Item 2.05. Costs Associated with Exit or Disposal Activities.

As of November 14, 2008, Watts Water Technologies, Inc. (the "Company") notified affected employees that their employment is being terminated under a plan of termination that was previously committed to by management on October 10, 2008. The plan of termination will result in the reduction of approximately 10% of the Company's payroll cost in the United States. Employees affected by the plan of termination will be provided with severance payments and outplacement assistance. The plan of termination is intended to improve the Company's cost leverage in response to the expected continued slowdown in the Company's residential and commercial businesses.

In connection with the plan of termination, the Company expects to incur total expenses relating to termination benefits of approximately $2.1 million in the fourth quarter of 2008. The Company expects to substantially complete the activities related to the plan of termination by December 31, 2008.