Document:

Prepared by MerrillDirect

Exhibit 10.2

CONSENT

             THIS CONSENT
(this "Consent"), dated as of June 15, 2001, to the Credit
Agreement referenced below, is by and among Watson Wyatt & Company, a
Delaware corporation (the "Borrower"), Watson Wyatt &
Company Holdings, a Delaware corporation (the "Parent"), the
Domestic Subsidiaries of the Parent identified on the signature pages hereto as
"Subsidiary Guarantors" (the "Subsidiary Guarantors"),
the Banks identified on the signature pages hereto and Bank of America, N.A., a
national banking association formerly known as NationsBank, N.A., as agent for
the Banks (in such capacity, together with any successor in such capacity, the
"Agent").

W I T N E S S E T H

             WHEREAS, a $120
million credit facility has been extended to the Borrower pursuant to the terms
of that Credit Agreement (as amended, modified, supplemented and extended from
time to time, the "Credit Agreement") dated as of June 30,
1998 among the Borrower, the Parent, the Subsidiary Guarantors, the Banks
identified therein and the Agent;

             WHEREAS,
pursuant to the First Amendment to the Credit Agreement (the "First
Amendment") dated as of October 6, 2000, the Banks consented to the
release of the Liens, in favor of the Agent, for the benefit of the Banks, on
the Employee Pledged Shares sold in connection with the initial public offering
of the common stock of the Parent; provided that the Liens on the
Employee Pledged Shares which were not sold in connection with the IPO shall
not be released and shall remain in full force and effect;

             WHEREAS, in
connection with a secondary public offering of the common stock of the Parent
(the "Secondary Offering"), certain Persons propose to sell
certain Employee Pledged Shares and have requested that the Agent, with the
consent of the Majority Banks, release the Liens in favor of the Agent, for the
benefit of the Banks, on those Employee Pledged Shares sold by such Persons in
connection with the Secondary Offering; and

             WHEREAS, the
Majority Banks have agreed to the requested release on the terms and conditions
set forth herein.

             NOW, THEREFORE,
IN CONSIDERATION of the premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

             1.          Release of Liens on Employee Pledged
Shares.  The Majority Banks hereby
consent to the release of the Liens in favor of the Agent, for the benefit of
the Banks, on those Employee Pledged Shares sold in the Secondary Offering, provided
that in the event any Person that sells any Employee Pledged Shares in the
Secondary Offering does not, within thirty (30) days of the date such person
receives the proceeds from such sale, make payment on such Person's Employee
Loans in the amount and in the manner set forth in the Employee Note and
Employee Pledge Agreement of such Person, the Borrower shall (and by execution
hereof the Borrower agrees it shall) promptly make such payment to the Lenders
in such amount and such manner.

             2.          Letter
of Credit Sublimit.  The sublimit
for LOC Obligations as referenced in clause (i) of the proviso in the first
sentence of Section 2.5(a) of the Credit Agreement is increased from
"$10,000,000" to "$40,000,000".

             3.          Conditions Precedent.  This Consent shall be effective upon
receipt by the Agent of multiple counterparts of this Consent executed by the
Borrower, the Parent, the Subsidiary Guarantors and the Majority Banks.

             4.          Reaffirmation of Representations
and Warranties.  The Borrower hereby
affirms that the representations and warranties set forth in the Credit Agreement
and the other Credit Documents are true and correct as of the date hereof
(except those which expressly relate to an earlier period).

             5.          Reaffirmation of Guaranty.  Each
Guarantor (i) acknowledges and consents to all of the terms and conditions of
this Consent, (ii) affirms all of its obligations under the Credit Documents
and (iii) agrees that this Consent and all documents executed in connection
herewith do not operate to reduce or discharge such Guarantor's obligations
under the Credit Agreement or the other Credit Documents.

             6.          No Other Changes.  Except as modified hereby, all of the terms
and provisions of the Credit Agreement and the other Credit Documents
(including schedules and exhibits thereto) shall remain in full force and
effect.

             7.          Counterparts.  This Consent may be executed in any number
of counterparts, each of which when so executed and delivered shall be deemed
an original and it shall not be necessary in making proof of this Consent to
produce or account for more than one such counterpart.

             8.          Governing Law.  This Consent shall be deemed to be a
contract made under, and for all purposes shall be construed in accordance
with, the laws of the State of North Carolina.

[Remainder
of Page Intentionally Left Blank]

IN WITNESS WHEREOF, each of the
parties hereto has caused a counterpart of this Consent to be duly executed and
delivered as of the date first above written.

 

	BORROWER	 	WATSON
  WYATT & COMPANY  	 
	 	 	 	(d/b/a
  Watson Wyatt Worldwide),  	 
	 	 	 	 a Delaware corporation	 
	 	 	 	 	 	 	 
	ATTEST:	/s/
  Walter W. Bardenwerper	 	By: 	 	/s/ Eric B. Schweizer	 
	Name:	Walter
  W. Bardenwerper	 	Name:	 	Eric B. Schweizer	 
	Title:	Secretary	 	Title:	 	Treasurer	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	PARENT	 	WATSON WYATT & COMPANY
  HOLDINGS, INC.,  	 
	 	 	 	a
  Delaware corporation  	 
	 	 	 	 	 	 	 
	ATTEST:	/s/
  James S. Minogue	 	By:	 	/s/
  Walter W. Bardenwerper	 
	Name:	James
  S. Minogue	 	Name:	 	Walter
  W. Bardenwerper	 
	Title:	Assistant
  Secretary	 	Title:	 	Vice
  President	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	SUBSIDIARY
  GUARANTORS	 	WATSON
  WYATT INVESTMENT CONSULTING, INC.,  	 
	 	 	 	a
  Delaware corporation  	 
	 	 	 	WYATT
  DATA SERVICES, INC.,  	 
	 	 	 	a
  Delaware corporation  	 
	 	 	 	WATSON
  WYATT INTERNATIONAL, INC.,  	 
	 	 	 	a
  Nevada corporation  	 
	 	 	 	 	 	 	 
	ATTEST:	/s/
  Walter W. Bardenwerper	 	By:
  	 	/s/
  Eric B. Schweizer	 
	Name:	Walter
  W. Bardenwerper	 	Name:	 	Eric
  B. Schweizer	 
	Title:	Secretary of each of the
  Subsidiary Guarantors	 	Title:	 	Treasurer of each of the
  Subsidiary Guarantors	 
	 	 	 	 	 	 	 
								

 

 

 

	BANKS	BANK OF AMERICA, N.A., as a
  Bank and as Agent	 
	 	 	 
	 	By: 	/s/ John E. Williams	 
	 	Name:	John E. Williams	 
	 	Title:	Managing Director	 
	 	 	 
	 	PNC BANK, NATIONAL
  ASSOCIATION	 
	 	 	 
	 	By:	 
	 	 	

	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	COMERICA BANK	 
	 	 	 
	 	By: 	/s/ Jeffrey M. Lafferty	 
	 	Name:	Jeffrey M. Lafferty	 
	 	Title:	Account Representative	 
	 	 	 
	 	 FIRST UNION NATIONAL BANK	 
	 	 	 
	 	By: 	/s/ Michael Romanzo	 
	 	Name:	Michael Romanzo	 
	 	Title:	Assistant Vice President	 
	 	 	 
	 	SUNTRUST BANK	 
	 	 	 
	 	By: 	/s/ Nancy R. Petrash	 
	 	Name:	Nancy R. Petrash	 
	 	Title:	Director	 
	 	 	 
	 	THE BANK OF NOVA SCOTIA	 
	 	 	 
	 	By: 	/s/ Todd Meller	 
	 	Name:	Todd Meller	 
	 	Title:	Managing DirectorPrepared by MerrillDirect

Exhibit 10.4

Amendment Number 1

to

Watson Wyatt & Company

Senior Officers Deferred
Compensation Plan

Section 4 is amended as follows:

4.
Requirement to Defer

If a Participant's Applicable Employee Remuneration exceeds
$1,050,000, the amount in excess of $1,000,000 will be deferred. Amounts
deferred under this Paragraph 4 shall be referred to as the "Deferred
Amounts."

Section 6 is amended as follows:

6.
Investment Options and Additions to Deferred Amounts

The Plan shall offer a minimum of three Investment Options
including an interest factor equal to the prime rate of interest as reported by
BankAmerica, or the Company's bank if different. A Participant's Deferred
Compensation Account shall be deemed to be invested in the Investment Options
the Participant has selected and may thereafter be changed in accordance with
policies and procedures developed by the Committee.

Executed on behalf of Watson Wyatt & Company pursuant to
authorization of its Board of Directors given on December 18, 2000.

 

	/s/ Walter W. Bardenwerper	Vice
  President and Secretary	 	8/17/01	 
	

	 	 	 	 
	Walter W. Bardenwerper	 	 	 	 

 

Watson
Wyatt & Company

Senior
Officers Deferred Compensation Plan

1. Purpose

The purpose of the Watson Wyatt & Company Voluntary Deferred
Compensation Plan (the "Plan") is to preserve Watson Wyatt &
Company's tax deduction for compensation in excess of $1,000,000 which is
otherwise lost under section 162(m) of the Internal Revenue Code.

2.
Administration

The Plan shall be administered by the Compensation and Stock Committee
of the Board of Directors of the Company (the "Committee"). The
Committee shall have sole and complete authority to interpret the terms and
provisions of the Plan and to delegate various administrative tasks to
appropriate officers and employees of the Company.

3.
Eligibility

The chief executive officer and the other four highest compensated
officers as disclosed in the proxy shall participate in the Plan if their
Applicable Employee Remuneration (as defined in section 162(m)(4) of the
Internal Revenue Code) exceeds $1,000,000. Such persons shall be collectively
referred to as the "Participant" or "Participants" as the
case may be.

4.
Requirement to Defer

If a Participant's Applicable Employee Remuneration exceeds
$1,000,000, the amount in excess of $1,000,000 will be deferred. Amounts
deferred under this Paragraph 4 shall be referred to as the "Deferred
Amounts."

5.
Establishment of Deferred Compensation Account

At the time of the Participant's initial deferral pursuant to
Paragraph 4, the Company shall establish a memorandum account (a "Deferred
Compensation Account") for such Participant on its books. Deferred Amounts
shall be credited to the Deferred Compensation Account at the time the Deferred
Amounts would have been paid to the Participant if no deferral were made.
Additions as provided in Paragraph 6, below; shall be credited to the
Participant's Deferred Compensation Account as of the last day of each month.

6. Additions
to Deferred Amounts

As of the last day of each month, the balance in the Participant's
Deferred Compensation Account at the beginning of that month shall be credited
with interest using an interest factor equivalent to the prime rate of interest
as reported by NationsBank at the beginning of such month.

7. Payment
of Deferred Amounts

Except as otherwise provided in subparagraph (b) below, the period
of deferral shall be until the earlier of (i) the Participant is not named in
the Summary Compensation Table of the Watson Wyatt & Company proxy or (ii)
payment of the Deferred Amount will be deductible by Watson Wyatt &
Company.

Payments made because the Participant is not
named in the Summary Compensation Table shall be in a lump sum.

In the event of the Participant's death, payment
of the balance in the Participant's Deferred Compensation Account shall be made
to the beneficiary designated by the Participant in writing and delivered to
the Committee, or if none, to the Participant's estate.

	(b)	A Participant shall receive the balance in the
  Deferred Compensation Account as soon as practical after the occurrence of a
  Change in Control of the Company. The term "Change in Control"
  shall mean a Change in Control of a nature that would be required to be
  reported, by persons or entities subject to the reporting requirements of Section
  14(a) of the Securities and Exchange Act of 1934 (the 1934 Act) in response
  to item 6(e) of Schedule 14A of Regulation 14A, or successor provisions
  thereto, as in effect on the date hereof; provided that, without limitation,
  such a Change in Control shall be deemed to have occurred if (1) any
  "person" or "group" (as those terms are used in Sections
  13(d) and 14(d) of the 1934 Act) is or becomes the "beneficial
  owner" (as defined in Rule 13(d)–3 issued under the 1934 Act),
  directly or indirectly, of securities of the Company representing 20 percent
  or more of the combined voting power of the Company's then outstanding
  securities; or, if, (2) at any time during any period of two consecutive
  fiscal years, individuals who at the beginning of such period constitute the
  board of directors of the Company cease for any reason to constitute at least
  the majority thereof unless the election, or the nomination for election by
  the Company's shareholders, of each new director was approved by a vote of at
  least two-thirds of the directors still in office who were directors at the
  beginning of such two-year period; or if (3) the Company is merged into or
  consolidated with another entity, as a result of which the shareholders of
  the Company immediately prior to such merger or consolidation own less than
  75% of the voting interest in the surviving entity or the parent of the
  surviving entity.

8. Participant Reports

The Committee shall provide a statement to the Participant at
least annually concerning the status of his/her Deferred Compensation Account.

9.
Transferability of Interests

All Deferred Compensation Accounts shall be merely bookkeeping
entries. Any assets which may be reserved to pay benefits hereunder, shall be
considered as general assets of the Company for use as it deems necessary and
shall be subject to the claims of the Company's creditors.

The rights and interests of a Participant shall be solely those of
a general creditor of the Company and such Participant's rights and interests
may not be anticipated, assigned, pledged, transferred or otherwise encumbered
or disposed of except in the event of the death of the Participant, and then
only by will or the laws of descent and distribution.

10.
Conditions of Employment Not Affected by the Plans

The establishment and maintenance of the Plans will not be
construed as conferring any legal rights upon any person to the continuance of
his/her employment with the Company or any of its subsidiaries, nor will the
Plans interfere with the rights of the Company or any of its subsidiaries to
discharge any person from its employ.

 

11.
Amendment, Suspension and Termination

The Company by action of its Board of Directors may amend, suspend
or terminate the Plan or any portion thereof in such manner and to such extent
as it may deem advisable and in the best interests of the Company. No
amendment, suspension and termination shall alter or impair any Deferred
Compensation Accounts without the consent of the Participant affected thereby.

12. Unfunded
Obligation

The Plan shall not be funded, and no trust, escrow or other
provisions shall be established to secure payments due under the Plan. A
Participant shall be treated as a general, unsecured creditor of the Company at
all times under the Plan.

13.
Applicable Law

The Plan will be construed and enforced according to the laws of
Maryland and all provisions of the Plan will be administered accordingly.

14.
Severability

If any provision of this Plan is declared to be invalid or
unenforceable, such provision shall be severed from this Plan and the other
provisions hereof shall remain in full force and effect.

15.
Effective Date

The Plan shall be effective immediately upon approval by the Board
of Directors of the Company.

 

Executed on behalf of Watson Wyatt & Company
pursuant to authorization of its Board of Directors given on February 21, 1997.

	/s/ Walter W. Bardenwerper	Vice
  President and Secretary	 	8/17/01	 
	

	 	 	 	 
	Walter W. Bardenwerper

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