11.    Defense of the Underlying Proceeding.    

        (a)    Notice by Indemnitee.    Indemnitee agrees to notify the Company promptly upon being served with any summons,
citation, subpoena, complaint, indictment, information, or other document relating to any Proceeding which may result in the payment of Indemnifiable Amounts or the advancement of Indemnifiable
Expenses hereunder; provided, however, that the failure to 

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give
any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to receive payments of Indemnifiable Amounts or advancements of
Indemnifiable Expenses unless the Company's ability to defend in such Proceeding is materially and adversely prejudiced thereby. 

        (b)    Defense by Company.    Subject to the provisions of the last sentence of this Section 11(b) and of
Section 11(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to the payment of Indemnifiable Amounts hereunder; provided, however that the
Company shall notify Indemnitee of any such decision to defend within ten (10) calendar days of receipt of notice of any such Proceeding under Section 11(a) above. The Company shall not,
without the prior written consent of Indemnitee, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of
Indemnitee or (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and
substance reasonably satisfactory to Indemnitee. This Section 11(b) shall not apply to a Proceeding brought by Indemnitee under Section 10(a) above or pursuant to Section 19
below. 

        (c)    Indemnitee's Right to Counsel.    Notwithstanding the provisions of Section 11(b) above, if in a
Proceeding to which Indemnitee is a party by reason of Indemnitee's Corporate Status, (i) Indemnitee reasonably concludes that he or she may have separate defenses or counterclaims to assert
with respect to any issue which may not be consistent with the position of other defendants in such Proceeding, (ii) a
conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such proceeding in a timely manner,
Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee's choice at the expense of the Company. In addition, if the Company fails to comply with any of its obligations
under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any action, suit or proceeding to deny or to
recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee's choice, at the expense of the Company, to
represent Indemnitee in connection with any such matter. 

        12.    Representations and Warranties of the Company.    The Company hereby represents and
warrants to Indemnitee as follows: 

        (a)    Authority.    The Company has all necessary power and authority to enter into, and be bound by the terms of,
this Agreement, and the execution, delivery and performance of the undertakings contemplated by this Agreement have been duly authorized by the Company. 

        (b)    Enforceability.    This Agreement, when executed and delivered by the Company in accordance with the provisions
hereof, shall be a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the enforcement of creditors' rights generally. 

        13.    Insurance.    For a period of six (6) years following the date on which
Indemnitee no longer serves as a director, officer or employee of the Company or any Subsidiary, and for such longer period, if any, for which Indemnitee may be subject to a Proceeding by reason of
Indemnitee's Corporate Status, the Company (i) shall maintain a policy or policies of insurance with one or more reputable insurance companies providing the Indemnitee with coverage in an
amount not less than, and of a type and scope not materially less favorable to Indemnitee than, the directors' and officers' liability insurance coverage presently maintained by the Company,
(ii) shall pay on a timely basis all premiums on such insurance and (iii) shall provide such notices and renewals in a complete and timely manner and take such other actions as may be
required in order to keep such insurance in full force and effect. 

5

 

In
all policies of director and officer liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most
favorably insured of the Company's officers and directors. 

        14.    Contract Rights Not Exclusive.    The rights to payment of Indemnifiable Amounts and
advancement of Indemnifiable Expenses provided by this Agreement shall be in addition to, but not exclusive of, any other rights which Indemnitee may have at any time under applicable law, the
Company's Certificate of
Incorporation or By-laws, or any other agreement, vote of stockholders or directors (or a committee of directors), or otherwise, both as to action in Indemnitee's official capacity and as
to action in any other capacity as a result of Indemnitee's serving as a director or officer of the Company. 

        15.    Successors.    This Agreement shall be (a) binding upon all successors and
assigns of the Company (including any transferee of all or a substantial portion of the business, stock and/or assets of the Company and any direct or indirect successor by merger or consolidation or
otherwise by operation of law) and (b) binding on and shall inure to the benefit of the heirs, personal representatives, executors and administrators of Indemnitee. In the event that the
Company or any of its successors or assigns (i) consolidates with or merges into any other person or entity and shall not be the continuing or surviving corporation or entity of such
consolidation or merger or (ii) transfers or conveys all or substantially all of its properties and assets to any person or entity, then, and in each such case, proper provision shall be made
so that the successors and assigns of the Company assume the obligations of the Company under this Agreement. This Agreement shall continue for the benefit of Indemnitee and such heirs, personal
representatives, executors and administrators after Indemnitee has ceased to have Corporate Status. 

        16.    Subrogation.    In the event of any payment of Indemnifiable Amounts under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of contribution or recovery of Indemnitee against other persons, and Indemnitee shall take, at the request
of the Company, all reasonable action necessary to secure such rights, including the execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

        17.    Change in Law.    To the extent that a change in Delaware law (whether by statute or
judicial decision) shall permit broader indemnification or advancement of expenses than is provided under the terms of the By-laws and this Agreement, Indemnitee shall be entitled to such
broader indemnification and advancements, and this Agreement shall be deemed to be amended to such extent. 

        18.    Severability.    Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction
to be illegal, invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application to the minimum extent necessary to make such provision or clause
valid, legal and enforceable, and the remaining provisions and clauses of this Agreement shall remain fully enforceable and binding on the parties. 

        19.    Indemnitee as Plaintiff.    Except as provided in Section 10(c) of this
Agreement and in the next sentence, Indemnitee shall not be entitled to payment of Indemnifiable Amounts or advancement of Indemnifiable Expenses with respect to any Proceeding brought by Indemnitee
against the Company, any Entity which it controls, any director or officer thereof, or any third party, unless the Board of Directors of the Company has consented to the initiation of such Proceeding.
This Section shall not apply to counterclaims or affirmative defenses asserted by Indemnitee in an action brought against Indemnitee. 

        20.    Modifications and Waiver.    Except as provided in Section 17 above with respect
to changes in Delaware law which broaden the right of Indemnitee to be indemnified by the Company, no 

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supplement,
modification or amendment of this Agreement shall be binding unless executed in writing by each of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provisions of this Agreement (whether or not similar), nor shall such waiver constitute a continuing waiver. 

        21.    General Notices.    All notices, requests, demands and other communications hereunder
shall be in writing and shall be deemed to have been duly given (a) when delivered by hand, (b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by
certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed: 

	 	(i)	If to Indemnitee, to:	 
	 	 	    
	 
	 	 	    
	 
	 	 	    
	 
	 	 	    
	 
	

 	

(ii)	

If to the Company, to:	

 
	

 	

 	

Watts Water Technologies, Inc.

815 Chestnut Street

North Andover, MA 01845

Facsimile: (978) 688-2976

Attention:

	

 

or
to such other address as may have been furnished in the same manner by any party to the others. 

        22.    Governing Law; Consent to Jurisdiction; Service of Process.    This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware without regard to its rules of conflict of laws. Each of the Company and the Indemnitee hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction of the Court of Chancery of the State of Delaware and the courts of the United States of America located in the State of Delaware (the
"Delaware Courts") for any litigation arising out of or relating to this Agreement and the transactions contemplated hereby (and agrees not to commence any litigation relating thereto except in such
courts), waives any objection to the laying of venue of any such litigation in the Delaware Courts and agrees not to plead or claim in any Delaware Court that such litigation brought therein has been
brought in an inconvenient forum. Each of the parties hereto agrees, (a) to the extent such party is not otherwise subject to service of process in the State of Delaware, to appoint and
maintain an agent in the State of Delaware as such party's agent for acceptance of legal process, and (b) that service of process may also be made on such party by prepaid certified mail with a
proof of mailing receipt validated by the United States Postal Service constituting evidence of valid service. Service made pursuant to (a) or (b) above shall have the same legal force
and effect as if served upon such party personally within the State of Delaware. For purposes of implementing the parties' agreement to appoint and maintain an agent for service of process in the
State of Delaware, each such party does hereby appoint The Corporation Trust Company, 1209 Orange Street, Wilmington, New Castle County, Delaware 19801, as such agent and each such party hereby agrees
to complete all actions necessary for such appointment. 

        23.    [Prior Agreement.    This Agreement supersedes and replaces in its entirety
the Indemnification Agreement between the Indemnitee and the Company dated as of            ,    .] 

7

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 

	 	WATTS WATER TECHNOLOGIES, INC.
	

 	

By:	

  

	 	 	Name:	 
	 	 	Title:	 
	

 	

INDEMNITEE
	

 	

  
 Name:

8

 
 

Schedule of Omitted Information    
    

	Name of Indemnitee
	 	Date of Agreement
	 	Date of Prior Agreement

(Section 23)
	 	Person Signing on behalf of the

Company

	Roger A. Young	 	February 10, 2004	 	November 5, 2003	 	Patrick S. O'Keefe

Chief Executive Officer
	Daniel J. Murphy, III	 	February 10, 2004	 	November 5, 2003	 	Patrick S. O'Keefe

Chief Executive Officer
	Gordon W. Moran	 	February 10, 2004	 	November 5, 2003	 	Patrick S. O'Keefe

Chief Executive Officer
	Kenneth J. McAvoy	 	February 10, 2004	 	November 5, 2003	 	Patrick S. O'Keefe

Chief Executive Officer
	John K. McGillicuddy	 	February 10, 2004	 	November 5, 2003	 	Patrick S. O'Keefe

Chief Executive Officer
	Timothy P. Horne	 	February 10, 2004	 	August 7, 2002	 	Patrick S. O'Keefe

Chief Executive Officer
	Patrick S. O'Keefe	 	February 10, 2004	 	November 5, 2003	 	William C. McCartney

Chief Financial Officer
	William J. Merchant	 	February 10, 2004	 	November 5, 2003	 	Patrick S. O'Keefe

Chief Executive Officer
	Lester J. Taufen	 	February 10, 2004	 	November 5, 2003	 	Patrick S. O'Keefe

Chief Executive Officer
	Kenneth R. Lepage	 	February 10, 2004	 	November 5, 2003	 	Patrick S. O'Keefe

Chief Executive Officer
	William C. McCartney	 	February 10, 2004	 	November 5, 2003	 	Patrick S. O'Keefe

Chief Executive Officer
	Timothy MacPhee	 	February 10, 2004	 	Not Applicable	 	Patrick S. O'Keefe

Chief Executive Officer
	Ralph E. Jackson, Jr.	 	June 23, 2004	 	Not Applicable	 	Patrick S. O'Keefe

Chief Executive Officer
	William D. Martino	 	October 31, 2005	 	Not Applicable	 	Patrick S. O'Keefe

Chief Executive Officer
	Gregory J. Michaud	 	August 1, 2006	 	Not Applicable	 	Patrick S. O'Keefe

Chief Executive Officer
	Robert L. Ayers	 	October 30, 2006	 	Not Applicable	 	Patrick S. O'Keefe

Chief Executive Officer
	Richard J. Cathcart	 	October 29, 2007	 	Not Applicable	 	Patrick S. O'Keefe

Chief Executive Officer

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Exhibit 10.1

INDEMNIFICATION AGREEMENT

Schedule of Omitted InformationQuickLinks
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Exhibit 10.2    
    

October 16,
2007 

William
D. Martino

76 Wild Pasture Road

Kensington, NH 03833 

Dear
Bill: 

In
connection with your resignation from employment with Watts Water Technologies, Inc. (the "Company") as of Sunday, September 30, 2007, you are eligible to receive the severance
benefits described in the "Description of Severance Benefits" attached to this letter agreement as Attachment A if you sign and return this letter agreement to Gregory Michaud by November 6,
2007 and it becomes binding between the Company and you. By signing and returning this letter agreement and not revoking your acceptance, you will be agreeing to the terms and conditions set forth in
the numbered paragraphs below, including the release of claims set forth in paragraph 3. Therefore, you are advised to consult with an attorney before signing this letter agreement and you may
take up to twenty-one (21) days to do so. If you sign this letter agreement, you may change your mind and revoke your agreement during the seven (7) day period after you have
signed it. If you do not so revoke, this letter agreement will become a binding agreement between the Company and you upon the expiration of the seven (7) day revocation period. 

If
you choose not to sign and return this letter agreement by November 6, 2007 or if you revoke your acceptance of this letter agreement during the revocation period, you shall not receive any
severance benefits from the Company. You will, however, receive payment on your resignation date for any wages and unused vacation time accrued through the Resignation Date (as defined herein). Also,
regardless of signing this letter agreement, you may elect to continue receiving group medical insurance pursuant to the federal "COBRA" law, 29 U.S.C. § 1161  et seq. All premium costs
for COBRA shall be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA
continuation. You should consult the COBRA materials to be provided by the Company for details regarding these benefits. All other benefits, including life insurance and long-term
disability insurance, will cease upon your Resignation Date. 

Further,
pursuant to the Company's 2004 Stock Incentive Plan and your stock option agreements, you will have up to six (6) months after the Resignation Date to exercise any vested stock options
you may have (as provided for by the plans). All unvested stock options will be cancelled and all unvested shares of restricted stock will be forfeited to the Company on the Resignation Date. 

Pursuant
to the terms of the Management Stock Purchase Plan, your non-vested restricted stock units (RSUs) will be cancelled on the Resignation Date and you will receive a cash payment
equal to the number of such non-vested RSUs multiplied by the lesser of (a) 67% of the fair market value of the Company's Class A Common Stock on the date the RSUs were
purchased plus simple interest per annum on such amount at the one-year U.S. Treasury Bill rate (as published in the Wall Street Journal) in
effect on the purchase date and each anniversary thereof, or (b) the fair market value of the Class A Common Stock on the Resignation Date. As a result of the American Jobs Creation Act
of 2004, because you are an officer of the Company, the distribution of this cash payment for any unvested RSUs cannot be made until at least six months after the Resignation Date. 

The
following numbered paragraphs set forth the terms and conditions that will apply if you timely sign and return this letter agreement and do not revoke it within the seven (7) day period: 

	1.
	Resignation Date—Your effective date of resignation from the Company is September 30, 2007 (the "Resignation Date").

	2.
	Description of Severance Benefits—The severance benefits paid to you if you timely sign and return this letter agreement,
and do not revoke it, are described in the "Description of Severance Benefits" attached as Attachment A (the "Severance Benefits"). 

 
	3.
	Release—In consideration of the payment of the severance benefits, which you acknowledge you would not otherwise be entitled
to receive, you hereby fully, forever, irrevocably and unconditionally release, remise and discharge the Company and its officers, directors, stockholders, corporate affiliates, subsidiaries, parent
companies, agents and employees (each in their individual and corporate capacities), and all employee benefit plans and plan fiduciaries (hereinafter, the "Released Parties") from any and all claims,
charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages,
executions, obligations, liabilities and expenses (including attorneys' fees and costs), of every kind and nature that you ever had or now have against any or all of the Released Parties, including,
but not limited to, any and all claims arising out of your employment with and/or separation from the Company, including, but not limited to, all employment discrimination claims under Title VII of
the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621  et seq., the
Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the
Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701  et seq., the Massachusetts
Fair Employment Practices Act., M.G.L. c. 151B, § 1  et seq., the Massachusetts Civil Rights Act, M.G.L. c. 12, §§ 11H and 11I, the Massachusetts Equal Rights Act,
M.G.L. c.
93, § 102 and M.G.L. c. 214, § 1C, the Massachusetts Labor and Industries Act, M.G.L. c. 149, §1 et
seq., the Massachusetts Privacy Act, M.G.L. c. 214, § 1B and the Massachusetts Maternity Leave Act, M.G.L. c. 149, § 105(d), all as amended; all claims
arising out of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., the Employee Retirement Income Security Act of 1974
("ERISA"), 29 U.S.C. § 1001 et seq., and the Corporate and Criminal Fraud Accountability Act of 2002, 18 U.S.C.
§ 1514A (Sarbanes-Oxley whistleblower provision), all as amended; all common law claims including, but not limited to, actions in tort, defamation and breach of contract; all claims
to any non-vested ownership interest in the Company, contractual or otherwise, including, but not limited to, claims to stock or stock options; and any claim or damage arising out of your
employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above;  provided, however,
 that nothing in this letter agreement prevents you from filing, cooperating with or participating in any proceeding before the EEOC
or a state fair employment practices agency (except that you acknowledge that you may not be able to recover any monetary benefits in connection with any such claim, charge or proceeding).

	4.
	Non-Disclosure—You agree that you will keep confidential all non-public information concerning the
Company that you acquired during the course of your employment with the Company.

	5.
	Return of Company Property—You confirm that you have returned to the Company in good working order all keys, files, records
(and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones and pagers), Company identification, Company
proprietary and confidential information and any other Company-owned property in your possession or control and have left intact all electronic Company documents, including, but not limited to, those
that you developed or helped to develop during your employment. You further confirm that you have cancelled all accounts for your benefit, if any, in the Company's name, including, but not limited to,
credit cards, telephone charge cards, cellular phone and/or pager accounts and computer accounts.

	6.
	Business Expenses and Final Compensation—You acknowledge that you have been reimbursed by the Company for all business
expenses incurred in conjunction with the performance of your employment and that no other reimbursements are owed to you. You further acknowledge that you have received payment in full for all
services rendered in conjunction with your employment by the Company and that no other compensation is owed to you. 

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	7.
	Cooperation and Consulting—You agree to cooperate with the Company in the investigation, defense or prosecution of any
claims or actions now in existence or which may be brought in the future against or on behalf of the Company. Your cooperation in connection with such claims or actions shall include, but not be
limited to, you being available to meet with the Company's counsel to prepare for discovery or any mediation, arbitration, trial, administrative hearing or other proceeding or to act as a witness when
reasonably requested by the Company. During the period you are receiving severance pay from the Company, you agree to be available upon reasonable notice to consult with the Company;  provided, however,
that such assistance will not exceed eight (8) hours per month. You also agree that you will not be paid any additional
consideration for this assistance.

	8.
	Non-Disparagement—To the extent permitted by law, you shall not make any false, disparaging or derogatory
statements in public or private to any person, entity or media outlet regarding the Company or any of its directors, officers, employees, agents or representatives or the Company's business affairs
and financial condition. The Company confirms that it has instructed the members of its management team to refer all requests for a reference or other information regarding your service with the
Company to the Company's Executive Vice President of Human Resources.

	9.
	Amendment—This letter agreement shall be binding upon the parties and may not be abandoned, supplemented, changed or
modified in any manner, orally or otherwise, except by an instrument in writing of concurrent or subsequent date signed by a duly authorized representative of the parties hereto. This letter agreement
is binding upon and shall inure to the benefit of the parties and their respective agents, assigns, heirs, executors, successors and administrators.

	10.
	Waiver of Rights—No delay or omission by the Company in exercising any right under this letter agreement shall operate as a
waiver of that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right
on any other occasion.

	11.
	Validity—Should any provision of this letter agreement be declared or be determined by any court of competent jurisdiction
to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of
this letter agreement.

	12.
	Nature of Agreement—You understand and agree that this letter agreement is a severance agreement and does not constitute an
admission of liability or wrongdoing on the part of the Company.

	13.
	Tax Provision—In connection with the severance benefits provided to you pursuant to this letter agreement, the Company
shall withhold and remit to the tax authorities the amounts required under applicable law, and you shall be responsible for all applicable taxes with respect to such severance benefits under
applicable law. You acknowledge that you are not relying upon advice or representation of the Company with respect to the tax treatment of any of the severance benefits set forth in Attachment A.

	14.
	Acknowledgments—You acknowledge that you have been given at least twenty-one (21) days to consider this
letter agreement, including Attachment A, and that the Company advised you in writing to consult with an attorney of your own choosing prior to signing this letter agreement. You understand that you
may revoke this letter agreement for a period of seven (7) days after you sign it, and that this letter agreement shall not be effective or enforceable until the expiration of this seven
(7) day revocation period. You understand and agree that by entering into this letter agreement you are waiving any and all rights or claims you might have under the Age Discrimination in
Employment Act, as amended by the Older Workers Benefit Protection Act, and that you have received consideration beyond that to which you were previously entitled. 

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	15.
	Voluntary Assent—You affirm that no other promises or agreements of any kind have been made to or with you by any person or
entity whatsoever to cause you to sign this letter agreement, and that you fully understand the meaning and intent of this letter agreement. You state and represent that you have had an opportunity to
fully discuss and review the terms of this letter agreement, including Attachment A, with an attorney. You further state and represent that you have carefully read this letter agreement, including
Attachment A, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign your name of your own free act.

	16.
	Applicable Law and Consent to Jurisdiction—This letter agreement shall be interpreted and construed by the laws of the
Commonwealth of Massachusetts, without regard to conflict of laws provisions. You hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the Commonwealth of
Massachusetts, or if appropriate, a federal court located in the Commonwealth of Massachusetts (which courts, for purposes of this letter agreement, are the only courts of competent jurisdiction),
over any suit, action or other proceeding arising out of, under or in connection with this letter agreement or the subject matter hereof.

	17.
	Entire Agreement—This letter agreement, including Attachment A, contains and constitutes the entire understanding and
agreement between the parties hereto with respect to your severance benefits and the settlement of claims against the Company and cancels all previous oral and written negotiations, agreements and
commitments in connection therewith. 

If
you have any questions about the matters covered in this letter agreement, please call. 

	 	 	Very truly yours,
	

 	
 	

 	
 	

 
	

 	
 	

WATTS WATER TECHNOLOGIES, INC.
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  GREGORY J. MICHAUD      
 Name: Gregory J. Michaud

Title: Executive VP of Human Resources

I
hereby agree to the terms and conditions set forth above and in Attachment A. I have been given at least twenty-one (21) days to consider this letter agreement (including
Attachment A) and I have chosen to execute this on the date below. I intend that this letter agreement will become a binding agreement between the Company and me if I do not revoke my
acceptance in seven (7) days. 

	/s/  WILLIAM D. MARTINO      
 William D. Martino	 	10/26/07
 Date	 	 

To
be signed and returned by November 6, 2007. 

4

 
 

ATTACHMENT A
  DESCRIPTION OF SEVERANCE BENEFITS    
    

	1.
	The
Company will pay you severance pay in the form of a lump sum totaling $427,500. This total is calculated using your annual base salary of $327,500 plus $100,000, a discretionary
bonus for 2007. This severance pay will be paid no earlier than the eighth (8th) day after execution of this letter of agreement. You will receive a separate check for the value of your deferred
non-vested RSU's for the year you participated in the Management Stock Purchase Plan, less all applicable state and federal taxes, no earlier than six (6) months after the
Resignation Date.

	2.
	Effective
as of the Resignation Date, if you elect to continue receiving group health coverage pursuant to the federal "COBRA" law, 29 U.S.C. § 1161  et seq., during the eighteen (18) month
period from September 30, 2007 to March 31, 2009, the Company shall pay the full COBRA
costs associated with the medical and dental coverage you have elected. The remaining balance of any COBRA premium costs after the Severance Pay Period, shall be paid by you on a monthly basis for as
long as, and to the extent that, you remain eligible for COBRA continuation. You should consult the COBRA materials to be provided by the Company for details regarding these benefits.

	3.
	The
Company will pay you $50,000 to cover costs associated with relocating your personal belongings and household goods. 

QuickLinks

Exhibit 10.2

ATTACHMENT A DESCRIPTION OF SEVERANCE BENEFITS

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