exv10w03






Exhibit 10.3




MONEYGRAM INTERNATIONAL, INC.

SEVERANCE PLAN




SUMMARY PLAN DESCRIPTION AND PLAN DOCUMENT



(Restated Effective February 17, 2010)








 









 








MONEYGRAM INTERNATIONAL, INC.

SEVERANCE PLAN




SUMMARY PLAN DESCRIPTION AND PLAN DOCUMENT



HISTORY



The MoneyGram International, Inc. Severance Plan (“Plan”) was first established effective January
1, 2005 as a severance plan that provides severance benefits in such amounts as determined in the
Company’s sole discretion and to such former employees selected by the Company in its sole
discretion. This Plan is restated effective February 17, 2010. This Plan applies to Eligible
Employees (as defined below) whose employment is terminated under the conditions described below on
or after February 17, 2010. This Plan restatement entirely supersedes and replaces all prior plan
documents, rules, programs and policies regarding severance benefits for Eligible Employees.




PURPOSE



The purpose of the Plan is to provide uniform and consistent guidelines under which severance pay
will be awarded to employees of MoneyGram International, Inc. and its wholly-owned U.S.
subsidiaries (collectively, the “Company”) whose employment is involuntarily terminated as part of
a reduction in force, reorganization, job elimination or job relocation of more than fifty (50)
miles and who have not secured alternate employment in the Company. This Plan applies only to
Company employees who reside in the United States and to Company employees who are United States
citizens temporarily on assignment outside the United States.



The Plan constitutes the complete and entire statement regarding severance pay for all Company
employees who meet the eligibility requirements and supersedes any and all policies, plans or
agreements relating to the payment of severance benefits or pay in lieu of notice upon an
employee’s termination of employment with the Company, except for separate employment or severance
agreements between the Company and a particular employee that provide for termination or severance
benefits for that employee.




EMPLOYEE ELIGIBILITY



Employees of the Company are eligible to participate in the Plan if they are classified by
MoneyGram International, Inc. as full-time employees regularly scheduled to work at least forty
(40) hours per week or part-time employees regularly scheduled to work at least twenty (20) hours
per week (“Eligible Employees”).



The Company’s classification of an employee as eligible or ineligible is conclusive for purposes of
determining benefit eligibility under this Plan. No reclassification of a person’s status, for any
reason, by a third party, whether by a court, governmental agency or otherwise, without regard to
whether the Company agrees to the reclassification, shall make the person retroactively or
prospectively eligible for benefits. However, the Company, in its sole discretion, may reclassify
a person as benefits eligible on a prospective basis. Any uncertainty regarding an individual’s
classification will be resolved by excluding the person from eligibility.







 









 








POLICY





	I.	 	ELIGIBILITY FOR SEVERANCE PAY AND OTHER SEVERANCE BENEFITS
	 
	 	 	Any Eligible Employee whose employment is involuntarily terminated by the Company as part of
a reduction in force, reorganization, job elimination or or job relocation of more than
fifty (50) miles, shall be eligible for severance pay and other severance benefits under
this Plan in the event that s/he has not secured alternate employment in the Company as of
the termination date. In order to receive severance pay and other severance benefits, the
Eligible Employee must sign a severance and release agreement in the form and manner
required by the Company. Severance payments and other severance benefits shall not be
provided until any rescission or revocation periods specified in the separation and release
agreement have expired. Employees who are a party to an individual employment or severance
agreement or other arrangement relating to or addressing termination of employment that
provides for termination or severance benefits are not eligible to participate in this Plan.
Additionally, employees who are eligible to participate in the MoneyGram International,
Inc. Executive Severance Plan (Tier I or Tier II) or the MoneyGram International, Inc.
Special Executive Severance Plan (Tier I or Tier II) are not eligible to participate in this
Plan.
	 
	II.	 	SEVERANCE PAYMENTS AND OTHER SEVERANCE BENEFITS






	 	A.	 	Definitions:
	 
	 	 	 	“Week of Severance Pay” means an Eligible Employee’s annual base salary in effect on
the date of his/her termination, divided by fifty two (52). With respect to an
Eligible Employee paid on an hourly basis, a Week of Severance Pay shall be based on
the Eligible Employee’s hourly rate in effect on the date of his/her termination,
multiplied by forty (40) (which number shall be prorated in the case of a part-time
employee regularly scheduled to work less than forty (40) hours a week). A Week of
Severance Pay for an Eligible Employee paid on a commission basis will be based on
the sum of that Eligible Employee’s annual basic salary, if any, plus all
commissions paid over the twelve month period preceding the date of termination,
divided by fifty two (52) (or if service is less than twelve months, the number of
full weeks of actual employment).
	 
	 	 	 	“Year of Service” means twelve consecutive months of service, including the month in
which the employee was hired and the month in which employment termination occurs,
regardless of the number of days of service in those months.
	 
	 	B.	 	Amount of Severance Pay. An Eligible Employee who is eligible for
severance pay under Section I shall receive one Week of Severance Pay for each Year of
Service, subject to the following minimum and maximum Weeks of Severance Pay, based of
classification of employment.




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	 	 	Minimum	 	Maximum
	Classification	 	Severance	 	Severance
	Vice President

	 	16 Weeks
	 	26 Weeks
	Director

	 	12 Weeks
	 	26 Weeks
	Managers & Exempt Employees

	 	8 Weeks
	 	26 Weeks
	Non-Exempt Employees

	 	2 Weeks
	 	26 Weeks







	 	C.	 	Manner of Payment. Severance pay shall be paid to the Eligible
Employee in a single lump sum upon expiration of rescission or revocation periods
specified in the Eligible Employee’s separation and release agreement. All severance
pay will be subject to all applicable federal, state and local withholding and
deduction requirements.
	 
	 	D.	 	Outplacement Assistance. The Company may arrange and pay for
reasonable outplacement assistance to be provided by an outplacement organization
chosen at its sole discretion for employees eligible for severance benefits under
Section I. The type and duration of outplacement assistance will be at the discretion
of the Company and will take into account the level of the employee.
	 
	 	E.	 	Bonus. If an Eligible Employee who is eligible for severance pay under
Section 1 participates in an annual bonus plan for a given fiscal year, and if such
Eligible Employee is terminated on or after October 1 of that fiscal year but prior to
the time bonuses are paid for that fiscal year, the Eligible Employee shall be eligible
to receive the bonus that the Eligible Employee would have earned for that fiscal year
(if any) had he or she remained in employment until the date of payment, except that
such bonus shall be prorated based upon the number of days the Eligible Employee was
employed during the fiscal year if employed for less than the full fiscal year. Any
such bonus that becomes payable will be paid at the time annual bonuses are paid to the
other participants in such plan.
	 
	 	F.	 	ERISA and 409A Limitation. Notwithstanding any provision in this Plan
to the contrary, the total amount of severance and outplacement assistance (if any)
paid to an Eligible Employee shall be reduced as necessary (and paid within the time
constraints required) so as to prevent this Plan from constituting an employee pension
plan under ERISA or a non-qualified deferred compensation arrangement under Section
409A of the Internal Revenue Code. In addition, the term “termination of employment”
shall be interpreted to mean a “separation from service” as that term is defined under
Section 409A, but only to the extent necessary to qualify the arrangement as an
involuntary separation arrangement that is exempt from Section 409A under either the
“short-term deferral” exception set forth in Treasury Regulation §1.409A-1(b)(4) or the
“involuntary separation pay plan” exception set forth in Treasury Regulation
§1.409A-1(b)(9).






	III.	 	BENEFITS UNDER OTHER PLANS AND POLICIES
	 
	 	 	Terminated employees will receive payment for Paid Time Off (PTO) accrued through the date
of termination but not yet taken. Upon any termination of employment, an employee’s rights
and benefits under the Company’s benefit plans shall be determined in accordance with the
provisions of those plans.




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	IV.	 	OTHER SEVERANCE POLICY FEATURES






	 	A.	 	Assignment. No employee shall have the right to assign, encumber or
otherwise anticipate any payment or other benefits to be made under the Plan. The
benefits provided under the Plan shall not be subject to seizure for payment of any
order or judgment against a participating employee.
	 
	 	B.	 	Administrator. MoneyGram International, Inc. shall be the
Administrator of the Plan and shall make such determinations as may be required from
time to time in the administration of the Plan. The Administrator has the complete and
total discretion to determine the eligibility of employees for severance payments and
other benefits under the Plan and retains complete and total discretion to define
interpret, construe and apply all of the terms of the Plan.






	 	1.	 	Functions generally assigned to the Administrator hereunder
shall be discharged by its Chief Executive Officer, except where delegated.
Except as hereinafter provided, the Chief Executive Officer of the Company 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 the Company generally hereunder, as the Chief Executive
Officer may from time to time deem advisable.
	 
	 	2.	 	Where necessary to comply with applicable corporate or
securities law, or applicable rules of the New York Stock Exchange, the Board
of Directors of MoneyGram International, Inc. shall have the exclusive
authority (which may not be delegated except to a committee of the Board) to
make determinations with respect to benefits under this Plan (e.g., with
respect to certain executive officers, if any, that participate in the Plan).






	 	C.	 	Right to Terminate Employment. The Plan does not constitute an
employment contract or a right to employment by any employee. Either the Company or
the employee may terminate the employment relationship at any time for any reason or
for no reason. Failure to qualify for a benefit or particular level of benefit shall
not necessarily establish any right of any kind or description to a continuation or to
a reinstatement of employment with the Company and shall not establish any right of any
kind or description whatsoever to receive any payment from the Company in lieu of such
benefit.
	 
	 	D.	 	Claims Procedure. If you are an employee who has not received benefits
under the Plan but believe that you are eligible for benefits under the Plan, benefits
will be paid to you or your personal representative from the Plan only after a proper
written claim for the benefits has been filed with the Administrator and a
determination has been made that benefits are due. If you believe you may be entitled
to benefits, or if you are in disagreement with any determination that has been made,
you may present a claim to the Administrator, as follows:






	 	1.	 	Making a Claim — Your claim must be in writing and
must be delivered to the Administrator within ninety (90) days after you knew
or reasonably should have known of the principal facts upon which the claim is
based.




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	 	 	 	Your claim should state the facts and the arguments that you want the
Administrator to consider.
	 
	 	2.	 	Response from the Administrator — Within ninety (90)
days of the date the Administrator receives your claim, you will receive
either: (a) a decision; or (b) a notice describing special circumstances
requiring a specified amount of additional time (up to 90 additional days) to
reach a decision. If the Administrator notifies you that it needs additional
time, the notice will describe the special circumstances requiring the
extension and the date by which it expects to reach a decision. If the
Administrator denies your claim, in whole or in part, you will receive a
written notice specifying: (a) the reasons for denial; (b) the Plan provisions
on which the denial is based; (c) a description of any additional material, if
any, needed to complete the claim; (d) an explanation of your right to request
a review; and (e) a statement of your right to file an action in court under
section 502(a) of ERISA if your claim is denied after review.
	 
	 	3.	 	Requesting Review of Denied Claim — You may request
that a denied claim be reviewed. Your request for review must be in writing
and the Administrator must receive actual delivery within sixty (60) days after
you received the written notice that your claim was denied. Your request for
review should state the facts and make the arguments that you want considered
in the review. You may submit written comments, documents, records, and other
information relating to your claim. Upon request you are entitled to receive,
without charge, reasonable access to, and copies of, the documents, records,
and information relevant to your claim.
	 
	 	4.	 	Response from the Administrator on Review — Within 60
days after the date the Administrator receives your request for review, you
will receive either: (a) a written notice of the decision; or (b) a notice
describing the need for additional time (up to 60 additional days) to reach a
decision. If the Administrator notifies you that it needs additional time, the
notice will describe the special circumstances requiring the extension and the
date by which it expects to reach a decision. If the Administrator affirms the
denial of your claim, in whole or in part, you will receive a notice
specifying: (a) the reasons; (b) the Plan provisions on which it is based; (c)
notice that upon request you are entitled to receive free of charge reasonable
access to and copies of the relevant documents, records, and information used
in the claims process; and (d) your right to file a civil action under section
502(a) of ERISA.
	 
	 	5.	 	Administrator Request for Further Information Regarding
Your Claim on Review — If the Administrator determines it needs further
information to complete its review of your denied claim, you will receive a
written notice describing the additional information necessary to make the
decision. You will then have 60 days from the date you receive the notice
requesting additional information to provide the requested information to the
Administrator. The time between the date the Administrator sends its request
to you and the date the Administrator receives the requested additional
information from you does not count against the 60-day period in which the
Administrator has to decide your claim on review. If the




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	 	 	 	Administrator does not receive a response from you, then the period by which
the Administrator must reach its decision shall be extended by the 60-day
period that was provided to you for you to submit the additional
information. Note: If special circumstances exist, this period may be
further extended.
	 
	 	6.	 	In General — The Administrator will make all decisions
on claims and review of denied claims. The Administrator has the sole
discretion, authority, and responsibility to decide all factual and legal
questions under the Plan. This includes interpreting and construing the Plan
and any ambiguous or unclear terms, and determining whether a claimant is
eligible for benefits and the amount of the benefits, if any, a claimant is
entitled to receive. The Administrator may hold hearings and reserves the
right to delegate its authority to make decisions. The Administrator may rely
on any applicable statute of limitations as a basis to deny a claim. The
Administrator’s decisions are conclusive and binding on all parties. You may,
at your own expense, have an attorney or representative act on your behalf, but
the Administrator reserves the right to require a written authorization for a
person to act on your behalf.
	 
	 	7.	 	Time Periods — The time period for the Administrator
to decide your claim begins to run on the date the Administrator receives your
written claim. If you file a timely request for review of a denied claim, the
time period for the Administrator to decide begins to run on the date the
Administrator receives your written request. In both cases, the time period
begins to run whether or not you submit comments or information that you would
like considered by the Administrator.
	 
	 	8.	 	Limitations Period — If you file your claim within the
required time, complete the entire claim procedures, and the Administrator
denies your claim after you request a review, you may sue over your claim
(unless you have executed a release on your claim). You must commence this
lawsuit within 6 months after the claims process is completed. Regardless of
when you file your claim, you may not, under any circumstances, commence a
lawsuit more than 30 months after you knew or should have known of facts behind
your claim.
	 
	 	9.	 	Exhaustion of Administrative Remedies — Before
commencing legal action to recover benefits, or to enforce or clarify rights,
you must complete all of the Plan’s claim procedures.






	 	E.	 	Amendment or Termination of the Plan. The Board of Directors of
MoneyGram International, Inc. (or the Human Resources Committee thereof) reserves the
right to amend or terminate the provisions of the Plan at any time without
notice.
	 
	 	F.	 	Funding. Payments made pursuant to the Plan will be paid out of the
general assets of the Company, and a participating employee will not have any secured
or preferred interest by way of trust, escrow, lien or otherwise in any specific assets
of the Company. Participating employees’ rights shall be solely those of a general
unsecured creditor of the Company.




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	V.	 	ADDITIONAL INFORMATION






	 	A.	 	Name and Number of the Plan. The Plan’s name is the “MoneyGram
International, Inc. Severance Plan.” The Internal Revenue Service and the Department
of Labor identify the Plan by its name and by its number: 508.
	 
	 	B.	 	Type of Plan. The Plan is a severance pay welfare benefit plan and is
not a pension benefit plan.
	 
	 	C.	 	Plan Sponsor. The name of the employer sponsoring the Plan and its
federal taxpayer identification number (EIN) are:
	 
	 	 	 	MoneyGram International, Inc.

1550 Utica Avenue South

Minneapolis, MN 55416

Telephone: (952) 591-3191

EIN: 16-1690064
	 
	 	D.	 	Plan Administrator. The Plan is administered by MoneyGram
International, Inc. Communications directed to the Company in its capacity as
Administrator of the Plan should be addressed to:
	 
	 	 	 	MoneyGram International, Inc.

Attn: Plan Administrator for MoneyGram International, Inc. Severance Plan

1550 Utica Avenue South

Minneapolis, MN 55416

Telephone: (952) 591-3191
	 
	 	E.	 	Plan Year. January 1 — December 31
	 
	 	F.	 	Service of Legal Process. The General Counsel of MoneyGram
International, Inc. (at the address shown above) is designated as the agent for service
of legal process against the Plan. Also, service of legal process may be made upon the
Company as Plan Administrator.
	 
	 	G.	 	ERISA Rights. Participating employees in the Plan are entitled to
certain rights and protections under the Employee Retirement Income Security Act of
1974 (ERISA). ERISA provides that all Plan participants are entitled to:






	 	1.	 	Examine, without charge, at the Company’s office, all Plan
documents and copies of all documents governing the Plan, a copy of the latest
annual report (Form 5500 Series) filed by the Plan with the U.S. Department of
Labor and available at the Public Disclosure Room of the Employee Benefits
Security Administration.
	 
	 	2.	 	Obtain, upon written request to the Company, copies of all
documents governing the Plan, including copies of the latest annual report
(Form 5500 series) and updated summary plan description upon written request to
the Company. The Company may make a reasonable charge for the copies.




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	 	 	 	In addition to creating rights for the Plan participants, ERISA imposes duties upon
the people who are responsible for the operation of the Plan. The people who
operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently
and in the interest of you and other Plan Participants and beneficiaries. No one,
including the Company, may fire you or otherwise discriminate against you in any way
to prevent you from obtaining a benefit or exercising your rights under ERISA.
	 
	 	 	 	If your claim for a benefit is denied or ignored, in whole or in part, you have a
right to know why this was done, to obtain copies of documents relating to the
decision without charge and to have the denial reviewed and reconsidered (see Part
IV), all within certain time schedules. Under ERISA, there are steps you can take
to enforce the above rights. For instance, if you request a copy of the plan
document or the latest annual report from the Plan and do not receive them within 30
days, you may file suit in a federal court.
	 
	 	 	 	In such a case, the court may require the Company to provide the materials and pay
you up to $110 a day until you receive the materials, unless the materials were not
sent because of reasons beyond the control of the Company. If you have a claim for
benefits which is denied or ignored, in whole or in part, you may file suit in a
state or federal court after you exhaust the Plan’s claims procedures. If it should
happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated
against for asserting your rights, you may seek assistance from the U.S. Department
of Labor, or you may file suit in a federal court. The court will decide who should
pay court costs and legal fees. If you are successful, the court may order the
person you have sued to pay these costs and fees. If you lose, the court may order
you to pay these costs and fees, for example, if it finds your claim is frivolous.
	 
	 	 	 	If you have any questions about your Plan, you should contact the Company. If you
have any questions about this statement or about your rights under ERISA, or if you
need assistance in obtaining documents from the Company, you should contact the
nearest office of the Employee Benefits Security Administration, U.S. Department of
Labor, listed in your telephone directory or the Division of Technical Assistance
and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor,
200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain
publications about your rights and responsibilities under ERISA by calling the
publications hotline of the Employee Benefits Security Administration.






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