Watts Water Technologies, Inc. Non-Employee Director Compensation Policy (2005 Revision)

Summary

Watts Water Technologies, Inc. sets out the compensation for its non-employee directors, including an annual cash retainer, annual restricted stock grants that vest over three years, and meeting attendance fees. Additional annual retainers are provided for directors serving as chairs of the Audit, Compensation, and Nominating and Corporate Governance Committees. The policy outlines the amounts and conditions for each type of compensation, as revised by the Board in February 2005.

EX-10.3 4 ex10-3.txt Exhibit 10.3 WATTS WATER TECHNOLOGIES, INC. Non-Employee Director Compensation The annual compensation payable by Watts Water Technologies, Inc. (the "Corporation") to non-employee Directors as determined by the Board of Directors of the Corporation on May 4, 2004 and revised as of February 8, 2005 is as follows: 1. $30,000 annual retainer 2. Annual grant of restricted stock under the Corporation's 2004 Stock Incentive Plan with a fair market value on the date of grant equal to $30,000 and which shall vest in three equal annual installments beginning one year from the date of grant 3. $1,000 for each regularly scheduled Board or committee meeting attended in person (not by telephone conference call), provided that no Board member shall receive more than $1,000 per day for attendance at Board or committee meetings 4. The Chair of the Audit Committee shall receive an additional annual retainer of $10,000 5. The Chair of each of the Compensation Committee and the Nominating and Corporate Governance Committee shall receive an additional annual retainer of $3,000