Document:

Exhibit
4.2

AMENDED AND RESTATED

BY-LAWS

OF

WATSON WYATT WORLDWIDE, INC.

(Includes Changes Approved Through September 2006)

ARTICLE 1

STOCKHOLDERS

Section 1.1                                      Annual
Meetings.  An annual meeting of
stockholders shall be held for the election of directors at such date, time and
place either within or without the State of Delaware designated by the Board of
Directors from time to time.  Any other
business properly brought before the meeting may be transacted at the annual
meeting.

Section 1.2                                      Special
Meetings. Special meetings of stockholders may be called at any time by,
and only by, the President or by the Board of Directors pursuant to a
resolution adopted a majority of the members of the Board of Directors, to be
held at such date, time and place either within or without the State of
Delaware as is stated in the notice of the meeting.

Section 1.3                                      Nominations
and Stockholder Business.

(a)                                  To
properly be brought before an annual meeting of stockholders, nominations of
persons for election to the Board of Directors of the Corporation and the
proposal of business to be considered by the stockholders at an annual meeting
of stockholders must either be (i) specified in the notice of meeting (or
any supplement thereto) given by or at the direction of the Board of Directors
(or any duly authorized committee thereof), (ii) brought before the annual
meeting by or at the direction of the President, the Chairman of the Board of
Directors or by vote of a majority of the full Board of Directors, or
(iii)  brought before the annual meeting by any stockholder of the
Corporation who is a stockholder of record on the date of the giving of the
notice provided for in Section 1.4, who is entitled to vote at the meeting and
who complied with the notice procedures set forth in this Section 1.3(b).

(b)                                 For
nominations or other business to be properly brought before an annual meeting
by a stockholder under this Section 1.3(a), the stockholder must have given
timely notice thereof in writing to the Secretary of the Corporation and such
business must be a proper subject for stockholder action under the Delaware
General Corporation Law (“the DGCL”).  To
be timely, a stockholder’s notice must be delivered to the Secretary at the
principal executive offices of the Corporation not less than 120 days prior to
the first anniversary of the preceding year’s annual meeting; provided,
however, that if the date of the annual meeting is advanced by more than 40
days or delayed by more than 40 days from such anniversary date, then notice by
the stockholder to be timely must be delivered not later than the close of
business on the later of the 120th day prior to the annual meeting or the 10th
day following the day on which public announcement is first made of the date of
the meeting.  Such stockholder’s notice
must set forth

 

(i) as to each person
whom the stockholder proposes to nominate for election or reelection as a
director, all information relating to such person that is required to be
disclosed in solicitations of proxies for election of directors, or is
otherwise required, in each case pursuant to Regulation 14A under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) (including
such person’s written consent to being named in the proxy statement as a
nominee and to serving as a director if elected); (ii) as to any other business
that the stockholder proposes to bring before the meeting, a brief description
of the business desired to be brought before the meeting, the reasons for
conducting such business at the meeting and any material interest in such
business of such stockholder and the beneficial owner, if any, on whose behalf
the proposal is made; and (iii) as to the stockholder giving the notice and the
beneficial owners, if any, on whose behalf the nomination or proposal is made
(A) the name and address of such stockholder, as they appear on the
Corporation’s books, and of such beneficial owner, (B) the number of shares of
the Corporation which are owned (beneficially or of record) by such stockholder
and such beneficial owner, (C) a description of all arrangements or
understandings between such stockholder and such beneficial owner and any other
person or persons (including their names) in connection with the proposal of
such business by such stockholder and any material interest of such stockholder
and of such beneficial owner in such business, and (D) a representation that
such stockholder or its agent or designee intends to appear in person or by
proxy at the annual meeting to bring such business before the meeting.

(c)                                  Notwithstanding
anything in this Section 1.3 to the contrary, if the number of directors to be
elected to the Board of Directors of the Corporation is increased and there is
no public announcement specifying the size of the increased Board of Directors
made by the Corporation at least 120 days prior to the first anniversary of the
preceding year’s annual meeting, then a stockholder’s notice required by this
Section 1.3(b) will also be considered timely, but only with respect to
nominees for any new positions created by such increase, if it is delivered to
the Secretary at the principal executive offices of the Corporation not later
than the close of business on the 10th day following the day on which such
public announcement is first made by the Corporation.

(d)                                 Only
such business may be conducted at a special meeting of stockholders as has been
brought before the meeting pursuant to the Corporation’s notice of
meeting.  Nominations of persons for
election to the Board of Directors may be made at a special meeting of
stockholders at which directors are to be elected pursuant to the Corporation’s
notice of meeting (i) by or at the direction of the Board of Directors or (ii)
by any stockholder of the Corporation who is a stockholder of record at the
time of giving the notice required by Section 1.4, who is entitled to vote at
the meeting and who complies with the notice procedures set forth in this
Section 1.3.  Nominations by stockholders
of persons for election to the Board of Directors may be made at such a special
meeting of stockholders if the stockholder’s notice required by this Section
1.3 is delivered to the Secretary at the principal executive offices of the
Corporation not later than the close of business on the later of the 120th day
prior to such special meeting or the 10th day following the day on which public
announcement is first made of the date of the special meeting and of the
nominees proposed by the Board of Directors to be elected at such meeting.

(e)                                  Only
those persons who are nominated in accordance with the procedures set forth in
Section 1.3 will be eligible for election as directors at any meeting of
stockholders.

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Only business brought
before the meeting in accordance with the procedures set forth in this Section
1.3 may be conducted at a meeting of stockholders.  The chairman of the meeting has the power and
duty to determine whether a nomination or any business proposed to be brought
before the meeting was made in accordance with the procedures set forth in this
Section 1.3 and, if any proposed nomination or business is not in compliance
with this Section 1.3, to declare that such defective proposal shall be
disregarded.

(f)                                    For
purposes of Section 1.3, “public announcement” shall include disclosure in a
press release reported by the Dow Jones News Service, Associated Press,
Business Wire, PR Newswire or comparable national news service or in a document
publicly filed by the Corporation with the Securities and Exchange Commission
pursuant to the Exchange Act.

(g)                                 Notwithstanding
the foregoing provisions of this Section 1.3, a stockholder shall also comply
with all applicable requirements of the Exchange Act and the rules and
regulations thereunder with respect to the matters set forth in this Section
1.3.  Nothing in this Section 1.3 shall
be deemed to remove any obligation of stockholders to comply with the
requirements of Rule 14a-8 under the Exchange Act with respect to proposals
requested to be included in the Corporation’s proxy statement pursuant to said
Rule 14a-8.

Section 1.4                                      Notice of Meetings.  Whenever stockholders are required or
permitted to take any action at a meeting, a written notice of the meeting must
be given, stating the place, date and hour of the meeting, and, in the case of
a special meeting, the purpose or purposes for which the meeting is
called.  Unless otherwise required by
law, the written notice of any meeting shall be given not less than ten nor
more than sixty days before the date of the meeting to each stockholder
entitled to vote at such meeting.  If
mailed, such notice shall be deemed to be given when deposited in the United
States mail, postage prepaid, directed to the stockholder at such stockholder’s
address as it appears on the records of the Corporation.

Section 1.5                                      Adjournments.
Any meeting of stockholders, annual or special, may be adjourned from time to
time, to reconvene at the same or some other place, and notice need not be
given of any such adjourned meeting if the time and place thereof are announced
at the meeting at which the adjournment is taken.  At the adjourned meeting the Corporation may
transact any business which might have been transacted at the original
meeting.  If the adjournment is for more
than thirty days, or if after the adjournment a new record date is fixed for
the adjourned meeting, a notice of the adjourned meeting must be given to each
stockholder of record entitled to vote at the meeting.

Section 1.6                                      Quorum.  At each meeting of stockholders, except where
otherwise required by law, the certificate of incorporation or these by-laws, the
holders of a majority of the outstanding shares of stock entitled to vote on a
matter at the meeting, present in person or represented by proxy, shall
constitute a quorum. For purposes of the foregoing, where a separate vote by
class or classes is required for any matter, the holders of a majority of the
outstanding shares of such class or classes, present in person or represented
by proxy, shall constitute a quorum to take action with respect to that vote on
that matter.  Two or more classes or
series of stock shall be considered a single class if the holders of such
classes or series of stock are entitled to vote together as a single class at
the meeting.  In the absence of a quorum
of the

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holders of any class of stock entitled to vote on a
matter, the meeting of such class may be adjourned from time to time in the
manner provided by Sections 1.4 and 1.6 of these by-laws until a quorum of such
class is so present or represented.

Section 1.7                                      Voting;
Proxies.            Unless otherwise
provided in the certificate of incorporation, each stockholder entitled to vote
at any meeting of stockholders is entitled to one vote for each share of stock
held by such stockholder which has voting power upon the matter in
question.  Each stockholder entitled to
vote at a meeting of stockholders may authorize another person or persons to
act for such stockholder by proxy, but no such proxy shall be voted or acted
upon after three years from its date, unless the proxy provides for a longer
period.  A duly executed proxy will be
irrevocable if it states that it is irrevocable and if, and only as long as, it
is coupled with an interest sufficient in law to support an irrevocable power,
regardless of whether the interest with which it is coupled is an interest in
the stock itself or an interest in the Corporation generally.  A stockholder may revoke any proxy which is
not irrevocable by attending the meeting and voting in person or by filing an
instrument in writing revoking the proxy or another duly executed proxy bearing
a later date with the Secretary.  Voting
at meetings of stockholders need not be by written ballot unless so directed by
the chairman of the meeting or the Board of Directors. Directors must be
elected by a plurality of the votes of the shares present in person or represented
by proxy at the meeting and entitled to vote on the election of directors.  In all other matters, unless otherwise
required by law, the certificate of incorporation or these by-laws, the
affirmative vote of the holders of a majority of the shares present in person
or represented by proxy at the meeting and entitled to vote on the subject
matter will be the act of the stockholders. Where a separate vote by class or
classes is required, the affirmative vote of the holders of a majority (or, in
the case of an election of directors, a plurality) of the shares of such class
or classes present in person or represented by proxy at the meeting shall be
the act of such class or classes, except as otherwise required by law, the
certificate of incorporation or these by-laws.

Section 1.8                                      Organization.  Meetings of stockholders shall be presided
over by the Chairman of the Board, if any, or in the absence of a Chairman of
the Board, by the President or other person designated by the President.  The Secretary, or in the absence of the
Secretary an Assistant Secretary or other person designated by the President,
shall act as secretary of the meeting. 
The order of business at each such meeting shall be as determined by the
chairman of the meeting.  The chairman of
the meeting shall have the right and authority to adjourn a meeting of
stockholders without a vote of stockholders and to prescribe such rules,
regulations and procedures and to do all such acts and things as are necessary
or desirable for the proper conduct of the meeting and are not inconsistent
with any rules or regulations adopted by the Board of Directors pursuant to the
provisions of the certificate of incorporation, including the establishment of
procedures for the maintenance of order and safety, limitations on the time
allotted to questions or comments on the affairs of the Corporation,
restrictions on entry to such meeting after the time prescribed for the
commencement thereof and the opening and closing of the voting polls for each
item upon which a vote is to be taken.

Section 1.9                                      Inspectors.  Prior to any meeting of stockholders, the
Board of Directors, Chairman of the Board, President or any other officer
designated by the Board shall appoint one or more inspectors to act at such
meeting and make a written report of the meeting.  If no inspector or alternate is able to act
at the meeting of stockholders, the person presiding at the

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meeting shall appoint one or more inspectors to act at
the meeting.  Each inspector, before
entering upon the discharge of his or her duties, must take and sign an oath
faithfully to execute the duties of inspector with strict impartiality and
according to the best of his or her ability. 
The inspectors shall ascertain the number of shares outstanding and the
voting power of each, determine the shares represented at the meeting and the
validity of proxies and ballots, count all votes and ballots, determine and
retain for a reasonable period a record of the disposition of any challenges
made to any determination by the inspectors and certify their determination of
the number of shares represented at the meeting and their count of all votes
and ballots.  The inspectors may appoint
or retain other persons to assist them in the performance of their duties. The
date and time of the opening and closing of the polls for each matter upon
which the stockholders will vote at a meeting shall be announced at the
meeting.  No ballot, proxy or vote, nor
any revocation thereof or change thereto, may be accepted by the inspectors
after the closing of the polls.  In
determining the validity and counting of proxies and ballots, the inspectors
shall be limited to an examination of the proxies, any envelopes submitted
therewith, any information provided by a stockholder who submits a proxy by telegram,
cablegram or other electronic transmission from which it can be determined that
the proxy was authorized by the stockholder, ballots and the regular books and
records of the Corporation, and they may also consider other reliable
information for the limited purpose of reconciling proxies and ballots
submitted by or on behalf of banks, brokers, their nominees or similar persons
which represent more votes than the holder of a proxy is authorized by the
record owner to cast or more votes than the stockholder holds of record.

Section 1.10                                Fixing Date for
Determining Stockholders of Record. 
In order for the Corporation to determine the stockholders entitled to
notice of or to vote at any meeting of stockholders or any adjournment of the
meeting, the Board of Directors may fix a record date, which record date shall
not precede the date upon which the resolution fixing the record date is
adopted by the Board of Directors, and which record date must be no more than
sixty nor less than ten days before the date of such meeting.  If no record date is fixed by the Board of
Directors, the record date for determining stockholders entitled to notice of
or to vote at a meeting of stockholders shall be at the close of business on the
day next preceding the day on which notice is given, or, if notice is waived,
at the close of business on the day next preceding the day on which the meeting
is held.  A determination of stockholders
of record entitled to notice of or to vote at a meeting of stockholders will
apply to any adjournment of the meeting, provided the
Board of Directors may fix a new record date for the adjourned meeting.  In order for the Corporation to determine the
stockholders entitled to receive payment of any dividend or other distribution
or allotment of any rights or the stockholders entitled to exercise any rights
in respect of any change, conversion or exchange of stock, or for the purpose
of any other lawful action, the Board of Directors may fix a record date, which
record date may not precede the date upon which the resolution fixing the
record date is adopted, and which record date must be no more than sixty days
prior to the action for which a record date is being established.  If no record date is fixed, the record date
for determining stockholders for any such purpose will be at the close of
business on the day on which the Board of Directors adopts the related
resolution.

Section 1.11                                List of Stockholders
Entitled to Vote.  The Secretary will
prepare and make, at least ten days before every meeting of stockholders, a
complete list of the stockholders entitled to vote at the meeting, arranged in
alphabetical order, and showing the address of each stockholder and the number
of shares registered in the name of each stockholder.  Such list will

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be open to the examination of any stockholder, for any
purpose germane to the meeting, during ordinary business hours, for a period of
at least ten days prior to the meeting, either at a place within the city where
the meeting is to be held, which place must be specified in the notice of the
meeting, or, if not so specified, at the place where the meeting is to be
held.  The list also must be produced and
kept at the time and place of the meeting during the whole time thereof and may
be inspected by any stockholder who is present.

ARTICLE 2

DIRECTORS

Section 2.1                                      Powers;
Number; Qualifications.  The business
and affairs of the Corporation shall be managed by or under the direction of
the Board of Directors, except as may be otherwise required by law or provided
in the certificate of incorporation. The number of directors which shall
constitute the whole Board of Directors shall not be less than 7 nor more than
25.  The exact number of directors of the
Corporation and the number of directors in each class of directors shall be
fixed only by resolution of a majority of the members of the Board of Directors
from time to time.  If the holders of any
class or classes of stock or series thereof are entitled by the certificate of
incorporation to elect one or more directors, the preceding sentence shall not
apply to such directors, and the number of such directors shall be as provided
in the terms of such stock.  Directors
need not be stockholders.

Section 2.2.                                   Election; Term of
Office; Resignation; Removal; Vacancies.

(a)                                  At each annual meeting of the stockholders of
the Corporation from and after the annual meeting of the stockholders to be
held in 2006, each director standing for election shall be elected to hold
office for a term expiring at the next annual meeting of stockholders, with
such director to hold office until his or her successor is elected and
qualified or until his or her earlier resignation or removal.  Notwithstanding the foregoing, for any
director who is an employee of the Corporation or any of its affiliates at the
time of election to the Board it is a qualification for service as a director
that such director remain so employed, so that the term of any such director
automatically will terminate upon termination of such director’s employment
with the Corporation or such affiliate for any reason, unless the Board, by
majority of the members of the Board of Directors, otherwise determines.

(b)                                 Any
director may resign at any time upon written notice to the Board of Directors
or to the Chairman of the Board, if any, or the President.  Such resignation shall take effect at the
time specified in the notice of resignation, and unless otherwise specified in
the notice of resignation, no acceptance of such resignation is necessary to
make it effective.

(c)                                  No
director may be removed except as provided in the certificate of incorporation
or as provided in Section 2.2(a) of these by-laws.

(d)                                 Vacancies and newly created directorships
resulting from any increase in the authorized number of directors (other than
any directors elected in the manner described in the next sentence) or from any
other cause shall be filled by, and only by, a majority of the directors then
in office, although less than a quorum, or by the sole remaining director.

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Whenever the holders of any
class or classes of stock or series thereof are entitled by the certificate of
incorporation to elect one or more directors, vacancies and newly created
directorships of such class or classes or series may be filled by, and only by,
a majority of the directors elected by such class or classes or series then in
office, or by the sole remaining director so elected. A director elected
to fill a vacancy shall be elected for the unexpired term of his or her
predecessor in office and until his or her successor is elected and qualified
or until his or her earlier resignation or removal.

Section 2.3                                      Regular
Meetings.  Regular meetings of the
Board of Directors may be held at such places within or without the State of
Delaware and at such times as the Board may from time to time determine.

Section 2.4                                      Special
Meetings. Special meetings of the Board of Directors may be held at any
time or place within or without the State of Delaware whenever called by a
Chairman of the Board, if any, by the President, or at the request in writing
of a majority of the members of the Board of Directors.

Section 2.5                                      Notices
of Board of Directors Meetings. 
Notice of any regular or special meeting, unless waived, must be given
by mail or facsimile or courier to each director at his address as the same
appears on the records of the Corporation not less than one (1) day prior to
the day on which such meeting is to be held if such notice is by facsimile or
courier, and not less than five (5) business days prior to the day on which the
meeting is to be held if such notice is by mail.  If the Secretary fails or refuses to give
such notice, then the notice may be given by the officer or any one of the
directors making the call.  Any such
meeting may be held at such place as the Board may fix from time to time or as
may be specified or fixed in such notice. 
Notice may be waived in writing by any director, either before or after
the meeting.  Any meeting of the Board of
Directors will be a legal meeting without any notice having been given, if all
the directors shall be present at the meeting, and no notice of a meeting is
required to be given to any director who shall attend such meeting.

Section 2.6                                      Quorum
and Manner of Acting.  Except as
otherwise provided in these by-laws, a majority of the members of the Board of
Directors constitutes a quorum at any regular or special meeting of the Board
of Directors.  Except as otherwise
provided by the Delaware General Corporation Law (“DGCL”), the certificate of
incorporation or by these by-laws, the act of a majority of the directors
present at any meeting at which a quorum is present is the act of the Board of
Directors.  In the absence of a quorum, a
majority of the directors present may adjourn the meeting from time to time
until a quorum be had.  Notice of any
adjourned meeting need not be given.

Section 2.7                                      Participation
in Meetings by Conference Telephone Permitted.  Members of the Board of Directors, or any
committee designated by the Board, may participate in a meeting of the Board or
of such committee, as the case may be, by means of conference telephone or
similar communications equipment by means of which all persons participating in
the meeting can hear each other, and participation in a meeting pursuant to
this by-law shall constitute presence in person at such meeting.

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Section 2.8                                      Organization.  Meetings of the Board of Directors will be
presided over by a Chairman of the Board, if any, or in the absence of a
Chairman of the Board by the President, or in the absence of the President, by
a chairman chosen at the meeting.  The
Secretary shall act as secretary of the meeting, but in the absence of the
Secretary the chairman of the meeting may appoint any person to act as
secretary of the meeting.

Section 2.9                                      Committees
of Directors.  Any duly constituted and
authorized committee of the Board of Directors may exercise such powers as have
been delegated to it by the Board of Directors, without a meeting by the
unanimous execution of an instrument in writing.  The Board of Directors may designate one or
more committees, each committee to consist of one or more of the directors of
the Corporation which, to the extent provided by resolution of the Board of
Directors, shall have and may exercise the powers of the Board of Directors in
the management of the business and affairs of the Corporation; but no such
committee shall have the power or authority in reference to the following
matters:  (a) approving or adopting, or
recommending to the stockholders, any action or matter expressly required by
the DGCL to be submitted to stockholders for approval or (b) adopting,
amending or repealing any by-laws of the Corporation.  Such committees shall have such name or names
as may be determined from time to time by resolution adopted by the Board of
Directors and, when required by the Board, shall keep regular minutes of their
proceedings and report the same to the Board. 
Subject to legal or other requirements, Board committees may include one
or more persons who are not directors, provided
that to the extent any such committee exercises powers of the Board
of Directors that have been specifically delegated to it, such committee shall
act solely by vote of members of the committee who are also members of the
Board of Directors.

Section 2.10                                Compensation
of Directors.  Directors who are
employees shall not receive any stated salary for their services as directors,
but, pursuant to normal corporate expense reimbursement policies, shall receive
reimbursement for expenses of attendance at such meetings; provided that
nothing herein contained may be construed to preclude any Director from serving
the Corporation in any other capacity and receiving compensation therefore.
Directors who are not employees shall receive compensation for their services
as directors, in such amounts as the Board of Directors from time to time
determines.

ARTICLE 3

OFFICERS

Section 3.1                                      Officers
Designated.  The officers of the
Corporation shall be elected by the Board of Directors at its annual meeting or
any special meeting.  They may include a
Chairman of the Board and shall include a President, a Secretary, and such
other officers as the Board of Directors may determine.  One person may hold any two offices except
the offices of President and Secretary.

Section 3.2                                      Tenure
of Office.  The officers of the Corporation
will hold office until the next annual meeting of the Board of Directors and
until their respective successors are elected and qualified, except (a) that
the term of office of any officer who is an employee of the Corporation
automatically terminates upon termination of such officer’s employment by the
Corporation for any reason and (b) in case of the officer’s prior resignation,
death or removal.

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The Board of
Directors also may remove any officer at any time with or without cause by the
vote of a majority of the members of the Board of Directors.  Additional officers appointed by the
President in accordance with Section 3.4 may be removed by the President.

Section 3.3                                      Powers
and Duties of Officers.  The officers
of the Corporation will have such powers and duties in the management of the
Corporation as may be prescribed by the Board of Directors or delegated by the
President and, to the extent not so provided, as generally pertain to their
respective offices, subject to the control of the Board of Directors.

Section 3.4                                      Additional
Officers.  The President of the
Corporation may appoint such Assistant Vice Presidents, Assistant Secretaries,
Assistant Treasurers, or other Officers, and such agents as the President may
determine, to hold office for such period, and with such authority and to
perform such duties as the President from time to time determines.

Section 3.5                                      Resignations.  Any officer may resign at any time by giving
written notice to the Board of Directors or to the President or the Secretary
of the Corporation.  Any such resignation
will take effect at the time specified in the notice of resignation.  Unless otherwise specified in the notice of
resignation, the acceptance of such resignation shall not be necessary to make
it effective.

Section 3.6                                      Vacancies.  A vacancy in the office of President or
Secretary for any reason must be filled. 
A vacancy in any other office may be filled.  Any vacancy which is filled will be filled
for the unexpired portion of the term in the same manner in which an officer to
fill said office may be chosen pursuant to Sections 3.1, 3.2 and 3.4.

ARTICLE 4

SHARES OF
STOCK

Section 4.1.                                   Certificates;
Uncertificated Shares.

(a)                                  The
shares of Class A Common Stock of the Corporation shall be represented by
certificates.

(b)                                 The
Board of Directors of the Corporation may provide by resolution or resolutions
from time to time that some or all of any or all classes or series of its stock
shall be uncertificated shares, provided any
such resolution shall not apply to any such shares represented by a certificate
previously issued until such certificate is surrendered to the
Corporation.  Notwithstanding the
adoption of such a resolution or resolutions by the Board of Directors of the
Corporation, every holder of stock represented by certificates, and upon
request every holder of uncertificated shares, shall be entitled to have a
certificate signed by or in the name of the Corporation by a Chairman of the
Board or the President, and by the Treasurer, Secretary or Assistant Secretary,
representing the number of shares of stock in the Corporation owned by such
holder. If such certificate is manually signed by one officer or manually
countersigned by a transfer agent or by a registrar, any other signature on the
certificate may be a facsimile.

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(c)                                  In
case any officer, transfer agent or registrar who has signed or whose facsimile
signature has been placed upon a certificate ceases to be such officer,
transfer agent or registrar before such certificate is issued, it may be issued
by the Corporation with the same effect as if such person were such officer,
transfer agent or registrar at the date of issue.

(d)                                 Certificates
representing shares of stock of the Corporation may bear such legends regarding
restrictions on transfer or other matters as any officer or officers of the
Corporation may determine to be appropriate and lawful.

(e)                                  If
the Corporation is authorized to issue more than one class of stock or more
than one series of any class, the powers, designations, preferences and relative,
participating, optional or other special rights of each class of stock or
series thereof and the qualifications or restrictions of such preferences
and/or rights must be set forth in full or summarized on the face or back of
the certificate which the Corporation issues to represent such class or series
of stock, provided that, except as otherwise
required by law, in lieu of the foregoing requirements, there may be set forth
on the face or back of the certificate which the Corporation issues to represent
such class or series of stock a statement that the Corporation will furnish
without charge to each stockholder who so requests the powers, designations,
preferences and relative, participating, optional or other special rights of
such class or series of stock and the qualifications, limitations or
restrictions of such preferences and/or rights. 
Within a reasonable period of time after the issuance or transfer of
uncertificated shares of any class or series of stock, the Corporation will
send to the registered owner of such shares a written notice containing the
information required by law to be set forth or stated on certificates
representing shares of such class or series or a statement that the Corporation
will furnish without charge to each stockholder who so requests the powers,
designations, preferences and relative, participating, optional or other
special rights of such class or series and the qualifications, limitations or
restrictions of such preferences and/or rights.

(f)                                    Except
as otherwise expressly provided by law, the rights and obligations of the
holders of uncertificated shares and the rights and obligations of the holders
of certificates representing stock of the same class and series shall be
identical.

Section 4.2                                      Lost, Stolen
or Destroyed Stock Certificates; Issuance of New Certificates.  The Corporation may issue a new certificate
of stock in the place of any certificate previously issued by it, alleged to
have been lost, stolen or destroyed.  The
Corporation may require the owner of the lost, stolen or destroyed certificate,
or such owner’s legal representative, to give the Corporation a bond sufficient
to indemnify it against any claim that may be made against it on account of the
alleged loss, theft or destruction of any such certificate or the issuance of
such new certificate.

ARTICLE 5

MISCELLANEOUS
PROVISIONS

Section 5.1                                      Fiscal Year.  The fiscal year of the Corporation will be
determined by the Board of Directors.

 10
 

 

Section 5.2                                      Waiver of
Notice of Meetings of Stockholders, Directors and Committees. Whenever
notice is required to be given by law or under any provision of the certificate
of incorporation or these by-laws, a written waiver thereof, signed by the
person entitled to notice, whether before or after the time stated therein, is
deemed equivalent to notice.  Attendance
of a person at a meeting constitutes a waiver of notice of such meeting, except
when the person attends a meeting for the express purpose of objecting, at the
beginning of the meeting, to the transaction of any business because the
meeting is not lawfully called or convened. 
Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of the stockholders, directors or members of a
committee of directors need be specified in any written waiver of notice unless
so required by the certificate of incorporation or these by-laws.

Section 5.3                                      Facsimiles.  Any copy, facsimile telecommunication or
other reliable reproduction of a writing, transmission or signature may be
substituted or used in lieu of the original writing, transmission or signature
for any and all purposes for which the original writing, transmission or
signature could be used, provided that such copy, facsimile telecommunication
or other reproduction shall be a complete reproduction of the entire original
writing, transmission or signature, as the case may be.

Section 5.4                                      Books
and Records.  The books of the
Corporation may be kept (subject to any provision contained in the DGCL) within
or without the State of Delaware at such place or places as may be designated
from time to time by the Board of Directors.

Section 5.5                                      Form of
Records. Any records maintained by the Corporation in the regular course of
its business, including its stock ledger, books of account and minute books, may
be kept on, or be in the form of, magnetic tape, photographs, microphotographs
or any other information storage device, provided that the records so kept can
be converted into clearly legible form within a reasonable time. The
Corporation shall so convert any records so kept upon the request of any person
entitled to inspect the same.

Section 5.6                                      Depositories.  The Board of Directors, the Chairman of the
Board, if any, the President, and such other officers as may be delegated
authority by the Board of Directors or one of the foregoing officers, and each
of them, may designate the banks, trust companies, or other depositories in
which shall be deposited from time to time, the money or securities of the
Corporation.  In the case of a
designation by the aforementioned officers, any such designation shall require
the approval of two of such officers, one of whom shall be the Treasurer or the
Vice President and Chief Financial Officer.

Section 5.7                                      Checks,
Drafts, Notes, etc.  All checks,
drafts or other orders for the payment of money and all notes or other
evidences of indebtedness issued in the name of the Corporation shall be signed
by such officer or officers or agent or agents as from time to time is
designated by the Board of Directors or by any two of the Chairman of the
Board, if any, the President, and the Chief Financial Officer, or one of the
foregoing officers and another officer elected by the Board of Directors.

Section 5.8                                      Contracts,
etc.,  How Executed.  The Board of Directors may authorize any officer,
agent or agents, to enter into any contract or execute and deliver any
instrument in

 11
 

 

the name and
on behalf of the Corporation, and such authority may be general or confined to
specific instances.

Section 5.9                                      Stock
in Other Corporations.  Any shares of
stock in any other corporation which may from time to time be held by the
Corporation may be represented and voted at any meeting of stockholders of such
other corporation by the President, the Treasurer or the Secretary of the
Corporation or by any other person or persons thereunto authorized by the Board
of Directors or designated by the President, or by any proxy designated by
written instrument of appointment executed in the name of this Corporation by
its President or by such officers as may be designated by him and attested by
the Secretary or Assistant Secretary.

Section 5.10                                Indemnification.

(a)                                  Each
person who was or is a party or is threatened to be made a party to or is
involved in any action, suit or proceeding or alternative dispute resolution
procedure, whether civil, criminal, administrative or investigative
(hereinafter a “proceeding”), by reason of the fact that he or she, or a person
of whom he or she is the legal representative, is or was a director or officer
of the Corporation or is or was a director or officer serving at the request of
the Corporation as a director, manager, officer, partner, trustee, employee or
agent of another corporation or of a partnership, limited liability company,
joint venture, trust or other enterprise, including service with respect to
employee benefit plans, shall be indemnified and held harmless by the
Corporation to the fullest extent authorized by the laws of Delaware as the
same now or may hereafter exist (but, in the case of any change, only to the extent
that such change authorizes the Corporation to provide broader indemnification
rights than said law permitted the Corporation to provide prior to such change)
against all costs, charges, expenses, liabilities and losses (including
attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts
paid or to be paid in settlement) reasonably incurred or suffered by such
person in connection therewith and such indemnification shall continue as to a
person who has ceased to be a director or officer and shall inure to the
benefit of his or her heirs, executors and administrators.  Until such time as there has been a final
judgment to the contrary, a person shall be presumed to be entitled to be
indemnified under this Section 5.10(a). 
The right to indemnification conferred in this Section shall be a
contract right and shall include the right to be paid by the Corporation the
expenses incurred in defending any such proceeding in advance of its final
disposition upon receipt by the Corporation of an undertaking, by or on behalf
of such director or officer, to repay all amounts so advanced if it shall
ultimately be determined that the director or officer is not entitled to be
indemnified under this Section or otherwise. 
The Corporation may, by action of its Board of Directors, provide
indemnification to employees and agents of the Corporation with the same scope
and effect as the foregoing indemnification of directors and officers.  Notwithstanding anything contained in this
Section 5.10, except for proceedings to enforce rights provided in this Section
5.10, the Corporation shall not be obligated under this Section 5.10 to provide
any indemnification or any payment or reimbursement of expenses to any
director, officer or other person in connection with a proceeding (or part
thereof) initiated by such person (which shall not include counterclaims or
crossclaims initiated by others) unless the Board of Directors has authorized
or consented to such proceeding (or part thereof) in a resolution adopted by
the Board

 12
 

 

(b)                                 If
a claim under subsection (a) of this Section is not paid in full by the
Corporation within thirty days after a written claim has been received by the
Corporation the claimant may at any time thereafter bring suit against the
Corporation to recover the unpaid amount of the claim and, if successful in
whole or in part, the claimant shall also be entitled to be paid the expense of
prosecuting such claim.  It shall be a
defense to any action (other than an action brought to enforce a claim for
expenses incurred in defending any proceeding in advance of its final
disposition where the required undertaking has been tendered to the
Corporation) that the claimant has failed to meet a standard of conduct which
makes it permissible to indemnify the claimant for the amount claimed, but the
burden of proving such defense shall be on the Corporation.  Neither the failure of the Corporation
(including its Board of Directors, independent legal counsel, or its stockholders)
to have made a determination prior to the commencement of such action that
indemnification of the claimant is permissible in the circumstances because he
or she has met such standard of conduct, nor an actual determination by the
Corporation (including its Board of Directors, independent legal counsel, or
its stockholders) that the claimant has not met such standard of conduct, nor
the termination of any proceeding by judgment, order, settlement, conviction or
upon a plea of nolo contendere or its equivalent, shall be a defense to the action
or create a presumption that the claimant has failed to meet the required
standard of conduct.

(c)                                  The
right to indemnification and the payment of expenses incurred in defending a
proceeding in advance of its final disposition conferred in this Section shall
not be exclusive of any other right which any person may have or hereafter
acquire under any statute, provision of the Certificate of Incorporation,
by-laws, agreement, vote of stockholders or disinterested directors or
otherwise.

(d)                                 The
Corporation may maintain insurance, at its expense, to protect itself and any
director, manager, officer, partner, trustee, employee or agent of the
Corporation or another corporation, partnership, limited liability company,
joint venture, trust or other enterprise against any expense, liability or
loss, whether or not the Corporation would have the power to indemnify such
person against such expense, liability or loss under Delaware law.

(e)                                  To
the extent that any director, officer, employee or agent of the Corporation is
by reason of such position, or a position with another entity at the request of
the Corporation, a witness in any proceeding, he or she shall be indemnified
against all costs and expenses actually and reasonably incurred by him or her
or on his or her behalf in connection therewith.

(f)                                    Notwithstanding
any amendment of this section which may have been approved by the stockholders,
this section may be added to, altered, amended or repealed pursuant to Section
5.11 of these by-laws.

(g)                                 Any
amendment, repeal or modification of any provision of this Section by the
stockholders or the directors of the Corporation shall not adversely affect any
right or protection of a director or officer of the Corporation existing at the
time of such amendment, repeal or modification.

 13
 

 

 

Section 5.11                                Amendment
of By-Laws.  These by-laws may be
amended, modified or repealed, and new by-laws may be adopted at any time, by
the Board of Directors.  Stockholders of
the Corporation may adopt additional by-laws and amend, modify or repeal any
by-law whether or not adopted by them, but only in accordance with Article 6 of
the certificate of incorporation.

 

 14Exhibit
10.1

WATSON
WYATT WORLDWIDE, INC.

2001 DEFERRED STOCK UNIT PLAN FOR SELECTED EMPLOYEES

Article 1 -                                        General

Section 1.1.                                   Purposes.

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

Section 1.2.                                   Definitions.

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

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

 2
 

 

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

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

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

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

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

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

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

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

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

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

Section 1.3.  Shares Subject to the Plan.

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

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

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

 3
 

 

Article 2 -                                        Deferred Stock Units; Optional Deferral of
Payment

Section 2.1.  Grants of Deferred Stock Units.

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

Section 2.2.  Vesting of Deferred Stock Units.

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

Section 2.3.  Termination of Employment.

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

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

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

Section 2.5.  Optional Deferral of Payment of Shares.

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

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

 4
 

 

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

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

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

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

Section 2.6 
Payment of Shares Optionally Deferred.

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

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

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

Section 2.7.  Debiting of Deferred Stock Account.

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

 5
 

 

Article 3 -                                        Beneficiary; Tax

3.1.  Beneficiary.

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

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

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

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

Section 3.2.  Domestic Relations Orders.

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

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

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

 6
 

 

Section 3.4.  Withholding of Taxes

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

Article 4 -                                      Adjustment of Accounts

Section 4.1. 
Dividend Equivalents.

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

Section 4.2.  Changes
in Capitalization.

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

 7
 

 

Article 5 -                                      Status of Accounts

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

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

Section 5.2. 
Non-Assignability.

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

Article 6 -                                      Change in Control

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

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

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

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

Article 7 -                                      Administration of the Plan

Section 7.1. 
Administration.

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

 8
 

 

Section 7.2.  Procedures.

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

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

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

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

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

Section
7.3.  Interpretation.

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

Section 7.4.  Payments on Behalf of an Incompetent.

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

Section 7.5. 
Corporate Books and Records Controlling.

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

Section 7.6. 
Indemnity.

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

 9
 

 

Article 8 -                                        Miscellaneous Provisions

8.1.  Litigation.

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

8.2.  Headings Are Not Controlling.

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

Section 8.3. 
Right to Terminate Employment.

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

Section 8.4. 
Transfer; Leave of Absence.

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

Section 8.5. 
Governmental Regulation.

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

Section 8.6.  Governing Law.

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

Section 8.7.  Amendment and Termination.

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

Article 9 -                                      Effective Date

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

 10

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