Document:

exv10w7

Exhibit 10.7

WILLIS GROUP SENIOR MANAGEMENT INCENTIVE PLAN

AS AMENDED AND RESTATED  ON DECEMBER 30, 2009 BY WILLIS GROUP HOLDINGS LIMITED

AND AS AMENDED AND RESTATED AND ASSUMED BY WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY ON DECEMBER 31, 2009

Section 1. Purposes.

     The purpose of the Willis Group Senior Management Incentive Plan (as amended and restated on December 30,
2009 by Willis Group Holdings Limited and as amended and restated and assumed by Willis Group Holdings Public
Limited Company on December 31, 2009, the “Plan”) is to attract, retain and motivate selected
employees of Willis Group Holdings Public Limited Company, a company incorporated in Ireland under
registered number 475616, or any successor thereto (the “Company”) and its Subsidiaries and
affiliates who are executive officers of the Company and members of its Partners Group and any
successor thereto in order to promote the Company’s long-term growth and profitability. It is also
intended that all Bonuses (as defined in Section 5(a)) payable under the Plan be considered
“performance-based compensation” within the meaning of Section 162(m)(4)(C) of the U.S. Internal
Revenue Code of 1986, as amended (the “Code”), and the regulations thereunder, and the Plan shall
be interpreted accordingly. “Subsidiary,” as used herein, means any subsidiary of the Company
within the meaning of Section 155 of the Companies Act 1963 of Ireland (the “Act”).

Section 2. Administration.

     (a) Subject to Section 2(d), the Plan shall be administered by a committee (the “Committee”)
appointed by the Board of Directors of the Company (the “Board”), whose members shall serve at the
pleasure of the Board. The Committee at all times is intended to be composed of at least two
directors of the Company, each of whom is an “outside director” within the meaning of Section
162(m) of the Code and Treasury Regulation Section 1.162-27(e)(3) and a “non-employee director”
within the meaning of Rule 16b-3 promulgated under the U.S. Securities Exchange Act of 1934, as
amended. Unless otherwise determined by the Board, the Committee shall be the Compensation
Committee of the Board.

     (b) The Committee shall have complete control over the administration of the Plan, and shall
have the authority in its sole and absolute discretion to: (i) exercise all of the powers granted
to it under the Plan; (ii) construe, interpret and implement the Plan; (iii) prescribe, amend and
rescind rules and regulations relating to the Plan, including rules and regulations governing its
own operations; (iv) make all determinations necessary or advisable in administering the Plan
(including, without limitation, calculating the size of the Bonus payable to each Participant (as
defined in Section 4(a))); (v) correct any defect, supply any omission and reconcile any
inconsistency in the Plan; and (vi) amend the Plan to reflect changes in or interpretations of
applicable law, rules or regulations.

     (c) The determination of the Committee on all matters relating to the Plan and any amounts
payable thereunder shall be final, binding and conclusive on all parties.

     (d) Notwithstanding anything to the contrary contained herein, the Committee may allocate
among its members and may delegate some or all of its

 

 

authority or administrative responsibility to such individual or individuals who are not members of
the Committee as it shall deem necessary or appropriate; provided, however, the Committee may not
delegate any of its authority or administrative responsibility hereunder (and no such attempted
delegation shall be effective) if such delegation would cause any Bonus payable under the Plan not
to be considered performance-based compensation within the meaning of Section 162(m)(4)(C) of the
Code.

     (e) No member of the Board or the Committee or any employee of the Company or any of its
subsidiaries or affiliates (each such person a “Covered Person”) shall have any liability to any
person (including, without limitation, any Participant) for any action taken or omitted to be taken
or any determination made in good faith with respect to the Plan or any Bonus. Each Covered Person
shall be indemnified and held harmless by the Company against and from any loss, cost, liability or
expense (including attorneys” fees) that may be imposed upon or incurred by such Covered Person in
connection with or resulting from any action, suit or proceeding to which such Covered Person may
be a party or in which such Covered Person may be involved by reason of any action taken or omitted
to be taken under the Plan and against and from any and all amounts paid by such Covered Person,
with the Company’s approval, in settlement thereof, or paid by such Covered Person in satisfaction
of any judgment in any such action, suit or proceeding against such Covered Person, provided that
the Company shall have the right, at its own expense, to assume and defend any such action, suit or
proceeding and, once the Company gives notice of its intent to assume the defense, the Company
shall have sole control over such defense with counsel of the Company’s choice. The foregoing right
of indemnification shall not be available to a Covered Person to the extent that a court of
competent jurisdiction in a final judgment or other final adjudication, in either case, not subject
to further appeal, determines that the acts or omissions of such Covered Person giving rise to the
indemnification claim resulted from such Covered Person’s bad faith, fraud or willful criminal act
or omission. The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which Covered Persons may be entitled under the Company’s Restated Certificate
of Incorporation or Amended and Restated Bylaws, as a matter of law, or otherwise, or any other
power that the Company may have to indemnify such persons or hold them harmless.

Section 3. Performance Period.

     The Plan shall operate for successive periods (each a “Performance Period”). The first
Performance Period shall commence on January 1, 2005 and shall terminate on December 31, 2005.
Thereafter, each Performance Period shall be one full fiscal year and/or portions of fiscal years
of the Company, as determined by the Committee.

Section 4. Participation.

     (a) Prior to the 90th day after the beginning of a Performance Period, or otherwise in a
manner not inconsistent with Treasury Regulation Section 1.162-27(e)(2) (the “Participation Date”),
the Committee shall designate those individuals who shall participate in the Plan for the
Performance Period (the “Participants”).

     (b) Except as provided below, the Committee shall have the authority at any time (i) during
the Performance Period to remove Participants from the Plan for that Performance Period and (ii)
prior to the Participation Date (or

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later in a manner consistent with the requirements of Section 162(m) of the Code) to add
Participants to the Plan for a particular Performance Period.

Section 5. Bonus Amounts.

     (a) Each Participant shall be paid a bonus amount equal to 5% of the Company’s “Earnings” (as
defined in Section 5(c)) with respect to each Performance Period. Notwithstanding anything to the
contrary in this Plan, the Committee may, in its sole discretion, reduce (but not increase) the
bonus amount for any Participant for a particular Performance Period at any time prior to the
payment of bonuses to Participants pursuant to Section 6 (a Participant’s bonus amount for each
Performance Period, as so reduced, the “Bonus”).

     (b) If a Participant’s employment with the Company terminates for any reason before the end of
a Performance Period or before the date that the Bonus is paid pursuant to Section 6, the Committee
shall have the discretion to determine whether (i) such Participant shall be entitled to any Bonus
at all, (ii) such Participant’s Bonus shall be reduced on a pro-rata basis to reflect the portion
of such Performance Period the Participant was employed by the Company or (iii) to make such other
arrangements as the Committee deems appropriate in connection with the termination of such
Participant’s employment.

     (c) For purposes of this Section 5, “Earnings” means the Company’s operating income before
taxes and extraordinary loss to be reported in its audited consolidated financial statements for
the relevant fiscal year, adjusted to eliminate, with respect to such fiscal year: (i) losses
related to the impairment of goodwill and other intangible assets; (ii) restructuring expenses;
(iii) gains or losses on disposal of assets or segments of the previously separate companies of a
business combination within two years of the date of such combination; (iv) gains or losses that
are the direct result of a major casualty or natural disaster; (v) losses resulting from any
newly-enacted law, regulation or judicial order; (vi) the cumulative effect of accounting changes;
(vii) any extraordinary gains or losses; and (viii) accounting expenses associated with the grant
of employee share options. The above adjustments to Earnings shall be computed in accordance with
US GAAP. Following the completion of each Performance Period, the Committee shall certify in
writing the Company’s Earnings for such Performance Period.

Section 6. Payment of Bonus Amount; Voluntary Deferral.

     Each Participant’s Bonus shall be payable by such Participant’s Participating Employer (as
defined in Section 7(j)), or in the case of a Participant employed by more than one Participating
Employer, by each such employer as determined by the Committee. The Bonus shall be payable in the
discretion of the Committee in cash and/or an equity-based award of equivalent value (provided that
in determining the number of Company restricted or deferred share units payable in cash or the
Company ordinary shares, restricted Company ordinary shares or unrestricted Company ordinary shares
that is equivalent to a dollar amount, that dollar amount shall be divided by the closing price of
the Company ordinary shares on the New York Stock Exchange on the date of grant by the Committee
(with fractional shares being rounded to the nearest whole share)). The cash portion of the Bonus
shall be paid at such time as bonuses are generally paid by the Participating Employer(s) for the
relevant fiscal year. Subject to approval by the Committee and to any requirements imposed by the
Committee in connection with

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such approval, each Participant may be entitled to defer receipt, under the terms and conditions of
any applicable deferred compensation plan of the Company, of part or all of any payments otherwise
due under this Plan. Any equity-based award shall be subject to such terms and conditions
(including vesting requirements) as the Committee and the administrative committee of the plan
under which such equity-based award is granted may determine.

Section 7. General Provisions.

     (a) Amendment, Termination, etc. The Board reserves the right at any time and from time to
time to modify, alter, amend, suspend, discontinue or terminate the Plan, including in any manner
that adversely affects the rights of Participants. No Participant shall have any rights to payment
of any amounts under this Plan unless and until the Committee determines the amount of such
Participant’s Bonus, that such Bonus shall be paid and the method and timing of its payment. No
amendment that would require shareholder approval in order for Bonuses paid pursuant to the Plan to
constitute performance-based compensation within the meaning of Section 162(m)(4)(C) of the Code
shall be effective without the approval of the shareholders of the Company as required by Section
162(m) of the Code and the regulations thereunder.

     (b) Nonassignability. No rights of any Participant (or of any beneficiary pursuant to this
Section 7(b)) under the Plan may be sold, exchanged, transferred, assigned, pledged, hypothecated
or otherwise disposed of (including through the use of any cash-settled instrument), either
voluntarily or involuntarily by operation of law, other than by will or by the laws of descent and
distribution. Any sale, exchange, transfer, assignment, pledge, hypothecation or other disposition
in violation of the provisions of this Section 7(b) shall be void. In the event of a Participant’s
death, any amounts payable under the Plan shall be paid in accordance with the Plan to a
Participant’s estate. A Participant’s estate shall have no rights under the Plan to receive such
amounts, if any, as may be payable under this Section 7(b), and all of the terms of this Plan shall
be binding upon any such Participant’s estate.

     (c) Plan Creates No Employment Rights. Nothing in the Plan shall confer upon any Participant
the right to continue in the employ of the Company for the Performance Period or thereafter or
affect any right which the Company may have to terminate such employment.

     (d) Governing Law. All rights and obligations under the Plan shall be governed by and
construed in accordance with the laws of the State of New York, without regard to principles of
conflict of laws.

     (e) Tax Withholding. In connection with any payments to a Participant or other event under the
Plan that gives rise to a federal, state, local or other tax withholding obligation relating to the
Plan (including, without limitation, FICA tax), (i) the Company and any Participating Employer may
deduct or withhold (or cause to be deducted or withheld) from any payment or distribution to such
Participant whether or not pursuant to the Plan or (ii) the Committee shall be entitled to require
that such Participant remit cash (through payroll deduction or otherwise), in each case in an
amount sufficient in the opinion of the Company to satisfy such withholding obligation.

     (f) Right of Offset. The Company and any Participating Employer shall have the right to offset
against the obligation to pay a Bonus to any

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Participant, any outstanding amounts (including, without limitation, travel and entertainment or
advance account balances or amounts repayable to it pursuant to tax equalization, housing,
automobile or other employee programs) such Participant then owes to it.

     (g) Severability; Entire Agreement. If any of the provisions of this Plan is finally held to
be invalid, illegal or unenforceable (whether in whole or in part), such provision shall be deemed
modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability
and the remaining provisions shall not be affected thereby. This Plan shall not supersede any other
agreement, written or oral, pertaining to the matters covered herein, except to the extent of any
inconsistency between this Plan and any prior agreement, in which case this Plan shall prevail.

     (h) No Third Party Beneficiaries. The Plan shall not confer on any person other than the
Company and any Participant any rights or remedies hereunder.

     (i) Participating Employers. Each Subsidiary or affiliate of the Company that employs a
Participant shall adopt this Plan by executing Schedule A (a “Participating Employer”). Except for
purposes of determining the amount of each Participant’s Bonus, this Plan shall be treated as a
separate plan maintained by each Participating Employer and the obligation to pay the Bonus to each
Participant shall be the sole liability of the Participating Employer(s) by which the Participant
is employed, and neither the Company nor any other Participating Employer shall have any liability
with respect to such amounts.

     (j) Successors and Assigns. The terms of this Plan shall be binding upon and inure to the
benefit of the Company, each Participating Employer and their successors and assigns and each
permitted successor or assign of each Participant as provided in Section 7(b).

     (k) Plan Headings. The headings in this Plan are for the purpose of convenience only and are
not intended to define or limit the construction of the provisions hereof.

     (l) Construction. In the construction of this Plan, the singular shall include the plural, and
vice versa, in all cases where such meanings would be appropriate. Nothing in this Plan shall
preclude or limit the ability of the Company, its subsidiaries and affiliates to pay any
compensation to a Participant under any other plan or compensatory arrangement whether or not in
effect on the date this Plan was adopted.

     (m) Plan Subject to Shareholder Approval. The Plan was adopted following the approval of the
shareholders of Willis Group Holdings Limited at that company’s 2005 Annual Meeting in accordance
with Section 162(m)(4)(C) of the Code and Treasury Regulation Section 1.162-27(e)(4).

5exv10w8

Exhibit 10.8

WILLIS GROUP HOLDINGS

2001 NORTH AMERICA EMPLOYEE SHARE PURCHASE PLAN

(AS AMENDED AND RESTATED ON DECEMBER 30, 2009 BY WILLIS GROUP HOLDINGS LIMITED

AND AS AMENDED AND RESTATED AND ASSUMED BY WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY ON DECEMBER 31, 2009)

1. Purpose of the Plan

     The purpose of the Plan is to give eligible employees of the Subsidiaries of Willis Group
Holdings Public Limited Company in the United States of America and Canada the ability to benefit
from the added interest that such employees will have in the welfare of the Company as a result of
their increased equity interest in that Company.

2. Section 423 of the Code

     The Plan is intended to qualify as an “employee stock purchase plan” within the meaning of
Section 423 of the Code or any successor section thereto. Accordingly, all Participants shall have
the same rights and privileges under the Plan, subject to any exceptions that are permitted under
Section 423(b)(5) of the Code. Any provision of the Plan that is inconsistent with Section 423 of
the Code or any successor provision shall, without further act or amendment, be reformed to comply
with the requirements of Section 423. This Section 2 shall take precedence over all other
provisions in the Plan.

3. Definitions

     The following capitalized terms used in the Plan have the respective meanings set forth in
this Section:

	 	(a)	 	Act: The U.S. Securities Exchange Act of 1934, as amended, or any
successor thereto.
	 
	 	(b)	 	Board: The Board of Directors of the Company or a duly authorized
committee of the Board.
	 
	 	(c)	 	Change in Control: such term means (i) the acquisition of ownership,
directly or indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities and
Exchange Commission there under as in effect on the date hereof) of the common shares
of the Company representing more than 50% of the aggregate voting power represented by
the issued and outstanding common shares of the Company; or (ii) occupation of a
majority of the seats (other than vacant seats) on the Board by Persons who were
neither (x) nominated by the Company’s Board nor (y) appointed by directors so
nominated.
	 
	 	 	 	For the avoidance of doubt, a transaction shall not constitute a Change in Control
(i) if effected for the purpose of changing the place of incorporation or form of
organization of the ultimate parent entity of the Willis Group (including where the
Company is succeeded by an issuer incorporated under the laws of another state,
country or foreign government for such purpose and whether or not the Company
remains in existence following such transaction) and (ii) where all or substantially
all of the Person(s) who are the beneficial owners of the outstanding voting
securities of the Company immediately prior to such transaction will beneficially
own, directly or indirectly, all or substantially all of the combined voting power
of the outstanding voting securities entitled to vote generally in the election of
directors of the ultimate parent entity resulting from such transaction in
substantially the same proportions as their ownership, immediately prior to such
transaction, of such outstanding securities of the Company. The Board, in its sole
discretion, may make an appropriate and equitable adjustment to the Shares
underlying an Option to take into account such transaction, including to substitute
or provide for the issuance of shares of the resulting ultimate parent entity in
lieu of Shares of the Company.
	 
	 	(d)	 	Code: The Internal Revenue Code of 1986, as amended, or any successor
thereto.
	 
	 	(e)	 	Companies Act: The Companies Act 1963 of Ireland.

 

 

	 	(f)	 	Company: Willis Group Holdings Public Limited Company, a company
organized under the laws of Ireland under registered number 475616.
	 
	 	(g)	 	Compensation: Base salary, AIP and office profit bonuses or other
miscellaneous bonuses as defined in the payroll system, commissions, production
incentives, overtime and shift pay, in each case prior to reductions for pre-tax
contributions made to a plan or salary reduction contributions to a plan excludable
from income under Section 125 of the Code. Notwithstanding the foregoing, Compensation
shall exclude any other form of remuneration not listed above including, severance pay,
stay-on bonuses, long-term bonuses, retirement income, change-in-control payments,
contingent payments, income derived from share options, share appreciation rights and
other equity-based compensation and other forms of special remuneration.
	 
	 	(h)	 	Disability: Inability to engage in any substantial gainful activity by
reason of a medically determinable physical or mental impairment which constitutes a
permanent and total disability, as defined in Section 22(e)(3) of the Code (or any
successor section thereto). The determination whether a Participant has suffered a
Disability shall be made by the Board based upon such evidence as it deems necessary
and appropriate. A Participant shall not be considered disabled unless he or she
furnishes such medical or other evidence of the existence of the Disability as the
Board, in its sole discretion, may require.
	 
	 	(i)	 	Disqualifying Disposition: As such term is defined in Section 11(h) of
the Plan.
	 
	 	(j)	 	Effective Date: The date on which the Plan was originally adopted by
the Board of Directors of Willis Group Holdings Limited, subject to shareholder
approval as defined pursuant to Section 22 of the Plan.
	 
	 	(k)	 	Fair Market Value: On a given date, the closing bid price of the Shares
as reported on such date on the Composite Tape of the principal national securities
exchange on which such Shares are listed or admitted to trading, or, if no Composite
Tape exists for such national securities exchange on such date, then the closing bid
price on the first date on which it is otherwise reported on the principal national
securities exchange on which such Shares are listed or admitted to trading, or, if the
Shares are not listed or admitted on a national securities exchange, the closing bid
price of the Shares on such date as quoted on the National Association of Securities
Dealers Automated Quotation System (or such market in which such prices are regularly
quoted), or, if there is no market on which the Shares are regularly quoted, the Fair
Market Value shall be the value established by the Board in good faith. If no sale of
Shares shall have been reported on such Composite Tape or such national securities
exchange on such date or quoted on the National Association of Securities Dealer
Automated Quotation System on such date, then the immediately preceding date on which
sales of the Shares have been so reported or quoted shall be used. For purposes of the
Plan’s first Offering Period, the Fair Market Value of the Shares on the Offering Date
shall be their offering price in the Initial Public Offering.
	 
	 	(l)	 	Group: A “group” as such term is used in Sections 13(d) and 14(d) of
the Exchange Act, acting in concert.
	 
	 	(m)	 	Initial Public Offering: The initial offer for sale of Shares to the
public pursuant to the effective registration statement on Form F-1 filed under the
Act.
	 
	 	(n)	 	Maximum Share Amount: Subject to Section 423 of the Code, the maximum
number of Shares that a Participant may purchase in any given Offering Period or for
any given year shall be determined by the Board; provided however, the maximum number
of Shares that a Participant may purchase for any given year is U.S. $25,000 worth of
Shares (as determined as of each Offering Date) in each calendar year during which an
option is granted to such Participant.
	 
	 
	 	(o)	 	Offering Date: The first date of an Offering Period.

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	 	(p)	 	Offering Period: An offering period described in Section 6 of the Plan.
	 
	 	(q)	 	Option: A share option granted pursuant to Section 9 of the Plan.
	 
	 	(r)	 	Participant: An individual who is eligible to participate in the Plan
pursuant to Section 7 of the Plan.
	 
	 	(s)	 	Participating Subsidiary: A Subsidiary of the Company that is selected
to participate in the Plan by the Committee in its sole discretion.
	 
	 	(t)	 	Payroll Deduction Account: An account to which payroll deductions of
Participants are credited under Section 11(c) of the Plan.
	 
	 	(u)	 	Person: As such term is used for purposes of Section 13(d) or 14(d) of
the Act (or any successor section thereto).
	 
	 	(v)	 	Plan: The Willis Group Holdings 2001 North America Employee Share
Purchase Plan, as amended and restated on December 30, 2009 by Willis Group Holdings Limited and as
amended and restated and assumed by Willis Group Holdings Public Limited Company on December 31,
2009.
	 
	 	(w)	 	Plan Broker: A stock brokerage or other financial services firm
designated by the Board in its sole discretion.
	 
	 	(x)	 	 Purchase Date: The last date of an Offering Period.
	 
	 	(y)	 	Purchase Price: The purchase price per Share, as determined pursuant to Section 10 of the Plan.
	 
	 	(z)	 	Shares: Ordinary shares of the Company.
	 
	 	(aa)	 	Subsidiary: A subsidiary corporation as defined in Section
424(f) of the Code (or any successor section thereto) which is also a subsidiary within
the meaning of Section 155 of the Companies Act.
	 
	 	(bb)	 	Willis Group: The Company and its Subsidiaries.

4. Shares Subject to the Plan

     Subject to the adjustment provision in Section 14 of the Plan, the total number of Shares
which shall be made available for sale under the Plan shall be 1,000,000 Shares to be allocated
among Offering Periods as the Board shall determine. If the Board determines that, on a given
Purchase Date, the number of Shares with respect to which Options are to be exercised may exceed
(i) the number of Shares available for sale under the Plan on the Offering Date of the applicable
Offering Period or (ii) the number of Shares available for sale under the Plan on such Purchase
Date, the Board may in its sole discretion provide (x) that the Company shall make a pro rata
allocation of the Shares available for purchase on such Offering Date or Purchase Date, as
applicable, in as uniform manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase Shares on such
Purchase Date, and continue all Offering Periods then in effect or (y) that the Company shall make
a pro rata allocation of the Shares available for purchase on such Offering Date or Purchase Date,
as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase Shares on such
Purchase Date, and terminate any or all Offering Periods then in effect. The Company may make pro
rata allocation of the Shares available on the Offering Date of any applicable Offering Period
pursuant to the preceding sentence, notwithstanding any authorization of Additional Shares (defined
below) for issuance under the Plan by the Company’s shareholders subsequent to such Offering Date.
The Shares may consist, in whole or in part, of unissued Shares, treasury Shares or Shares
purchased on the open market. The issuance of Shares pursuant to the Plan shall reduce the total
number of Shares available under the Plan.

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5. Administration of the Plan and Administrative Fees

     The Plan shall be administered by the Board, which may delegate its duties and powers in whole
or in part to any subcommittee thereof. The Board is authorized to interpret the Plan, to
establish, amend and rescind any rules and regulations relating to the Plan, and to make any other
determinations that it deems necessary or desirable for the administration of the Plan. The Board
may correct any defect or supply any omission or reconcile any inconsistency in the Plan in the
manner and to the extent the Board deems necessary or desirable. Any decision of the Board in the
interpretation and administration of the Plan, as described herein, shall lie within its sole and
absolute discretion and shall be final, conclusive and binding on all parties concerned (including,
but not limited to, Participants and their beneficiaries or successors). Subject to any applicable
law, the Board may delegate its duties and powers under the Plan to such persons, board of
directors of subsidiaries or committees thereof as it designates in it sole discretion. The Board
may impose reasonable administrative fees on Participants to defray the administrative costs of the
Plan, which shall in no event exceed the actual administrative costs of the Plan. At least
annually, each Participant will receive a copy of the Company’s financial statement.

6. Offering Periods

     The Plan shall be implemented by a series of Offering Periods of six (6) months’ duration,
with new Offering Periods commencing on the date determined by the Board. The first Offering
Period shall commence on the effective date of the registration statement on Form S-8 covering the
Plan, filed shortly after the effective date of the registration statement on Form F-1 relating to
the Initial Public Offering and continue to and including August 31, 2001. The Plan shall
continue until terminated in accordance with Section 17 hereof. Notwithstanding the foregoing, the
Board may change the duration, frequency and/or commencement of any Offering Period, subject to the
limitations under Section 423 of the Code and all applicable state, local and foreign laws.

7. Eligibility

	 	(a)	 	Any individual whose (i) customary employment by a Participating Subsidiary is
more than 20 hours per week, (ii) customary employment by a Participating Subsidiary is
for more than five (5) months in any calendar year; and (iii) employment by a
Participating Subsidiary has continued for more than 3 months prior to the beginning of
an Offering Period, is eligible to participate in the Plan commencing with that
Offering Period. Notwithstanding the foregoing, the Board shall have discretion, in
subsequent Offering Periods, to exclude from the Plan one or more of the following
categories of employees:

	 	(1)	 	employees who have not been continuously employed by a
Participating Subsidiary for such period (not to exceed two years) as the Board
may determine, ending on the Offering Date;
	 
	 	(2)	 	employees whose customary employment is 20 hours or less per
week;
	 
	 	(3)	 	employees whose customary employment is for not more than five
(5) months in any calendar year; and
	 
	 	(4)	 	highly compensated employees.

	 	(b)	 	In no event shall an employee be granted an option under the Plan if,
immediately after the grant, such Employee (or any other person whose share would be
attributed to such employee pursuant to Section 424(d) of the Code) would own capital
stock of the Company and/or hold outstanding options to purchase shares possessing five
percent (5%) or more of the total combined voting power or value of all classes of
 shares of the Company or of any subsidiary of the Company.

8. Participation in the Plan

     The Board shall set forth procedures pursuant to which Participants may elect to participate
in a given Offering Period under the Plan. For the first Offering Period, Participants will have a
period of days measured from

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the Offering Date which period will be set by the Board to elect to participate in said
Offering Period under the Plan. Once a Participant elects to participate in an Offering Period,
such employee shall automatically participate in all subsequent Offering Periods, unless the
employee (a) makes a new election or (b) withdraws from an Offering Period or from the Plan
pursuant to Section 12 of the Plan.

9. Grant of Option on Enrollment

     Each Participant who elects to participate in a given Offering Period shall be granted (as of
the first date of the Offering Period) an Option to purchase (as of the Purchase Date) a number of
Shares equal to the lesser of (i) the Maximum Share Amount reduced by any purchases that have
already been made under the Plan during the same calendar year in which the purchases for this
Offering Period will be made or (ii) the number determined by dividing the amount accumulated in
such employee’s payroll deduction account during such Offering Period by the Purchase Price;

10. Purchase Price

     The Purchase Price at which a Share will be sold for in the Plan’s first Offering Period shall
be the Fair Market Value of a Share on the first day of such Offering Period. Thereafter, the
Purchase Price at which a Share will be sold for in a given Offering Period, as of the Purchase
Date, shall be determined by the Board but shall not be less than eighty-five percent (85%) of the
lesser of:

	 	(a)	 	the Fair Market Value of a Share on the first day of the Offering Period; or
	 
	 	(b)	 	the Fair Market Value of a Share on the last day of the Offering Period.

     Provided, however, that with respect to all Offering Periods except the first Offering Period,
in the event (i) of any increase in the number of Shares available for issuance under the Plan as a
result of a shareholder-approved amendment to the Plan (the date on which such amendment is
approved, the “Approval Date”), and (ii) all or a portion of such additional Shares are to be
issued with respect to one or more Offering Periods that are underway at the time of such increase
(“Additional Shares”) and (iii) the Fair Market Value of a Share on the date of such increase (the
“Approval Date Fair Market Value”) is higher than the Fair Market Value on the Offering Date for
any such Offering Period, then in such instance the Approval Date is deemed to be the first day of
a new Offering Period, and the Purchase Price with respect to the Additional Shares shall be
determined by the Board but shall not be less than 85% of the Approval Date Fair Market Value or
the Fair Market Value of a Share on the Purchase Date, whichever is lower.

11. Payment of Purchase Price; Changes in Payroll Deductions; Issuance of Shares

     Subject to Sections 12 and 13 of the Plan:

	 	(a)	 	Payroll deductions shall be made on each day that Participants are paid during
an Offering Period with respect to all Participants who elect to participate in such
Offering Period. The deductions shall be made as a percentage of the Participant’s
Compensation in one percent (1%) increments, from one percent (1%) to fifteen percent
(15%) of such Participant’s Compensation, as elected by the Participant;
provided, however, that no Participant shall be permitted to purchase
Shares under this Plan (or under any other “employee stock purchase plan” within the
meaning of Section 423(b) of the Code, of the Company or any of its Subsidiaries) with
an aggregate Fair Market Value (as determined as of each Offering Date) in excess of
U.S. $25,000.00 for any one calendar year within the meaning of Section 423(b)(8) of
the Code. For a given Offering Period, payroll deductions shall commence on the
Offering Date and shall end on the related Purchase Date, unless sooner altered or
terminated as provided in the Plan.
	 
	 	(b)	 	For the first Offering Period, Participants will have a period of days measured
from the Offering Date which period will be set by the Board to elect the percentage of
their Compensation to have deducted in said Offering Period under the Plan.
Thereafter, the Board shall specify the procedures for such elections.

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	 	(c)	 	A Participant shall not change the rate of payroll deductions once an Offering
Period has commenced. The Board shall specify procedures by which a Participant may
increase or decrease the rate of payroll deductions for subsequent Offering Periods.
Unless a Participant makes a new election to change the rate of payroll deductions at
the commencement of an Offering Period, the Participant’s most recent election will
apply to such new Offering Period.
	 
	 	(d)	 	All payroll deductions made with respect to a Participant shall be credited to
his or her Payroll Deduction Account under the Plan and shall be deposited with the
general funds of the Company. Any administrative fee that may be assessed pursuant to
Section 5 above may be deducted from a Participant’s Payroll Deduction Account.
Interest shall accrue and shall be paid on the amounts credited to such Payroll
Deduction Accounts as determined by the Board in its sole discretion. All payroll
deductions received or held by the Company may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate such payroll deductions.
A Participant may not make any separate cash payment into his or her Payroll Deduction
Account, and payment for Shares purchased under the Plan may not be made in any form
other than by payroll deduction.
	 
	 	(e)	 	On each Purchase Date, the Company shall apply all funds then in the
Participant’s Payroll Deduction Account to purchase Shares (in whole and/or fractional
Shares, as the case may be) pursuant to the Option granted on the Offering Date. In
the event that the number of Shares to be purchased by all Participants in one Offering
Period exceeds the number of Shares then available for issuance under the Plan, (i) the
Company shall make a pro rata allocation of the remaining Shares available for issuance
under the Plan in as uniform a manner as shall be practicable and as the Board shall in
its sole discretion determine to be equitable and (ii) all funds not used to purchase
Shares on the Purchase Date shall be returned to the Participant.
	 
	 	(f)	 	A Participant shall have no interest or voting right in the Shares covered by
his or her Option until such Option is exercised. Upon exercise, the Shares received
by a Participant under this Plan will carry the same voting rights as other outstanding
 shares of the same class.
	 
	 	(g)	 	As soon as practicable following the end of each Offering Period, the number of
Shares purchased by each Participant shall be deposited into an account established in
the Participant’s name with the Plan Broker to be held by such Broker during the period
set forth in Section 423(a)(1) of the Code. Unless otherwise permitted by the Board in
its sole discretion, dividends that are declared on the Shares held in such account
shall be reinvested in whole or fractional Shares.
	 
	 	(h)	 	Once the holding period set forth in Section 423(a)(1) of the Code has been
satisfied with respect to a Participant’s Shares, the Participant may (i) transfer his
or her Shares to another brokerage account of Participant’s choosing or (ii) request in
writing that any whole Shares in his or her account with the Plan Broker be issued to
him or her and that any fractional Shares remaining in such account be paid in cash to
him or her. The Board may require, in its sole discretion, that the Participant bear
the cost of transferring such Shares or issuing Shares. Any Participant who engages in
a “Disqualifying Disposition” of his or her Shares within the meaning of Section 421(b)
of the Code shall notify the Company of such Disqualifying Disposition in accordance
with Section 20 of the Plan.

12. Withdrawal

     Each Participant may withdraw from an Offering Period or from the Plan under such terms and
conditions as are established by the Board in its sole discretion. Upon a Participant’s withdrawal
from an Offering Period or from the Plan, all accumulated payroll deductions in the Payroll
Deduction Account shall be returned, with such interest as the Board may, in its sole discretion,
determine to pay to such Participant and he or she shall not be entitled to any Shares on the
Purchase Date or thereafter with respect to the Offering Period in effect at the time of such
withdrawal. Such Participant shall be permitted to participate in subsequent Offering Periods
pursuant to such terms and conditions established by the Board in its sole discretion.

 - 6 - 

 

13. Termination of Employment

     A Participant whose employment is terminated for any reason shall cease to participate in the
Plan upon his or her termination of employment. Upon such termination all payroll deductions
credited to the Participant’s Payroll Deduction Account shall be returned, with such interest as
the Board may, in its sole discretion, determine to pay to such Participant and such Participant
shall have no future rights in any unexercised Options under the Plan.

14. Adjustments Upon Certain Events

     Notwithstanding any other provisions in the Plan to the contrary, the following provisions
shall apply to all Options granted under the Plan:

	 	(a)	 	Generally. In the event of any change in the outstanding Shares by
reason of any Share dividend, split, reverse share split, reorganization,
recapitalization, merger, consolidation, spin-off, combination or exchange of Shares or
other corporate exchange, or any distribution to shareholders of Shares other than
regular cash dividends, the Board without liability to any person will make such
substitution or adjustment, as it deems to be equitable, as to (i) the number or kind
of Shares or other securities issued or reserved for issuance pursuant to the Plan,
(ii) the Purchase Price and/or (iii) any other affected terms of such Options. An
adjustment under this provision may have the effect of reducing the price at which
Ordinary Shares may be acquired to less than their nominal value (the “Shortfall”), but
only if and to the extent that the Board shall be authorized to capitalize from the
reserves of the Company a sum equal to the Shortfall and to apply that sum in paying up
that amount on the Ordinary Shares.
	 
	 	(b)	 	Change in Control. In the event of a Change in Control, the Board in
its sole discretion and without liability to any person may take such actions, if any,
as it deems necessary or desirable with respect to any Option or Offering Period as of
the date of the consummation of the Change in Control.

15. Nontransferability

     No Options granted under the Plan shall be transferred, assigned, pledged or otherwise
disposed of in any way by the Participant otherwise than by will or by the laws of descent and
distribution. Any such attempted transfer, assignment, pledge or other disposition shall be of no
force or effect, except that the Board may treat such act as an election to withdraw from the
Offering Period in accordance with Section 12.

16. No Right to Employment

     The granting of an Option under the Plan shall impose no obligation on the Participating
Subsidiary to continue the employment of a Participant and shall not lessen or affect the
Participating Subsidiary’s right to terminate the employment of such Participant.

17. Amendment or Termination of the Plan

     The Plan shall continue until the earliest to occur of the following: (a) termination of the
Plan by the Board, (b) issuance of all of the Shares reserved for issuance under the Plan, (c) May
31, 2011 or (d) failure to satisfy the conditions of Section 22 of the Plan. The Board may amend,
alter or terminate the Plan, but no amendment, alteration or termination shall be made which, (a)
without the approval of the shareholders of the Company, would (except as is provided in Section 14
of the Plan), increase the total number of Shares reserved for the purposes of the Plan or (b)
except as otherwise provided in Section 14(b), without the consent of a Participant, would impair
any of the rights or obligations under any Option theretofore granted to such Participant under the
Plan; provided, however, that (i) the Board may amend the Plan in such manner as it deems
necessary to permit the granting of Options meeting the requirements of the Code or other
applicable laws and (ii) the Board may terminate the Plan without the consent of the Participants
so long as it returns all payroll deductions accumulated in the Participants’ Payroll Deduction
Accounts together with such interest as the Board may, in its sole discretion, determine to pay.

 - 7 - 

 

18. Tax Withholding

	 	(a)	 	The Participant’s employer shall have the right to withhold from such
Participant such withholding taxes as may be required by federal, state, local or other
law, or to otherwise require the Participant to pay such withholding taxes. Unless the
Board specifies otherwise, a Participant may elect to pay a portion or all of such
withholding taxes by (a) delivery of Shares or (b) having Shares withheld by the
Company from the Shares otherwise to be received. The Shares so delivered or withheld
shall have an aggregate Fair Market Value equal to the amount of such withholding
taxes.
	 
	 	(b)	 	Notwithstanding anything set forth in Section 18(a), an option may not be
exercised unless:

	 	(i)	 	the Board considers that the issue or transfer of shares
pursuant to such exercise would be lawful in all relevant jurisdictions; and
	 
	 	(ii)	 	in a case where, if the Option were exercised, the Company or a
Participating Subsidiary would be obligated to (or would suffer a disadvantage
if it were not to) account for any tax (in any jurisdiction) for which the
person in question would be liable by virtue of the exercise of the Option
and/or for any social security contributions that would be recoverable from the
person in question (together, the “Tax Liability”), that person has either:

	 	(c)	 	made a payment to the Company or the relevant Participating Subsidiary of an
amount at least equal to the Company’s estimate of the Tax Liability; or
	 
	 	(d)	 	entered into arrangements acceptable to the Company or the relevant
Participating Subsidiary to secure that such a payment is made (whether by authorizing
the sale of some or all of the shares on his behalf and the payment to the Company or
the relevant Participating Subsidiary of the relevant amount out of the proceeds of
sale or otherwise).

19. International Participants

     With respect to Participants who reside or work outside the United States of America, the
Board may, in its sole discretion, amend the terms of the Plan with respect to such Participants in
order to conform such terms with the requirements of local or foreign law.

20. Notices

     All notices and other communications hereunder shall be in writing and hand delivered or
mailed by registered or certified mail (return receipt requested) or sent by any means of
electronic message transmission with delivery confirmed (by voice or otherwise) to the parties at
the following addresses (or at such other addresses for a party as shall be specified by like
notice) and will be deemed given on the date on which such notice is received:

Willis North America Inc.

26 Century Boulevard, Fl. 7S

Nashville, TN 37214

Attention: Corporate Secretary

With a copy to:

Willis Group Holdings Public Limited Company

c/o Willis Group Limited

31 Lime Street

London EC3M 7DQ.

Attention Company Secretary

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21. Choice of Law

     The Plan shall be governed by and construed in accordance with the laws of the State of New
York applicable to contracts made and to be performed in the State of New York.

22. Effectiveness of the Plan

     The Plan became effective on the date on which it was originally adopted by the Board of
Directors of Willis Group Holdings Limited (the “Effective Date”).

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