Document:

Exhibit
10.23

Dated the 14th day of September,
2005

WATSON WYATT (IRELAND) LIMITED

and

PLANLIFE TRUSTEE SERVICES LIMITED

T/A IFG FINANCIAL SERVICES

 

 

TRUST DEED AND RULES

OF THE

WATSON WYATT IRELAND

SHARE PARTICIPATION SCHEME

  
  
 

 

TABLE OF CONTENTS

TRUST DEED

	
  1.

  	
   

  	
  Interpretation and Establishment

  	
   

  	
  2

  
	
  2.

  	
   

  	
  Participation by Subsidiaries

  	
   

  	
  3

  
	
  3.

  	
   

  	
  Provision of Trustees’ Funds

  	
   

  	
  3

  
	
  4.

  	
   

  	
  Acquisition of Shares by the Trustees

  	
   

  	
  4

  
	
  5.

  	
   

  	
  Trustees’ Duties

  	
   

  	
  4

  
	
  6.

  	
   

  	
  Appointment of Trustees

  	
   

  	
  5

  
	
  7.

  	
   

  	
  Trustees’ Powers, Functions and Indemnity

  	
   

  	
  6

  
	
  8.

  	
   

  	
  Records and Information

  	
   

  	
  8

  
	
  9.

  	
   

  	
  Trust Expenses

  	
   

  	
  8

  
	
  10.

  	
   

  	
  Termination of Liability to Contribute

  	
   

  	
  9

  
	
  11.

  	
   

  	
  Termination of Scheme

  	
   

  	
  9

  
	
  12.

  	
   

  	
  Amendments

  	
   

  	
  10

  
	
  13.

  	
   

  	
  Proper Law

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RULES OF THE WATSON WYATT IRELAND SHARE
  PARTICIPATION SCHEME

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Definition and Interpretation

  	
   

  	
  13

  
	
  2.

  	
   

  	
  Company’s Obligations

  	
   

  	
  16

  
	
  3.

  	
   

  	
  Employee Participation

  	
   

  	
  17

  
	
  4.

  	
   

  	
  Trustees’ Obligations

  	
   

  	
  17

  
	
  5.

  	
   

  	
  Rights attaching to Scheme Shares

  	
   

  	
  18

  
	
  6.

  	
   

  	
  Conditions of Retention and Disposal

  	
   

  	
  18

  
	
  7.

  	
   

  	
  Re-organisation; Amalgamation or Take-over and
  Rights Issues

  	
   

  	
  19

  
	
  8.

  	
   

  	
  Receipts

  	
   

  	
  20

  
	
  9.

  	
   

  	
  Rights attaching to Scheme Shares

  	
   

  	
  21

  
	
  10.

  	
   

  	
  Rights of Employees

  	
   

  	
  21

  
	
  11.

  	
   

  	
  Duty to account for tax

  	
   

  	
  21

  
	
  12.

  	
   

  	
  Administration

  	
   

  	
  22

  
	
  13.

  	
   

  	
  Alterations

  	
   

  	
  22

  
	
  14.

  	
   

  	
  Final Decisions

  	
   

  	
  22

  
	
  15.

  	
   

  	
  Limitation upon number of Shares available to
  the Scheme

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX 1

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX 2

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FORM 1

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FORM 2

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FORM 3

  	
   

  	
  31

  

 

 1
 

 

THIS TRUST
DEED IS MADE THE                DAY OF

BETWEEN

1.                                       Watson Wyatt (Ireland) Limited (the “Company”) whose registered office is at
65/66 Lr Mount Street, Dublin 2; and,

2.                                       Planlife Trustee Services Limited (the “Trustees”)
T/A IFG Financial Services whose registered office is at IFG House, Booterstown
Hall, Booterstown, Co. Dublin.

WHEREAS:

A.                                   By an ordinary resolution of the Company passed
on, authority was given to the Board to establish the Watson Wyatt  Ireland Share Participation Scheme (the “Scheme”).

B.                                     The Company is ultimately owned by Watson Wyatt & Company Holdings (the “Parent Company”) and is controlled within
the meaning of that expression contained in Part 1 of Schedule 11 of the Taxes
Consolidation Act 1997 (the “Act”)
by the Parent Company.

C.                                     It is intended that the said Scheme shall be an
approved Scheme within the meaning of Chapter 1 of Part 17 and of Schedule 11
to the Act, the purpose of which is to provide funds to the Trustees to enable
them to acquire Shares (as defined in the Rules) and to appropriate the said Shares
to eligible directors and employees of the Company and its Participating
Subsidiaries.

D.                                    The Trustees wish to declare the trusts upon
which they will act and the Company has agreed to join in this Deed for the
purposes mentioned herein.

NOW THIS DEED
WITNESSES as follows:

1.                                       Interpretation and
Establishment

1.1                                 In pursuance of the resolution referred to in
Recital A the Watson Wyatt Ireland Share
Participation Scheme is hereby established.

1.2                                 This Scheme shall be operated and administered
in accordance with this Deed and the Rules in the Schedule to this Deed (the “Rules”) as amended from time to time and
the Trustees will hold and use monies paid to them by the Group Companies and
will administer the same in accordance with the Deed and the Rules subject to
the trusts hereinafter declared.

1.3                                 The definitions contained in Rule 1.1 shall
apply to expressions used in this Deed and the provisions regulating the
interpretation of the Rules contained in Rule 1.2 shall apply to the
interpretation of this Deed.

 2
 

 

2.                                       Participation by Subsidiaries

The
Company shall have the power exercisable from time to time by deed executed by
the Company, a Subsidiary and the Trustees (expressed to be supplemental
hereto) to agree that any Subsidiary shall become a Participating Subsidiary
for the purposes of this Scheme and its employees shall be eligible to become
Participants in accordance with the Rules, provided that such Subsidiary shall
be a party to that supplemental deed for the purpose of acceding to the
provisions of this Scheme.  A Subsidiary
shall cease to be a Participating Subsidiary for the purposes of this Scheme as
from the date on which it ceases to be a Subsidiary or as from such earlier
date as the Company and the Trustees may declare by deed.

3.                                       Provision of Trustees’ Funds

3.1                                 The Company agrees to pay and, where
appropriate, to ensure that the relevant Participating Subsidiaries pay to the
Trustees such funds as the Trustees shall require from time to time:

(a)                                  to enable the Trustees to subscribe for or purchase
Shares to be held by the Trustees for the purposes of this Scheme;

(b)                                 to enable the Trustees to meet taxation and
other reasonable costs incurred in the operation of this Scheme as may be
agreed with the Company beforehand.

3.2                                 The Company shall be liable to make payments to
the Trustees only in respect of Eligible Employees of the Company and the
Company agrees to ensure that its Participating Subsidiaries similarly make
payments to the Trustees in respect of Eligible Employees of the said Participating
Subsidiaries.

3.3                                 Any sums paid by the Company and the
Participating Subsidiary companies under Clause 3.1 to the Trustees shall be
held by the Trustees UPON TRUST to
apply the same to subscribe for or purchase Shares to be appropriated to
Participants in accordance with the Rules and to discharge costs incurred in
the operation of the Scheme.

3.4                                 Any money at any time held by the Trustees
including dividends received by them during the period from the date of the
acquisition of Shares to the Appropriation Date of such Shares, may insofar as
the monies received are not required immediately by them to meet taxation and
other costs incurred in the operation of this Scheme, be placed by the Trustees
on deposit or current account designated in their name with any bank, building
society or other institution in the State authorised to accept deposits at
whatever rate of interest (if any) and on whatever terms the Trustees think
fit.

 3
 

 

4.                                       Acquisition of Shares by the
Trustees

4.1                                 The Trustees may acquire Shares for the
purposes of this Scheme by subscribing for them or by purchasing them from
third parties. The Shares so allotted or purchased shall be registered in the
name(s) of the Trustees and held by them in accordance with the Rules.

4.2                                 The Trustees agree to use the monies received
by them in accordance with Clause 3 for the acquisition of Shares or payment of
taxation or of expenses, as the case may be, in accordance with the Rules.

4.3                                 Shares subscribed for or purchased by the
Trustees in accordance with Clause 4.1 shall be subscribed for or purchased by
the Trustees at their Market Price.

5.                                       Trustees’ Duties

5.1                                 The Trustees shall appropriate the Shares
acquired by, or issued to them to Eligible Employees in accordance with the
Rules.

5.2                                 As soon as practicable after any Scheme Shares
have been appropriated by the Trustees to a Participant in accordance with the
Rules the Trustees shall give the Participant notice in writing of the
appropriation specifying the number and description of Scheme Shares so appropriated
and stating their Initial Market Value and Appropriation Date.

5.3                                 During the Retention Period of any Scheme
Shares, the Trustees shall not dispose of such Shares held by them to anyone
except in the circumstances outlined in section 511(6) (a), (b) or (c) of the
Act.

5.4                                 After the end of the Retention Period of any
Participant’s Shares the Trustees shall dispose of such Shares if directed to
do so, by, or on behalf of, the Participant provided that to do so would not be
in breach of the obligations imposed on the Participant by Rule 6.  The reference to Participant in this Clause
5.4 includes any person in whom the beneficial interest in the Participant’s
Shares is vested for the time being.

5.5                                 The Trustees shall pay over to the Participant
any money or money’s worth received by them by reference to any of his Shares
except:

(a)                                  where the Participant has directed that the
proceeds of disposing of rights arising under a rights issue be re-invested in
the exercise of other rights accruing to his Shares;

(b)                                 where the money’s worth consists of new shares
arising from a company reconstruction as described in Rule 7;

(c)                                  where the money consists of the sum referred to
in section 511(4)(c) of the Act.

 4
 

 

5.6                                 The Trustees shall deal with any rights
conferred in respect of a Participant’s Shares to be allotted other shares,
securities or rights of any description, as the Participant shall direct.  The reference to Participant in this Clause
5.6 includes any person in whom the beneficial interest in the Participant’s
Shares is vested for the time being.

5.7                                 The Trustees shall maintain such records as may
be necessary to enable the Trustees to carry out their obligations under
Chapter 1 of Part 17 of the Act, and where the Participant becomes liable to
income tax under Schedule E by reason of the occurrence of any event shall
inform him of any facts relevant to determining that liability.

5.8                                 The Trustees shall at all times comply with
their obligations to make payments to the Company or any of the Participating Subsidiaries
and to account for tax under Case IV of Schedule D in accordance with section
516 of the Act.

5.9                                 The Trustees shall comply with any directions
given by the Board pursuant to the Rules and shall not be under any liability
in respect thereof to the Company or to any Participant.

5.10                           The Trustees shall pay such taxes as are
properly incurred by them in the operation of the Scheme.

6.                                       Appointment of Trustees

6.1                                 Subject to Clause 6.2, in the case of any
Trustee who is an individual, he shall hold office until he attains the age of
70 years or if he is an employee of the Company, or any Participating
Subsidiary, until he ceases to be so employed, whichever is the sooner.  Any Trustee may retire from the trust hereby
constituted at any time by giving to the Company and the remaining Trustees not
less than three month’s written notice (or such shorter notice as the Company
may accept) without being responsible for any costs occasioned by such
retirement.

6.2                                 The Company shall have power in its absolute
discretion at any time and without assigning any reason therefor by deed to
remove from office any Trustee or to appoint a new or additional Trustee with
the written approval of the Revenue Commissioners.  Any Trustee who is removed shall execute such
documents and do such things as may be necessary to give proper effect to his
removal as a Trustee.  The Company hereby
declares and confirms the independence of the Trustees in the exercise of all
of their functions and obligations under this Scheme and undertakes that it
shall not seek to influence them in any manner.

6.3                                 The minimum number of Trustees shall be three
one of which shall be independent unless a body corporate shall be a Trustee in
which case the body corporate may be a sole Trustee. If at any time the number
of the Trustees shall fall below three and none of the surviving or continuing
Trustees is a body corporate, the Company shall appoint one or more new
Trustees (as the case may be).

6.4                                 All the Trustees shall be resident in Ireland
for all purposes.

 5
 

 

7.                                       Trustees’ Powers, Functions
and Indemnity

7.1                                 Where there is more than one Trustee:

(a)                                  The Trustees may meet together at any time, but
shall meet at least once in every year, for the despatch of business and may
adjourn and otherwise regulate their meetings (subject to these regulations) as
they think fit.

(b)                                 Any two of the Trustees may require a meeting
of the Trustees to be convened on not less than fourteen days’ notice in
writing to all other Trustees.  With the
prior agreement of all the Trustees, a meeting of the Trustees may be convened
on less than fourteen days’ notice in writing.

(c)                                  The Board may nominate any one of the Trustees
to be chairman of any such meeting, and in default of such nomination, the
Trustees may elect one of their number to be chairman of their meeting provided
that in the event of an equality of votes on the election of a chairman, he
shall be chosen by lot.

(d)                                 A majority of the Trustees present at a meeting
of the Trustees of which notice has been given to all Trustees shall form a
quorum.  The procedure and conduct of a
meeting of the Trustees shall be determined by the chairman and all other
business brought before a meeting of the Trustees shall be decided by a majority
of the votes of the Trustees present and voting thereon and, in the case of an
equality of votes, the chairman of the meeting shall have a second or casting
vote.

(e)                                  A decision made or a resolution passed at a
meeting of the Trustees at which a quorum is present, shall be binding on all
the Trustees, and all the Trustees shall be obliged to join in taking any
action (including the signing of authorities and the execution of deeds)
necessary or expedient to carry decisions or resolutions into effect.

(f)                                    A resolution in writing signed by all the
Trustees shall be as effectual as if it had been passed at a meeting of the
Trustees and may consist of one or more documents in similar form each signed
by the Trustees.  Such resolution shall
be entered in the minutes book referred to in Clause 7.2.

7.2                                 The Trustees shall cause proper minutes to be
kept and entered in a book provided for the purpose of all their resolutions
and proceedings and any such minutes signed by the chairman of such meeting or
by the chairman of the next succeeding meeting shall be admissible as prima
facie evidence of the matters stated in such minutes.

7.3                                 The Trustees may appoint such persons
(including any one or more of the Group Companies but not a Participant)
approved by the Company to act as their agent or agents to transact all or any
business of whatsoever nature required to be done in the administration of the
trusts, powers and provisions in this Deed and the Rules (including the receipt
and payment of money and the subscription to and purchase and appropriation

 6
 

 

of
Shares) and shall not be bound to supervise such agents or be in any way
responsible for any loss incurred by reason of any misconduct or default on the
part of any such agents.

7.4                                 The Trustees may obtain at any time and act on
the opinion or advice of any lawyer, accountant, actuary, broker or other
expert acting as an expert including such opinion or advice obtained by the
Company, Parent Company or Participating Subsidiary companies and shall not be
responsible for any loss, which may be occasioned by so doing.

7.5                                 The Trustees may, but shall not be bound to,
accept a certificate signed by a director of, or any person authorised by, the
Company as to any fact or matter which is prima facie within the knowledge of
the Company as sufficient evidence thereof.

7.6                                 The Trustees shall have full power and
discretion to agree with the Company all matters relating to the operation and
administration of the trusts hereby declared so that no person claiming any
interest under such trusts shall be entitled to question the legality and
correctness of any arrangement or agreement made between the Company and the
Trustees in relation to such operation and administration.

7.7                                 Section 10(2) of the Trustees Act, 1893 shall
have effect as if reference to ‘at least two trustees’ did not appear in
paragraph (c) thereof and a reference to ‘one trustee’ shall be substituted
therefor.

7.8                                 No Trustee, nor any holding company of a
corporate Trustee, nor any subsidiary of such holding company, nor any director
or officer of a body corporate acting as Trustee shall be precluded from
underwriting, purchasing, holding, dealing in and disposing of any stock,
shares or other securities whatsoever of the Company or any subsidiary or
holding company thereof or any subsidiary of any such holding company or from
otherwise at any time contracting or entering into any insurance, financial or
other transactions with any such company or being interested in any such
transaction or accepting and holding the trusteeship or any debenture stock or
other securities of any such company, neither shall such Trustee be liable to
account for any profit made by him thereby or in connection therewith.

7.9                                 The Trustees may at any time cause any part of
the Trust Property to be deposited for safekeeping with any one or more of the
Trustees or any other persons (including any company or corporation) on behalf
of the Trustees and may pay any expenses in connection therewith.

7.10                           The Company hereby covenants with the Trustees
jointly and severally that it will at all times hereafter keep each of them and
each and all of their successors in title as Trustees and each of their estates
and effects fully indemnified and saved harmless against all claims, losses,
demands, actions, proceedings, charges, expenses, costs, damages, taxes, duties
and other liabilities that may be suffered or incurred by them or by any of
them in connection with this Scheme in any manner whatsoever except that no
Trustee shall be indemnified hereunder or exonerated in respect of any fraud or
wilful default on the part of the Trustee who is sought to be made liable or in
the case of a corporate trustee which

 7
 

 

is
engaged in the business of providing trustee services for a fee, negligence on
the part of such Trustee and to the extent that the Company fails to indemnify
the Trustees, they shall be indemnified by the Participating Subsidiaries.

7.11                           In the professed operation of this Scheme no
Trustee shall be liable for any loss arising by reason of any mistake or
omission made in good faith by him or by reason of any other matter or thing,
including the fraud, default or negligence of another Trustee, or of any
nominee, agent (whether or not the employment of such agent was strictly
necessary or expedient), officer or other delegate unless the Trustee sought to
be made liable shall himself have been fraudulent or in wilful default or in
the case of a corporate trustee which is engaged in the business of providing
trustee services for a fee, negligent.

8.                                       Records and Information

8.1                                 The Trustees shall cause accounts and records
relating to the Trust Property and to the operation of this Scheme to be kept
and at the request of the Company shall furnish copies or extracts from such
accounts and records to the Company or persons nominated by it and permit any
person authorised by the Company to examine such accounts and records and all
other correspondence and documents relating to this Scheme.

8.2                                 Each of the Group Companies shall give to the
Trustees all such information as to Eligible Employees, Participants and
otherwise as the Trustees shall from time to time require for the operation of
this Scheme.

8.3                                 The Trustees shall make all such returns to the
Revenue Commissioners as they may be required from time to time to make.

9.                                       Trust Expenses

9.1                                 Any Trustee being a solicitor, accountant or
other person engaged in any profession or business shall be entitled to charge
and be paid all usual professional and other charges for business transacted by
him or any partner or employee of his in connection with the trusts hereof.

9.2                                 The Trustees shall be entitled to remuneration
at such rate (if any) as may be agreed with the Company and shall be entitled
to be repaid such reasonable expenses as they may incur, and as may be agreed
with the Company beforehand, in the performance of their duties as Trustees
hereof.

9.3                                 All costs, charges and expenses of and
incidental to the administration of this trust and this Scheme, including but
not limited to the remuneration of the Trustees, shall be primarily payable out
of any income or profits which may accrue to the Trustees (other than Shares
held on behalf of Participants) and subject thereto shall be paid by the
Company and if the Company so decides, by the Participating Subsidiaries.

 8
 

 

10.                                 Termination of Liability to
Contribute

10.1                           The Company, a Participating Subsidiary or the
Company on behalf of itself and/or any or all of the Participating
Subsidiaries, at any time by notice (hereinafter in this Clause referred to as
a “Notice”) in writing given to the Trustees, may terminate its or their
obligations under Clause 3 to allocate funds to the Trustees.

10.2                           In the event of a Notice being given to the
Trustees by the Company on behalf of itself and all of the Participating
Subsidiaries:

(a)                                  any Shares in the capital of the Parent Company
held by the Trustees (not being Shares held on behalf of the Participants)
shall be sold by the Trustees and the proceeds after payment of any necessary
expenses or other liabilities shall be paid to the Company and to such
Subsidiaries as are participating in this Scheme at the time of giving of the
Notice in proportion to the last allocation of funds respectively made by such
companies pursuant to Rule 2.3 of the Rules; and

(b)                                 the Trustees shall continue to hold on behalf
of a Participant upon the terms of this Deed and the Rules (unless Clause 11
applies) any such Scheme Shares as have already been appropriated to such
Participant.

10.3                           If a Notice is given by the Company or a
Participating Subsidiary (not being a Notice given by the Company on behalf of
itself and all the Participating Subsidiaries) Clause 10.2(b) shall apply in
relation to Participants who are or were employees of the company giving the
Notice but in all other respects this Scheme shall continue.

11.                                 Termination of Scheme

11.1                           This Scheme and the Trust created by this Deed
shall determine on the earliest of the following dates:

(a)                                  the date, which is one day before the date on
which, shall expire the period of twenty-one years after the death of the
survivor of the descendants living on the date of this Deed of his late
Britannic Majesty King George VI unless there has been legislation before then
making it lawful for the trusts of the Scheme to continue;

(b)                                 the date of such anniversary, as from time to
time is specified in section 511(2) of the Act, of the Appropriation Date next
before the date on which the Company shall go into liquidation (otherwise than
for the purposes of a reconstruction or amalgamation in such circumstances that
substantially the whole of the undertakings, assets and liabilities of the
Company pass to a successor company); or

(c)                                  such date as the Board shall by resolution
declare to be the date of such determination (not being a date earlier than
such anniversary of the Appropriation Date immediately preceding the date of
such resolution as is equal to the number of years specified in respect of the
definition of Release Date).

 9

 

Provided
however that the Trustees shall not acquire, in the Closed Period immediately
preceding the date of such determination, any Shares on behalf of a Participant
other than Shares acquired in accordance with Rule 7 of the Rules.  If it is discovered subsequently that the
Trustees shall have acquired any Shares in breach of this proviso then the
Trustees shall sell those Shares and shall hold the net proceeds of the sale in
trust for that one of the Group Companies which paid to the Trustees the funds
to enable them to acquire those Shares. 
For the purpose of this Clause 11.1, the “Closed Period” means such
number of years preceding the date of such determination as is the same as the
number of the anniversary as is specified from time to time in section 511(2)
of the Act.

11.2                           At such determination the Trustees shall
distribute any Trust Property to the persons entitled thereto and shall pay or
transfer to the Company and such Subsidiaries as are participating in this
Scheme at the time of such determination the balance thereof in proportion to
the last allocation of funds respectively made by such companies pursuant to
Rule 2.3 provided that if any part of such balance consists of Shares then the
Trustees shall do whichever one or more of the following the Company requires
in relation to all or some of the Shares, namely:

(a)                                  if permitted by law to do so, transfer the
Shares to the Company or to any other of the Group Companies which paid to the
Trustees the funds to enable them to acquire the Shares and so that where any
Shares are transferred to the Company but another of the Group Companies
provided the funds to enable the Trustees to acquire the Shares then the
Company shall account to that other Group Company for the cost or value of the
shares transferred and the Trustees shall have no liability therefore to that
other Group Company; or

(b)                                 sell the Shares for the best consideration that
can be reasonably obtained and apply the net proceeds of sale as part of the
said balance of the Trust Property.

If
there is any dispute as to the persons entitled to any part of the Trust
Property the Trustees shall convert such part into cash and pay the cash into
court and thereupon shall be discharged from all obligations in relation
thereto.

11.3                           On such determination any moneys or other
assets held by the Trustees to which any Participant is absolutely entitled
shall be immediately distributable to such Participant or to his personal
representatives if, but only if, the requirements of section 511 of the Act with
regard to retention and disposal of Shares have been complied with.  If such Participant or his personal
representatives cannot be found after reasonable enquiry such moneys or other
assets shall be paid or transferred to the Company to be held on behalf of such
Participant.

12.                                 Amendments

12.1                           The Company may from time to time and at any
time with the consent of the Trustees amend the terms of this Deed by a deed or
deeds supplemental hereto provided that:

(a)                                  any amendments made to this Deed shall not be
inconsistent with or contrary to the Rules;

 10
 

 

(b)                                 if the Scheme is at the time of an amendment
approved by the Revenue Commissioners any such amendments of this Deed shall
not prejudice approval of this Scheme by the Revenue Commissioners under
paragraph 5(2) of Part 2 of Schedule 11 to the Act and must have the prior
approval of the Revenue Commissioners in writing; and

(c)                                  no amendment shall be made which would or might
infringe any rule against perpetuities.

13.                                 Proper Law

This
Deed and the Rules shall be governed by and construed in accordance with the
law of the Republic of Ireland.   The
jurisdiction of the Courts of the Republic of Ireland shall be the jurisdiction
appropriate to all actions, claims, disputes and proceedings arising under or
in connection with the Scheme.

 11
 

 

IN WITNESS whereof the parties
hereto have entered into these presents the day and year first above WRITTEN.

	
  PRESENT when the common seal
  of

  
	
  Watson
  Wyatt (Ireland) Limited

  
	
  was affixed
  hereto:

  
	
   

  
	
   

  
	
  /s/ John J.
  Haley

  	
  (Director)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Walter W.
  Bardenwerper

  	
  (Director)

  
	
   

  
	
   

  
	
  PRESENT when the
  common seal of

  
	
   

  
	
  Planlife
  Trustee Services Limited

  
	
  was affixed
  hereto:

  
	
   

  
	
   

  
	
   

  	
  (Director/Secretary)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Director)

  

 

 12
 

 

SCHEDULE

RULES OF
THE WATSON WYATT IRELAND SHARE PARTICIPATION SCHEME

1.             Definition and Interpretation

1.1                                 For the purpose of the Deed and these Rules,
the words and expressions set out below shall have the meanings specified
against them unless otherwise specifically provided:

‘The Act’ The Taxes
Consolidation Act, 1997.

‘Announcement Date’ The day or
days in each year on which the Company informs each Eligible Employee of his
Entitlement under the Scheme.

‘Annual Remuneration’ The
gross basic salary (excluding any fluctuating emoluments such as overtime) paid
or payable by the Company or any Subsidiary of the Company to the relevant
Eligible Employee.

‘Appropriate Percentage’ The
percentage of the Locked-in Value of a Participant’s Shares chargeable to
income tax under Schedule E computed in accordance with section 511(3) of the
Act.

‘Appropriation Date’ The date
or dates upon which Shares are appropriated to Participants pursuant to the
Scheme.

‘Auditors’ The Auditors for
the time being of the Company, or, in the event of there being joint Auditors,
such one of them as the Company shall select.

‘The Board’ The board of
directors for the time being of the Company, or the directors present at a duly
convened meeting of such board, or a duly constituted committee appointed by
the Board for the purpose of administering the Scheme.

‘The Company’ — Watson Wyatt
(Ireland) Limited (registered number 402562).

‘Deed’ The deed to which these
Rules are scheduled as from time to time amended.

‘Eligible Employee’ Any person who is at the Announcement Date
an employee or full-time director of the Company or of any Participating
Subsidiary:

 13
 

 

(a)                                  (i)            whose
remuneration in respect of that employment is subject to Irish Income Tax under
Schedule E; and

(ii)                                  who has been in service with either the Company
or any Participating Subsidiary for a continuous period of six months prior to
the 1st May preceding the relevant Announcement Date
and for the purpose of the operation of the Scheme in 2005 a period of service
with the Preceding Partnership shall be regarded as service with the Company
for this purpose; or

(b)                                                                                 is any other employee or director of either the
Company or any Participating Subsidiary who has been nominated by the Board for
participation in the Scheme.

provided that an individual
shall not be an ‘Eligible Employee’ if he is ineligible to participate in this
Scheme under Part 4 of Schedule 11 to the Act.

 ‘Entitlement’ The amount of each Eligible
Employee’s entitlement as may be determined in accordance with Rule 2.3 and
Appendix 1 as amended from time to time in accordance with Rule 13.

‘Financial Year’ An accounting
reference period of the Company used for the purposes of calculating the
benefits (if any) payable under this Scheme.

“Full-Time Director”  A director who is required to devote
substantially the whole of his time to the service of the Company.

‘The Group Companies’ The
Company and all its Participating Subsidiaries for the time being which are
incorporated in Ireland.

‘Individual Share Allocation’
All, or as the case may be that part, of an Eligible Employee’s Entitlement
which the Eligible Employee has elected to have paid to the Trustees pursuant
to Rule 3.1 provided that in any year of assessment such sum shall not exceed
the amount specified in paragraph 3(4) of Part 2 of Schedule 11 to the Act or
otherwise in any applicable legislation.

‘Initial Market Value’ The
Market Price of a Participant’s Scheme Shares on the date on which they are
appropriated to him, or on such earlier date(s) as has been agreed with the
Revenue Commissioners pursuant to Section 510(2)(b) of the Act.

‘Locked-in Value’ The value as
defined in section 512(1) of the Act.

‘Market Price’ In relation to
any Scheme Shares has the meaning assigned to market value by section 548 of
the Act or, if higher, the par values thereof.

‘The Parent Company’ –  Watson Wyatt & Company Holdings.

‘Participant’ An Eligible
Employee who has elected to participate and is appropriated Scheme Shares under
this Scheme.

‘Preceding Partnership’ Watson
Wyatt LLP.

 14
 

 

‘Participating Subsidiary’ Any
Subsidiary which is party to the Deed or which has entered into a supplemental
deed pursuant to Clause 2 of the Deed.

‘The Scheme’ The Watson Wyatt
Ireland Share Participation Scheme as constituted by the Deed.

‘Scheme Shares’ The Shares
acquired by the Trustees pursuant to the Scheme.

‘Release Date’ In relation to
any of a Participant’s Scheme Shares, means the date as defined by section
511(2) of the Act.

‘Retention Period’ The period
of retention as defined in section 511(1)(a) of the Act.

‘Rules’ The rules, of which
this rule is one, as such rules may be amended and is in force from time to
time.

‘Schedule E’ Schedule E
contained in Part 5 of the Act.

‘Shares’ Common stock in the
capital of the Parent Company, which comply with the provisions of Part 3 of
Schedule 11 to the Act and where the context so requires shall refer to a
single share.

‘Subsidiary’ A company, which
is under the control of the Company which, established the Scheme (control
being construed in accordance with section 432 of the Act).

‘Trust Property’ Money or
shares from time to time and for the time being held by or in the names of and
under the control of the Trustees for the purposes of this Scheme.

‘Trustees’ The Trustees named
in the Trust Deed which expression shall include its successors in business or
assigns or any other Trustees for the time being of the Scheme.

1.2                                 Throughout the Deed and these Rules, unless the
context otherwise requires:

(a)                                  any reference to a provision of an Act refers
to a Statute of the Oireachtas and shall include any statutory modification,
re-enactment or extension of it for the time being in force and any regulations
made under it;

(b)                                 words indicating the singular shall include the
plural and vice versa;

(c)                                  words indicating the masculine shall include
the feminine and neuter and vice versa;

(d)                                 reference to a clause means a Clause of the
Deed and reference to a Rule means a Rule in the Rules; and

(e)                                  headings are for convenience of reference only
and are not to be construed as part of the Deed or the Rules.

 15
 

 

2.             Company’s Obligations

2.1                                 If the Company wishes to operate the Scheme in
any Financial Year, then on such Announcement Date as it may determine, the
Company:

(a)                                  shall inform each Eligible Employee of his
Entitlement, and

(b)                                 shall advise him that, if he wishes to have all
or any proportion of his Entitlement applied in acquiring Scheme Shares under
this Scheme, then he must so elect by notice in writing to the Company not
later than fourteen days after the Announcement Date, or within such longer period
as the Company may allow.

The
Company may advise Eligible Employees on more than one occasion during a
Financial Year of the Entitlement which will be payable in respect of that
Financial Year to the Eligible Employees.

2.2                                 When so informing each Eligible Employee, the
Company shall send him a notice of election which shall contain provisions
whereby the Eligible Employee contracts with the Company in the terms of Rule
3.3 and shall be in the form set out in Appendix 2 to these Rules or in such
other form as may be approved by the Board from time to time.

2.3                                 The Entitlement (if any) shall be determined by
the Board at such time or times as the Board may decide in accordance with the
provisions of Appendix 1 to these Rules. 
On or before each Appropriation Date, the Company and its Subsidiaries
shall make available to the Trustees in respect of each Eligible Employee who
has contracted to participate in the Scheme such sum as will enable the
Trustees to purchase or subscribe at the Market Price for all the Scheme Shares
which such Eligible Employee has elected to have appropriated to him in
accordance with Rule 3.1 and 3.2 on condition that such sum is applied by the
Trustees in the subscription for or purchase of Scheme Shares for appropriation
to that Eligible Employee on that Appropriation Date.

2.4                                 The Company shall inform the Trustees as to
which employees and directors of the Company and its Participating Subsidiaries
are Eligible Employees in respect of the Financial Year last ended and have met
the requirements set out in Rule 2.2 relating to a contract with the
Company.  The Company shall, in
accordance with such requirements as the Trustees may from time to time
specify, prepare and make available to the Trustees, the name and address,
Entitlement and Individual Share Allocation of each Eligible Employee who has
elected to participate in this Scheme.

2.5                                 Alternatively to the procedures laid down in
this Rule, the Scheme may also be operated in any manner approved in writing by
the Revenue Commissioners.

2.6                                 Where the Entitlement notified to an Eligible
Employee in accordance with Rule 2.1(a) is less than the amount specified in
Paragraph 3(4) of Part 2 of Schedule 11 to the Act or otherwise in any
applicable legislation, the Company may, in its absolute discretion but subject
to such restrictions as may be required by the Revenue Commissioners from time
to time, permit such Eligible Employee to elect to forgo part of his Annual
Remuneration for an appropriation of Scheme Shares under the Scheme PROVIDED
HOWEVER that:

 16
 

 

(a)                                  the amount of such salary forgone does not
exceed the lesser of 7.5% of his Annual Remuneration or the amount of his
Entitlement; and

(b)                                 the aggregate value of the Scheme Shares to be
appropriated to an Eligible Employee under Rule 2.3 shall not exceed the limit
in Paragraph 3(4) of Part 2 of Schedule 11 to the Act or otherwise in any
applicable legislation.

3.             Employee Participation

3.1                                 If the Eligible Employees so elects, then all
or a proportion of his Entitlement shall be paid to the Trustees in accordance
with Rule 4.1 so as to allow the Trustees to acquire Scheme Shares on his
behalf under the terms of this Scheme, save for:

(a)                                  such part of the Entitlement as exceeds the
limitation on his Individual Share Allocation; and

(b)                                 such remaining part of the Entitlement which is
less than the Market Price of one Share.

3.2                                 If any Eligible Employee:

(a)                                  fails to elect at all, or

(b)                                 fails to enter into the contract referred to in
Rule 2.2 with the Company, or

(c)                                  elects and contracts to have less than the full
amount of his Entitlement applied in acquiring Scheme Shares, or

(d)                                 having made an election and entered into the
contract referred to in Rule 2.2, ceases on or before the Appropriation Date to
be an employee or Full-Time Director of the Company or any Participating
Subsidiary,

he
shall receive all or, in the circumstances of Rule 3.2(c) the remaining
balance, of his Entitlement by way of cash after deduction of PAYE and PRSI as
appropriate.

3.3                                 Any Eligible Employee who wishes to participate
in this Scheme shall contract with the Company in the terms of Section 511(4)
of the Act and failure by an Eligible Employee to comply with the Company’s
requirements in this regard will preclude him from participating in this
Scheme.

4.             Trustees’ Obligations

4.1                                 The Trustees shall at the earliest opportunity
apply the sum made available by the Company and/or its Participating
Subsidiaries pursuant to Rule 2.3 in acquiring or subscribing for Scheme Shares
at the Market Price for the Eligible Employees who have contracted to
participate in this Scheme; and

(a)                                  shall determine the number of Scheme Shares to
be appropriated on that occasion;

 17

 

(b)           shall appropriate the Scheme Shares to Eligible Employees who have
contracted to participate and shall as soon as practicable after such
appropriation notify each Participant in writing of:

(i)            the number and description of Scheme Shares so
appropriated to him;

(ii)           the Initial Market Value of the Scheme Shares
so appropriated; and

(iii)          the
Appropriation Date.

4.2           If the basis on which the Scheme Shares are appropriated would otherwise
give rise to the appropriation of a fraction of a Share the Trustees shall
appropriate such fraction and deal with such fractions in a manner agreed with
the Revenue Commissioners in writing.

4.3           If Rule 4.2 is not applied either because the Trustees do not wish to
appropriate fractions of shares or do not reach agreement with the Revenue
Commissioners then the Trustees shall reduce the appropriation to Eligible
Employees on a pro-rata basis.

4.4           In the event that any portion of the Scheme Shares acquired by the
Trustees carries the right to receive any dividends which have been declared
the Trustees shall appropriate those dividends amongst Eligible Employees as
soon as practicable after their receipt by the Trustees and will provide the
eligible employee with written detail of their dividend entitlements and any
related tax credits.

5.             Rights attaching to Scheme Shares

5.1           Scheme Shares appropriated to Participants pursuant to this Scheme shall
rank pari passu in all respects with the Shares of the Parent Company except
that Scheme Shares issued pursuant to the Scheme shall not rank for any rights
attaching to Shares prior to the date of issue.

5.2           In the event that the Trustees purchase Shares for appropriation and
some of those Shares carry a right of any kind which is not carried by every
other such Share, then such Shares as carry such right shall so far as
practicable be appropriated pro rata according to the number of Shares
appropriated to each Participant on the Appropriation Date.

6.             Conditions of Retention and Disposal

6.1           After the end of the Retention Period of any Participant’s Shares, the
Trustees shall dispose of such Shares if directed to do so by or on behalf of
the Participant, such directions to be subject to Rule 6.3 and be to:

(a)           dispose of his Scheme Shares; or

(b)           transfer the legal ownership of his Scheme Shares to himself; or

(c)           deal in his interest in the Scheme Shares;

 18
 

 

provided
that, as soon as may be practicable following the Release Date applicable
thereto the Trustees will be entitled to transfer the legal ownership of such
Scheme Shares to the Participant in a manner deemed appropriate with or without
specific instructions from the Participant.

6.2           In administering this Scheme the Trustees shall not dispose of any
Scheme Shares held on behalf of any Participant (whether by transfer to such
Participant or otherwise) during the Retention Period, except in the
circumstances outlined in section 511(6)(a), (b) or (c) of the Act as described
by Rule 7.1.

6.3.          Except as hereinafter provided each Participant shall comply with the
obligations imposed by paragraphs (a) to (d) of section 511(4) of the Act.

7.             Re-organisation; Amalgamation or Take-over and Rights Issues

7.1           A
Participant shall not be prevented by Rule 6.2 or 6.3 from:

(a)           directing the Trustees to accept an offer for any of his Scheme Shares
(hereinafter referred to as the “Original
Scheme Share”) if the acceptance or agreement will result in a new
holding, as defined in section 584(1) of the Act, being equated with the
Original Scheme Shares for the purposes of capital gains tax; or

(b)           directing the Trustees to agree to a transaction affecting his Scheme
Shares or such of them as are of a particular class if the transaction would be
entered into pursuant to a compromise arrangement or scheme applicable to or
affecting:

(i)            all the common stock of the Parent Company or
as the case may be all the Scheme Shares of the class in question; or

(ii)           all the Scheme Shares or Scheme Shares of the
class in question which are held by a class of shareholders identified
otherwise than by reference to their employment or their participation in this
Scheme; or

(c)           directing the Trustees to accept an offer of cash, with or without other
assets, for his Scheme Shares if the offer forms part of a general offer or
similar transaction which is made to holders of shares of the same class as
himself or of Shares in the Parent Company and which is made in the first
instance on a condition such that if it is satisfied the person making the
offer will have control of the Parent Company within the meaning of section 11
of the Act; or

(d)           agreeing after the expiry of the Retention
Period to sell the beneficial interest in his Scheme Shares to the Trustees for
the same consideration in money as in accordance with section 511(4)(d) would
be required to be obtained for the Scheme Shares themselves.

7.2           In the event of an offer being made or a transaction proposed in any of
the circumstances described in Rule 7.1(a), (b) or (c) the Trustees shall
forthwith notify each Participant and

 19
 

 

shall
act in accordance with the instructions of the Participant in dealing with his
Scheme Shares and in the absence of any such instructions shall take no action.

7.3           In the event of the Company proposing to make a rights issue in respect
of any class of its share capital which includes Scheme Shares held on behalf
of Participants, the Trustees shall, immediately upon receipt of the offer from
the Company, notify each Participant of the following options in respect of the
Scheme Shares held by the Trustees on his behalf:

(a)           to instruct the Trustees to exercise the rights in respect of all or any
of his Scheme Shares provided that such instruction is accompanied by payment
in cash of the amount necessary to exercise such rights; or

(b)           to instruct the Trustees to exercise the rights in respect of only some
of his Scheme Shares and to dispose of the rights nil paid in respect of the
remainder and either:

(i)            to pay to the Trustees any amount in excess of
the amount of the disposal proceeds necessary to exercise such rights; or

(ii)           to instruct the Trustees to pay to him any
amount of the disposal proceeds in excess of the amount necessary to exercise
such rights; or

(c)           to instruct the Trustees to dispose of the rights nil paid in respect of
all or any of his Scheme Shares and pay the proceeds to him.

The
Participant shall instruct the Trustees accordingly within any period of time
specified by the Trustees and shall, if appropriate, pay to the Trustees in
cash any amount necessary in order to carry out such instructions.  The Trustees shall, subject to receipt of the
cash as aforesaid, carry out the instructions of the Participant within the
period of time allowed by the Company for exercise of the rights.  If a Participant shall fail to give any
direction to and shall not otherwise have authorised the Trustees, they shall
take no action in respect of the rights associated with Scheme Shares held on
behalf of that particular Participant.

7.4           Any new Scheme Shares allotted to the Trustees pursuant to Rules 7.2 or
7.3 or on a capitalisation issue shall be deemed to have been appropriated to a
Participant on the Appropriation Date of the Scheme Shares in respect of which
they were allotted provided that, in respect of a Participant’s holding of
Scheme Shares which have different Appropriation Dates in deeming the amount of
securities to have been so appropriated the Trustees may round up or down any
fractions of such securities arising as they in their absolute discretion shall
think fit provided that the aggregate amount of new Scheme Shares appropriated to
a Participant shall not be thereby varied.

8.             Receipts

8.1           Subject to any such direction in relation to rights issues as is
referred to in section 513(3) of the Act, the Trustees shall pay or transfer to
a Participant any money or money’s worth received by them in respect of, or by
reference to, any of his Scheme Shares other than

 20
 

 

money
consisting of the sum referred to in Rule 11.1 and money’s worth consisting of
a new holding as referred to in Rule 7.1(a).

8.2           The Trustees shall procure that dividends in respect of Scheme Shares
appropriated to a Participant are remitted to him in accordance with the
Participant’s individual holding at his present or last place of work with the
Company or any of its Participating Subsidiaries or such other place within the
State as the Participant may direct as soon as practicable and in so far as
possible within the same tax year after payment thereof is made by the Parent
Company provided always that the Trustees shall at all times comply with the
provisions of paragraph 17(a) of Schedule 11 to the Act.

9.             Rights attaching to Scheme Shares

9.1           In relation to any rights or voting rights attaching to the Scheme
Shares appropriated to the Participants, when such rights fall to be exercised
the Trustees shall deal only in accordance with the written instructions of the
Participants or of any other person in whom the beneficial interest in the
Scheme Shares is for the time being vested. 
In the absence of such instructions the Trustees will abstain from
voting.

10.           Rights of Employees

10.1         Participation in this Scheme by a Participant is a matter entirely
separate from any pension right or entitlement he may have and from his terms
or conditions of employment and participation in this Scheme shall in no
respects whatever affect in any way a Participant’s pension rights or
entitlements or terms or conditions of employment and in particular (but
without limiting the generality of the foregoing words) any Participant who
leaves the employment of the Company or a Participating Subsidiary shall not be
entitled to any compensation for any loss of any right or any benefit or
prospective right or benefit under this Scheme which he might otherwise have
enjoyed whether such compensation is claimed by way of damages for wrongful
dismissal or other breach of contract or by way of compensation for loss of
office or otherwise howsoever.

11.           Duty to account for tax

11.1         When the Trustees receive from a Participant who has directed them to
transfer the ownership of his Scheme Shares to him at any time before the
Release Date in respect of such Scheme Shares the sum which he is then obliged
to pay them by virtue of section 511(4)(c) of the Act, that sum shall be
accounted for by the Trustees to the Revenue Commissioners in accordance with
section 516 of the Act.

11.2         The Trustees shall maintain records of all sums received from
Participants under Rule 11.1.

11.3         The Trustees shall inform each Participant in writing of any facts known
to them which   are relevant to
determining the liability (if any) of that Participant to Irish income tax
under Schedule E.

 21
 

 

12.           Administration

12.1         Subject to the prior written approval of the Revenue Commissioners, if
the Trustees need from time to time to make appropriations pursuant to Rule 4.1
after the Appropriation Date to Eligible Employees who are fairly and
reasonably included in the Scheme for the relevant Financial Year, the Company
and/or relevant Participating Subsidiary shall make available to the Trustees
such sum or sums as the Trustees need to acquire Scheme Shares for such
Eligible Employees as aforementioned provided always that such Eligible
Employees shall be treated within the terms of the Scheme as if they had
received an appropriation of Scheme Shares on the Appropriation Date.

12.2         Any notification or other notice in writing to be given to any
Participant pursuant to this Scheme shall be sufficiently given if sent through
the post in a prepaid cover addressed to the Participant at his address last
known to the sender including any address supplied by the Company or a
Participating Subsidiary as being his address. 
Any certificate, notification or other notice in writing required to be
given to the Company, a Participating Subsidiary or the Trustees shall be properly
given if sent to or delivered to the Company, the Participating Subsidiary
concerned or the first named Trustee at their respective registered or
principal offices or in the case of an individual Trustee at his last known
address.

12.3         If an Eligible Employee completes the required form of contract for
participation in this Scheme in respect of a particular Financial Year but dies
before Scheme Shares have been appropriated to him hereunder then any Scheme
Shares in respect thereof shall be appropriated to his estate.

13.           Alterations

13.1         The Board may from time to time make alterations to these Rules
including (without prejudice to the generality of the foregoing) such
alterations as may be necessary to establish other cash or share schemes and to
permit participants in such other schemes to participate in this Scheme on such
terms as the Board thinks fit provided that:

(a)           if the Scheme is at the time of any alteration approved by the Revenue
Commissioners, such alteration shall not take effect until it has been approved
by the Revenue Commissioners in writing under paragraph 5(2) of Part 2 of
Schedule 11 to the Act; and

(b)           the Board shall not make any alteration which would adversely prejudice
to a material extent a Participant’s rights over Scheme Shares already
appropriated to him without the consent in writing of such Participant.

14.           Final Decisions

14.1         If any matter arises on or in connection with
this Scheme or its operation for which specific provision is not made in the
Deed or these Rules such matter shall be resolved, dealt with or provided for
in such manner as the Board shall in its absolute discretion

 22
 

 

consider
appropriate after taking into account the respective interests of the Company
and of the Participants and the requirements of the Revenue Commissioners.

15.           Limitation upon number of Shares available to the Scheme

15.1         The maximum aggregate nominal value of Shares which may be issued by the
Parent Company to the Trustees under the Scheme shall not in any one calendar
year exceed one per cent. of the issued share capital of the Parent Company.

15.2         In any period of ten years, the maximum nominal value of Shares which
may be issued to the Trustees under the Scheme from time to time when added to
the aggregate of the nominal value of any Shares issued or to be issued pursuant
to any other employee Share Participation Schemes approved by the Parent
Company in general meeting, shall not exceed ten per cent. of the nominal value
of the issued share capital of the Parent Company in issue immediately prior to
that time.

 23

 

APPENDIX
1

Entitlement

(Rule 2.3)

The Entitlement of each
Eligible Employee shall be determined by the Board as a percentage  of Annual Remuneration as determined under
the performance appraisal process in a manner agreed with the Revenue
Commissioners.

 24
 

 

APPENDIX 2

LETTER OF
NOTIFICATION

(on Company
letterhead)

The Watson Wyatt Ireland Share Participation
Scheme

[NAME AND ADDRESS OF EMPLOYEE]      [DATE]

Dear

As an Eligible Employee under
the Watson Wyatt Ireland Share Participation
Scheme (the “Scheme”),
you are entitled to elect to receive an allocation in accordance with the
Scheme.  Your allocation will depend
on  the percentage of your Entitlement
you elect to receive under the Scheme in shares.  Any balance of your entitlement not taken in
shares will be processed in cash through the payroll system.

[Your Entitlement in respect
of the next such election will be €[ ].

The amount to be allocated
under the Scheme will be used by the Trustee of the Scheme to acquire for you
common stock in Watson Wyatt & Company Holdings (the “Shares”) provided that you are still an
Eligible Employee with the Company on the date the Shares are appropriated to
other Eligible Employees under the Scheme. 
If you have ceased to be an Eligible Employee, then all of your
Entitlement will be paid in cash through the payroll system.

*[If you wish to become a participant and to
have Shares appropriated to you, you must sign the attached Form of Election
and Contract of Participation (after reading them carefully) and return them to
me by [DATE].  Failure to return the form
and contract, properly completed, by this deadline (envelope enclosed for this
purpose) will result in your exclusion from the Scheme this year and loss of
any right to Shares.]

**[If you wish to have Shares appropriated to
you, you must sign the attached Form of Election (after reading it carefully)
and return to me by [DATE].  Failure to
return the form, properly completed, by this deadline (envelope enclosed for
this purpose) will result in your exclusion from the Scheme this year and loss
of any right to Shares under this allocation. 
The previous Contract of Participation into which you entered with
Watson Wyatt (Ireland) Ltd. will likewise apply to this allocation.]

Certain of the terms used in
the Contract of Participation are of a technical nature.  Definitions are set out on the sheet attached
to the contract.  Such definitions are of
necessity taken from the relevant legislation and are expressed in technical
language.

 25
 

 

You should be sure that you
understand your obligations before you return the form and you may seek further
clarification from me.

Yours faithfully,

for and on behalf of

Watson Wyatt (Ireland)
Ltd.

[HR Director]

*              Suitable
for first allocation

**           Suitable
for second and all subsequent allocations.

 26
 

 

FORM 1

FORM OF
ELECTION

To:          Watson
Wyatt (Ireland) Limited

To:          Trustees
of Watson Wyatt Ireland Share Participation Scheme.

I have received notification
of the amount of my Entitlement under the Scheme as set out in the Company’s
letter dated [DATE].

I
wish to receive the following percentage of my Entitlement in Shares

[     %]     Insert
percentage.  Please note that this is
subject to a minimum of €200.

This form should
be returned to HR by [insert date].  If
this is your first application for shares under the Plan you are also required
to complete Form 2 (Contract of Participation). 
In the event that you wish to increase your allocation by way of salary
foregoing you must complete Form 3 (Salary Foregoing Form of Election).

	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  *

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PPS Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
				

 

Company should
print employee’s name below line

 27
 

 

FORM 2

CONTRACT
OF PARTICIPATION

Watson
WyattIreland Share Participation Scheme

To:          The
Directors of Watson Wyatt (Ireland) Limited .

To:          The
Trustees of the Watson Wyatt Ireland Share Participation Scheme (“the Scheme”)

I wish to be included in the
above Scheme for the current year and to have Shares appropriated to me as
described in the letter of [DATE].

1.             I have read the explanatory booklet describing
the Scheme.

2.             I authorise Watson Wyatt (Ireland) Ltd. to pay
to the Trustees the sum set out in the attached Form of Election for the
acquisition of Shares under the Scheme.

3.             In return for my inclusion in the Scheme, I
formally agree with Watson Wyatt (Ireland) Ltd. to be bound by the Rules of the
Scheme as amended from time to time and, in particular, I hereby undertake:

(i)            To permit the Shares appropriated to me to
remain in the hands of the Trustees throughout the Retention Period (as defined
in the Schedule of Terms);

(ii)           Not to assign, or charge or otherwise to dispose of my beneficial
interest in those Shares during the Retention Period;

(iii)          If my Shares are to be transferred to me at any time before the Release
Date (as defined in the Schedule of Terms), to pay to the Trustees before the
transfer takes place a sum equal to the income tax for which they become liable
as a result of such transfer;

(iv)          Not to direct the Trustees to dispose of my Shares at any time after the
Retention Period and before the Release Date except by sale for the best
consideration in money that can at the time of sale be reasonably obtained.

4.     In relation to an offer or invitation
conferring any rights upon the members of Watson Wyatt & Company Holdings I
hereby direct the Trustees that they shall sell such proportion of such rights
nil paid as will enable them to subscribe in full the balance of such rights as
are unsold, provided always that I shall not before such date as may reasonably
be stipulated for accepting such offer or invitation have given such other
written instructions to the Trustees as I may be permitted.

5.     I agree that if I do not issue instructions to
the Trustees on or after the Release Date to either sell my Shares or to have
them transferred to me the Trustees may effect such transfer in a manner deemed
appropriate to the efficient operation of the Scheme.

 28
 

 

5.             I understand that this contract is binding in
respect of all appropriations of Scheme Shares to me at any time.

Signed:

Dated:

If your full name and address
is not shown above please complete this section.

	
  Full Christian Name(s):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Surname:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PPS Number:

  	
   

  	
   

  

 

Please supply your bank
details in order that any amounts payable to you under the Scheme can be
credited to your account.

	
  Bank Details

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Banks:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Branch address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Sort Code:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A/Cno:

  	
   

  	
   

  
					

 

 29
 

 

SCHEDULE OF TERMS

“Release Date”                                                           means in relation to your Shares the third
anniversary of the date on which the Shares were appropriated to you.

“Retention Period”                                      means in relation to your Shares the period
beginning on the date on which they were appropriated to you and ending on the
second anniversary of that date, or if earlier the date on which you are no
longer a director or employee of a participating company by reason of injury or
disability or dismissal by reason of redundancy or the date on which you reach
statutory pensionable age (i.e. age 66) or the date of your death.

“Shares”                                                                                           mean fully paid ordinary shares in the capital
of Watson Wyatt & Company Holdings..

 30
 

 

FORM 3

TO BE USED ONLY IF COMPANY EXERCISES ITS DISCRETION UNDER
RULE 2.6 TO PERMIT SALARY FORGOING

SALARY FORGOING FORM OF ELECTION

Note:                      Completion of this form is
optional

To:          The
Directors of Watson Wyatt (Ireland) Limited (the “Company”)

To:          The Trustees of the Watson Wyatt Ireland Share Participation Scheme (the
“Scheme”)

You may, subject to Revenue
limits, forgo salary

(a)           I opt to forgo a lump
sum of  €

from my gross basic salary

in the month of [        ] (insert relevant month.

(b)           I
understand that:

(1)           the amount of salary forgone will be paid by the Company to the Trustees
of the Scheme for application towards the purchase of Shares by the Trustees
under the Scheme, and since it will reduce my taxable income, it may affect the
values on which my pension scheme benefits (including death in service) are
calculated and the amount of additional voluntary contributions which I may pay
into the pension scheme;

(2)           the amount of salary that may be foregone
cannot exceed the lesser of either:

(i)            the amount of my Entitlement that I have
elected to take in Shares or,

(ii)           7.5% of my annual basic salary

Subject to the overall value
of shares (bonus and salary foregoing) not exceeding €12,700 in the tax year.

(3)           the exercise of any option under (a) and/or (b) may only continue to apply
for so long as I continue to participate in the Scheme and the Company
continues to exercise its discretion under the Scheme Rules to allow salary
forgoing and is subject to certain limits imposed by the Revenue Commissioners
from time to time;

(4)           if any part of my salary forgone cannot be applied towards the purchase
of Shares by the Trustees under the Scheme, that part shall be paid to me,
without interest, and subject to income tax and PRSI.

 31
 

 

 

	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PPS Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
				

 

* Company should print
employee’s name below line

 32Exhibit
10.24

Rules
for the Extraordinary Variable Pay 2005 of

WATSON
WYATT

 

 

 

September, 2005

 1
 

 

 

Rules for the Extraordinary Variable Pay 2005 of WATSON
WYATT

 

	
  Section

  	
   

  	
  Pages

  	
   

  
	
  1.   Description of the System

  	
   

  	
  3

  	
   

  
	
  2.   Scope

  	
   

  	
  3

  	
   

  
	
  3.   Basis of the System

  	
   

  	
  3

  	
   

  
	
  4.   Liquidation

  	
   

  	
  3

  	
   

  
	
  5.   General Rules

  	
   

  	
  4

  	
   

  

 

 2
 

 

 

1.   Description
of the System

The Extraordinary Variable Pay System 2005 of Watson
Wyatt (hereinafter, “the System”) has the objective to reward the Associates as
consequence of the acquisition of assets and assumption of liabilities of
Watson Wyatt LLP for Watson Wyatt & Company Holdings, which has taken place
the 1st August 2005.

The System consists in an extraordinary
incentive, which will be paid in September 2005 and it is calculated as a percentage
of the Annual Base Salary. The incentive will depend on the Associate
performance in 2005 and his/her Band.

2.   Scope

The System includes all Associates entitled
to the variable pay in WATSON WYATT DE ESPAÑA,
with the clarifications made in the following Section.

3.   Basis
of the System

The basic structure of the System has two parts, as
follows:

·                  Additional bonus for the 2 months
period (May and June 2005). This
bonus will be calculated as a pro-rata amount of the performance related bonus
award for FY05, increased in a percentage established for each Band.

·                  “Business Combination Bonus”: The accrual period will be 14 months, from
1st May
2004 to 31st June
2005. The bonus will be payable to those associates in service at both 18
January 2005 and the date of payment. The amount of this bonus will be
determined by a percentage (established for each Band) on the performance bonus
award in FY05.

The amount of the System’s resulting bonus will be
communicated individually to each Associate in a separate document additional
to these Rules.

4.   Liquidation

The liquidation of the accrued bonus will be done
through any of the following methods, at the Associate election:

·                  Totally paid in cash. The total amount of the extraordinary
bonus 2005 will be paid in cash, according to the usual procedure for the
annual performance bonus payment, which is through the payroll of the month of
payment.

·                  Totally paid in Watson Wyatt & Company Holdings shares, with
a 12,000€ limit. Any amount which exceeds this limit will be paid in cash.

·                  Payment partially in cash and in Watson Wyatt & Company Holdings
shares. The Associate will be able
to chose which amount wants to be paid in cash and in shares, the last with a
limit of 12,000€.

 3
 

 

 

5.   General
Rules

·                  Method of payment selection: the Associate should choice the
method of payment of the bonus before the 12th, September, through written
communication to the Office Administrator (Cristina Hernando). In this
communication should declare the method of payment chosen, the amount wished to
receive in cash and/or shares and the current or securities account where the
payment should be made. (See form in the Appendix I).

·                  Payment in shares: If the Associate chose
any of the alternatives of payment in shares, he/she should take into account:

·                  The
shares will belong to Watson Wyatt & Company Holdings, company quoted in NYSE
and will be placed in the securities account which he/she declare.

·                  The
current Personal Income Tax regulations
provides for a €12,000 exemption applicable to labour income consisting in the delivery
of shares for free or below their market price by a company to its active
employees, including the delivery of shares of the group’s parent company to
active employees of its subsidiaries, if the Associate keeps the shares, at
least, three years.

·                  Those
Associates whose salary won’t reach the Social Security maximum limit (33,760.8€)
should pay the employee Social Security instalment corresponding to the amount
in shares that exceed 3,005.06€. This exemption only operates if the shares are
kept, at least, during three years. If the Associate sell the shares before the
aforementioned period the total amount will be taxed.

·                  If
the Associate chose the total o partial payment in shares, these will be tax
exempt, except if the Associate sell them before the end of the three years
period. If this happens, the Associate will be responsible for the
complementary tax declaration but he/she will also have to communicate the sell
of the shares to WATSON WYATT DE ESPAÑA in order to regularize the Social
Security payments.

·                  Those Associate who chose the payment in cash
or should received in cash the amount which exceed the shares limit will
receive the corresponding amount, deducted Personal Income Tax and Social
Security payments.

 4
 

 

 

APPENDIX
I

EXTRAORDINAY VARIABLE PAY SYSTEM 2005 OF WATSON
WYATT

PAY REQUEST FORM

 

TO WATSON WYATT DE ESPAÑA, S.A.

 

 

 

 

                                                                             (Complete name and surname of Associate)

                                                                             (Address)

 

 

 

 

Thought this document I express my wish that the
resulting bonus from the Extraordinary Variable Pay System 2005 will be
liquidated to me (mark what you wish):

	
  ·

  	
   

  	
  Totally in cash

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  Totally in Watson Wyatt & Company Holdings
  shares

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  € in cash and
                  
  € in its equivalent in Watson Wyatt & Company Holdings shares

  	
   

  	
  o

  

 

This liquidation will be done according to the
conditions established in the Rules of the System, which I declare to know and
accept. I request that the pay in of the liquidation will be done in my
current/securities account           

The Associate

In                      ,
the                     of                   of

 

 5

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