* Sees difficult 2010 as client exposures continue to fall

* Says 75 pct of savings from job cuts to add to bottomline

* Sees M&A ramping up in 2010

* Shares down as much as 6 pct

By Anurag Kotoky and Brenton Cordeiro

BANGALORE, Oct 28 (Reuters) - Arthur J. Gallagher (AJG.N: Quote, Profile, Research) said on Wednesday it sees a difficult 2010 as client exposures continue to fall, a day after the U.S. insurance broker announced job cuts.

Shares of the company fell 6 percent to $22.54 in morning trade on the New York Stock Exchange.

"When you combine this (falling client exposure) with continuing reduction in rates, organic growth is really, really squeezed," Chief Executive J. Patrick Gallagher said on a conference call with analysts.

The Itasca, Illinois-based company reported on Tuesday that organic revenue declined 5.5 percent to $279.2 million for the third quarter, and said it would cut about 400 positions. [ID:nBNG514373]