THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Watts Water Technologies, Inc. (WTS)

3/24/2006 Proxy Information

Timothy P. Horne, a director and former chief executive officer of the Company, received an aggregate of $146,154 in retirement benefit payments during 2005 under the Company’s Pension Plan. Mr. Horne has served Watts Water Technologies, Inc. as a consultant since his retirement in December 2002. He was Chairman of Watts Water Technologies, Inc. from April 1986 to August 2002 and Chief Executive Officer from 1978 to August 2002. Mr. Horne also served as President from 1976 to 1978, from 1994 to April 1997 and from October 1999 to August 2002. He joined Watts Water Technologies, Inc. in 1959.

Kenneth J. McAvoy was Chief Financial Officer and Treasurer of Watts Water Technologies, Inc. from 1986 to 1999, Vice President of Finance from 1984 to 1994, Executive Vice President of European Operations from 1994 to 1996 and Secretary from 1985 to 1999. He joined Watts Water Technologies in 1981 and retired in December 1999. Mr. McAvoy received an aggregate of $109,152 in retirement benefit payments during 2005 under the Company’s Pension Plan and Supplemental Plan.

George B. Horne, the father of Timothy P. Horne, a director of the Company, received an aggregate of $95,506 in retirement benefit payments during 2005 under the Company’s Pension Plan.

3/29/2005 Proxy Information

Kenneth J. McAvoy was Chief Financial Officer and Treasurer of Watts Water Technologies, Inc. from 1986 to 1999, Vice President of Finance from 1984 to 1994, Executive Vice President of European Operations from 1994 to 1996 and Secretary from 1985 to 1999.

In April 2004, in connection with the Company's request that Mr. O'Keefe relocate his personal residence from Georgia to Massachusetts, where the Company's corporate headquarters is located, the Company entered into an agreement with a relocation services company. Pursuant to this agreement, Mr. O'Keefe sold his residence to the relocation services company in August 2004 for $2,050,000, which amount represented the fair market value as determined pursuant to appraisals obtained from independent appraisal services. In October 2004, the relocation services company sold the residence for $1,750,000, and the Company paid the relocation services company for the loss of $300,000 on the resale of the residence, and also paid the relocation services company approximately $134,420 for acquisition, carrying, and closing costs, and fees and commissions in connection with this agreement.

George B. Horne, the father of Timothy P. Horne, a director of the Company, receives monthly payments of $7,959 ($95,505 annually) from the Watts Water Technologies, Inc. Retirement Plan for Salaried Employees.

The SEC commenced a civil action on August 15, 2002 against Timothy P. Horne, a member of our Board, our controlling stockholder, and former Chief Executive Officer and Chairman, alleging that Mr. Horne received confidential information as an officer of the Company and used it to profit from trading he did in shares of Central Sprinkler Corp. in May 1999. The complaint alleged violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder based on insider trading.

On February 21, 2003, Mr. Horne entered into an agreement with the SEC to settle the civil action. Pursuant to the agreement, Mr. Horne, without admitting or denying the allegations of the complaint filed by the SEC, consented to the entry of a final judgement against him which required him to disgorge profits gained as a result of the conduct alleged in the complaint, pay prejudgment interest, plus a civil money penalty, and which permanently restrains and enjoins him from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Timothy P. Horne was was Chairman of Watts Water Technologies, Inc. from April 1986 to August 2002 and Chief Executive Officer from 1978 to August 2002. Mr. Horne has served Watts Water Technologies, Inc. as a consultant since his retirement in December 2002. The Company and Mr. Horne are parties to a Supplemental Compensation Agreement, providing for Mr. Horne's services to the Company and compensation following his retirement from the Company on December 31, 2002. Mr. Horne shall provide consulting services to the Company for 300 to 500 hours per year so long as he is physically able. For these services, the Company agreed to pay Mr. Horne $500,000 for calendar years 2003, 2004 and 2005, $410,665 for calendar year 2006 and $400,000 for each calendar year thereafter, subject to certain cost-of-living increases each year. In the event of a change of control of the Company, Mr. Horne has the right to elect to receive a lump sum payment instead of the payments described above. If Mr. Horne elects to receive the lump sum payment, his obligation to provide consulting services to the Company terminates. The lump sum payment would equal the present value of $23,650 monthly for life and would be determined with reference to discount rates and mortality tables applicable under the Company's Retirement Plan for Salaried Employees and an adjustment for inflation. The Company has also agreed to provide lifetime benefits to Mr. Horne including use of Company secretarial services, use of an office at the Company's corporate headquarters, retiree health insurance and reimbursement of tax and financial planning expenses, automobile maintenance expenses, one club membership, a customary director indemnification agreement and travel expenses when visiting Company facilities.

Timothy P. Horne is also entitled under a Deferred Compensation Agreement to retirement benefits aggregating $233,333 payable over a period of 28 consecutive months, which payments commenced upon his retirement from the Company on December 31, 2002. The Deferred Compensation Agreement represents compensation that Mr. Horne deferred prior to the Company's past three fiscal years. The Company has fully expensed its obligations under this Deferred Compensation Agreement.

3/31/2004 Proxy Information

George B. Horne, the father of Timothy P. Horne, a director of the Company, receives monthly payments of $7,959 ($95,505 annually) from the Watts Water Technologies, Inc. Retirement Plan for Salaried Employees.

4/17/2003 Proxy Information

The Securities and Exchange Commission ("SEC") commenced a civil action on August 15, 2002 against Timothy P. Horne, a member of our Board of Directors, our controlling stockholder, andformer Chief Executive Officer and Chairman, alleging that Mr. Horne received confidential information as an officer of the Company and used it to profit from trading he did in shares of Central Sprinkler Corp. in May 1999. The complaint alleged violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder based on insider trading.

Mr. Horne has entered into an agreement with the SEC to settle the civil action. Pursuant to the agreement, Mr. Horne, without admitting or denying the allegations of the complaint filed by the SEC, has consented to the entry of a final judgement against him which requires him to disgorge profits gained as a result of the conduct alleged in the complaint, pay prejudgment interest, plus a civil money penalty, and which permanently restrains and enjoins him from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder

George B. Horne, the father of Timothy P. Horne, a Director of the Company, receives monthly payments of $7,959 ($95,505 annually) from the Watts Industries, Inc. Retirement Plan for Salaried Employees.

On May 9th, 2002 the Company made a $196,505 loan to Mr. Michael O. Fifer. Mr. Fifer used all of the proceeds of this loan to purchase stock of the Company pursuant to the exercise of stock options. The loan is full recourse and bears interest at a rate of 4.43%. The entire loan remains outstanding, but is due and payable not later than January 31, 2004, or immediately if Mr. Fifer sells, assigns, pledges or encumbers all or any portion of the stock.