diff --git a/lib/coffee-script/command.js b/lib/coffee-script/command.js
index dd235442..a42a00a2 100644
--- a/lib/coffee-script/command.js
+++ b/lib/coffee-script/command.js
@@ -246,24 +246,23 @@
   };
 
   watch = function(source, base) {
-    var compile, compileTimeout, e, prevStats, rewatch, watchErr, watcher;
+    var compile, compileTimeout, err, prevStats, rewatch, watchErr, watcher;
+    watcher = null;
     prevStats = null;
     compileTimeout = null;
-    watchErr = function(e) {
-      if (e.code === 'ENOENT') {
-        if (sources.indexOf(source) === -1) {
-          return;
-        }
-        try {
-          rewatch();
-          return compile();
-        } catch (_error) {
-          e = _error;
-          removeSource(source, base);
-          return compileJoin();
-        }
-      } else {
-        throw e;
+    watchErr = function(err) {
+      if (err.code !== 'ENOENT') {
+        throw err;
+      }
+      if (__indexOf.call(sources, source) < 0) {
+        return;
+      }
+      try {
+        rewatch();
+        return compile();
+      } catch (_error) {
+        removeSource(source, base);
+        return compileJoin();
       }
     };
     compile = function() {
@@ -287,18 +286,18 @@
         });
       });
     };
-    try {
-      watcher = fs.watch(source, compile);
-    } catch (_error) {
-      e = _error;
-      watchErr(e);
-    }
-    return rewatch = function() {
+    rewatch = function() {
       if (watcher != null) {
         watcher.close();
       }
       return watcher = fs.watch(source, compile);
     };
+    try {
+      return watcher = fs.watch(source, compile);
+    } catch (_error) {
+      err = _error;
+      return watchErr(err);
+    }
   };
 
   watchDir = function(source, base) {
diff --git a/src/command.coffee b/src/command.coffee
index dba07d9d..fc7bdfc3 100644
--- a/src/command.coffee
+++ b/src/command.coffee
@@ -186,43 +186,42 @@ compileJoin = ->
 # time the file is updated. May be used in combination with other options,
 # such as `--print`.
 watch = (source, base) ->
-
-  prevStats = null
+  watcher        = null
+  prevStats      = null
   compileTimeout = null
 
-  watchErr = (e) ->
-    if e.code is 'ENOENT'
-      return if sources.indexOf(source) is -1
-      try
-        rewatch()
-        compile()
-      catch e
-        removeSource source, base
-        compileJoin()
-    else throw e
+  watchErr = (err) ->
+    throw err unless err.code is 'ENOENT'
+    return unless source in sources
+    try
+      rewatch()
+      compile()
+    catch
+      removeSource source, base
+      compileJoin()
 
   compile = ->
     clearTimeout compileTimeout
     compileTimeout = wait 25, ->
       fs.stat source, (err, stats) ->
         return watchErr err if err
-        return rewatch() if prevStats and stats.size is prevStats.size and
-          stats.mtime.getTime() is prevStats.mtime.getTime()
+        return rewatch() if prevStats and
+                            stats.size is prevStats.size and
+                            stats.mtime.getTime() is prevStats.mtime.getTime()
         prevStats = stats
         fs.readFile source, (err, code) ->
           return watchErr err if err
           compileScript(source, code.toString(), base)
           rewatch()
 
-  try
-    watcher = fs.watch source, compile
-  catch e
-    watchErr e
-
   rewatch = ->
     watcher?.close()
     watcher = fs.watch source, compile
 
+  try
+    watcher = fs.watch source, compile
+  catch err
+    watchErr err
 
 # Watch a directory of files for new additions.
 watchDir = (source, base) ->