AGREEMENT AND PLAN OF MERGER



                                  BY AND AMONG



                        MARSH & McLENNAN COMPANIES, INC.,



                               KING MERGER CORP.,

      a wholly owned direct subsidiary of Marsh & McLennan Companies, Inc.,



                                       and



                                   KROLL INC.











                                  May 18, 2004









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                                TABLE OF CONTENTS





                                                                            PAGE

                                                                            ----

ARTICLE I            THE MERGER................................................2



         1.1      The Merger...................................................2

         1.2      Closing; Effective Time......................................2

         1.3      Effects of the Merger........................................2

         1.4      Certificate of Incorporation and Bylaws......................2

         1.5      Directors and Officers of the Surviving Corporation..........2

         1.6      Kroll Stockholders Meeting...................................2

         1.7      Additional Actions...........................................3



ARTICLE II           CONVERSION OF SECURITIES..................................4



         2.1      Effect on Capital Stock......................................4

         2.2      Surrender and Payment........................................5

         2.3      Treatment of Stock Options; Employee Stock Purchase Plan.....7

         2.4      Adjustments to Prevent Dilution..............................8



ARTICLE III          REPRESENTATIONS AND WARRANTIES OF MMC AND MERGER SUB......8



         3.1      Organization and Standing....................................8

         3.2      Corporate Power and Authority................................9

         3.3      Conflicts; Consents and Approval.............................9

         3.4      Brokerage and Finders' Fees.................................10

         3.5      Information Supplied........................................10

         3.6      Available Funds.............................................10

         3.7      Capitalization of Merger Sub................................10

         3.8      Section 203 of the DGCL.....................................10

         3.9      State Takeover Statute......................................10



ARTICLE IV           REPRESENTATIONS AND WARRANTIES OF KROLL..................11



         4.1      Organization and Standing...................................11

         4.2      Subsidiaries................................................11

         4.3      Corporate Power and Authority...............................12

         4.4      Capitalization of Kroll.....................................12

         4.5      Conflicts; Consents and Approvals...........................13

         4.6      Brokerage and Finders' Fees; Expenses.......................14

         4.7      Kroll SEC Documents.........................................14

         4.8      Undisclosed Liabilities.....................................15

         4.9      Information Supplied........................................15

         4.10     Compliance with Law.........................................16





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         4.11     Litigation..................................................16

         4.12     Absence of Certain Changes or Events........................16

         4.13     Taxes.......................................................17

         4.14     Intellectual Property.......................................18

         4.15     Employee Benefit Plans......................................19

         4.16     Contracts; Indebtedness.....................................22

         4.17     Labor Matters...............................................23

         4.18     Customer/Supplier Relationships.............................23

         4.19     Environmental Matters.......................................23

         4.20     Insurance...................................................24

         4.21     Opinion of Financial Advisor................................24

         4.22     Board Recommendation; Required Vote.........................24

         4.23     Section 203 of the DGCL.....................................25



ARTICLE V            COVENANTS OF THE PARTIES.................................25



         5.1      Mutual Covenants............................................25

                      (a)      Reasonable Best Efforts........................25

                      (b)      HSR Act........................................25

                      (c)      Public Announcements...........................26

                      (d)      Conveyance Taxes...............................26

                      (e)      Notice of Certain Events.......................26

         5.2      Covenants of MMC............................................26

                      (a)      Indemnification; Directors' and Officers'

                               Insurance......................................26

                      (b)      Employees and Employee Benefits................27

         5.3      Covenants of Kroll..........................................28

                      (a)      Conduct of Kroll's Operations..................28

                      (b)      Acquisition Proposals..........................30

                      (c)      Third Party Standstill Agreements..............33

                      (d)      Access.........................................33

                      (e)      Termination of Kroll Credit Agreement..........33

                      (f)      Supplemental Indenture.........................34



ARTICLE VI           CONDITIONS TO THE MERGER.................................34



         6.1      Conditions to the Obligations of Each Party.................34

         6.2      Conditions to Obligations of MMC and Merger Sub.............34

         6.3      Conditions to Obligation of Kroll...........................35



ARTICLE VII          TERMINATION; FEES AND EXPENSES...........................35



         7.1      Termination by Mutual Consent...............................35

         7.2      Termination by Either MMC or Kroll..........................35

         7.3      Termination by Kroll........................................36

         7.4      Termination by MMC..........................................36

         7.5      Effect of Termination and Abandonment.......................36

         7.6      Fees and Expenses...........................................37





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ARTICLE VIII         MISCELLANEOUS............................................38



         8.1      Non-Survival of Representations and Warranties..............38

         8.2      Notices.....................................................38

         8.3      Interpretation..............................................39

         8.4      Counterparts................................................40

         8.5      Entire Agreement............................................40

         8.6      Third-Party Beneficiaries...................................40

         8.7      Governing Law...............................................40

         8.8      Consent to Jurisdiction; Venue..............................40

         8.9      Specific Performance........................................41

         8.10     Assignment..................................................41

         8.11     Amendment...................................................41

         8.12     Extension; Waiver...........................................41

         8.13     Severability................................................41





                                     -iii-



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                             INDEX OF DEFINED TERMS



DEFINED TERM                                                     SECTION

------------                                                     -------

1996 Plan......................................................  2.3(a)

1996 Option....................................................  2.3(a)

Acquisition Proposal...........................................  5.3(b)(viii)(A)

Action.........................................................  4.11

Agreement......................................................  Preamble

Applicable Laws................................................  2.2(a)

Appraisal Shares...............................................  2.1(d)

Board..........................................................  Recitals

Capitalization Date............................................  4.4(a)

Certificate....................................................  2.1(b)

Certificate of Merger..........................................  1.2

Closing........................................................  1.2

Closing Date...................................................  1.2

Code...........................................................  2.2(g)

Commission.....................................................  1.6(b)

Controlled Group Liability.....................................  4.15(a)(i)

Confidentiality Agreement......................................  5.3(b)(iii)

Covered Proposal...............................................  7.6(a)(i)

Delaware Secretary of State....................................  1.2

DGCL...........................................................  1.1

Effective Time.................................................  1.2

Environmental Laws.............................................  4.19

Environmental Permit...........................................  4.19

ERISA..........................................................  4.15(a)(ii)

ERISA Affiliate................................................  4.15(a)(iii)

ESPP...........................................................  2.3(b)

Exchange Act...................................................  4.7(a)

Exchange Fund..................................................  2.2(a)

Expenses.......................................................  7.6(b)

Foreign Antitrust Laws.........................................  3.3(d)

GAAP...........................................................  4.7(a)

Governmental Authority.........................................  3.3(d)

Hazardous Materials............................................  4.19

HSR Act........................................................  3.3(d)

Indemnified Person.............................................  5.2(a)(i)

Indenture......................................................  5.3(f)

Intellectual Property Right....................................  4.14(a)(i)

Key Kroll Individual...........................................  5.3(a)(viii)

Kroll..........................................................  Preamble

Kroll Board Recommendation.....................................  4.22

Kroll Bylaws...................................................  1.6(a)

Kroll Certificate..............................................  1.6(a)

Kroll Common Stock.............................................  Recitals





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Kroll Credit Agreement.........................................  5.3(e)

Kroll Disclosure Schedule......................................  4.2

Kroll Employees................................................  5.2(b)(ii)

Kroll Intellectual Property Right..............................  4.14(a)(ii)

Kroll Option...................................................  2.3(a)

Kroll Permits..................................................  4.10

Kroll SEC Documents............................................  4.7(a)

Kroll Stockholders.............................................  1.6(a)

Kroll Stockholders Meeting.....................................  1.6(a)

MMC............................................................  Preamble

Material Adverse Effect........................................  8.3

Material Contracts.............................................  4.16(a)

Merger.........................................................  Recitals

Merger Consideration...........................................  2.1(b)

Merger Sub.....................................................  Preamble

Multiemployer Plan.............................................  4.15(f)

Multiple Employer Plan.........................................  4.15(f)

Paying Agent...................................................  2.2(a)

Participant....................................................  2.3(a)

Person.........................................................  5.3(b)(i)

Plans..........................................................  4.15(a)(iv)

Proxy Statement................................................  1.6(b)

Qualified Plan.................................................  4.15(c)

Representatives................................................  5.3(b)(i)

Section 262....................................................  2.1(b)

Securities Act.................................................  4.7

Stock Plan Termination Date....................................  2.3(b)

subsidiary.....................................................  8.3

Substitute Right...............................................  2.3(a)

Superior Proposal..............................................  5.3(b)(viii)(B)

Superior Proposal Notice.......................................  5.3(b)(iii)

Support Agreement..............................................  Recitals

Surviving Corporation..........................................  1.1

Tax Returns....................................................  4.13(b)

Taxes..........................................................  4.13(c)

Termination Date...............................................  7.2

Termination Fee................................................  7.6(a)

Waiting Period.................................................  5.3(b)(iii)





                                      -v-



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                          AGREEMENT AND PLAN OF MERGER



          This Agreement and Plan of Merger (this "Agreement") is made and

entered into as of the 18th day of May, 2004, by and among Marsh & McLennan

Companies, Inc., a Delaware corporation ("MMC"), King Merger Corp., a Delaware

corporation and a wholly owned subsidiary of MMC ("Merger Sub"), and Kroll Inc.,

a Delaware corporation ("Kroll").





                                    RECITALS



          WHEREAS, MMC and Kroll desire that MMC combine its businesses with the

businesses operated by Kroll through the merger of Merger Sub with and into

Kroll, with Kroll as the surviving corporation (the "Merger"), pursuant to which

each share of common stock of Kroll, par value $0.01 per share ("Kroll Common

Stock") issued and outstanding at the Effective Time (as defined in Section

1.2), other than the shares of Kroll Common Stock owned by MMC, Merger Sub or

Kroll (or any of their respective direct or indirect wholly owned subsidiaries

(as defined in Section 8.3)) and other than the Appraisal Shares (as defined in

Section 2.1(d)), will be converted into the right to receive the Merger

Consideration (as defined in Section 2.1(b)), all as more fully provided in this

Agreement; and



          WHEREAS, concurrently with the execution of this Agreement, as a

condition and inducement to MMC's willingness to enter into this Agreement, MMC

and certain Kroll Stockholders (as defined in Section 1.6(a)) are entering into

a Support Agreement, of even date herewith, in respect of shares of Kroll Common

Stock beneficially owned by such stockholders (the "Support Agreement"); and



          WHEREAS, concurrently with the execution of this Agreement, as a

condition and inducement to MMC's willingness to enter into this Agreement, MMC

and certain Kroll executive officers and employees are entering into employment

agreement term sheets, of even date herewith; and



          WHEREAS, the board of directors (the "Board") of each of MMC, Merger

Sub and Kroll has determined that the Merger upon the terms and subject to the

conditions set forth in this Agreement is advisable, fair to and in the best

interests of their respective stockholders; and



          WHEREAS, MMC, Merger Sub and Kroll desire to make those

representations, warranties, covenants and agreements specified herein in

connection with this Agreement.



          NOW, THEREFORE, in consideration of the premises, and of the

representations, warranties, covenants and agreements contained herein, MMC,

Merger Sub and Kroll agree as follows:





                                      -1-



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                                   ARTICLE I



                                   THE MERGER



          1.1.   THE MERGER. Upon the terms and subject to the conditions of

this Agreement, and in accordance with the provisions of the Delaware General

Corporation Law (the "DGCL"), Merger Sub shall be merged with and into Kroll at

the Effective Time. As a result of the Merger, the separate corporate existence

of Merger Sub shall cease and Kroll shall continue its existence as a wholly

owned subsidiary of MMC under the laws of the State of Delaware. Kroll, in its

capacity as the corporation surviving the Merger, is hereinafter sometimes

referred to as the "Surviving Corporation."



          1.2.   CLOSING; EFFECTIVE TIME. A closing (the "Closing") shall be

held at the offices of Wachtell, Lipton, Rosen & Katz, 51 West 52nd Street, New

York, N.Y. 10019, or such other place as the parties hereto may agree, as soon

as practicable but no later than the second business day following the date upon

which all conditions set forth in Article VI (other than those conditions that

by their nature are to be satisfied or waived at the Closing, but subject to the

satisfaction or waiver of those conditions) are satisfied or waived, or at such

other date as MMC and Kroll may agree (such date, the "Closing Date"). As

promptly as possible on the Closing Date, the parties hereto shall cause the

Merger to be consummated by filing with the Secretary of State of the State of

Delaware (the "Delaware Secretary of State") a certificate of merger (the

"Certificate of Merger") in such form as is required by and executed in

accordance with Section 251 of the DGCL. The Merger shall become effective when

the Certificate of Merger has been filed with the Delaware Secretary of State or

at such later time as shall be agreed upon by MMC and Kroll and specified in the

Certificate of Merger (the "Effective Time").



          1.3.   EFFECTS OF THE MERGER. From and after the Effective Time, the



Merger shall have the effects set forth in Section 259 of the DGCL.



          1.4.   CERTIFICATE OF INCORPORATION AND BYLAWS. The Certificate of

Merger shall provide that at the Effective Time, (a) the Surviving Corporation's

Certificate of Incorporation as in effect immediately prior to the Effective

Time shall be amended as of the Effective Time so as to contain the provisions,

and only the provisions, contained immediately prior thereto in Merger Sub's

Certificate of Incorporation, and (b) Merger Sub's Bylaws in effect immediately

prior to the Effective Time shall be the Surviving Corporation's Bylaws; in each

case, until amended in accordance with the DGCL.



          1.5.   DIRECTORS AND OFFICERS OF THE SURVIVING CORPORATION. From and

after the Effective Time, the officers of Kroll shall be the officers of the

Surviving Corporation and the directors of Merger Sub shall be the directors of

the Surviving Corporation, in each case, until their respective successors are

duly elected and qualified.



          1.6.   KROLL STOCKHOLDERS MEETING.



          (a)    As promptly as practicable following the date of this

Agreement, Kroll shall, in accordance with Applicable Laws (as defined in

Section 2.2(a)) and Kroll's Amended





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and Restated Certificate of Incorporation as in effect on the date of this

Agreement (the "Kroll Certificate") and Kroll's Amended and Restated Bylaws as

in effect on the date of this Agreement (the "Kroll Bylaws"), duly call, give

notice of, convene and hold a meeting of the holders of shares of Kroll Common

Stock (the "Kroll Stockholders") to consider and vote upon approval of this

Agreement and the Merger (the "Kroll Stockholders Meeting"). Kroll shall ensure

that the Kroll Stockholders Meeting is called, noticed, convened, held and

conducted, and that all proxies solicited by Kroll in connection with the Kroll

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