Document:

Exhibit 10.1

WATSON WYATT WORLDWIDE, INC.

2001
DEFERRED STOCK UNIT PLAN FOR SELECTED EMPLOYEES

Article 1 -             General

Section 1.1.            Purposes.

The purposes of the Watson Wyatt
Worldwide, Inc. 2001 Deferred Stock Unit Plan for Selected Employees (the “Plan”)
are (a) to provide an incentive to certain highly qualified individuals to
serve as Selected Employees (as defined below) of Watson Wyatt Worldwide, Inc.
(“WWW”) and its Affiliates (together, the “Company”) and (b) to further align
the interests of Selected Employees with the stockholders of WWW.

Section 1.2.            Definitions.

For the purpose of the Plan, the
following terms shall have the meanings indicated.

(a) “Account”
means the unfunded and unsecured journal entry account established on the books
and records of WWW to record an Account Balance.

(b) “Account Balance” means, the Deferred Stock Units credited to a
Participant’s Account, as adjusted in accordance with Article 4 to reflect the
addition of dividend equivalents and any changes in capitalization and as
adjusted in accordance with Section 2.7.

(c) “Affiliate” means any corporation, partnership, or other organization
of which WWW owns or controls, directly or indirectly, not less than 50% of the
total combined voting power of all classes of stock or other equity interests.

(d) “Annual Meeting” means the Annual Meeting of Stockholders of WWW.

(e) “Board of Directors” or “Board” shall mean the Board of Directors of
WWW.

(f) “Business Day” shall mean any day on which the New York Stock
Exchange is open for business.

(g) “Change in Control”
shall mean the occurrence of any of the following:

(i)            the sale, lease, transfer,
conveyance or other disposition, in one or a series of related transactions, of
all or substantially all of the assets of the Company;

(ii)           any “person” or “group” (as such
terms are used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act, as
defined below) is or becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that a person shall be deemed to have “beneficial
ownership” of all shares that any such person has the right to acquire, whether
such right is exercisable immediately or is subject to other conditions,
directly or indirectly, of more than 50% of the total voting power of the
voting stock of WWW, including by way of merger, consolidation or otherwise;

(iii)          satisfaction or waiver of all
conditions precedent (including receipt of any approval by the stockholders of
WWW) under any agreement or plan of merger, consolidation or reorganization
involving WWW, if as a result of such merger, consolidation or reorganization
the stockholders of WWW immediately before such transaction will not own,
directly or indirectly immediately following such merger, consolidation or
reorganization, more than 50% of the combined voting power of the company(ies)
resulting from such merger, consolidation or reorganization in substantially
the same proportion as their ownership immediately before such merger,
consolidation or reorganization; or

(iv)          during any period of two consecutive
years, individuals who at the beginning of such period served on the Board of
Directors (any such individual, an “Incumbent Director”) cease for any reason
to constitute a majority of the Board of Directors; provided that any new director
whose election to the Board or whose nomination for election to the Board was
approved by a majority of the Incumbent Directors then in office shall be
considered an “Incumbent Director” unless the director was elected or nominated
for election to the Board of Directors to avoid or settle a threatened or
actual proxy contest.

(h) “Code” means the Internal Revenue Code of 1986 of the United States
of America, as amended from time to time.

(i) “Committee” shall have the meaning provided in Section 7.1.

(j) “Common Stock” means the Class A common stock, par value $.01 per
share, of WWW.

(k) “Company” means WWW and all of its Affiliates.

(l) “Current Market Value” per share of Common Stock for any date means
(i) if the Common Stock is listed on a national securities exchange or
quotation system, the closing sales price on such exchange or quotation system
on such date or, in the absence of reported sales on such date, the closing
sales price on the immediately preceding date on which sales were reported, (ii)
if the Common Stock is not listed on a national securities exchange or
quotation system, the mean between the high bid and low offered prices as
quoted by the National Association of Securities Dealers, Inc. Automated
Quotation System (“NASDAQ”) for such date, or (iii) if the Common Stock is
neither listed on a national securities exchange or quotation system nor quoted
by NASDAQ, the fair value as determined by such other method as the Committee
determines in good faith to be reasonable.

(m) “Deferred Stock Unit” or “Unit” means a unit representing WWW’s
obligation to deliver or issue to a Participant one share of Common Stock for
each such unit in accordance with the terms of the Plan.

(n) “Disability” means any physical or mental condition of a Selected
Employee that in the opinion of the Committee renders the Selected Employee
incapable of continuing to be an employee of the Company.

(o) “Exchange Act” means the Securities Exchange Act of 1934 of the
United States of America, as amended.

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(p) “Grant” means the crediting of units to a Participant’s Account
pursuant to Section 2.1.

(q) “Grant Date” shall mean the date that Deferred Stock Units are
credited to a Participant’s Account pursuant to Section 2.1.

(r) “Participant” means each Selected Employee to whom a Grant of
Deferred Stock Units has been made under the Plan.

(s) “Payment”
means the distribution of Common Stock to a Participant in accordance with Sections 2.4 and 2.6(b), and it shall also
include any Payment made pursuant to Article 6 or Section 7.4.

(t) “Plan” means this Watson Wyatt Worldwide, Inc. 2001 Deferred Stock
Unit Plan for Selected Employees.

(u) “Selected Employee” shall mean those highly compensated and/or highly
qualified employees of the Company as are eligible to be selected by the
Committee for awards under this Plan, as determined by the Committee from time
to time.

(v) “Unit Portion of the Bonus” means the portion of any Participant’s
bonus that is to be allocated and paid by crediting Deferred Stock Units to the
Participant’s Account, as determined or approved by the Committee, and done in
accordance with Section 2.1.

(w) “Units” has the meaning specified in the definition of “Deferred
Stock Units”.

(x) “Vested” means, with respect to a Deferred Stock Unit credited to a
Participant’s Account, that such Unit is no longer subject to forfeiture in
accordance with any notice given by the Company to the Participant at the time
of the Grant, or any agreement between the Company and the Participant, in
accordance with Section 2.2.

(z) “WWW” has the meaning specified in Section 1.1.

Section 1.3. 
Shares Subject to the Plan.

(a) 
Reservation of Shares.  The total
number of shares of Common Stock that shall be reserved for issuance in payment
of Deferred Stock Units under the Plan shall be 2,700,000* subject to
adjustment for changes in capitalization of WWW as provided in subparagraph (b)
below.  Shares of Common Stock issued
under the Plan may be authorized but unissued shares of Common Stock, issued
shares held in or acquired for WWW’s treasury or shares reacquired by WWW upon
purchase in the open market.

(b) 
Changes in Common Stock.  If any
change is made in the terms or provisions of the Common Stock then subject to
the Plan (whether by reason of reorganization, merger, consolidation, recapitalization,
stock dividend, stock split, combination of shares, exchange of shares, change
in corporate structure, or otherwise), then the Committee may make appropriate
adjustments to the maximum number of shares of Common Stock subject to and reserved
under the Plan and to the Units allocated to Accounts as it in its sole
discretion determines to be appropriate.

*Reflects 1,200,000
additional shares of Common Stock reserved and authorized by the Company’s
Board of Directors in September 2006.

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Article 2 -             Deferred
Stock Units; Optional Deferral of Payment

Section
2.1.  Grants of Deferred Stock Units.

The
Committee shall select and/or approve the Selected Employees who shall be
Participants in the Plan and shall authorize each Grant under the Plan by determining
or approving the portion or amount of any bonus otherwise payable to any such
Participant which shall equal the Unit Portion of the Bonus made to the
Participant.  Each Participant shall have
an Account established in his or her name. 
In connection with any Grant, there shall be credited to the Participant’s
Account as of the Grant Date, the number of Deferred Stock Units obtained by
dividing the amount of the Unit Portion of the Bonus made to the Participant by
the Current Market Value per share of Common Stock as of the Grant Date, and
rounding the result upwards to the nearest whole Deferred Stock Unit.  Upon a Grant being made in the name of a
Participant, the Participant’s rights with respect to the Unit Portion of the
Bonus for the Participant shall consist solely of any benefits provided
pursuant to the Plan.

Section
2.2.  Vesting of Deferred Stock Units.

The
Company may provide, in a notice given by the Company to the Participant at the
time of the Grant, or in an agreement between the Company and the Participant,
a vesting schedule for the Deferred Stock Units being credited to the
Participant’s Account, such that some or all of the Deferred Stock Units
credited to the Participant’s Account shall be forfeited if the Participant
does not continue in employment with the Company until the vesting of such
Units as specified in such notice or agreement.

Section
2.3.  Termination of Employment.

Notwithstanding
any provision herein to the contrary, in the event that a Participant’s
employment is terminated before any (or all) of his or her Deferred Stock Units
have become Vested, as provided in the notice or agreement described in Section
2.2, then all such Deferred Stock Units in the Participant’s Account which are
not then Vested (including any Units attributable to such Units pursuant to
Section 4.1, as determined by the Company) shall be forfeited, and no amount or
Common Stock shall be payable with respect to such Units under any provision of
this Plan, including any provision of this Article 2.

Section
2.4.  Payment of Shares on Account of
Deferred Stock Units.

Unless
deferred at the option of the Participant in accordance with Section 2.5(a), or
if otherwise modified pursuant to the provisions of this Plan, the Account
Balance with respect to a particular Grant will become payable on the date that
the Units become Vested in accordance with Section 2.2, and one share of Common
Stock will be delivered in full satisfaction of each Deferred Stock Unit to be
paid, after rounding any fractional Deferred Stock Unit upwards to the nearest
whole share.

Section
2.5.  Optional Deferral of Payment of
Shares.

(a) 
Optional Deferral of Payment.  As
to each Grant, the Committee may allow a Participant the option to defer the
payment of all or a portion of any Deferred Stock Units for later payment in
accordance with Section 2.6 by submitting to the Committee or its designee such
forms as the Committee shall prescribe by such date as the Committee may
establish.

(b) 
Irrevocability of Deferral Election. 
Except as provided in Section 2.5(c), an election to defer the payment
of all or a portion of a Participant’s Account Balance made pursuant to Section
2.5(a) shall be irrevocable once submitted to the Committee or his or her
designee.

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(c) 
Rescission of Deferral Election Caused by an Adverse Tax
Determination.  A deferral election may
be rescinded at any time if:

(i)  a final determination is made by a court or
other governmental body of competent jurisdiction that the election was
ineffective to defer income for purposes of U.S. Federal, state, local or
foreign income taxation and the time for appeal from this determination has
expired, and

(ii)  the Committee, in its sole discretion,
decides, upon the Participant’s request and upon evidence of the occurrence of
the events described in clause (i) hereof that it finds persuasive, to rescind
the election.

Upon such rescission, the relevant Account
Balance will be paid to the Participant as soon as practicable as provided
herein.

Section 2.6 
Payment of Shares Optionally Deferred.

(a) 
Deferral Election.  If a
Participant elects, then his or her Account Balance will be paid by the
Company, at the time elected by the Participant in accordance with this Section
2.6.  The Account Balance shall be paid in a lump
sum at the time specified in this Section 2.6 or, if authorized by the
Committee and elected by the Participant on the deferral election form, in
annual payments over a period of years. 
If the Account Balance is to be paid in annual payments, then each
payment will be calculated as a number of Deferred Stock Units equal to (i) the
number determined by dividing the number of Units allocated to the Participant’s
Account as of the date of the first payment by the total number of annual
payments, plus (ii) the number of any additional Units allocated pursuant to
Section 4.1 after the date of the first payment to the Units then payable.  The
election shall specify the timing of the lump sum payment or (in the
case of annual payments) of the first
payment, as one of the following:  (i)
the first day of the month following the month that the Participant’s
employment with the Company is terminated or that the Participant dies;  (ii) the first day of the month which is any
number of whole years selected by the Participant after the date on which the
Participant’s Deferred Stock Units become Vested (i.e., without taking into
account the possibility of a Participant’s termination of employment, death or
Disability); or (iii) in any month in the calendar year following the date on
which the Participant’s employment with the Company is terminated.

(b)  Form
of Payment.  One share of Common Stock
will be delivered in full satisfaction of each Deferred Stock Unit to be paid,
after rounding any fractional Deferred Stock Unit upwards to the nearest whole
share.

(c)  Death
Prior to Payment.  If the Participant
dies prior to payment of any or all amounts optionally deferred pursuant to
this Section 2.6, then the Account Balance will be paid to the Participant’s
beneficiary in accordance with the Participant’s election.

Section
2.7.  Debiting of Deferred Stock Account.

If and when shares of Common
Stock are distributed to a Participant, the Participant’s Account shall be
debited with the number of Units equivalent to the number of shares of Common
Stock that have been distributed.

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Article 3 -             Beneficiary;
Tax

3.1.  Beneficiary.

(a) 
Designation of Beneficiary.  The
Participant may designate, in writing delivered to the Committee or its
designee before the Participant’s death, a beneficiary to receive payments
under the Plan in the event of the Participant’s death.  The Participant may also designate a
contingent beneficiary to receive payments under the Plan if the primary
beneficiary does not survive the Participant. 
The Participant may designate more than one person as the Participant’s
beneficiary or contingent beneficiary, in which case (i) no contingent
beneficiary would receive any payment unless all of the primary beneficiaries
predeceased the Participant, and (ii) the surviving beneficiaries in any class
shall share in any payments in proportion to the percentages of interest
assigned to them by the Participant relative to the percentage of interests
held by all survivors in that class.

(b)  Change
in Beneficiary.  The Participant may
change his or her beneficiary or contingent beneficiary (without the consent of
any prior beneficiary) in a writing delivered to the Committee or its designee
before the Participant’s death.  Unless
the Participant states otherwise in such writing, any change in beneficiary or
contingent beneficiary will automatically revoke such prior designations of the
Participant’s beneficiary or of the Participant’s contingent beneficiary, as
the case may be, under this Plan only; any designations under other deferral
agreements or plans of the Company will remain unaffected.

(c) 
Default Beneficiary.  In the event
a Participant does not designate a beneficiary, or no designated beneficiary
survives the Participant, the Participant’s beneficiary shall be the Participant’s
surviving spouse, if the Participant is married at the time of his or her death
and not subject to a court-approved agreement or court decree of separation, or
otherwise the person or persons designated to receive benefits on account of
the Participant’s death under the Company’s pre-retirement death benefit for
Selected Employees, if any, unless the rights to such benefit have been
assigned, in which case any amounts payable to the Participant’s beneficiary
under the Plan will be paid to the Participant’s estate.

(d)  If the
Beneficiary Dies During Payment.  If a
beneficiary who is receiving or is entitled to receive payments hereunder dies
after the Participant’s death but before all the payments have been made, the
portion of the Account Balance which that beneficiary otherwise would have
received will be paid as soon as practicable in a single payment to such
beneficiary’s estate and not to any contingent beneficiary the Participant may
have designated.

Section
3.2.  Domestic Relations Orders.

Notwithstanding the Participant’s
elections hereunder, at the time any Units become payable under Sections 2.4
and 2.6, the Company will pay to, or to the Participant for the benefit of, the
Participant’s spouse or former spouse the portion of the Participant’s Account
Balance specified in a valid court order entered in a domestic relations
proceeding involving the Participant’s divorce or legal separation.  Any such payment will be made net of any
amounts the Company may be required to withhold under applicable U.S. federal,
foreign, state or local law.

Section
3.3.  Payment of Cash Where Distribution
of Common Stock is Prohibited or Impractical Under Applicable Law.

Notwithstanding
any other provision of this Plan, in any jurisdiction or country where the
Committee determines that the distribution of Common Stock in such jurisdiction
or country is prohibited or impractical (including as a result of costs or
administrative procedures) under the law of such jurisdiction or country, the
Company may pay cash (rather than Common Stock) to a Participant in an amount
equal to the Current Market Value, as of the date the shares otherwise would
have been payable, of the Common Stock that the Participant otherwise would
have received.

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Section
3.4.  Withholding of Taxes

Whenever under the Plan payments are to be made,
whether in shares of stock or in cash, the Company, in its sole discretion,
shall be entitled to withhold therefrom the amount it determines necessary to
satisfy any United States federal, state, local, foreign or other withholding
tax requirements relating to such amount, or to require as a condition of
delivery that the Participant remit or, in appropriate cases, agree to remit
when due the amount necessary to satisfy all federal, state, local, foreign, or
other withholding tax requirements relating thereto.  At the option of the Company, such amount may
be remitted by check payable to the Company, in shares of Common Stock (which
may include shares received pursuant to this Plan), by the Company’s
withholding of shares of Common Stock, or any combination thereof.

Article 4 -             Adjustment
of Accounts

Section 4.1. 
Dividend Equivalents.

Whenever a cash dividend is paid on a share of
Common Stock, a Participant’s Account will be adjusted by adding to the Account
Balance the number of Deferred Stock Units determined by multiplying the per
share amount of the cash dividend by the number of Units credited to the
Account Balance on the record date for the cash dividend, dividing the result
by the Current Market Value of a share of Common Stock on the date the cash
dividend is paid, and rounding the result to the nearest 1/100th of a Deferred
Stock Unit as the case may be (with .005 being rounded upwards); provided that,
if a Participant’s Account Balance is reduced to zero in accordance with the
Plan between the record date and the payment date for such cash dividend, then,
in lieu of such adjustment to the Participant’s Account, the dividend
equivalent amount with respect to such record date will be determined by
multiplying the per share amount of the cash dividend by the portion of the
Participant’s Account Balance that is payable on the record date for the cash
dividend and rounding the result to the nearest whole cent, which amount shall
be paid to the Participant in cash.  Any
adjustment with respect to a Participant’s Account pursuant to this Section 4.1
which is made with respect to any Deferred Stock Units which are not then
Vested shall become Vested at the same time as such Deferred Stock Units.

Section 4.2.  Changes
in Capitalization.

Notwithstanding any other provision of the Plan
to the contrary, if any change shall occur in or affect shares of Common Stock
on account of a merger, consolidation, reorganization, stock dividend, stock
split or combination, reclassification, recapitalization, or distribution to
holders of shares of Common Stock (other than cash dividends), including,
without limitation, a merger or other reorganization event in which the shares
of Common Stock cease to exist, then the Committee may make an appropriate
adjustment to the Deferred Stock Units, as it determines necessary to maintain
the proportionate interest of the Participants and to preserve, without
increasing, the value of their Account Balance. 
In the event of a change in the presently authorized shares of Common
Stock that is limited to a change in the designation thereof or a change of
authorized shares with par value into the same number of shares with a
different par value or into the same number of shares without par value, the
shares resulting from any such change shall be deemed to be shares of Common
Stock within the meaning of the Plan.

 7
 

Article 5 -             Status of
Accounts

Section 5.1.  No
Trust or Fund Created; General Creditor Status.

Nothing contained herein and no
action taken pursuant hereto will be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company and any
Participant, the Participant’s beneficiary or estate, or any other person.  Title to and beneficial ownership of any
Common Stock or funds represented by the Account Balance will at all times
remain with the Company; such Common Stock or funds will continue for all
purposes to be a part of the general assets of the Company and may be used for
any corporate purpose. No person will, by virtue of the provisions of this
Plan, have any interest whatsoever in any specific assets of the Company.  TO THE EXTENT THAT ANY PERSON ACQUIRES A
RIGHT TO RECEIVE PAYMENTS FROM THE COMPANY UNDER THIS PLAN, SUCH RIGHT WILL BE
NO GREATER THAN THE RIGHT OF ANY UNSECURED GENERAL CREDITOR OF THE COMPANY.

Section 5.2. 
Non-Assignability.

The Participant’s right, or the
right of any other person, to the Participant’s Account Balance or any other
benefits hereunder cannot be assigned, alienated, sold, garnished, transferred,
pledged, or encumbered except by a written designation of beneficiary under
this Plan, by written will, or by the laws of descent and distribution.

Article 6 -             Change in
Control

In
the event of a Change in Control of the Company, the Committee may, in its sole
discretion, provide that any or none of the following applicable actions be
taken as a result, or in anticipation, of any such event to assure fair and
equitable treatment of Participants:

(i)            accelerate the Vesting of Deferred
Stock Units, or provide for the Payment of Stock or cash pursuant to this Plan;

(ii)           make adjustments or modifications to
any award of Units, Participant’s Account or election with respect to an
Account, any Payment or right to Payment, or any other right of a Participant
hereunder, as the Committee deems appropriate to maintain and protect the
rights and interests of the Participants following such Change in Control.

Any
such action approved by the Committee shall be conclusive and binding on the Company
and all Participants.

Article 7 -             Administration
of the Plan

Section 7.1.  Administration.

The Plan shall be
administered by a Committee appointed by the Board of Directors of the Company
(the “Committee”). The Committee shall consist of two or more directors who are
“non-employee directors,” within the meaning of Rule 16b-3 under the Exchange
Act, and “outside directors” within the meaning of Section 162(m) of the
Code.  Any vacancy on the Committee,
whether due to action of the Board of Directors or due to any other cause, may
be filled, and shall be filled if required to maintain a Committee of at least
two such persons, by resolution adopted by the Board of Directors.

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Section 7.2.  Procedures.

(a)           The Committee shall select one of its members as Chairman
and shall adopt such rules and regulations as it shall deem appropriate
concerning the holding of its meetings and the administration of the Plan.  A majority of the whole Committee shall
constitute a quorum, and the acts of a majority of the members of the Committee
present at a meeting at which a quorum is present, or acts approved in writing
by all of the members of the Committee, shall be the acts of the Committee.

(b)           Subject to the provisions of the Plan and the specific
duties delegated by the Board to the Committee, the Committee may delegate, to
any executive or other delegate of the Company, the following authority:

(i)            to
construe and interpret the terms of the Plan;

(ii)           to
prescribe, amend and rescind rules and regulations relating to the Plan; and

(iii)          to
make all other determinations deemed necessary or advisable for administering
the Plan.

Section
7.3.  Interpretation.

The Committee shall have
full power and authority to interpret the provisions of the Plan and any
agreement or notice made or provided under this Plan, to administer the Plan in
all jurisdictions in which this Plan is effective or where there are
Participants who are participating in this Plan, to determine how and as of
what date any currencies other than United States dollars will be converted
into United States Dollars, and to determine any and all questions arising
under the Plan.  The Committee’s
decisions shall be final and binding on all Participants in or other persons
claiming under the Plan.

Section
7.4.  Payments on Behalf of an
Incompetent.

If the Committee finds that any
person who is at the time entitled to any payment hereunder is a minor or is
unable to care for his or her affairs because of disability or incompetency,
payment of the Account Balance may be made to anyone found by the Committee to
be the authorized representative of such person, or to be otherwise entitled to
such payment, in the manner and under the conditions that the Committee
determines.  Such payment will be a
complete discharge of the liabilities of the Company hereunder with respect to
the amounts so paid.

Section 7.5. 
Corporate Books and Records Controlling.

The books and records of the
Company will be controlling in the event a question arises hereunder concerning
any Account Balance, deferral elections, beneficiary designations, or any other
matters.

Section 7.6.  Indemnity.

No member of the Board of Directors or the Committee
shall be liable for any action or determination made in good faith with respect
to the Plan or any option granted under it. 
The Company shall indemnify each member of the Board of Directors and
the Committee to the fullest extent permitted by law with respect to any claim,
loss, damage or expense (including counsel fees) arising in connection with
their responsibilities under this Plan.

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Article 8 -             Miscellaneous
Provisions

8.1.  Litigation.

The Company shall have the right
to contest, at its expense, any ruling or decision, administrative or judicial,
on an issue that is related to the Plan and that the Committee believes to be
important to Participants, and to conduct any such contest or any litigation
arising therefrom to a final decision.

8.2.  Headings Are Not Controlling.

The headings contained in this
Plan are for convenience only and will not control or affect the meaning or
construction of any of the terms or provisions of this Plan.

Section 8.3.  Right to Terminate Employment.

Nothing in this Plan or in any notice or agreement
evidencing any Grant under the Plan shall confer upon any Participant the right
to continue as an employee or a director of the Company or affect the right of
the Company to terminate the Participant’s employment at any time, subject,
however, to the provisions of any agreement of employment between the
Participant and the Company.

Section 8.4.  Transfer; Leave of Absence.

For purposes of this Plan, neither (i) a transfer of
an employee from WWW to an Affiliate, or vice versa, or from one Affiliate of
the Company to another, nor (ii) a duly authorized leave of absence, shall be
deemed a termination of employment.

Section 8.5.  Governmental Regulation.

The Company’s obligation to deliver shares of the
Company’s Common Stock under this Plan is subject to the approval of any
governmental authority required in connection with the authorization and
issuance of such stock.  In this regard,
the Board of Directors may, in its discretion, require as a condition to the
issuance of any shares pursuant to this Plan that a registration statement
under the Securities Act of 1933, as amended, with respect to such shares be
effective.

Section
8.6.  Governing Law.

To the extent not preempted by
applicable U.S. Federal law, this Plan will be construed in accordance with and
governed by the laws of the State of Delaware, USA, as to all matters, including,
but not limited to, matters of validity, construction and performance.

Section
8.7.  Amendment and Termination.

The Board of Directors, or, if
permitted pursuant to Rule 16b-3 under the Exchange Act, the executive
committee of the Board, if applicable, may amend or terminate this Plan at any
time, provided that (i) no amendment or termination may be made that would
adversely affect the right of a Participant to his or her Account Balance as of
the date of such amendment or termination, and (ii) unless approved by WWW’s
stockholders, no such amendment may materially increase the number of shares
that may be issued under the Plan.

Article 9 -             Effective
Date

The Plan shall be effective as
of January 1, 2002, subject to approval by the stockholders of WWW.

 10Exhibit 10.2

Watson
Wyatt Worldwide, Inc.

Performance
Share Bonus Incentive Program

FY07

Summary

The Performance Share
Bonus Incentive Program (the Program) is a long-term bonus program for senior
executives, designed to strengthen incentives and align behaviors to grow the
business in a way that is consistent with the strategic goals of the
Company.  Incentives are provided through
grants of deferred stock units tied to a 3-year performance period with vesting
contingent upon meeting certain Company goal thresholds.  This bonus program does not replace the
Fiscal Year End Bonus (FYEB).

Eligibility

Associates of Watson
Wyatt & Company and its Affiliates will be eligible for nomination to
participate in the Program.  Eligible
participants will be nominated and approved by the Compensation Committee of
the Board (the Committee).  Generally,
associates eligible for nomination will be high performing, senior-level
executives that have direct impact or responsibility for driving strategy
throughout the organization.

Performance Period

The performance period is
a 3-year period that begins on July 1, 20xx and ends on June 30, 20xx+3.  For example, the performance period that
began on July 1, 2006 will end on June 30, 2009.  Baseline metrics are established at the beginning
of the performance period.  At the end of
the performance period, performance metrics will then be measured.  The Company will follow its standard process
for financial reporting following the close of the fiscal year.  Once Company financial results are finalized
(August following end of fiscal year) the final performance metric results for
the most recent performance period can be determined.

Grants

Grants of stock
(performance shares) are made under the 2001 Deferred Stock Unit Plan for
Selected Employees.  Grants are based
on the value of the cash portion of the Fiscal Year End Bonus target.  A multiplier, which varies by participation
tier, is then applied to that value to determine the cash value of the
performance shares.  The cash value is
then converted to a number of shares of stock based on the stock market closing
price on the last day of the fiscal year prior to the grant.  For calculation purposes, band and salary
information will be based on what is in effect as of October 1 of the first
fiscal year of the performance period.

All performance share
grants will be made by the Committee at the beginning of each performance
period (following the fiscal year end close process).  Final grant amounts will generally be
determined by the method outlined here. 
However, the Committee, at its discretion, may adjust final grant
amounts.

Vesting

The performance shares
will vest 3 years from the date of grant based on the achievement of certain
performance metrics and subject to the participant’s continued employment on
the vesting date unless waived in accordance with the Termination Provisions
herein.  Company performance goals are
established by the Committee at the beginning of each performance period.  At the conclusion of each performance period,
Company performance metrics are measured against goals over the same period to
determine the percentage of the grant to be awarded.  The actual award is determined by an earnout
schedule which defines performance level ranges and associated earnout of grants.  Vested shares are distributed to participants
in September following the end of the performance period and the fiscal year
end close.

Performance Metrics and
Earnout

The earnout for each
performance period is determined by evaluating actual Company performance,
using pre-defined metrics, for the full 3-year performance period.  Baselines for each metric will be established
at the beginning of each performance period by the Committee.  The baseline will be determined by recording
the metric as of the last day of the prior fiscal year (6/30).

For grants under the
Program covering the performance period beginning July 1, 2006 and ending June
30, 2009, two types of financial metrics will be used:

1.   Earnings
Per Share (“EPS”) Growth;  and

2.    Revenue Growth.

 2
 

Earnout
Schedule

An earnout schedule using
total growth over the 3-year performance period for E.P.S and Revenue is shown
below:

 

	
  

  	
   

  	
  30

  	
  %

  	
  100

  	
  %

  	
  135

  	
  %

  	
  170

  	
  %

  
	
   

  	
   

  	
  22.5

  	
  %

  	
  65

  	
  %

  	
  100

  	
  %

  	
  135

  	
  %

  
	
  E.P.S.
  Growth

  	
   

  	
  15

  	
  %

  	
  30

  	
  %

  	
  65

  	
  %

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  15

  	
  %

  	
  20

  	
  %

  	
  25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  Revenue
  Growth

  	
   

  

 

Performance Metrics for
Performance period 7/1/2006 — 6/30/2009

Earnings Per Share
(E.P.S.) Growth — E.P.S. for the fiscal year before the start of the
performance period compared to E.P.S. of the 3rd year of the performance period, expressed as a
percentage.  E.P.S. is defined as fully diluted earnings per share from continuing
operations.  The E.P.S. to be used for
the fiscal year before the start of the performance period is $1.99 which
reflects fiscal 2006 fully diluted earnings per share from continuing
operations.

Revenue Growth — Revenue
growth is defined as the percentage change in revenue from the fiscal year
prior to the performance period of the plan to the third year of the
performance period.

Revenue will be defined
as the amount stated in the Form 10-K.

In performance periods
where acquisitions occur:

Revenue at the start of the performance period (as
published in the Form 10-K) will be increased by the revenue generated by the
acquired company during the annual period preceding the acquisition. In the event an acquisition occurs after the
first day of the performance period, the acquisition revenue from the year
preceding the acquisition will be discounted, using Watson Wyatt’s revenue
growth rate, from the year preceding the acquisition to the beginning of the
performance period. In addition, the revenue to be counted for the acquired
company in the year of acquisition will be adjusted to be representative of a
full year’s revenue.  Acquisition
revenue used will be as reported in the acquired company’s published financial
reports (Form 10-K). In the event such financial reports are unavailable,
revenue generated by the acquired company will be provided by the investment
bankers familiar with the acquired company.

 3
 

Termination Provisions

Performance shares granted to a participant whose
employment terminates prior to the scheduled vesting date on account of the
participant’s death, or permanent disability (permanent disability to be
determined pursuant to the terms of the Company’s tax-qualified pension plan)
shall vest as if the participant remained employed through the scheduled
vesting date.  Performance shares granted
to a participant whose employment terminates prior to the scheduled vesting
date on account of retirement (determined pursuant to the terms of the Company’s
qualified pension plan) shall vest as the Committee may determine, in its sole
discretion and on a case-by-case basis. 
Performance shares granted to a participant whose employment terminates
for reasons other than death, permanent disability or retirement will not vest
and shall be forfeited; provided, however, that the Committee may determine, in
its sole discretion and on a case-by-case basis, to permit some or all of such
participant’s performance shares to vest.

Change in Control or
Capitalization 

A change in control or
capitalization (merger, consolidation, reorganization, stock split,
acquisition, etc.) may affect the value of performance shares granted, earnout
of vested performance shares or other provisions of the Program.  To assure fair and equitable treatment of
participants in the event of such a change in control or capitalization, the
Committee, at its discretion, may make changes to grants and/or vesting that is
consistent with the Change in Control and Change in Capitalization provisions
described in the 2001 Deferred Stock Unit Plan for Selected Employees.  Under these circumstances, the Committee may
make appropriate adjustments to the number of performance shares granted for
any performance period, accelerate the vesting of any performance shares
granted, or provide for payment in cash in lieu of shares.

 4

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