MONEYGRAM INTERNATIONAL INC
DEFERRED COMPENSATION PLAN
<DOCUMENT>
<TYPE>EX-10.15
<SEQUENCE>2
<FILENAME>c01871exv10w15.htm
<DESCRIPTION>DEFERRED COMPENSATION PLAN
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.15
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MONEYGRAM INTERNATIONAL, INC.<BR>
DEFERRED COMPENSATION PLAN<BR>
Adopted February&nbsp;16, 2006</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MONEYGRAM INTERNATIONAL, INC.<BR>
DEFERRED COMPENSATION PLAN<BR>
Adopted February&nbsp;16, 2006</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
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    <TD nowrap align="right" colspan="2"><B>Page</B></TD>
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<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 1. INTRODUCTION AND DEFINITIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.1. Statement of Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.1.1. History</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.1.2. Purpose</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.2. Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.1. Account</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.2. Affiliate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.3. Annual Deferral Amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.4. Beneficiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.5. Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.6. Code</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.7. Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.8. Compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.9. Disability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.10. Effective Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.11. Employers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.12. ERISA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.13. Event of Maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.14. Human Resources Committee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.15. Incentive Pay</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.16. MGI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.17. Participant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.18. Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.19. Plan Statement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.20. Plan Year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.21. Scheduled Distribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.22. Termination of Employment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.23. Unforeseeable Emergency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">1.2.24. Valuation Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2. PARTICIPATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">2.1. Eligibility to Participate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.1.1. Compensation Deferrals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.1.2. Supplemental Profit Sharing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD nowrap align="right" colspan="2"><B>Page</B></TD>
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    <TD><DIV style="margin-left:45px; text-indent:-15px">2.1.3. Incentive Pay Deferrals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.2. Enrollment for Elective Deferrals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.2.1. Compensation Deferrals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.2.2. Incentive Pay Deferrals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2.2.3. Election As to Time and Form of Payment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3. CREDITS TO ACCOUNTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.1. Elective Deferral Credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.2. Matching Credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.2.1. Matching Credits on Compensation Deferrals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">3.2.2. Matching Credits on Incentive Pay Deferrals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.3. Supplemental Profit Sharing Credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4. ADJUSTMENT OF ACCOUNTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.1. Establishment of Accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.2. Adjustments of Accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.3. Investment Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 5. VESTING OF ACCOUNTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6. MATURITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 7. DISTRIBUTIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.1. Scheduled Distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.1.1. Scheduled Distributions of Compensation Deferrals and
Matching Credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.1.2. Scheduled Distributions of Incentive Pay Deferrals and
Matching Credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.1.3. Event of Maturity Takes Precedence Over Scheduled
Distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.2. Hardship Withdrawals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.3. Payment Upon Event of Maturity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.3.1. Time of Payment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">7.3.2. Form of Payment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.4. Designation of Beneficiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.5. No Spousal Rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.6. Death Prior to Full Distribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.7. Distributions in Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 8. FUNDING OF PLAN</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.1. Unfunded Obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.2. Corporate Obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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<P align="center" style="font-size: 10pt">&nbsp;
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9. AMENDMENT AND TERMINATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">9.1. Amendment and Termination</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">9.2. No Oral Amendments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">9.3. Plan Binding on Successors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 10. DETERMINATIONS &#151;  RULES AND REGULATIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.1. Determinations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.2. Method of Executing Instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.3. Claims Procedure</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.3.1. Initial Claim</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.3.2. Notice of Initial Adverse Determination</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.3.3. Request for Review</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.3.4. Claim on Review</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.3.5. Notice of Adverse Determination for Claim on Review</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.4. Rules and Regulations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.4.1. Adoption of Rules</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.4.2. Special Rules</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">10.4.3. Limitations and Exhaustion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 11. PLAN ADMINISTRATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.1. Authority</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.1.1. MGI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.1.2. Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">11.1.3. Board of Directors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.2. Conflict of Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.3. Service of Process</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 12. CONSTRUCTION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.1. ERISA Status</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.2. IRC Status</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.3. Effect on Other Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.4. Disqualification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.5. Rules of Document Construction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.6. References to Laws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.7. Choice of Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.8. ERISA Administrator</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.9. Delegation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.10. Not an Employment Contract</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.11. Tax Withholding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.12. Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.13. Spendthrift Provision</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.14. Amendment History</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MONEYGRAM INTERNATIONAL, INC.<BR>
DEFERRED COMPENSATION PLAN<BR>
Adopted February&nbsp;16, 2006</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>SECTION 1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>INTRODUCTION AND DEFINITIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.1. <B>Statement of Plan</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1. <B>History</B>. Effective January&nbsp;1, 2006, MONEYGRAM INTERNATIONAL, INC. (hereinafter
sometimes referred to as &#147;MGI&#148;) and certain affiliated corporations (together with MGI hereinafter
sometimes collectively referred to as the &#147;Employers&#148; and separately as the &#147;Employer&#148;) established
a nonqualified, unfunded deferred compensation plan known as the &#147;MONEYGRAM INTERNATIONAL, INC.
SUPPLEMENTAL 401(k) PLAN,&#148; which permits eligible employees to defer Compensation and receive
matching credits with respect to such deferrals. Effective in 2005, MGI also established a
nonqualified, unfunded deferred compensation plan known as the &#147;MONEYGRAM INTERNATIONAL, INC.
SUPPLEMENTAL PROFIT SHARING PLAN,&#148; which provided eligible employees with supplemental profit
sharing credits and was merged with and continues to be operated under the terms of this Plan.
Now, effective as of the date adopted by MGI&#146;s Board of Directors, this Plan is hereby amended and
restated to permit eligible employees to elect to defer certain incentive pay awards under the
Plan. The Plan, as amended and restated, shall be known as the &#147;MONEYGRAM INTERNATIONAL, INC.
DEFERRED COMPENSATION PLAN&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2. <B>Purpose</B>. MGI has established this nonqualified, unfunded, deferred compensation plan
which contains three components:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the first component allows a select group of management and highly
compensated employees whose elective Pre-Tax Deferrals for a Plan Year under the
MoneyGram International, Inc. 401(k) Plan are expected to be limited under section
402(g) of the Code to defer the receipt of Compensation which would otherwise be paid
to those employees, and to receive matching credits with respect to such deferrals;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the second component allows a select group of management and highly
compensated employees whose Profit Sharing Contribution for a Plan Year under the
MoneyGram International, Inc. 401(k) Plan was reduced by sections 401(a)(17) and 415
of the Code or any other legal limitations to receive a supplemental profit sharing
credit under this Plan; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the third component allows a select group of management and highly
compensated employees to defer receipt of Incentive Pay which would</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>otherwise be paid to those employees, and receive matching credits with
respect to such deferrals.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.2. <B>Definitions</B>. When the following terms are used herein with initial capital letters, they
shall have the following meanings:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1. <B>Account </B>&#151; the separate bookkeeping account representing the separate unfunded and
unsecured general obligation of the Employers established with respect to each person who is a
Participant in this Plan in accordance with Section&nbsp;2 and to which is credited the amounts
specified in Section&nbsp;3 and Section&nbsp;4, which will vest in accordance with Section&nbsp;5 and from which
are subtracted payments made pursuant to Section&nbsp;6 and Section&nbsp;7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2. <B>Affiliate </B>&#151; a business entity which is affiliated in ownership with MGI that is
recognized as an Affiliate by MGI for the purposes of this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3. <B>Annual Deferral Amount </B>&#151; an entry on the records of the Employers equal to the
following amounts deferred in any one Plan Year equal to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with respect to a Participant in the Compensation deferral component of the
Plan, that portion of a Participant&#146;s Compensation that a Participant elects to defer
for the Plan Year, along with any matching credits made thereon; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with respect to a Participant in the Incentive Pay deferral component of
the Plan, that portion of a Participant&#146;s Incentive Pay that a Participant elects to
defer for a performance period and which is credited to the Plan during a Plan Year,
along with any matching credits made thereon.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Annual Deferral Amount shall be a bookkeeping entry only and shall be utilized solely as a
device for the measurement and determination of the amounts credited to a Participant&#146;s Account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.4. <B>Beneficiary </B>&#151; a person designated in accordance with Section&nbsp;7.4 to receive all or a
part of the Participant&#146;s Account in the event of the Participant&#146;s death prior to full
distribution thereof. A person so designated shall not be considered a Beneficiary until the death
of the Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.5. <B>Chief Executive Officer </B>&#151; the chief executive officer of MGI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.6. <B>Code </B>&#151; the Internal Revenue Code of 1986, as amended (including, when the context
requires, all regulations, interpretations and rulings issued thereunder).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.7. <B>Common Stock </B>&#151; common stock of MGI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.8. <B>Compensation </B>&#151; Compensation as defined under the MoneyGram International, Inc. 401(k)
Plan; provided, however, that Compensation for purposes of this Plan shall be determined without
regard to limitations imposed under section 401(a)(17) of the Code.
</DIV>

<P align="center" style="font-size: 10pt">-2-
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Performance-based pay (as that
term is defined under section 409A of the Code and regulations thereunder) shall be excluded from
Compensation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.9. <B>Disability </B>&#151; a medically determinable physical or mental impairment which: (i)
renders the individual incapable of performing any substantial gainful employment, (ii)&nbsp;can be
expected to result in death or can be expected to last for a continuous period of not less than
twelve (12)&nbsp;months, and (iii)&nbsp;is evidenced by a certification to this effect by a doctor of
medicine approved by MGI. In lieu of such a certification, a Participant shall be considered
disabled if the Participant is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12)&nbsp;months, receiving income replacement benefits for a period of
not less than three (3)&nbsp;months under an accident and health plan covering employees of the
Participant&#146;s Employer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.10. <B>Effective Date </B>&#151; the date this restated Plan document is adopted by the Board of
Directors of MGI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.11. <B>Employers </B>&#151; MGI and each business entity affiliated with MGI that employs persons who
are designated for participation in this Plan (collectively the &#147;Employers&#148; and separately the
&#147;Employer&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.12. <B>ERISA </B>&#151; the Employee Retirement Income Security Act of 1974, as amended (including,
when the context requires, all regulations, interpretations and rulings issued thereunder).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.13. <B>Event of Maturity </B>&#151; any of the occurrences described in Section&nbsp;6 by reason of which
a Participant or Beneficiary may become entitled to a distribution from this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.14. <B>Human Resources Committee </B>&#151; the Human Resources Committee of the Board of Directors
of MGI (or any successor committee).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.15. <B>Incentive Pay </B>&#151; any performance-based cash compensation, other than Compensation,
earned by a Participant under any Employer&#146;s annual or long-term incentive plans for services
rendered during a performance period of at least 12&nbsp;months, as specified and approved by the Human
Resources Committee in its sole discretion (in accordance with Section&nbsp;409A of the Code and related
guidance).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.16. <B>MGI </B>&#151; MoneyGram International, Inc. and any successor thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.17. <B>Participant </B>&#151; an employee of an Employer who is designated as eligible to participate
in this Plan and becomes a Participant in this Plan in accordance with the provisions of Section&nbsp;2.
An employee who has become a Participant shall be considered to continue as a Participant in this
Plan until the date of the Participant&#146;s death or, if earlier, the date when the Participant is no
longer employed by an Employer or an Affiliate and upon which the Participant no longer has any
Account under this Plan (that is, the Participant has received a distribution of all of the
Participant&#146;s Account).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.18. <B>Plan </B>&#151; the nonqualified, income deferral program maintained by MGI established for
the benefit of Participants eligible to participate therein, as set forth in the Plan Statement.
(As used herein, &#147;Plan&#148; does not refer to the documents pursuant to which this Plan is maintained.
That document is referred to herein as the &#147;Plan Statement&#148;). The Plan shall consist of three
parts: the &#147;Compensation deferral&#148; component consisting of elective deferrals of Compensation and
matching credits with respect to such deferrals, if applicable; (ii)&nbsp;the &#147;supplemental profit
sharing&#148; component consisting of supplemental profit sharing credits made with respect to one or
more Participants; and (iii)&nbsp;the &#147;Incentive Pay deferral&#148; component consisting of deferrals of
Incentive Pay and matching credits with respect to such deferrals, if applicable. All parts
together constitute the Plan and shall be referred to as the &#147;MONEYGRAM INTERNATIONAL, INC.
DEFERRED COMPENSATION PLAN.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.19. <B>Plan Statement </B>&#151; this document entitled &#147;MONEYGRAM INTERNATIONAL, INC. DEFERRED
COMPENSATION PLAN&#148; as adopted by the Board of Directors of MGI (based upon recommendation by the
Human Resources Committee), as the same may be amended from time to time thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.20. <B>Plan Year </B>&#151; the twelve (12)&nbsp;consecutive month period ending on any December&nbsp;31.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.21. <B>Scheduled Distribution </B>&#151; the scheduled, in-service distribution set forth in Section
7.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.22. <B>Termination of Employment </B>&#151; a complete severance of an employee&#146;s employment
relationship with the Employers and all Affiliates, if any, for any reason. A transfer from
employment with an Employer to employment with an Affiliate of an Employer shall not constitute a
Termination of Employment. A transfer from full-time employment to employment on a part-time basis
shall not constitute a Termination of Employment. If an Employer who is an Affiliate ceases to be
an Affiliate because of a sale of substantially all the stock or assets of that Employer, then
Participants who are employed by that Employer shall be deemed to have thereby had a Termination of
Employment for the purpose of commencing distributions from this Plan. Notwithstanding the
foregoing, a Termination of Employment shall not occur unless such termination also qualifies as a
&#147;separation from service&#148;, as defined under section 409A of the Code and related guidance
thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.23. <B>Unforeseeable Emergency </B>&#151; a severe financial hardship to the Participant resulting
from an illness or accident of the Participant, the Participant&#146;s spouse, or a dependent (as
defined in section 152(a) of the Code) of the Participant, loss of the Participant&#146;s property due
to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.24. <B>Valuation Date </B>&#151; the last day of each calendar quarter of the Plan Year, and such
other dates as may be specified by MGI.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>PARTICIPATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.1. <B>Eligibility to Participate</B>. In all cases, an employee selected for participation under
this Section&nbsp;2 shall be a member of a select group of management or highly compensated employees
(as that expression is used in ERISA). Such employee shall as a condition of participation in this
Plan complete such forms as MGI may require for the effective administration of this Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1. <B>Compensation Deferrals. </B>Any employee of an Employer selected for participation by the
Chief Executive Officer shall become a Participant in the Compensation deferral component of the
Plan as of any date selected by the Chief Executive Officer. The Chief Executive Officer shall not
select any employee for participation unless the Chief Executive Officer determines that such
employee&#146;s Pre-Tax Deferrals for a Plan Year under the MoneyGram International, Inc. 401(k) Plan
are expected to be limited by section 402(g) of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2. <B>Supplemental Profit Sharing. </B>Any employee of an Employer selected for participation by
the Chief Executive Officer shall become a Participant in the supplemental profit sharing component
of the Plan as of any date selected by the Chief Executive Officer. The Chief Executive Officer
shall not select any employee for participation unless the Chief Executive Officer determines that
such employee&#146;s Profit Sharing Contribution for a Plan Year under the MoneyGram International, Inc.
401(k) Plan is reduced by sections 401(a)(17) and 415 of the Code or any other legal limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3. <B>Incentive Pay Deferrals. </B>Any employee of an Employer selected for participation by the
Chief Executive Officer shall become a Participant in the Incentive Pay deferral component of the
Plan as of any date selected by the Chief Executive Officer.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.2. <B>Enrollment for Elective Deferrals</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. <B>Compensation Deferrals.</B>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Election to Defer Compensation</B>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Initial Election</B>. In the case of an employee
who first becomes eligible to make elective deferrals under the Plan,
no later than thirty (30)&nbsp;days after the employee is notified of
eligibility to make a deferral election, such employee shall complete
such forms as necessary to defer a portion of the employee&#146;s
Compensation for that Plan Year. The agreement to defer a portion of
the employee&#146;s Compensation may only be made with respect to
Compensation earned for services performed for such Plan Year
subsequent to the deferral election, except to the extent permissible
under Section&nbsp;409A of the Code. (Alternatively, such election may be
made as late as the last day of the Plan Year in which the employee
first becomes eligible</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the agreement to defer Compensation is made
solely with respect to Compensation to be earned for services performed
in the succeeding Plan Year.)</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Subsequent Elections</B>. Each active
Participant&#146;s deferral agreement shall expire upon the last day of the
Plan Year to which it relates. Each eligible Participant who wishes to
defer Compensation for a subsequent Plan Year must make an election to
defer Compensation prior to the first day of that subsequent Plan Year.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Irrevocability</B>. A deferral agreement accepted
by the Employer shall become irrevocable when the Plan Year with
respect to which it is made has commenced; provided, however, that if
the Participant receives a distribution on account of a Disability or
Unforeseeable Emergency during such Plan Year, the Participant&#146;s
agreement shall be cancelled, and further deferrals shall not be made.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Maximum/Minimum Amounts</B>. The terms of any such agreement shall provide
that the employee elects a deferral of Compensation equal to any percentage of
Compensation per payroll period, which shall not exceed fifty percent (50%), or be
less than one percent (1%) of such Compensation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Withholding</B>. In the event an employee elects to defer an amount of his or
her Compensation that would not allow for the full payment of all FICA, federal,
state and/or local income tax liabilities, the actual amount deferred shall be the
maximum amount allowable after all applicable taxes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. <B>Incentive Pay Deferrals</B>.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Election to Defer Incentive Pay</B>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Initial Election</B>. When an employee first
becomes eligible to make elective deferrals of Incentive Pay, such
employee shall complete such forms as necessary to defer a portion of
the employee&#146;s Incentive Pay. The agreement to defer a portion of the
employee&#146;s Incentive Pay shall be made no later than six (6)&nbsp;months
before the end of the performance period applicable to such Incentive
Pay. (Alternatively, if an employee first becomes eligible to
participate in the Plan less than six (6)&nbsp;months before the end of the
performance period, such initial election may be made within thirty
(30)&nbsp;days but only with respect to Incentive Pay earned for services
performed subsequent to the deferral election, except to the extent
permissible under Section&nbsp;409A of the Code.)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Subsequent Elections</B>. Each active
Participant&#146;s deferral agreement shall expire upon the last day of the
performance period to which it</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>relates. Each eligible Participant who
wishes to defer Incentive Pay for a subsequent performance period must
make an election to defer Incentive Pay no later than six (6)&nbsp;months
prior to the end of that subsequent performance period.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Irrevocability</B>. A deferral agreement accepted
by the Employer shall become irrevocable as of the date that is six (6)
months before the end of the performance period applicable to such
Incentive Pay; provided, however, that if the Participant receives a
distribution on account of a Disability or Unforeseeable Emergency
occurs during such performance period, the Participant&#146;s agreement
shall be cancelled, and further deferrals shall not be made.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Maximum/Minimum Amounts</B>. The terms of any such agreement shall provide
that the employee elects a deferral of Incentive Pay equal to any percentage of
Incentive Pay for the applicable performance period, not to exceed one hundred
percent (100%), or be less than one percent (1%) of such Incentive Pay.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Withholding</B>. In the event an employee elects to defer an amount of his or
her Incentive Pay that would not allow for the full payment of all FICA, federal,
state and/or local income tax liabilities, the actual amount deferred shall be the
maximum amount allowable after all applicable taxes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3. <B>Election As to Time and Form of Payment</B>. In connection with the Participant&#146;s initial
enrollment in the Plan, the Participant shall elect the form in which his or her Account shall be
paid upon such Participant&#146;s Termination of Employment (to the extent not previously distributed as
a Scheduled Distribution). The Participant may elect to receive his or her Account at Termination
of Employment in the form of a lump sum or pursuant to an annual installment method of up to five
(5)&nbsp;years (in accordance with Section&nbsp;7). In addition, in connection with each election to defer
an Annual Deferral Amount, the Participant may elect whether to receive all or a portion of his or
her Annual Deferral Amount as a Scheduled Distribution. An election as to the time and form of
payment, once accepted by the Employer and made effective, may not be changed.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 3</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>CREDITS TO ACCOUNTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.1. <B>Elective Deferral Credits</B>. Elective deferrals of Compensation shall be credited to the
Participant&#146;s Account throughout the Plan Year as the Participant otherwise would have been paid
the deferred portion of the Participant&#146;s Compensation. Elective deferrals of Incentive Pay shall
be credited to the Participant&#146;s Account as of the date on which (or as soon as administratively
practicable thereafter) such amounts would otherwise have been paid under the applicable incentive
plan of the Employer. Such credits shall be recorded in cash.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.2. <B>Matching Credits</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1. <B>Matching Credits on Compensation Deferrals</B>. With respect to one or more Participants
in the Compensation deferral component of the Plan, MGI may make a matching credit to a
Participant&#146;s Account for a Plan Year. MGI shall have sole discretion to determine the matching
credit which shall be credited, if any, and shall not have any obligation for uniformity of
treatment among Participants or of any other person; provided, however, that such matching credit
shall not exceed one hundred percent (100%) of the first four percent (4%) of Compensation deferred
by the Participant for the Plan Year and credited under Section&nbsp;3.1 above. MGI&#146;s decision to make
a matching credit in any year shall not require approval of similar awards at all to any
Participant or other person at any future date. Matching credits shall be recorded in cash as of
the time or times (or as soon as administratively practicable thereafter) when the credits are
awarded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2. <B>Matching Credits on Incentive Pay Deferrals</B>. With respect to one or more Participants
in the Incentive Pay deferral component of the Plan, MGI may make a matching credit to a
Participant&#146;s Account for a Plan Year. MGI shall have sole discretion to determine the amount
which shall be credited, if any, and shall not have any obligation for uniformity of treatment
among Participants or of any other person. MGI&#146;s decision to make a matching credit in any year
shall not require approval of similar awards at all to any Participant or other person at any
future date. Matching credits shall be recorded in cash as of the time or times (or as soon as
administratively practicable thereafter) when the credits are awarded. The match credited with
respect to an Incentive Pay deferral shall not exceed the lesser of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>one hundred percent (100%) of the first four (4%) of Incentive Pay deferred
by the Participant for the performance period and credited under Section&nbsp;3.1; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>four percent (4%) of the Participant&#146;s Compensation for the Plan Year
immediately preceding the Plan Year in which the Incentive Pay deferral is credited
to the Plan, less the total match credited with respect to Compensation deferred by
the Participant for such preceding Plan Year under Section&nbsp;3.2.1.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.3. <B>Supplemental Profit Sharing Credits</B>. With respect to one or more Participants in the
supplemental profit sharing component of the Plan, MGI may make a profit sharing credit to a
Participant&#146;s Account for a Plan Year to the extent that it is determined that a Participant&#146;s
Profit Sharing Contribution under the MoneyGram International, Inc. 401(k) Plan was reduced by
sections 401(a)(17) or 415 of the Code or any other legal limitations. MGI shall have sole
discretion to determine the amount of the reduction which shall be credited to this Plan, if any,
and shall not have any obligation for uniformity of treatment among Participants or of any other
person. In no event, however, shall the amount credited under this Plan with respect to a Plan
Year exceed the amount by which the Participant&#146;s Profit Sharing Contribution under the MoneyGram
International, Inc. 401(k) Plan was reduced by sections 401(a)(17) and 415 of the Code or any other
legal limitations for such Plan Year. MGI&#146;s decision to make a supplemental
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">profit sharing credit
in any year shall not require approval of similar awards at all to any Participant or other person
at any future date. Supplemental profit sharing credits shall be recorded in cash as of the time
or times (or as soon as administratively practicable thereafter) when the credits are awarded.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 4</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>ADJUSTMENT OF ACCOUNTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1. <B>Establishment of Accounts</B>. There shall be established for each Participant unfunded,
bookkeeping Accounts which shall be adjusted each Valuation Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2. <B>Adjustments of Accounts</B>. From time to time but not less frequently than each Valuation Date,
MGI shall cause the value of each Account or portion of an Account to be increased (or decreased)
from time to time for distributions, credits (including any earnings, gains or losses thereon) and
expenses, if any, charged to the Account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.3. <B>Investment Adjustments</B>. The Human Resources Committee shall designate from time to time one
or more investment options in which Accounts may be deemed invested. Such deemed investment
options may include any investment which the Human Resources Committee deems appropriate,
including, but not limited to, fixed interest credits, notional mutual fund(s) or an investment index. The Human Resources
Committee shall have the sole discretion to determine the number of deemed investment options to be
designated hereunder and the nature of the options and may change or eliminate the investment
options from time to time. The Human Resources Committee shall adopt rules specifying the deemed
investment options, the circumstances under which a particular option may be elected (or shall be
automatically utilized), the minimum or maximum percentages which may be allocated to the
investment option, the procedures (if any) for Participants making or changing elections, the
extent (if any) to which beneficiaries of deceased Participants may make investment elections and
the effect of a Participant&#146;s or beneficiary&#146;s failure to make an effective investment election
with respect to all or any portion of an Account.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 5</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>VESTING OF ACCOUNTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Account of each Participant shall be fully (100%) vested and nonforfeitable at all times.
Notwithstanding the foregoing, if MGI determines in its discretion that a Participant has
improperly received a credit under this Plan for any reason (including, but not limited to, an
erroneous calculation or other mistake of fact, or on account of a restatement of earnings), the
Account shall be reduced by the amount of the improper credit.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 6</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>MATURITY</B>
</DIV>


<P align="center" style="font-size: 10pt">-9-
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The vested portion of a Participant&#146;s Account shall mature and shall become distributable in
accordance with Section&nbsp;7 upon the earliest occurrence of any of the following events:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Participant incurs a Termination of Employment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Participant dies; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Participant incurs a Disability.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 7</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>DISTRIBUTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.1. <B>Scheduled Distributions</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1. <B>Scheduled Distributions of Compensation Deferrals and Matching Credits</B>. In connection
with each election to defer Compensation, a Participant may irrevocably elect to receive a Scheduled Distribution. The Scheduled Distribution shall be a
lump sum payment in an amount that is equal to the portion of the Annual Deferral Amount (<I>i.e</I>., the
Compensation deferral plus any matching credits thereon for such Plan Year, if any) the Participant
elected to have distributed as a Scheduled Distribution, plus amounts credited or debited in the
manner provided in Section&nbsp;4 on that amount, calculated as of the Valuation Date immediately
preceding the date on which the Scheduled Distribution becomes payable. Subject to the other terms
and conditions of this Plan, each Scheduled Distribution elected shall be paid out during a sixty
(60)-day period commencing immediately after the first day of any Plan Year designated by the
Participant. The Plan Year designated by the Participant must be at least three (3)&nbsp;Plan Years
after the end of the Plan Year to which the Participant&#146;s deferral election relates. By way of
example, if a Scheduled Distribution is elected for Compensation deferred for the Plan Year
commencing January&nbsp;1, 2006, the earliest Scheduled Distribution could become payable during a sixty
(60)-day period commencing January&nbsp;1, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2. <B>Scheduled Distributions of Incentive Pay Deferrals and Matching Credits</B>. In connection
with each election to defer Incentive Pay, a Participant may irrevocably elect to receive a
Scheduled Distribution. The Scheduled Distribution shall be a lump sum payment in an amount that
is equal to the portion of the Annual Deferral Amount (<I>i.e</I>., the Incentive Pay deferral credited
during a Plan Year, plus any matching credits thereon, if any) the Participant elected to have
distributed as a Scheduled Distribution, plus amounts credited or debited in the manner provided in
Section&nbsp;4 on that amount, calculated as of the Valuation Date immediately preceding the date on
which the Scheduled Distribution becomes payable. Subject to the other terms and conditions of
this Plan, each Scheduled Distribution elected shall be paid out during a sixty (60)-day period
commencing immediately after the first day of any Plan Year designated by the Participant. The
Plan Year designated by the Participant must be at least three (3)&nbsp;Plan Years after the end of the
Plan Year during which the Incentive Pay deferral is actually credited to the Plan. By way of
example, if a Scheduled Distribution is elected for Incentive Pay deferrals that are credited in
the Plan Year
</DIV>

<P align="center" style="font-size: 10pt">-10-
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">commencing January&nbsp;1, 2006, the earliest Scheduled Distribution could become payable
during a sixty (60)-day period commencing January&nbsp;1, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3. <B>Event of Maturity Takes Precedence Over Scheduled Distributions</B>. If an Event of
Maturity occurs that triggers payment under Section&nbsp;7.3, any Scheduled Distribution elections
outstanding but unpaid shall not be paid in accordance with this Section&nbsp;7.1, but shall be paid in
accordance with Section&nbsp;7.3. Notwithstanding the foregoing, the Human Resources Committee shall
interpret this Section&nbsp;7.1.3 in a manner that is consistent with Code Section&nbsp;409A and other
applicable tax law, including but not limited to guidance issued after the effective date of this
Plan.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.2. <B>Hardship Withdrawals</B>. A Participant who has not incurred an Event of Maturity but who has
incurred an Unforeseeable Emergency may request a withdrawal from such Participant&#146;s Account. In
the event that MGI, upon written petition of the Participant, determines in his or her sole
discretion that the Participant has suffered an Unforeseeable Emergency, the Employer shall
distribute to the Participant as soon as reasonably practicable following such determination, an amount, not in excess of the value (based on the
immediately preceding Valuation Date) of the Participant&#146;s Account, necessary to satisfy the
emergency. Immediately upon the distribution, such Participant&#146;s deferral agreement shall be
cancelled in accordance with Section&nbsp;2.2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.3. <B>Payment Upon Event of Maturity</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.1. <B>Time of Payment</B>. Upon the occurrence of an Event of Maturity effective as to a
Participant, payment of such Participant&#146;s entire Account balance (reduced by the amount of any
applicable payroll, withholding and other taxes) shall commence in the form designated under
Section&nbsp;7.3.2 below. Distribution shall not be made to any Beneficiary until MGI has determined
that the Beneficiary is entitled to payment. Notwithstanding the foregoing, where payment under
this Section&nbsp;7 is made to any &#147;key employee&#148; (as defined under section 409A of the Code) on account
of Termination of Employment, such payment shall commence no earlier than six (6)&nbsp;months following
a Termination of Employment (or upon the death of the employee, if earlier) if required to comply
with section 409A of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.2. <B>Form of Payment</B>. If a Participant&#146;s Account becomes distributable by reason of one of
the Events of Maturity listed in Section&nbsp;6, distribution of the Participant&#146;s entire Account
balance shall be made in a single lump sum; provided, however, that if the Event of Maturity is the
Participant&#146;s Termination of Employment, distribution shall be made: (i)&nbsp;in a single lump sum, or
(ii)&nbsp;in annual installments over a period not to exceed five (5)&nbsp;years, in accordance with such
Participant&#146;s initial enrollment election under Section&nbsp;2.2 (on forms furnished and filed with
MGI). In the event no election is made by the Participant, payment shall be made in a single lump
sum. For purposes of this Section&nbsp;7.3.2, the following rules shall apply:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Lump sum distributions shall be valued as soon as administratively
practicable following the Valuation Date coincident with or next following the
Participant&#146;s Event of Maturity (or in the case of a key employee whose Event of
Maturity is a Termination of Employment, the date which is six (6)</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">-11-
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>months following
such Event of Maturity). Actual distribution shall be made as soon as
administratively practicable after such determination.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The amount of each annual installment shall be determined as of the
Valuation Date coincident with or next following each December&nbsp;31, by dividing the
amount of the Account as of such Valuation Date by the number of remaining
installment payments to be made. Such installments shall be paid as soon as
administratively practicable after such determination. In the case of a key
employee, installments shall be determined as of the Valuation Date coincident with
or next following the December&nbsp;31 which is at least six (6)&nbsp;months following such
Participant&#146;s Termination of Employment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Participant dies following a Termination of Employment but before
installments are completed, all remaining installments shall be made to the
beneficiary or beneficiaries designated under Section&nbsp;7.4 in a single lump sum.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.4. <B>Designation of Beneficiaries</B>. A deceased Participant&#146;s entire Account balance shall be
payable to the beneficiary or beneficiaries designated by the Participant on forms furnished and
filed with MGI. In the absence of a designation or if such designation fails, such benefit shall
be payable in accordance with the rules for automatic beneficiaries under the MoneyGram
International, Inc. 401(k) Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.5. <B>No Spousal Rights</B>. No spouse or surviving spouse of a Participant and no person designated to
be a Beneficiary shall have any rights or interest in the benefits credited under this Plan
including, but not limited to, the right to be the sole Beneficiary or to consent to the
designation of Beneficiaries (or the changing of designated Beneficiaries) by the Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.6. <B>Death Prior to Full Distribution</B>. If, at the death of the Participant, any payment to the
Participant was due or otherwise pending but not actually paid, the amount of such payment shall be
included in the Account which is payable to the Beneficiary (and shall not be paid to the
Participant&#146;s estate).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.7. <B>Distributions in Cash</B>. Distributions from this Plan shall be made in cash.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 8</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>FUNDING OF PLAN</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1. <B>Unfunded Obligation</B>. The obligation of the Employers to make payments under this Plan
constitutes only the unsecured (but legally enforceable) promise of the Employers to make such
payments. No Participant shall have any lien, prior claim or other security interest in any
property of the Employers. The Employers shall have no obligation to establish or maintain any
fund, trust or account (other than a bookkeeping account or reserve) for the purpose of funding or
paying the benefits promised under this Plan. If such a fund, trust or account is established, the
property therein
</DIV>
<P align="center" style="font-size: 10pt">-12-
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">shall remain the sole and exclusive property of the Employer that established it.
The Employers shall be obligated to pay the benefits of this Plan out of their general assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2. <B>Corporate Obligation</B>. Neither MGI, the Board of Directors of MGI, the Chief Executive
Officer, the Human Resources Committee, the Employers nor any of their directors, officers, agents
or employees in any way secure or guarantee the payment of any benefit or amount which may become
due and payable hereunder to or with respect to any Participant. Each person entitled or claiming
to be entitled at any time to any benefit hereunder shall look solely to the assets of the
Employers for such payments as unsecured general creditors. If, or to the extent that, Accounts have been paid to or with respect to a present or
former Participant and that payment purports to be the payment of a benefit hereunder, such former
Participant or other person or persons, as the case may be, shall have no further right or interest
in the other assets of the Employers in connection with this Plan. No person shall be under any
liability or responsibility for failure to effect any of the objectives or purposes of this Plan by
reason of the insolvency of the Employers.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 9</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>AMENDMENT AND TERMINATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.1. <B>Amendment and Termination</B>. The Board of Directors of MGI (based upon recommendation by
the Human Resources Committee) may unilaterally amend the Plan Statement prospectively,
retroactively or both, at any time and for any reason deemed sufficient by it without notice to any
person affected by this Plan and may likewise terminate this Plan both with regard to persons
expecting to receive benefits in the future; provided, however, that the Participant&#146;s vested
accrued benefit as of the date of such amendment or termination, if any, shall not be, without the
written consent of the Participant, diminished or delayed by such amendment or termination. If
there is a termination of the Plan with respect to all Participants, MGI shall have the right, in
its sole discretion, and notwithstanding any elections made by the Participant, to amend the Plan
to immediately pay all benefits in a lump sum following such Plan termination, to the extent
permissible under Section&nbsp;409A of the Code and related Treasury regulations and guidance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.2. <B>No Oral Amendments</B>. No modification of the terms of the Plan Statement or termination of this
Plan shall be effective unless it is in writing and approved by the Board of Directors of MGI by a
person authorized to execute such writing. No oral representation concerning the interpretation or
effect of the Plan Statement shall be effective to amend the Plan Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.3. <B>Plan Binding on Successors</B>. MGI will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise to all or substantially all of the business and/or
assets of MGI), by agreement, to expressly assume and agree to perform this Plan in the same manner
and to the same extent that MGI would be required to perform it if no such succession had taken
place.
</DIV>


<P align="center" style="font-size: 10pt">-13-
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 10</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>DETERMINATIONS &#151; RULES AND REGULATIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.1. <B>Determinations</B>. MGI shall make such determinations as may be required from time to time
in the administration of this Plan. MGI shall have the discretionary authority and responsibility to interpret and construe the Plan Statement
and to determine all factual and legal questions under this Plan, including but not limited to the
entitlement of Participants and Beneficiaries, and the amounts of their respective interests. Each
interested party may act and rely upon all information reported to them hereunder and need not
inquire into the accuracy thereof, nor be charged with any notice to the contrary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.2. <B>Method of Executing Instruments</B>. Information to be supplied or written notices to be made or
consents to be given by MGI or any other person pursuant to any provision of the Plan Statement may
be signed in the name of MGI by any officer or other person who has been authorized to make such
certification or to give such notices or consents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.3. <B>Claims Procedure</B>. The claim and review procedures set forth in this Section shall be the
mandatory claim and review procedures for the resolution of disputes and disposition of claims
filed under the Plan. An application for a distribution shall be considered as a claim for the
purposes of this Section.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1. <B>Initial Claim</B>. An individual may, subject to any applicable deadline, file with MGI a
written claim for benefits under the Plan in a form and manner prescribed by MGI.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the claim is denied in whole or in part, MGI shall notify the claimant
of the adverse benefit determination within ninety (90)&nbsp;days after receipt of the
claim.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The ninety (90)&nbsp;day period for making the claim determination may be
extended for ninety (90)&nbsp;days if MGI determines that special circumstances require an
extension of time for determination of the claim, provided that MGI notifies the
claimant, prior to the expiration of the initial ninety (90)&nbsp;day period, of the
special circumstances requiring an extension and the date by which a claim
determination is expected to be made.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.2. <B>Notice of Initial Adverse Determination</B>. A notice of an adverse determination shall
set forth in a manner calculated to be understood by the claimant:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the specific reasons for the adverse determination;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to the specific provisions of the Plan Statement (or other
applicable Plan document) on which the adverse determination is based;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">-14-
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a description of any additional material or information necessary to
perfect the claim and an explanation of why such material or information is
necessary; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a description of the claim and review procedures, including the time limits
applicable to such procedure, and a statement of the claimant&#146;s right to bring a
civil action under ERISA section 502(a) following an adverse determination on review.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.3. <B>Request for Review</B>. Within sixty (60)&nbsp;days after receipt of an initial adverse
benefit determination notice, the claimant may file with MGI a written request for a review of the
adverse determination and may, in connection therewith submit written comments, documents, records
and other information relating to the claim benefits. Any request for review of the initial
adverse determination not filed within sixty (60)&nbsp;days after receipt of the initial adverse
determination notice shall be untimely.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.4. <B>Claim on Review</B>. If the claim, upon review, is denied in whole or in part, MGI shall
notify the claimant of the adverse benefit determination within sixty (60)&nbsp;days after receipt of
such a request for review.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The sixty (60)&nbsp;day period for deciding the claim on review may be extended
for sixty (60)&nbsp;days if MGI determines that special circumstances require an extension
of time for determination of the claim, provided that MGI notifies the claimant,
prior to the expiration of the initial sixty (60)&nbsp;day period, of the special
circumstances requiring an extension and the date by which a claim determination is
expected to be made.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that the time period is extended due to a claimant&#146;s failure
to submit information necessary to decide a claim on review, the claimant shall have
sixty (60)&nbsp;days within which to provide the necessary information and the period for
making the claim determination on review shall be tolled from the date on which the
notification of the extension is sent to the claimant until the date on which the
claimant responds to the request for additional information or, if earlier, the
expiration of sixty (60)&nbsp;days.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>MGI&#146;s review of a denied claim shall take into account all comments,
documents, records, and other information submitted by the claimant relating to the
claim, without regard to whether such information was submitted or considered in the
initial benefit determination.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.5. <B>Notice of Adverse Determination for Claim on Review</B>. A notice of an adverse
determination for a claim on review shall set forth in a manner calculated to be understood by the
claimant:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the specific reasons for the denial;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">-15-
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to the specific provisions of the Plan Statement (or other
applicable Plan document) on which the adverse determination is based;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a statement that the claimant is entitled to receive, upon request and free
of charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the claimant&#146;s claim for benefits;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a statement describing any voluntary appeal procedures offered by the Plan
and the claimant&#146;s right to obtain information about such procedures; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a statement of the claimant&#146;s right to bring an action under ERISA section
502(a).</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.4. <B>Rules and Regulations</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.1. <B>Adoption of Rules</B>. Any rule not in conflict or at variance with the provisions hereof
may be adopted by MGI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.2. <B>Specific Rules</B>.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any decision or determination to be made by MGI shall be made by the Chief
Executive Officer unless delegated as provided for in the Plan, in which case
references in this Section&nbsp;10 to the Chief Executive Officer shall be treated as
references to the Chief Executive Officer&#146;s delegate. No inquiry or question shall
be deemed to be a claim or a request for a review of a denied claim unless made in
accordance with the established claim procedures. MGI may require that any claim for
benefits and any request for a review of a denied claim be filed on forms to be
furnished by MGI upon request.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All decisions on claims and on requests for a review of denied claims shall
be made by MGI.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Claimants may be represented by a lawyer or other representative at their
own expense, but MGI reserves the right to require the claimant to furnish written
authorization and establish reasonable procedures for determining whether an
individual has been authorized to act on behalf of a claimant. A claimant&#146;s
representative shall be entitled to copies of all notices given to the claimant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The decision on a claim and on a request for a review of a denied claim may
be provided to the claimant in electronic form instead of in writing at the
discretion of MGI.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In connection with the review of a denied claim, the claimant or the
claimant&#146;s representative shall be provided, upon request and free of charge,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">-16-
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reasonable access to, and copies of, all documents, records, and other information
relevant to the claimant&#146;s claim for benefits.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The time period within which a benefit determination will be made shall
begin to run at the time a claim or request for review is filed in accordance with
the claims procedures, without regard to whether all the information necessary to
make a benefit determination accompanies the filing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The claims and review procedures shall be administered with appropriate
safeguards so that benefit claim determinations are made in accordance with governing
plan documents and, where appropriate, the plan provisions have been applied
consistently with respect to similarly situated claimants.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purpose of this Section, a document, record, or other information
shall be considered &#147;relevant&#148; if such document, record, or other information: (i)
was relied upon in making the benefit determination; (ii)&nbsp;was submitted, considered,
or generated in the course of making the benefit determination, without regard to
whether such document, record, or other information was relied upon in making the
benefit determination; (iii)&nbsp;demonstrates compliance with the administration
processes and safeguards designed to ensure that the benefit claim determination was
made in accordance with governing plan documents and that, where appropriate, the
Plan provisions have been applied consistently with respect to similarly situated
claimants; and (iv)&nbsp;constitutes a statement of policy or guidance with respect to the
Plan concerning the denied treatment option or benefit for the claimant&#146;s diagnosis,
without regard to whether such advice or statement was relied upon in making the
benefit determination.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>MGI may, in its discretion, rely on any applicable statute of limitation or
deadline as a basis for denial of any claim.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.3. <B>Limitations and Exhaustion</B>.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No claim shall be considered under these administrative procedures unless
it is filed with MGI within two (2)&nbsp;years after the Participant knew (or reasonably
should have known) of the general nature of the dispute giving rise to the claim.
Every untimely claim shall be denied by MGI without regard to the merits of the
claim. No suit may be brought by or on behalf of any Participant or Beneficiary on
any matter pertaining to this Plan unless the action is commenced in the proper forum
before the earlier of:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>three (3)&nbsp;years after the Participant knew (or
reasonably should have known) of the general nature of the dispute
giving rise to the action, or</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">-17-
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sixty (60)&nbsp;days after the Participant has
exhausted these administrative procedures.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>These administrative procedures are the exclusive means for resolving any
dispute arising under this Plan:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no Participant or Beneficiary shall be
permitted to litigate any such matter unless a timely claim has been
filed under these administrative procedures and these administrative
procedures have been exhausted; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>determinations under these administrative
procedures (including determinations as to whether the claim was timely
filed) shall be afforded the maximum deference permitted by law.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purpose of applying the deadlines to file a claim or a legal
action, knowledge of all facts that a Participant knew or reasonably should have
known shall be imputed to every claimant who is or claims to be a Beneficiary of the
Participant or otherwise claims to derive an entitlement by reference to the
Participant for the purpose of applying the previously specified periods.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 11</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>PLAN ADMINISTRATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.1. <B>Authority</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1. <B>MGI</B>. Functions generally assigned to MGI shall be discharged by its Chief Executive
Officer, except where delegated and allocated as provided herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2. <B>Chief Executive Officer</B>. Except as hereinafter provided, the Chief Executive Officer
of MGI may delegate or redelegate and allocate and reallocate to one or more persons or to a
committee of persons jointly or severally, and whether or not such persons are directors, officers
or employees, such functions assigned to the Chief Executive Officer or to MGI generally hereunder,
as the Chief Executive Officer may from time to time deem advisable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.3. <B>Board of Directors</B>. Notwithstanding the foregoing, the Board of Directors of MGI
shall have the exclusive authority (which may not be delegated except to a committee of the Board)
to amend the Plan Statement and to terminate this Plan, based upon recommendation by the Human
Resources Committee. In addition, where necessary to comply with applicable corporate or
securities law, or applicable rules of the New York Stock Exchange, the Human Resources Committee
shall have the exclusive authority to make determinations with respect to benefits under this Plan
(<I>e.g</I>., with respect to executive officers).
</DIV>

<P align="center" style="font-size: 10pt">-18-
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.2. <B>Conflict of Interest</B>. If any individual to whom authority has been delegated or redelegated
hereunder shall also be a Participant in this Plan, such Participant shall have no authority with
respect to any matter specially affecting such Participant&#146;s individual interest hereunder or the
interest of a person superior to him or her in the organization (as distinguished from the
interests of all Participants and Beneficiaries or a broad class of Participants and
Beneficiaries), all such authority being reserved exclusively to other individuals as the case may
be, to the exclusion of such Participant, and such Participant shall act only in such Participant&#146;s
individual capacity in connection with any such matter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.3. <B>Service of Process</B>. In the absence of any designation to the contrary by the Chief Executive
Officer, the Secretary of MGI is designated as the appropriate and exclusive agent for the receipt
of service of process directed to this Plan in any legal proceeding, including arbitration,
involving this Plan.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 12</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>CONSTRUCTION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.1. <B>ERISA Status</B>. This Plan is adopted with the understanding that it is an unfunded plan
maintained primarily for the purpose of providing deferred compensation for a select group of
management or highly compensated employees as provided in section 201(2), section 301(3) and
section 401(a)(1) of ERISA. Each provision shall be interpreted and administered accordingly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.2. <B>IRC Status</B>. This Plan is intended to be a nonqualified deferred compensation arrangement.
The rules of section 401(a) <I>et. seq. </I>of the Code shall not apply to this Plan. The rules of
section 3121(v) and section 3306(r)(2) of the Code shall apply to this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.3. <B>Effect on Other Plans</B>. This Plan shall not alter, enlarge or diminish any person&#146;s
employment rights or obligations or rights or obligations under any other qualified or nonqualified
plan. It is specifically contemplated that this Plan will, from time to time, be amended and
possibly terminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.4. <B>Disqualification</B>. Notwithstanding any other provision of the Plan Statement or any election
or designation made under this Plan, any individual who feloniously and intentionally kills a
Participant shall be deemed for all purposes of this Plan and all elections and designations made
under this Plan to have died before such Participant. A final judgment of conviction of felonious
and intentional killing is conclusive for this purpose. In the absence of a conviction of
felonious and intentional killing, MGI shall determine whether the killing was felonious and
intentional for this purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.5. <B>Rules of Document Construction</B>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An individual shall be considered to have attained a given age on such
individual&#146;s birthday for that age (and not on the day before). Individuals</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">-19-
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>born on February&nbsp;29 in a leap year shall be considered to have their birthdays on February&nbsp;28
in each year that is not a leap year.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whenever appropriate, words used herein in the singular may be read in the
plural, or words used herein in the plural may be read in the singular; the masculine
may include the feminine; and the words &#147;hereof,&#148; &#147;herein&#148; or &#147;hereunder&#148; or other
similar compounds of the word &#147;here&#148; shall mean and refer to the entire Plan
Statement and not to any particular paragraph or Section of the Plan Statement unless
the context clearly indicates to the contrary.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The titles given to the various Sections of the Plan Statement are inserted
for convenience of reference only and are not part of the Plan Statement, and they
shall not be considered in determining the purpose, meaning or intent of any
provision hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding any thing apparently to the contrary contained in the Plan
Statement, the Plan Statement shall be construed and administered to prevent the
duplication of benefits provided under this Plan and any other qualified or
nonqualified plan maintained in whole or in part by the Employers.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.6. <B>References to Laws</B>. Any reference in the Plan Statement to a statute or regulation shall be
considered also to mean and refer to any subsequent amendment or replacement of that statute or
regulation unless, under the circumstances, it would be inappropriate to do so. The terms
&#147;spouse,&#148; &#147;nonspouse,&#148; &#147;married,&#148; &#147;surviving spouse,&#148; and other similar terms shall be construed,
interpreted and applied on a basis consistent with the federal statute known as the Defense of
Marriage Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.7. <B>Choice of Law</B>. Except to the extent that federal law is controlling, this Plan Statement be
construed and enforced in accordance with the laws of the State of Minnesota.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.8. <B>ERISA Administrator</B>. MGI shall be the plan administrator of this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.9. <B>Delegation</B>. No person shall be liable for an act or omission of another person with regard
to a responsibility that has been allocated to or delegated to such other person pursuant to the
terms of the Plan Statement or pursuant to procedures set forth in the Plan Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.10. <B>Not an Employment Contract</B>. This Plan is not and shall not be deemed to constitute a
contract of employment between any Employer and any employee or other person, nor shall anything
herein contained be deemed to give any employee or other person any right to be retained in any
Employer&#146;s employ or in any way limit or restrict any Employer&#146;s right or power to discharge any
employee or other person at any time and to treat him without regard to the effect which such
treatment might have upon him as a Participant in this Plan. Neither the terms of the Plan
Statement nor the benefits under this Plan nor the continuance thereof shall be a term of the
employment of any employee. The Employers shall not be obliged to continue this Plan.
</DIV>



<P align="center" style="font-size: 10pt">-20-
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.11. <B>Tax Withholding</B>. The Employers (or any other person legally obligated to do so) shall
withhold the amount of any federal, state or local income tax, payroll tax or other tax required to
be withheld under applicable law with respect to any amount payable under this Plan. All benefits
otherwise due hereunder shall be reduced by the amount to be withheld.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.12. <B>Expenses</B>. All expenses of administering the benefits due under this Plan shall be borne by
the Employers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.13. <B>Spendthrift Provision</B>. No Participant or Beneficiary shall have any interest in any Account
which can be transferred nor shall any Participant or Beneficiary have any power to anticipate,
alienate, dispose of, pledge or encumber the same while in the possession or control of the
Employers. MGI shall not recognize any such effort to convey any interest under this Plan. No
benefit payable under this Plan shall be subject to attachment, garnishment, execution following
judgment or other legal process before actual payment to such person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The power to designate Beneficiaries to receive the Account of a Participant in the event of such
Participant&#146;s death shall not permit or be construed to permit such power or right to be exercised
by the Participant so as thereby to anticipate, pledge, mortgage or encumber such Participant&#146;s
Account or any part thereof, and any attempt of a Participant so to exercise said power in
violation of this provision shall be of no force and effect and shall be disregarded by the
Employers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This section shall not prevent MGI from exercising, in its discretion, any of the applicable powers
and options granted to it upon the occurrence of an Event of Maturity, as such powers may be
conferred upon it by any applicable provision hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.14. <B>Amendment History</B>. This Plan was formerly known as the &#147;MONEYGRAM INTERNATIONAL, INC.
SUPPLEMENTAL 401(k) PLAN&#148; adopted August&nbsp;19, 2005, but effective January&nbsp;1, 2006. That Plan was a
successor plan to the MONEYGRAM INTERNATIONAL, INC. SUPPLEMENTAL PROFIT SHARING PLAN adopted May
10, 2005.
</DIV>



<P align="center" style="font-size: 10pt">-21-
</DIV>


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