Document:

Exhibit 10.1

 

FORM OF INDEMNIFICATION AGREEMENT

 

INDEMNIFICATION AGREEMENT dated as of                                                     ,
2005 between

 

Watson Wyatt & Company Holdings

 

(the “Company”), and                                                     
(“Indemnitee”)

 

WHEREAS, the Board of Directors has determined that
the inability to attract and retain qualified persons as directors and officers
is detrimental to the best interests of the Company’s stockholders and that the
Company should act to assure such qualified persons that there will be adequate
certainty of protection through insurance and indemnification against risks of
claims and actions against them arising out of their service to and activities
on behalf of the Company; and

 

WHEREAS, the Company has
adopted provisions in its By-laws providing for indemnification of its officers
and directors to the fullest extent permitted by applicable law, and the
Company wishes to clarify and enhance the rights and obligations of the Company
and Indemnitee with respect to indemnification; and

 

WHEREAS, in order to induce and encourage highly
experienced and capable persons such as Indemnitee to serve and continue to
serve as directors and officers of the Company and in any other capacity with
respect to the Company, and to otherwise promote the desirable end that such
persons will resist what they consider unjustified lawsuits and claims made
against them in connection with the good faith performance of their duties to
the Company, with the knowledge that certain costs, judgments, penalties,
fines, liabilities and expenses incurred by them in their defense of such
litigation are to be borne by the Company and they will receive the maximum
protection against such risks and liabilities as may be afforded by law, the
Board of Directors of the Company has determined that the following Agreement
is reasonable and prudent to promote and ensure the best interests of the
Company and its stockholders; and

 

WHEREAS, the Company desires to have Indemnitee
continue to serve as a director or officer of the Company and in such other
capacity with respect to the Company as the Company may request, as the case
may be, free from undue concern for unpredictable, inappropriate or
unreasonable legal risks and personal liabilities by reason of Indemnitee
acting in good faith in the performance of Indemnitee’s duty to the Company;
and Indemnitee desires to continue so to serve the Company, provided, and on
the express condition, that he or she is furnished with the indemnity set forth
hereinafter;

 

Now, therefore, in
consideration of Indemnitee’s continued service as a director or officer of the
Company, the parties hereto agree as follows:

 

1.             Service
by Indemnitee.  Indemnitee will serve
and/or continue to serve as a director or officer of the Company faithfully and
to the best of Indemnitee’s ability so long as Indemnitee is duly elected or
appointed and until such time as Indemnitee is removed as permitted by law or
tenders a resignation in writing.

 

2.             Indemnification.  The Company shall indemnify Indemnitee to the
fullest extent permitted by the Delaware General Corporation law in effect on
the date hereof or as such law may from time to time be amended (but, in the
case of any such amendment, only to the extent that such amendment permits the
Company to provide broader indemnification rights than said law permitted the
Company to

 

 

provide prior to such
amendment).  Without diminishing the
scope of the indemnification provided by this Section, the rights of
indemnification of Indemnitee provided hereunder shall include but shall not be
limited to those rights hereinafter set forth, except that no indemnification
shall be paid to Indemnitee:

 

(a)           to the extent expressly prohibited by
Delaware law or the By-laws of the Company;

 

(b)           for which payment is actually made to
Indemnitee under a valid and collectible insurance policy or under a valid and
enforceable indemnity clause, by-law or agreement of the Company or any other
company or organization on whose board Indemnitee serves at the request of the
Company, except in respect of any indemnity exceeding the payment under such
insurance, clause, by-law or agreement;

 

(c)           in connection with an action, suit or
proceeding, or part thereof (including claims and counterclaims) initiated by
Indemnitee, except a judicial proceeding or arbitration pursuant to
Section 10 to enforce rights under this Agreement, unless the action, suit
or proceeding (or part thereof) was authorized by the Board of Directors of the
Company;

 

(d)           with respect to any action, suit or
proceeding brought by or on behalf of the Company against Indemnitee that is
authorized by the Board of Directors of the Company, except as provided in
Sections 4, 5 and 6 below.

 

3.             Action
or Proceedings Other than an Action by or in the Right of the Company.  Except as limited by Section 2 above,
Indemnitee shall be entitled to the indemnification rights provided in this
Section if Indemnitee is a party or is threatened to be made a party to
any Proceeding (other than an action by or in the name of the Company) by
reason of the fact that Indemnitee is or was a director, officer, employee or
agent of the Company, or is or was serving at the request of the Company as a
director, officer, employee or agent or fiduciary of any other entity
(including, but not limited to, another corporation, partnership, joint venture
or trust); or by reason of anything done or not done by Indemnitee in any such
capacity.  Pursuant to this Section,
Indemnitee shall be indemnified against all costs, judgments, penalties, fines,
liabilities, amounts paid in settlement by or on behalf of Indemnitee, and
Expenses (defined below) actually and reasonably incurred by Indemnitee in
connection with such Proceeding, if Indemnitee acted in good faith and in a manner
he reasonably believed to be in or not opposed to the best interests of the
Company, and with respect to any criminal Proceeding, had no reasonable cause
to believe his or her conduct was unlawful.

 

4.             Indemnity
in Proceedings by or in the Name of the Company.  Except as limited by Section 2 above,
Indemnitee shall be entitled to the indemnification rights provided in this
Section if Indemnitee was or is a party or is threatened to be made a
party to any Proceeding brought by or in the name of the Company to procure a
judgment in its favor by reason of the fact that Indemnitee is or was a
director, officer, employee or agent or fiduciary of the Company, or by reason
of anything done or not done by Indemnitee in any such capacity.  Pursuant to this Section, Indemnitee shall be
indemnified against all costs, judgments, penalties, fines, liabilities,
amounts paid in settlement by or on behalf of Indemnitee, and Expenses actually
and reasonably incurred by Indemnitee in connection with such Proceeding if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in or
not opposed to the best interests of the Company; provided, however, that no
such indemnification shall be made in respect of any claim, issue, or matter as
to which Delaware law expressly prohibits such indemnification by reason of any
adjudication of liability of Indemnitee to the Company, unless and only to the
extent that the Court of Chancery of the State of Delaware or the court in
which such action or suit was brought shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of
the case, Indemnitee is entitled to indemnification for such costs, judgments,
penalties, fines, liabilities and Expenses as such court shall deem proper.

 

2

 

5.             Indemnification
for Costs, Charges and Expenses of Successful Party.  Notwithstanding the limitations of
Section 2(d), 3 and 4 above, to the extent that Indemnitee has been
successful, on the merits or otherwise, in whole or in part, in defense of any
action, suit or proceeding (including an action, suit or proceeding brought by
or on behalf of the Company) or in defense of any claim, issue or matter
therein, including, without limitation, the dismissal of any action without
prejudice, or if it is ultimately determined that Indemnitee is otherwise
entitled to be indemnified against Expenses, Indemnitee shall be indemnified
against all Expenses actually and reasonably incurred in connection therewith.

 

6.             Partial
Indemnification.  If Indemnitee is
entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of the costs, judgments, penalties, fines,
liabilities or Expenses actually and reasonably incurred in connection with any
action, suit or proceeding (including an action, suit or proceeding brought by
or on behalf of the Company), but not, however, for all of the total amount
thereof, the Company shall nevertheless indemnify Indemnitee for the portion of
such costs, judgments, penalties, fines, liabilities and Expenses actually and
reasonably incurred to which Indemnitee is entitled.

 

7.             Indemnification
for Expenses of a Witness. 
Notwithstanding any other provision of this Agreement, to the maximum
extent permitted by applicable law, Indemnitee shall be entitled to
indemnification against all Expenses actually and reasonably incurred or
suffered by Indemnitee or on Indemnitee’s behalf if Indemnitee appears as a
witness or otherwise incurs legal expenses as a result of or related to
Indemnitee’s service as a director or officer of the Company, in any
threatened, pending or completed legal, administrative, investigative or other
proceeding or matter to which Indemnitee neither is, nor is threatened to be
made, a party.

 

8.             Determination
of Entitlement to Indemnification. 
Upon written request by Indemnitee for indemnification pursuant to
Sections 3, 4, 5,  6 or  7 the entitlement of
Indemnitee to indemnification, to the extent not provided pursuant to the terms
of this Agreement, shall be determined by the following person or persons who
shall be empowered to make such determination: 
(a) the Board of Directors of the Company by a majority vote of
Disinterested Directors (defined below), whether or not such majority
constitutes a quorum; (b) a committee of Disinterested Directors
designated by a majority vote of such directors, whether or not such majority
constitutes a quorum; (c) if there are no Disinterested Directors, or if
the Disinterested Directors so direct, by Independent Counsel (defined below)
in a written opinion to the Board of Directors, a copy of which shall be
delivered to Indemnitee; or (d) the stockholders of the Company.  Such Independent Counsel shall be selected by
the Board of Directors and approved by Indemnitee.  Upon failure of the Board so to select such
Independent Counsel or upon failure of Indemnitee so to approve, such
Independent Counsel shall be selected upon application to a court of competent
jurisdiction.  Such determination of
entitlement to indemnification shall be made not later than 30 calendar days
after receipt by the Company of a written request for indemnification.  Such request shall include documentation or
information which is necessary for such determination and which is reasonably
available to Indemnitee.  Any Expenses
incurred by Indemnitee in connection with a request for indemnification or
payment of Expenses hereunder, under any other agreement, any provision of the
Company’s By-laws or any directors’ and officers’ liability insurance, shall be
borne by the Company.  The Company hereby
indemnifies Indemnitee for any such Expense and agrees to hold Indemnitee
harmless therefrom irrespective of the outcome of the determination of
Indemnitee’s entitlement to indemnification. 
If the person making such determination shall determine that Indemnitee
is entitled to indemnification as to part (but not all) of the application for
indemnification, such person shall reasonably prorate such partial
indemnification among the claims, issues or matters at issue at the time of the
determination.

 

3

 

9.             Presumptions and Effect of
Certain Proceedings.  The Secretary
of the Company shall, promptly upon receipt of Indemnitee’s request for
indemnification, advise in writing the Board of Directors or such other person
or persons empowered to make the determination as provided in Section 8
that Indemnitee has made such request for indemnification.  Upon making such request for indemnification,
Indemnitee shall be presumed to be entitled to indemnification hereunder and
the Company shall have the burden of proof in making any determination contrary
to such presumption.  If the person or
persons so empowered to make such determination shall have failed to make the
requested determination with respect to indemnification within 30 calendar days
after receipt by the Company of such request, a requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be absolutely entitled to such indemnification, absent actual and
material fraud in the request for indemnification.  The termination of any Proceeding described
in Sections 3 or 4 by judgment, order, settlement or conviction, or
upon a plea of nolo contendere or its
equivalent, shall not, of itself: 
(a) create a presumption that Indemnitee did not act in good faith
and in a manner which Indemnitee reasonably believed to be in or not opposed to
the best interests of the Company, or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was
unlawful; or (b) otherwise adversely affect the rights of Indemnitee to
indemnification except as may be provided herein.

 

10.           Remedies
of Indemnitee in Cases of Determination not to Indemnify or to Pay Expenses.  In the event that a determination is made
that Indemnitee is not entitled to indemnification hereunder or if payment has
not been timely made following a determination of entitlement to
indemnification pursuant to Sections 8 and 9, or if Expenses are not
paid pursuant to Section 15, Indemnitee shall be entitled to final
adjudication in a court of competent jurisdiction of entitlement to such
indemnification or payment. 
Alternatively, Indemnitee at Indemnitee’s option may seek an award in an
arbitration to be conducted by a single arbitrator pursuant to the
rules of the American Arbitration Association, such award to be made
within sixty days following the filing of the demand for arbitration.  The Company shall not oppose Indemnitee’s
right to seek any such adjudication or award in arbitration or any other
claim.  The determination in any such
judicial proceeding or arbitration shall be made de novo
and Indemnitee shall not be prejudiced by reason of a determination (if so
made) pursuant to Sections 8 or 9 that Indemnitee is not entitled to
indemnification.  If a determination is
made or deemed to have been made pursuant to the terms of Section 8
or 9 that Indemnitee is entitled to indemnification, the Company shall be
bound by such determination and is precluded from asserting that such
determination has not been made or that the procedure by which such
determination was made is not valid, binding and enforceable.  The Company further agrees to stipulate in
any such court or before any such arbitrator that the Company is bound by all
the provisions of this Agreement and is precluded from making any assertions to
the contrary.  If the court or arbitrator
shall determine that Indemnitee is entitled to any indemnification or payment
of Expenses hereunder, the Company shall pay all Expenses actually and
reasonably incurred by Indemnitee in connection with such adjudication or award
in arbitration (including, but not limited to, any appellate Proceedings).

 

11.           Other
Rights to Indemnification. 
Indemnification and payment of Expenses provided by this Agreement shall
not be deemed exclusive of any other rights to which Indemnitee may now or in
the future be entitled under any provision of the By-laws or other
organizational documents of the Company, vote of stockholders or Disinterested
Directors, provision of law, agreement or otherwise.

 

12.           Expenses
to Enforce Agreement.  In the event
that Indemnitee is subject to or intervenes in any Proceeding in which the
validity or enforceability of this Agreement is at issue or seeks an
adjudication or award in arbitration to enforce Indemnitee’s rights under, or
to recover damages for breach of, this Agreement, Indemnitee, if Indemnitee
prevails in whole or in part in such action, shall be entitled to recover from
the Company and shall be indemnified by the Company against any actual Expenses
incurred by Indemnitee.

 

4

 

13.           Continuation of Indemnity.  All agreements and obligations of the Company
contained herein shall continue during the period Indemnitee is a director,
officer, employee or agent of the Company or is serving at the request of the
Company as a director, officer, employee or agent or fiduciary of any other
entity (including, but not limited to, another corporation, partnership, joint
venture or trust) of the Company and shall continue thereafter with respect to
any possible claims based on the fact that Indemnitee was a director, officer
employee or agent of the Company or was serving at the request of the Company
as a director, officer, employee or agent or fiduciary of any other entity
(including, but not limited to, another corporation, partnership, joint venture
or trust).  This Agreement shall be
binding upon all successors and assigns of the Company (including any
transferee of all or substantially all of its assets and any successor by
merger or operation of law) and shall inure to the benefit of the heirs,
personal representatives and estate of Indemnitee.

 

14.           Notification
and Defense of Claim.  Promptly after
receipt by Indemnitee of notice of any Proceeding, Indemnitee will, if a claim
in respect thereof is to be made against the Company under this Agreement,
notify the Company in writing of the commencement thereof; but the omission so
to notify the Company will not relieve it from any liability that it may have
to Indemnitee.  Notwithstanding any other
provision of this Agreement, with respect to any such Proceeding of which
Indemnitee notifies the Company:

 

(a)           The Company shall be entitled to
participate therein at its own expense; and

 

(b)           Except as otherwise provided in this
Section 14(b), to the extent that it may wish, the Company, jointly with
any other indemnifying party similarly notified, shall be entitled to assume
the defense thereof, with counsel satisfactory to Indemnitee.  After notice from the Company to Indemnitee
of its election so to assume the defense thereof, the Company shall not be
liable to Indemnitee under this Agreement for any expenses of counsel
subsequently incurred by Indemnitee in connection with the defense thereof
except as otherwise provided below. 
Indemnitee shall have the right to employ Indemnitee’s own counsel in such
Proceeding, but the fees and expenses of such counsel incurred after notice
from the Company of its assumption of the defense thereof shall be at the
expense of Indemnitee unless (i) the employment of counsel by Indemnitee
has been authorized by the Company, (ii) Indemnitee shall have reasonably
concluded that there may be a conflict of interest between the Company and
Indemnitee in the conduct of the defense of such action or (iii) the
Company shall not within 60 calendar days of receipt of notice from Indemnitee
in fact have employed counsel to assume the defense of the action, in each of
which cases the fees and expenses of Indemnitee’s counsel shall be at the
expense of the Company.  The Company
shall not be entitled to assume the defense of any Proceeding brought by or on
behalf of the Company or as to which Indemnitee shall have made the conclusion
provided for in (ii) above; and

 

(c)           If the Company has assumed the
defense of a Proceeding, the Company shall not be liable to indemnify
Indemnitee under this Agreement for any amounts paid in settlement of any
Proceeding effected without the Company’s written consent.  The Company shall not settle any Proceeding
in any manner that would impose any penalty or limitation on or disclosure
obligation with respect to Indemnitee without Indemnitee’s written
consent.  Neither the Company nor
Indemnitee will unreasonably withhold its consent to any proposed settlement.

 

15.           Payment
of Expenses.  All Expenses incurred
by Indemnitee in advance of the final disposition of any Proceeding shall be
paid by the Company at the request of Indemnitee, each such payment to be made
within twenty calendar days after the receipt by the Company of a statement or
statements from Indemnitee requesting such payment or payments from time to
time.  Indemnitee’s entitlement to such
Expenses shall include those incurred in connection with any Proceeding by

 

5

 

Indemnitee seeking a
judgment in court or an adjudication or award in arbitration pursuant to this
Agreement (including the enforcement of this provision).  Such statement or statements shall reasonably
evidence the expenses and costs incurred by Indemnitee in connection therewith
and shall include or be accompanied by an undertaking, in substantially the
form attached as Exhibit 1, by or on behalf of Indemnitee to reimburse
such amount if it is finally determined, after all appeals by a court of
competent jurisdiction that Indemnitee is not entitled to be indemnified
against such Expenses by the Company as provided by this Agreement or
otherwise.  Indemnitee’s undertaking to
reimburse any such amounts is not required to be secured.

 

16.           Separability; Prior Indemnification Agreements.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including without limitation, all portions of any
paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not by themselves invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby, and
(b) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable,
that are not themselves invalid, illegal or unenforceable) shall be construed
so as to give effect to the intent of the parties that the Company provide
protection to Indemnitee to the fullest enforceable extent.  This Agreement shall supersede and replace
any prior indemnification agreements entered into by and between the Company
and Indemnitee and any such prior agreements shall be terminated upon execution
of this Agreement.

 

17.           Headings;
References; Pronouns.  The headings
of the sections of this Agreement are inserted for convenience only and shall
not be deemed to constitute part of this Agreement or to affect the
construction thereof.  References herein
to section numbers are to sections of this Agreement.  All pronouns and any variations thereof shall
be deemed to refer to the masculine, feminine, neuter, singular or plural as
appropriate.

 

18.           Definitions.  For purposes of this Agreement:

 

(a)           “Disinterested Director” means a
director of the Company who is not or was not a party to the Proceeding in
respect of which indemnification is being sought by Indemnitee.

 

(b)           “Expenses” includes, without
limitation, expenses incurred in connection with the defense or settlement of
any and all investigations, judicial or administrative proceedings or appeals,
attorneys’ fees, witness fees and expenses, fees and expenses of accountants
and other advisors, retainers and disbursements and advances thereon, the
premium, security for, and other costs relating to any bond (including cost
bonds, appraisal bonds or their equivalents), and any expenses of establishing
a right to indemnification under Sections 8, 10 and 12 above but
shall not include the amount of judgments, fines or penalties actually levied
against Indemnitee.

 

(c)           “Independent Counsel” means a law
firm or a member of a law firm that neither is presently nor in the past five
years has been retained to represent: 
(i) the Company or Indemnitee in any matter material to either such
party, or (ii) any other party to the Proceeding giving rise to a claim
for indemnification hereunder. 
Notwithstanding the foregoing, the term “Independent Counsel” shall not
include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s right to
indemnification under this Agreement.

 

(d)           “Proceeding” includes any threatened,
pending or completed investigation, action, suit or other proceeding, whether
brought in the name of the Company or otherwise, against Indemnitee,

 

6

 

for
which indemnification is not prohibited under Sections 2(a)-(c) above and
whether of a civil, criminal, administrative or investigative nature,
including, but not limited to, actions, suits or proceedings in which
Indemnitee may be or may have been involved as a party or otherwise, by reason
of the fact that Indemnitee is or was a director, officer, employee or agent of
the Company, or is or was serving, at the request of the Company, as a
director, officer, employee or agent or fiduciary of any other entity,
including, but not limited to, another corporation, partnership, joint venture
or trust, or by reason of anything done or not done by Indemnitee in any such
capacity, whether or not Indemnitee is serving in such capacity at the time any
liability or expense is incurred for which indemnification or reimbursement can
be provided under this Agreement.

 

19.           Other Provisions.

 

(a)           This Agreement shall be interpreted
and enforced in accordance with the laws of Delaware.

 

(b)           This Agreement may be executed in one
or more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same
Agreement.  Only one such counterpart
signed by the party against whom enforceability is sought needs to be produced
as evidence of the existence of this Agreement.

 

(c)           This agreement shall not be deemed an
employment contract between the Company and any Indemnitee who is an officer of
the Company, and, if Indemnitee is an officer of the Company, Indemnitee
specifically acknowledges that Indemnitee may be discharged at any time for any
reason, with or without cause, and with or without severance compensation,
except as may be otherwise provided in a separate written contract between
Indemnitee and the Company.

 

(d)           Upon a payment to Indemnitee under
this Agreement, the Company shall be subrogated to the extent of such payment
to all of the rights of Indemnitee to recover against any person for such
liability, and Indemnitee shall execute all documents and instruments required
and shall take such other actions as may be necessary to secure such rights,
including the execution of such documents as may be necessary for the Company
to bring suit to enforce such rights.

 

(e)           No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by both
parties hereto.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on and as of the day and year first
above written.

 

 

	
   

  	
  The
  Company

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Indemnitee

  	
   

  
					

 

7

 

EXHIBIT 1

 

 

UNDERTAKING TO REPAY INDEMNIFICATION EXPENSES

 

I                                                                                                       ,
agree to reimburse the Company for all expenses paid to me by the Company for
my defense in any civil or criminal action, suit, or proceeding, in the event,
and to the extent that it shall ultimately be determined that I am not entitled
to be indemnified by the Company for such expenses.

 

 

	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Typed
  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Office

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ) ss:

  	
   

  	
   

  	
   

  
								

 

 

Before
me                                             ,
on this day personally appeared                                             ,
known to me to be the person whose name is subscribed to the foregoing
instrument, and who, after being duly sworn, stated that the contents of said
instrument is to the best of his/her knowledge and belief true and correct and
who acknowledged that he/she executed the same for the purpose and
consideration therein expressed.

 

GIVEN
under my hand and official seal at                 ,
this               
day of                            ,
200       .

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
  My
  commission expires:

  

 

8Exhibit 10.2

 

AMENDED COMPENSATION PLAN FOR OUTSIDE DIRECTORS

 

I.              The schedule of
fees is as follows:

 

A.    Cash
Retainer:  $45,000 per year, paid quarterly

 

B.    Stock Grant:  Watson Wyatt & Company Holdings Class A
Common stock, equivalent to $45,000, issued at the end of each fiscal year (at
the completed fiscal year-end share price) for services provided during the
preceding fiscal year.  Shares vest
immediately at grant.  At the election of
the director (which shall apply until modified), the stock grant will be made
at the end of each fiscal year, or in deferred stock units payable in shares
upon termination of board service.

 

C.    Board
Meetings:  $1,500 per day

 

D.    Committee
Meetings:  Compensation Committee and
Nominating and Governance Committee: $1,000 per day; Audit Committee: $2,000
per day

 

E.     Telephone
Meetings of less than 4 hours:  50% of applicable fee

 

F.     Other
Meetings:  $1,000 per day

 

G.    Audit
Committee Chair Annual Retainer:  $15,000

 

H.    Compensation
Committee Chair Annual Retainer:  $10,000

 

I.      Nominating
and Governance Committee Chair Annual Retainer:  $5,000

 

J.     Lead/Presiding
Director Annual Retainer:  $10,000

 

II.            Outside directors will
initially be paid in a combination of cash and Watson Wyatt & Company
Holdings (“WWCH”) common stock, at the end of each calendar quarter (at the
completed quarter-end share price) for services during the preceding quarter.

 

A.            Within five years, a
director is expected to own at least 5,000 shares of WWCH common stock. 
To meet a target of 5,000 shares, a director may initially elect to be paid all
in shares, or up to 40% of each payment in cash in order to satisfy immediate
tax liability. At any time, a director may change this election within these
parameters.

 

B.            A director may elect to
be paid through any combination of (i) cash; (ii) deferral of cash
under the WWCH Voluntary Deferred Compensation Plan for Non-Employee Directors;
and/or (iii) shares of WWCH common stock.

 

C.            Once a director attains
the 5,000 share target, he/she shall continue to own at least 5,000 shares
while serving as a director.

 

III.           Shares will be distributed to the director by
means of an account to be established for each director at a brokerage firm
designated by the Company.

 

 

IV.           The maximum number of shares that may be
issued under the Plan is 150,000, subject to adjustments for stock splits,
stock dividends and similar transactions. The shares may be authorized but
unissued shares of common stock, issued shares held in or acquired for the
Company’s treasury, or shares reacquired by the Company upon purchase in the
open market.

 

V.            The Plan may be amended from time to time by
the board of directors, except that any such amendment is subject to
stockholder approval to the extent required under NYSE rules.

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]