exv10w8






Exhibit 10.8




THE WESTERN UNION COMPANY

2006 LONG-TERM INCENTIVE PLAN

(As Amended and Restated on January 31, 2011)




I. INTRODUCTION


1.1. Purposes. The purposes of The Western Union Company 2006 Long-Term Incentive Plan, as
amended and restated on January 31, 2011, (the “Plan”) are (i) to advance the interests of The
Western Union Company (the “Company”) by attracting and retaining high caliber employees, and other
key individuals who perform services for the Company, a Subsidiary or an Affiliate, (ii) to align
the interests of the Company’s stockholders and recipients of awards under this Plan by increasing
the proprietary interest of such recipients in the Company’s growth and success and (iii) to
motivate award recipients to act in the long-term best interests of the Company and its
stockholders.



1.2. Definitions.




     “2006 LTIP” shall mean The Western Union Company 2006 Long-Term Incentive Plan as
adopted on September 28, 2006 by First Data in its capacity as the sole stockholder of the Company.



     “Affiliate” shall mean any entity of which the Company owns or controls, directly or
indirectly, less than 50% but at least 20% of the outstanding shares of stock normally entitled to
vote for the election of directors (or comparable equity participation and voting power).



     “Agreement” shall mean the written agreement evidencing an award hereunder between the
Company and the recipient of such award and shall include any terms and conditions that may apply
to such award.



     “Board” shall mean the Board of Directors of the Company.



     “Bonus Stock” shall mean shares of Common Stock that are not subject to a Restriction
Period or Performance Measures.



     “Bonus Stock Award” shall mean an award of Bonus Stock.



     “Cause” shall mean the willful and continued failure to substantially perform the
duties assigned by the Company, a Subsidiary or an Affiliate (other than a failure resulting from
the award recipient’s Disability), the willful engaging in conduct which is demonstrably injurious
to the Company, a Subsidiary or an Affiliate (monetarily or otherwise), any act of dishonesty, the
commission of a felony, the continued failure to meet performance standards, excessive absenteeism,
or a significant violation of any statutory or common law duty of loyalty to the Company, a
Subsidiary or an Affiliate.



     “Change in Control” shall mean:



 









 





     (a) the acquisition by any individual, entity or group (a “Person”), including any
“person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, of beneficial
ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of 35% or more of
either (i) the then outstanding shares of common stock of the Company (the “Outstanding Common
Stock”) or (ii) the combined voting power of the then outstanding securities of the Company
entitled to vote generally in the election of directors (the “Outstanding Voting
Securities”); excluding, however, the following: (A) any acquisition directly from the Company
(excluding any acquisition resulting from the exercise of an exercise, conversion or exchange
privilege unless the security being so exercised, converted or exchanged was acquired directly from
the Company), (B) any acquisition by the Company, (C) any acquisition by an employee benefit plan
(or related trust) sponsored or maintained by the Company or any corporation controlled by the
Company or (D) any acquisition by any corporation pursuant to a transaction which complies with
clauses (i), (ii), and (iii) of subsection (c) of this definition; provided further, that for
purposes of clause (B), if any Person (other than the Company or any employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation controlled by the Company)
shall become the beneficial owner of 35% or more of the Outstanding Common Stock or 35% or more of
the Outstanding Voting Securities by reason of an acquisition by the Company, and such Person
shall, after such acquisition by the Company, become the beneficial owner of any additional shares
of the Outstanding Common Stock or any additional Outstanding Voting Securities and such beneficial
ownership is publicly announced, such additional beneficial ownership shall constitute a Change in
Control;



     (b) The cessation of individuals, who constitute the Board (the “Incumbent Board”) as
of the date this Plan is adopted by the Board, to constitute at least a majority of such Incumbent
Board; provided that any individual who becomes a director of the Company subsequent to the date
this Plan is approved by the Board whose election, or nomination for election by the Company’s
stockholders, was approved by the vote of at least a majority of the directors then comprising the
Incumbent Board shall be deemed a member of the Incumbent Board; and provided further, that any
individual who was initially elected as a director of the Company as a result of an actual or
threatened solicitation by a Person other than the Board for the purpose of opposing a solicitation
by any other Person with respect to the election or removal of directors, or any other actual or
threatened solicitation of proxies or consents by or on behalf of any Person other than the Board
shall not be deemed a member of the Incumbent Board;



     (c) the consummation of a reorganization, merger or consolidation or sale or other disposition
of all or substantially all of the assets of the Company (a “Corporate Transaction”);
excluding, however, a Corporate Transaction pursuant to which (i) all or substantially all of the
individuals or entities who are the beneficial owners, respectively, of the Outstanding Common
Stock and the Outstanding Voting Securities immediately prior to such Corporate Transaction will
beneficially own, directly or indirectly, more than 50% of, respectively, the outstanding shares of
common stock, and the combined voting power of the outstanding securities entitled to vote
generally in the election of directors, as the case may be, of the corporation resulting from such
Corporate Transaction (including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets either directly or
indirectly) in substantially the same proportions relative to each other as their ownership,
immediately prior to such Corporate Transaction, of the Outstanding Common Stock and the
Outstanding Voting Securities, as the case may be, (ii) no Person (other than: the Company; any
employee benefit plan (or related trust) sponsored or maintained by the Company or any



-2-









 




corporation controlled by the Company; the corporation resulting from such Corporate
Transaction; and any Person which beneficially owned, immediately prior to such Corporate
Transaction, directly or indirectly, 35% or more of the Outstanding Common Stock or the Outstanding
Voting Securities, as the case may be) will beneficially own, directly or indirectly, 35% or more
of, respectively, the outstanding shares of common stock of the corporation resulting from such
Corporate Transaction or the combined voting power of the outstanding securities of such
corporation entitled to vote generally in the election of directors and (iii) individuals who were
members of the Incumbent Board will constitute at least a majority of the members of the board of
directors of the corporation resulting from such Corporate Transaction; or




     (d) the consummation of a plan of complete liquidation or dissolution of the Company.



     “Code” shall mean the United States Internal Revenue Code of 1986, as amended, and the
rules and regulations promulgated thereunder.



     “Committee” shall mean the Compensation and Benefits Committee of the Board or its
delegate, or any other committee comprised entirely of “non-employee” directors within the meaning
of Section 16 of the Exchange Act that the Board may designate to administer this Plan.



     “Common Stock” shall mean the common stock of the Company.



     “Company” has the meaning specified in Section 1.1.



     “Corporate Transaction” shall have the meaning set forth in the definition of “Change
in Control” in this Section 1.2.



     “Disability” shall mean the inability of the holder of an award to perform
substantially such holder’s duties and responsibilities due to a physical or mental condition (i)
that would entitle such holder to benefits under the Company’s Long-Term Disability Plan (or
similar disability plan of the Company, a Subsidiary or an Affiliate in which such holder is a
participant) or if the Committee deems it relevant, any disability rights provided as a matter of
local law or (ii) if such holder is not eligible for long-term disability benefits under any plan
sponsored by the Company, a Subsidiary, or an Affiliate, that would, as determined by the
Committee, entitle such holder to benefits under the Company’s Long-Term Disability Plan if such
holder were eligible therefor. In the case of Incentive Stock Options, the term “Disability” shall
have the same meaning as “Permanent and Total Disability” as such term is defined in this Section
1.2.



     “Employee Matters Agreement” shall mean the agreement entered into by the Company and
First Data as of September 29, 2006.



     “Exchange Act” shall mean the United States Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.



     “Fair Market Value” shall mean the closing price of a share of Common Stock as
reported on the New York Stock Exchange trading on a “when issued” basis or in the New York Stock
Exchange Composite Transactions, as the case may be, on the date as of which such value is being
determined; provided, however, that if there shall be no reported transactions for such date, Fair
Market Value shall be based on the appropriate closing price on the next preceding date



-3-









 




for which transactions were reported; and provided further that if Fair Market Value for any
date cannot be so determined, Fair Market Value shall be determined by the Committee by whatever
means or method as the Committee, in the good faith exercise of its discretion, shall at such time
deem appropriate. Notwithstanding the preceding sentence, solely for purposes of determining an
award holder’s tax payment obligations under Section 5.5, in lieu of the definition of Fair Market
Value in the preceding sentence, the Committee may determine that Fair Market Value shall mean the
average of the high and low transaction prices of a share of Common Stock as reported in the New
York Stock Exchange Composite Transactions on the date as of which such value is being determined
or, if there shall be no reported transactions for such date, on the next preceding date for which
transactions were reported.




     “Family Entity” shall mean a trust in which one or more Family Members have more than
fifty percent of the beneficial interest, a foundation in which the award holder and/or one or more
Family Members control the management of assets and any other entity in which the award holder
and/or one or more Family Members own more than fifty percent of the voting interests.



     “Family Member” shall mean an award holder’s spouse, parent, child, stepchild,
grandchild, sibling, mother or father-in-law, son or daughter-in-law, stepparent, grandparent,
former spouse, niece, nephew or brother or sister-in-law, including adoptive relationships, or any
person sharing the award holder’s household (other than a tenant or employee).



     “First Data” shall mean First Data Corporation, including any subsidiary or affiliate
thereof. A subsidiary of First Data Corporation shall mean any entity of which First Data
Corporation owns or controls, directly or indirectly, 50% or more of the outstanding shares of
stock normally entitled to vote for the election of directors (or comparable equity participation
and voting power). An affiliate of First Data Corporation shall mean any entity of which First
Data Corporation owns or controls, directly or indirectly, less than 50% of the outstanding shares
of stock normally entitled to vote for the election of directors (or comparable equity
participation and voting power).



     “Incentive Stock Option” shall mean an option to purchase shares of Common Stock that
meets the requirements of Section 422 of the Code, or any successor provision, which is intended by
the Committee to constitute an Incentive Stock Option.



     “Incumbent Board” shall have the meaning set forth in the definition of “Change in
Control” in this Section 1.2.



     “Mature Shares” shall mean previously-acquired shares of Common Stock for which the
holder thereof has good title, free and clear of all liens and encumbrances and which such holder
either (i) has held for at least six months or (ii) has purchased on the open market.



     “Nonqualified Stock Option” shall mean an option (including a Purchased Stock Option)
to purchase shares of Common Stock which is not an Incentive Stock Option.



     “Outstanding Common Stock” shall have the meaning set forth in the definition of
“Change in Control” in this Section 1.2.



     “Outstanding Voting Securities” shall have the meaning set forth in the definition of
“Change in Control” in this Section 1.2.



-4-









 





     “Performance Grant” shall mean an award conferring a right, contingent upon the
attainment of specified Performance Measures within a specified Performance Period, to receive
shares of Common Stock, Restricted Stock, Restricted Stock Units, cash, or any combination thereof,
as determined by the Committee or as evidenced in the Agreement relating to such Performance Grant.



     “Performance Measures” shall mean the criteria and objectives that may be established
by the Committee, which must be satisfied or met (i) as a condition to the exercisability of all or
a portion of a Stock Option or SAR, (ii) as a condition to the grant of a Stock Award or (iii)
during the applicable Restriction Period or Performance Period as a condition to the holder’s
receipt, in the case of a Stock Award, of the shares of Common Stock subject to such award and/or
of payment with respect to such award, or, in the case of a Performance Grant, of the shares of
Common Stock, Restricted Stock or Restricted Stock Units subject to such award and/or of payment
with respect to such award. Such criteria and objectives may include one or more of the following:
the attainment by a share of Common Stock of a specified value within or for a specified period of
time, earnings per share, earnings before interest expense and taxes, return to stockholders
(including dividends), return on equity, earnings, revenues, cash flow or cost reduction goals,
operating income, pretax return on total capital, economic value added, or any combination of the
foregoing. Such criteria and objectives may relate to results obtained by the individual, the
Company, a Subsidiary, an Affiliate, or any business unit or division thereof, or may apply to
results obtained relative to a specific industry or a specific index. If the Committee desires
that compensation payable pursuant to any award subject to Performance Measures be “qualified
performance-based compensation” within the meaning of Section 162(m) of the Code, the Performance
Measures (i) shall be established by the Committee no later than the end of the first quarter of
the Performance Period or Restriction Period, as applicable (or such other time designated by the
United States Internal Revenue Service) and (ii) shall satisfy all other applicable requirements
imposed under United States Treasury Regulations promulgated under Section 162(m) of the Code,
including the requirement that such Performance Measures be stated in terms of an objective formula
or standard.



     “Performance Period” shall mean any period designated by the Committee or specified in
an Agreement during which the Performance Measures applicable to a Performance Grant shall be
measured.



     “Permanent and Total Disability” shall have the meaning set forth in Section 22(e)(3)
of the Code or any successor thereto.



     “Person” shall have the meaning set forth in the definition of “Change in Control” set
forth in this Section 1.2.



     “Plan” shall have the meaning set forth in Section 1.1.



     “Plan Share Limit” shall have the meaning set forth in Section 1.5.



     “Post-Termination Exercise Period” shall mean the period specified in or pursuant to
Section 2.3(a), Section 2.3(b), Section 2.3(d) or Section 2.3(e) following termination of
employment with or service to the Company during which a Stock Option or SAR may be exercised.



-5-









 





     “Purchased Stock Option” shall mean a Nonqualified Stock Option that is sold to
eligible individuals at a price determined by the Committee, has an exercise price equal to the
Fair Market Value of the Common Stock subject to such Stock Option on the date such Stock Option is
sold to the eligible individual, and contains such additional terms and conditions as the Committee
deems appropriate.



     “Related Employment” shall mean the employment or performance of services by an
individual for an employer that is neither the Company nor a Subsidiary nor an Affiliate, provided
that (i) such employment or performance of services is undertaken by the individual at the request
of the Company, a Subsidiary or an Affiliate, (ii) immediately prior to undertaking such employment
or performance of services, the individual was employed by or performing service for the Company, a
Subsidiary, or an Affiliate or was engaged in Related Employment and (iii) such employment or
performance of services is in the best interests of the Company as determined by the Committee and
is recognized by the Committee, in its discretion, as Related Employment. The death or Disability
of an individual or his or her involuntary termination of employment during a period of Related
Employment shall be treated, for purposes of this Plan, as if the death, Disability or involuntary
termination had occurred while the individual was employed by or performing services for the
Company, a Subsidiary or an Affiliate.



     “Replacement and Substitute Award” shall mean a Stock Option, Restricted Stock Award,
or Restricted Stock Unit Award granted in connection with the spin-off of the Company to certain
current and former employees and directors of First Data pursuant to the terms of the Employee
Matters Agreement.



     “Restricted Stock” shall mean shares of Common Stock which are subject to a
Restriction Period.



     “Restricted Stock Award” shall mean an award of Restricted Stock under this Plan.



     “Restricted Stock Unit” shall mean the right to receive one share of Common Stock or
the Fair Market Value thereof in cash, which shall be contingent upon the expiration of a specified
Restriction Period and subject to such additional restrictions as may be contained in the Agreement
relating thereto. The Committee shall specify in the Agreement whether a Restricted Stock Unit
Award shall be payable in Common Stock, cash, or any combination thereof.



     “Restricted Stock Unit Award” shall mean an award of Restricted Stock Units under this
Plan.



     “Restriction Period” shall mean any period designated by the Committee during which
(i) the Common Stock subject to a Restricted Stock Award may not be sold, transferred, assigned,
pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this Plan or
the Agreement relating to such award or (ii) the vesting conditions applicable to a Restricted
Stock Unit Award shall remain in effect.



     “Retirement” shall mean an employee’s termination of employment with or service to the
Company (other than a termination by reason of death or Disability or for Cause) on or after (i)
age 65, or (ii) age 55, provided the employee has completed at least 10 Years of Service.



-6-









 





     “SAR” shall mean the right to receive, upon exercise, shares of Common Stock (which
may be Restricted Stock), cash or a combination thereof with an aggregate value equal to the excess
of the Fair Market Value of one share of Common Stock on the date of exercise over the base price
of such SAR, multiplied by the number of such SARs which are exercised.



     “Stock Award” shall mean a Restricted Stock Award, a Restricted Stock Unit Award, or a
Bonus Stock Award.



     “Stock Option” shall mean a Nonqualified Stock Option or an Incentive Stock Option.



     “Subsidiary” shall mean any entity of which the Company owns or controls, directly or
indirectly, 50% or more of the outstanding shares of stock normally entitled to vote for the
election of directors (or comparable equity participation and voting power).



     “Tax Date” shall have the meaning set forth in Section 5.5.



     “Ten Percent Holder” shall have the meaning set forth in Section 2.1(a).



     “Years of Service” shall mean (i) the number of years of service credited to an
individual under the Company’s Incentive Savings Plan (“ISP”) or (ii) if the individual is not
eligible to participate in the ISP, the number of such individual’s years of service, computed as
if the individual had been eligible to participate in the ISP while employed by the Company or a
Subsidiary, provided, however, that unless otherwise provided in the Agreement, the computed number
of years of service shall not include any period of an individual’s employment with an Affiliate.


1.3. Administration. This Plan shall be administered by the Committee. The Committee may
grant any one or a combination of the following awards under this Plan to eligible persons:
(i) Stock Options (in the form of Nonqualified Stock Options or Incentive Stock Options), (ii)
SARs, (iii) Restricted Stock Awards, (iv) Restricted Stock Unit Awards, (v) Bonus Stock Awards, and
(vi) Performance Grants.




     The Committee shall, subject to the terms of this Plan, select eligible persons for
participation in this Plan and determine the form, amount and timing of each award to such persons,
the exercise price or base price associated with the award, the time and conditions of exercise or
settlement of the award and all other terms and conditions of the award, including, without
limitation, the form of the Agreement evidencing the award.



     The Committee shall, subject to the terms of this Plan, interpret this Plan and the
application thereof, establish, amend and revoke rules and regulations it deems necessary or
desirable for the administration of this Plan, adopt sub-plans applicable to specific Subsidiaries,
Affiliates or locations and may impose, incidental to the grant of an award, conditions with
respect to the award, such as limiting competitive employment or other activities to the extent
permitted under local law. The Committee may require, as a condition to the issuance, exercise,
settlement or acceptance of an award under this Plan, that the award recipient agree to mandatory
arbitration to settle any disputes relating to such award. All such interpretations, rules,
regulations and conditions shall be final, binding and conclusive.



-7-









 





     In exercising its power and authority hereunder with respect to Replacement and Substitute
Awards held by current and former employees (other than Business Employees, as such term is defined
in the Employee Matters Agreement) and directors of First Data (and their respective transferees),
the Company shall (i) act in good faith and (ii) cooperate with and give due regard to any
information provided by First Data. In addition, with respect to such Replacement and Substitute
Awards, the Company shall not, without the prior written consent of the First Data Compensation
Committee, take any discretionary action to accelerate vesting of any such awards.



     To the extent permitted by applicable law, the Committee may delegate some or all of its power
and authority hereunder to another entity or committee, a member of the Board, or one or more
officers of the Company as the Committee deems appropriate; provided, however, that the Committee
may not delegate its power and authority to another entity or committee, a member of the Board, or
one or more officers of the Company with regard to (i) the grant of an award to any person who is a
“covered employee” within the meaning of Section 162(m) of the Code or who, in the Committee’s
judgment, is likely to be a covered employee at any time during the period an award hereunder to
such employee would be outstanding, (ii) the selection for participation in this Plan of an officer
or other person subject to Section 16 of the Exchange Act or decisions concerning the timing,
pricing or amount of an award to such an officer or other person, and (iii) any decision regarding
the impact of a Change in Control on awards issued under the Plan.



     No member of the Committee, and no entity, committee, member of the Board or officer to whom
the Committee delegates any of its power and authority hereunder, shall be liable for any act,
omission, interpretation, construction or determination made in connection with this Plan in good
faith, and the members of the Committee and such entities, committees, members of the Board or
officers shall be entitled to indemnification and reimbursement by the Company in respect of any
claim, loss, damage or expense (including attorneys’ fees) arising therefrom to the full extent
permitted by law.



     A majority of the Committee shall constitute a quorum. The acts of the Committee shall be
either (i) acts of a majority of the members of the Committee present at any meeting at which a
quorum is present or (ii) acts approved in writing by all of the members of the Committee without a
meeting.


1.4. Eligibility. All employees of the Company, Subsidiaries and Affiliates and other
individuals who perform services for the Company, a Subsidiary or an Affiliate are eligible to
receive awards under this Plan, as the Committee in its sole discretion may select from time to
time. In connection with the spin-off of the Company, certain current and former employees and
directors of First Data will receive Replacement and Substitute Awards. The Committee’s selection
of a person to participate in this Plan at any time shall not require the Committee to select such
person to participate in this Plan at any other time.



1.5. Shares Available.




     (a) Plan Share Limit. Subject to adjustment as provided in Section 5.7, 120,000,000
shares of Common Stock shall be available under this Plan (the “Plan Share Limit”).



-8-









 





     (b) Deductions. Shares of Common Stock subject to Stock Options and SARs shall apply
against and reduce the Plan Share Limit as one share for every one share subject thereto. Shares
of Common Stock subject to Stock Awards and Performance Grants shall apply against and reduce the
Plan Share Limit as one share for every one share subject thereto or payable pursuant thereto;
provided, however, that if and during any period when more than 30,000,000 of the shares of Common
Stock available under the Plan Share Limit are subject to Stock Awards and Performance Grants, the
remaining shares of Common Stock available under the Plan Share Limit shall be reduced by three
shares for every one share awarded pursuant to Stock Awards and Performance Grants in excess of
30,000,000 of the Plan Share Limit. Dividend equivalents paid in cash with respect to awards shall
not apply against or reduce the Plan Share Limit.



     (c) Increases. The Plan Share Limit, as reduced pursuant to Section 1.5(b), shall be
increased (but not above the number of shares set forth in Section 1.5(a)) by shares of Common
Stock subject to an outstanding award that are not issued or delivered by reason of the expiration,
termination, cancellation or forfeiture of such award. The Plan Share Limit shall not be increased
by (i) shares of Common Stock delivered or withheld to pay all or a portion of the exercise price
of an award, (ii) shares of Common Stock delivered or withheld to satisfy all or a portion of the
tax withholding obligations relating to an award, (iii) shares subject to a SAR that is exercised,
whether or not shares of Common Stock are issued to the Participant upon exercise of the SAR, or
(iv) shares of Common Stock that are repurchased by the Company with the proceeds from the exercise
of an award. Increases in the Plan Share Limit pursuant to this Section 1.5(c) shall be made in a
manner consistent with the Plan Share Limit deductions in effect at the time such increase occurs
under Section 1.5(b).



     (d) Performance-based Compensation. To the extent necessary for an award to be
qualified performance-based compensation under Section 162(m) of the Code, the maximum aggregate
number of shares of Common Stock with respect to which Stock Options, SARs, Stock Awards or
Performance Grants may be issued to any individual during a calendar year shall be one-half of one
percent of the total number of outstanding shares of Common Stock of the Company as of the
preceding December 31st. The maximum amount of cash payable during a calendar year to
any person in connection with a Performance Grant shall be $8,000,000.



     (e) Source of Shares. Shares of Common Stock shall be made available from authorized
but unissued shares, treasury shares, reacquired shares, or any combination thereof.


1.6 Employment. Unless otherwise expressly provided herein, references to “employment”
with the Company or “employment with or service to the Company” shall mean the employment with or
service to the Company, a Subsidiary or an Affiliate, including transfers of employment between the
Company, a Subsidiary and an Affiliate, approved leaves of absence, and Related Employment.




II. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS



2.1. Stock Options. The Committee may, in its discretion, grant Stock Options to such
eligible persons as may be selected by the Committee. An Incentive Stock Option may not be granted
to any person who is not an employee of the Company or any parent or subsidiary (as defined in
Section 424 of the Code). Each Incentive Stock Option shall be granted within ten years of the
date this Plan is adopted by the Board. To the extent the aggregate Fair Market Value






-9-









 







(determined as of the date of grant) of shares of Common Stock with respect to which options
designated as Incentive Stock Options are exercisable for the first time by a participant during
any calendar year (under this Plan or any other plan of the Company, or any parent or subsidiary as
defined in Section 424 of the Code) exceeds the amount (currently $100,000) established by the
Code, such options shall constitute Nonqualified Stock Options.




     Stock Options shall be subject to the following terms and conditions and shall contain such
additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee
shall deem advisable:



     (a) Number of Shares and Purchase Price. The number of shares of Common Stock subject
to a Stock Option shall be determined by the Committee. The purchase price per share of Common
Stock purchasable upon exercise of a Stock Option shall not be less than 100% of the Fair Market
Value of a share of Common Stock on the date of grant of such Stock Option; provided, however, that
if an Incentive Stock Option shall be granted to any person who, at the time such Incentive Stock
Option is granted, owns capital stock possessing more than ten percent of the total combined voting
power of all classes of capital stock of the Company (or of any parent or subsidiary as defined in
Section 424 of the Code) (a “Ten Percent Holder”), the purchase price per share of Common
Stock shall be the price (currently 110% of Fair Market Value) required by the Code in order to
constitute an Incentive Stock Option.



     (b) Option Period and Exercisability. The period during which a Stock Option may be
exercised shall be determined by the Committee; provided, however, that no Stock Option shall be
exercised later than ten years after its date of grant; provided further, that if an Incentive
Stock Option shall be granted to a Ten Percent Holder, such Incentive Stock Option shall not be
exercised later than five years after its date of grant. The Committee may, in its discretion,
establish Performance Measures which shall be satisfied or met as a condition to the grant of a
Stock Option or to the exercisability of all or a portion of a Stock Option. The Committee shall
determine whether a Stock Option shall become exercisable in cumulative or non-cumulative
installments and in part or in full at any time. An exercisable Stock Option, or portion thereof,
may be exercised only with respect to whole shares of Common Stock.



     (c) Method of Exercise. A Stock Option may be exercised (i) by giving written notice
to the Company specifying the number of whole shares of Common Stock to be purchased and
accompanied by payment therefor in full (or arrangement made for such payment to the Company’s
satisfaction) either (A) in cash, (B) by delivery (either actual delivery or by attestation
procedures established by the Company) of Mature Shares having an aggregate Fair Market Value,
determined as of the date of exercise, equal to the aggregate purchase price payable by reason of
such exercise, (C) except as may be prohibited by applicable law, in cash by a broker-dealer
acceptable to the Company to whom the optionee has submitted an irrevocable notice of exercise, or
(D) by a combination of (A) and (B), in each case to the extent set forth in the Agreement relating
to the Stock Option, and (ii) by executing such documents as the Company may reasonably request.
Any fraction of a share of Common Stock which would be required to pay such purchase price shall be
disregarded and the remaining amount due shall be paid in cash by the optionee. No certificate or
other indicia of ownership representing Common Stock shall be delivered until the full purchase
price therefor, and any withholding taxes thereon, as described in Section 5.5, have been paid (or
arrangement made for such payment to the Company’s satisfaction).



-10-









 





     (d) Minimum Vesting Period. Except as provided in this subsection or as otherwise
provided under the Plan, no Stock Option award may become exercisable in full until three years
from the date such Stock Option was granted and no portion of a Stock Option award may become
exercisable until one year from the date such Stock Option was granted. The limitations of the
preceding sentence shall not apply in the case of a Stock Option that becomes exercisable as a
result of the attainment of a specified Performance Measure or in the case of a Stock Option
granted as an employee recognition award, a retention award, or to a newly hired employee; provided
that except as provided for under the Plan no portion of any such Stock Option may become
exercisable until six months from the date the Stock Option was granted. The exceptions in the
preceding sentence to the general minimum vesting provisions of this subsection, other than the
exception applying to a Stock Option that becomes exercisable as a result of the attainment of a
specified Performance Measure, are intended to be applied only in special circumstances as
determined by the Committee (or its delegate).



     (e) Repricing and Discounting. Subject to Section 5.7, the repricing or discounting
of Stock Options is expressly disallowed under this Plan.


2.2. Stock Appreciation Rights. The Committee may, in its discretion, grant SARs to such
eligible persons as may be selected by the Committee.




     SARs shall be subject to the following terms and conditions and shall contain such additional
terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem
advisable:



     (a) Number of SARs and Base Price. The number of SARs subject to an award shall be
determined by the Committee. The base price of an SAR shall not be less than 100% of the Fair
Market Value of a share of Common Stock on the date such SAR is granted.



     (b) Exercise Period and Exercisability. The Agreement relating to an award of SARs
shall specify whether such award may be settled in shares of Common Stock (including shares of
Restricted Stock) or cash or a combination thereof. The period for the exercise of an SAR shall be
determined by the Committee; provided, however, that no SAR shall be exercised later than ten years
after its date of grant. The Committee may, in its discretion, establish Performance Measures
which shall be satisfied or met as a condition to the grant of an SAR or to the exercisability of
all or a portion of an SAR. The Committee shall determine whether an SAR may be exercised in
cumulative or non-cumulative installments and in part or in full at any time. An exercisable SAR,
or portion thereof, may be exercised only with respect to a whole number of SARs. If an SAR is
exercised for shares of Restricted Stock, a certificate or certificates or other indicia of
ownership representing such Restricted Stock shall be issued in accordance with Section 3.2(c) and
the holder of such Restricted Stock shall have such rights of a stockholder of the Company as
determined pursuant to Section 3.2(d). Prior to the exercise of an SAR for shares of Common Stock,
including Restricted Stock, the holder of such SAR shall have no rights as a stockholder of the
Company with respect to the shares of Common Stock subject to such SAR and shall have rights as a
stockholder of the Company in accordance with Section 5.10.



     (c) Method of Exercise. An SAR may be exercised (i) by giving written notice to the
Company specifying the whole number of SARs which are being exercised and (ii) by executing such
documents as the Company may reasonably request.



-11-









 





     (d) Minimum Vesting Period. Except as provided in this subsection or as otherwise
provided under the Plan, no SAR award may become exercisable in full until three years from the
date such SAR was granted and no portion of a SAR award may become exercisable until one year from
the date such SAR was granted. The limitations of the preceding sentence shall not apply in the
case of a SAR that becomes exercisable as a result of the attainment of a specified Performance
Measure or in the case of a SAR granted as an employee recognition award, a retention award, or to
a newly hired employee; provided that except as provided for under the Plan no portion of any such
SAR may become exercisable until six months from the date the SAR was granted. The exceptions in
the preceding sentence to the general minimum vesting provisions of this subsection, other than the
exception applying to a SAR that becomes exercisable as a result of the attainment of a specified
Performance Measure, are intended to be applied only in special circumstances as determined by the
Committee (or its delegate).



     (e) Repricing and Discounting. Subject to Section 5.7, the repricing or discounting
of SARs is expressly disallowed under this Plan.


2.3. Termination of Employment or Service.




     (a) Disability. Unless otherwise specified in the Agreement, if the employment with or
service to the Company of the holder of a Stock Option or SAR terminates by reason of Disability,
each Stock Option and SAR held by such holder shall become fully vested and exercisable and may
thereafter be exercised by such holder (or such holder’s legal representative or similar person)
until the date which is one year after the effective date of such holder’s termination of
employment or service, or if earlier, the expiration date of the term of such Stock Option or SAR.



     (b) Retirement.



     (i) Stock Options and SARs Granted on and after January 31, 2011. Effective for Stock
Options and SARs granted under the Plan on and after January 31, 2011, unless otherwise specified
in the Agreement, if the employment with or service to the Company of the holder of a Stock Option
or SAR terminates by reason of Retirement, each Stock Option and SAR held by such holder, to the
extent not already vested, shall vest on a prorated basis on the effective date of the holder’s
termination of employment or service. Such prorated vesting shall be calculated on a
grant-by-grant basis by multiplying the unvested portion of each such Stock Option and SAR award by
a fraction, the numerator of which is the number of days that have elapsed between the grant date
and the effective date of the holder’s termination of employment or service and the denominator of
which is the number of days between the grant date and the date the Stock Option or SAR award would
have become fully vested and exercisable had the holder not terminated his or her employment or
service. Unless otherwise specified in the Agreement, a vested Stock Option and SAR held by such
holder may be exercised by the holder (or such holder’s legal representative or similar person)
until the date which is two years after the effective date of such holder’s termination of
employment or service, or if earlier, the expiration date of the term of such Stock Option or SAR.



     (ii) Stock Options and SARs Granted Prior to January 31, 2011. Effective for Stock
Options and SARs granted under the Plan prior to January 31, 2011, unless otherwise specified in
the Agreement, if the employment with or service to the Company of the holder of a Stock Option



-12-









 




or SAR terminates by reason of Retirement, each Stock Option and SAR held by such holder shall
continue to vest in accordance with its terms, and to the extent vested, may thereafter be
exercised by such holder (or such holder’s legal representative or similar person) until the date
which is four years after the effective date of such holder’s termination of employment or service,
or if earlier, the expiration date of the term of such Stock Option or SAR.




     (c) Death. Unless otherwise specified in the Agreement, if the employment with or
service to the Company of the holder of a Stock Option or SAR terminates by reason of death, each
Stock Option and SAR held by such holder shall become fully vested and exercisable and may
thereafter be exercised by such holder’s executor, administrator, legal representative, beneficiary
or similar person until the date which is one year after the date of death, or if earlier, the
expiration date of the term of such Stock Option or SAR.



     (d) Involuntary Termination Without Cause. Unless otherwise specified in the
Agreement, and except as provided in Section 5.8, if the employment with or service to the Company
of the holder of a Stock Option or SAR is terminated by the Company, a Subsidiary or an Affiliate
without Cause, each Stock Option and SAR held by such holder shall cease to vest, and to the extent
already vested, may thereafter be exercised by such holder (or such holder’s legal representative
or similar person) until the date which is three months after such involuntary termination, or if
earlier, the expiration date of the term of such Stock Option or SAR.



     (e) Termination for Cause. If the employment with or service to the Company of the
holder of a Stock Option or SAR is terminated for Cause, each Stock Option and SAR held by such
holder shall cease to vest, and to the extent already vested, may thereafter be exercised by such
holder (or such holder’s legal representative or similar person) until the close of the New York
Stock Exchange (if open) on the date of such holder’s termination of employment or service. If the
New York Stock Exchange is closed at the time of such holder’s termination of employment, then such
Stock Option or SAR shall be forfeited at the time such holder’s employment is terminated and shall
be canceled by the Company.



     (f) Other Termination. Unless otherwise specified in the Agreement, if the employment
with or service to the Company of the holder of a Stock Option or SAR terminates for any reason
other than Disability, Retirement, death, involuntary termination without Cause, or termination for
Cause, each Stock Option and SAR held by such holder shall cease to vest, and to the extent already
vested, may thereafter be exercised by such holder (or such holder’s legal representative or
similar person) until the close of the New York Stock Exchange (if open) on the date which is the
thirtieth (30th) day following such holder’s termination of employment or service. If
the New York Stock Exchange is closed on such date, then such Stock Option or SAR shall be
forfeited and shall be canceled by the Company effective with the close of the New York Stock
Exchange on the next following day in which the New York Stock Exchange is open.



     (g) Death Following Termination of Employment or Service. Unless otherwise specified
in the Agreement, if the holder of a Stock Option or SAR dies during the applicable
Post-Termination Exercise Period, each Stock Option and SAR held by such holder shall be
exercisable only to the extent that such Stock Option or SAR is exercisable on the date of such
holder’s death and may thereafter be exercised by the holder’s executor, administrator, legal
representative, beneficiary or similar person until the date which is one year after the date of
death, or if earlier, the expiration date of the term of such Stock Option or SAR.



-13-









 





III. STOCK AWARDS



3.1. Stock Awards. The Committee may, in its discretion, grant Stock Awards to such
eligible persons as may be selected by the Committee. The Agreement relating to the Stock Award
shall specify whether the Stock Award is a Restricted Stock Award, a Restricted Stock Unit Award,
or a Bonus Stock Award.



3.2. Terms of Stock Awards. Stock Awards shall be subject to the following terms and
conditions and shall contain such additional terms and conditions, not inconsistent with the terms
of this Plan, as the Committee shall deem advisable.




     (a) Number of Shares and Other Terms. The number of shares of Common Stock subject to
a Stock Award and the Performance Measures (if any) and the Restriction Period applicable to a
Restricted Stock Award or a Restricted Stock Unit Award shall be determined by the Committee.



     (b) Vesting and Forfeiture. The Agreement relating to a Restricted Stock Award or
Restricted Stock Unit Award shall provide, in the manner determined by the Committee, in its
discretion, and subject to the provisions of this Plan, for the vesting of the shares of Common
Stock subject to such award, in the case of a Restricted Stock Award, or for the vesting of the
Restricted Stock Unit Award itself, in the case of Restricted Stock Unit Award, (i) if specified
Performance Measures are satisfied or met during the specified Restriction Period or (ii) if the
holder of such award remains continuously in the employment of or service to the Company during the
specified Restriction Period, and for the forfeiture of all or a portion of the shares of Common
Stock subject to such award in the case of a Restricted Stock Award, or for the forfeiture of the
Restricted Stock Unit Award itself, in the case of a Restricted Stock Unit Award, (x) if specified
Performance Measures are not satisfied or met during the specified Restriction Period or (y) if the
holder of such award does not remain continuously in the employment of or service to the Company
during the specified Restriction Period.



     Bonus Stock Awards shall not be subject to any Performance Measures or Restriction Periods.



     (c) Share Certificates/Indicia of Ownership. During the Restriction Period, a
certificate or certificates or other indicia of ownership representing a Restricted Stock Award may
be registered in the holder’s name or a nominee name at the discretion of the Company and may bear
a legend, in addition to any legend which may be required pursuant to Section 5.6, indicating that
the ownership of the shares of Common Stock represented thereby is subject to the restrictions,
terms and conditions of this Plan and the Agreement relating to the Restricted Stock Award. As
determined by the Committee, all certificates or other indicia of ownership registered in the
holder’s name shall be deposited with the Company, together with stock powers or other instruments
of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature
if deemed necessary or appropriate by the Company, which would permit transfer to the Company of
all or a portion of the shares of Common Stock subject to the Restricted Stock Award in the event
such award is forfeited in whole or in part. Upon termination of any applicable Restriction Period
(and the satisfaction or attainment of any applicable Performance Measures), or upon the grant of a
Bonus Stock Award, in each case subject to the Company’s right to require payment of any taxes in
accordance with Section 5.5, a certificate or



-14-









 




certificates evidencing ownership, or such other indicia of ownership as determined by the
Committee, of the requisite number of shares of Common Stock shall be delivered to the holder of
such award.




     (d) Rights with Respect to Restricted Stock Awards. Unless otherwise set forth in the
Agreement relating to a Restricted Stock Award, and subject to the Committee’s right to cause such
Award to be cancelled pursuant to an adjustment under Section 5.7, the holder of such award shall
have all rights as a stockholder of the Company, including voting rights, the right to receive
dividends and the right to participate in any capital adjustment applicable to all holders of
Common Stock; provided, however, that unless the Committee determines otherwise, a distribution
with respect to shares of Common Stock, including a regular cash dividend, shall be deposited with
the Company and replaced with additional Restricted Stock Awards with a Fair Market Value equal to
such distribution and otherwise subject to the same restrictions as the shares of Common Stock with
respect to which such distribution was made.



     (e) Rights and Provisions Applicable to Restricted Stock Unit Awards. The Agreement
relating to a Restricted Stock Unit Award shall specify whether the holder thereof shall be
entitled to receive, on a current or deferred basis, dividend equivalents, or the deemed
reinvestment of any deferred dividend equivalents, with respect to the number of shares of Common
Stock subject to such award. Prior to the settlement of a Restricted Stock Unit Award, the holder
thereof shall not have any rights as a stockholder of the Company with respect to the shares of
Common Stock subject to such award, except to the extent that the Committee, in its sole
discretion, may grant dividend equivalents on Restricted Stock Unit Awards which are settled in
shares of Common Stock. No shares of Common Stock and no certificates or other indicia of
ownership representing shares of Common Stock that are subject to a Restricted Stock Unit Award
shall be issued upon the grant of a Restricted Stock Unit Award. Instead, shares of Common Stock
subject to Restricted Stock Unit Awards and the certificates or other indicia of ownership
representing such shares of Common Stock shall only be distributed at the time of settlement of
such Restricted Stock Unit Awards in accordance with the terms and conditions of this Plan and the
Agreement relating to such Restricted Stock Unit Award.



     (f) Minimum Restriction Period. Except as provided in this subsection or as otherwise
provided under the Plan, the Restriction Period applicable to a Restricted Stock Award or
Restricted Stock Unit Award may not lapse in full until three years from the date such award was
granted and no portion of the Restriction Period applicable to a Restricted Stock Award or
Restricted Stock Unit Award may lapse until one year from the date such award was granted. The
limitations of the preceding sentence shall not apply in the case of a Restricted Stock Award or
Restricted Stock Unit Award that vests as a result of the attainment of a specified Performance
Measure or in the case of a Restricted Stock Award or Restricted Stock Unit Award granted as a
founder’s grant, an employee recognition award, a retention award, or to a newly hired employee;
provided that except as provided for under the Plan the minimum Restriction Period applicable to
such award shall be six months. The exceptions in the preceding sentence to the general minimum
vesting provisions of this subsection, other than the exception applying to a Restricted Stock
Award or Restricted Stock Unit Award that vests as a result of the attainment of a specified
Performance Measure, are intended to be applied only in special circumstances as determined by the
Committee (or its delegate).


3.3. Termination of Employment or Service.







-15-









 








     (a) Disability and Death. Unless otherwise set forth in the Agreement relating to a
Stock Award, if the employment with or service to the Company of the holder of such award
terminates by reason of Disability or death, the Restriction Period shall terminate as of the
effective date of such holder’s termination of employment or service and all Performance Measures
applicable to such award shall be deemed to have been satisfied at the maximum level.



     (b) Retirement.



     (i) In the case of Restricted Stock Unit Awards granted under the Plan on and after January 31, 2011 which are not subject to Performance Measures, unless otherwise set forth in
the Agreement, if the employment with or service to the Company of the holder of such award
terminates by reason of Retirement, a prorated portion of such Restricted Stock Unit Award shall
vest and be settled on the date on which the holder’s employment with or service to the Company
terminates, and the remaining portion of such award shall be forfeited by such holder and canceled
by the Company. Such proration shall be calculated on a grant-by-grant basis by multiplying the
number of Restricted Stock Units by a fraction, the numerator of which is the number of days that
have elapsed between the grant date and the effective date of the holder’s termination of
employment or service and the denominator of which is the number of days between the grant date and
the date the Restriction Period applicable to the Restricted Stock Unit Award would have lapsed in
full.



     (ii) In the case of Restricted Stock Unit Awards granted under the Plan on and after January 31, 2011 which are subject to Performance Measures, unless otherwise set forth in the
Agreement, if the employment with or service to the Company of the holder of such award terminates
by reason of Retirement, a prorated portion of the amount of such Restricted Stock Unit Award which
is actually earned, based upon satisfaction of the Performance Measures during the applicable
performance period, shall vest and be settled on the later of (i) date on which the holder’s
employment with or service to the Company terminates or (ii) as soon as practicable following the
end of the applicable performance period, and in no event later than March 15 of the calendar year
following the calendar year in which the applicable performance period ends, and the remaining
portion of such award shall be forfeited by such holder and canceled by the Company. Such
proration shall be calculated on a grant-by-grant basis by multiplying the number of Restricted
Stock Units by a fraction, the numerator of which is the number of days that have elapsed between
the grant date and the effective date of the holder’s termination of employment or service and the
denominator of which is the number of days between the grant date and the date the Restriction
Period applicable to the Restricted Stock Unit Award would have lapsed in full.



     (c) Other Termination. Unless otherwise set forth in the Agreement relating to a
Stock Award, and except as provided in Section 3.3(b) and Section 5.8, if the employment with or
service to the Company of the holder of a Stock Award terminates for any reason other than
Disability or death, the portion of such award which is subject to a Restriction Period on the
effective date of such holder’s termination of employment or service shall be immediately forfeited
by such holder and canceled by the Company.



-16-









 





IV. PERFORMANCE GRANTS



4.1. Performance Grants. The Committee may, in its discretion, make Performance Grants to
such eligible persons as may be selected by the Committee.



4.2. Terms of Performance Grants. Performance Grants shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not inconsistent with
the terms of this Plan, as the Committee shall deem advisable.




     (a) Amount of Performance Grant and Performance Measures. The Agreement shall set
forth the amount of the Performance Grant and a description of the Performance Measures and the
Performance Period applicable to such Performance Grant, as determined by the Committee in its
discretion.



     (b) Vesting and Forfeiture. The Agreement shall provide, in the manner determined by
the Committee in its discretion, for the vesting of a Performance Grant, if specified Performance
Measures are satisfied during the specified Performance Period, and for the forfeiture of all or a
portion of such award, if specified Performance Measures are not satisfied during the specified
Performance Period.



     (c) Settlement of Vested Performance Grants. The Agreement (i) shall specify whether
a Performance Grant may be settled in shares of Common Stock, Restricted Stock, Restricted Stock
Units, cash or a combination thereof and (ii) may specify whether the holder thereof shall be
entitled to receive, on a current or deferred basis, dividend equivalents, and, if determined by
the Committee, interest on or the deemed reinvestment of any deferred dividend equivalents, with
respect to the number of shares of Common Stock subject to such award, if any. If a Performance
Grant is settled in shares of Restricted Stock, a certificate or certificates or other indicia of
ownership representing such Restricted Stock shall be issued in accordance with Section 3.2(c) and
the holder of such Restricted Stock shall have such rights of a stockholder of the Company as
determined pursuant to Section 3.2(d). Prior to the settlement of a Performance Grant in shares of
Common Stock or Restricted Stock the holder of such award shall have no rights as a stockholder of
the Company with respect to any shares of Common Stock subject to such award and shall have rights
as a stockholder of the Company in accordance with Section 5.10.



     (d) Minimum Performance Period. The minimum Performance Period for any Performance
Grant is one year from the date such grant is made.


4.3. Termination of Employment or Service.




     (a) Disability, Retirement and Death. Unless otherwise set forth in the Agreement, if
the employment with or service to the Company of the holder of a Performance Grant terminates
during the Performance Period by reason of Disability, Retirement or death, the Performance Period
shall continue and the holder, or the holder’s executor, administrator, legal representative,
beneficiary or similar person, as applicable, shall be entitled to a prorated award. Such prorated
award shall be equal to the value of the award at the end of the Performance Period multiplied by a
fraction, the numerator of which shall equal the number of days such holder was employed with or
performing services for the Company during the Performance Period and the denominator of which
shall equal the number of daysin the Performance Period; provided, however, that such



-17-









 




holder, or such holder’s executor, administrator, legal representative, beneficiary or similar
person, as applicable, shall not be entitled to payment or distribution of such Performance Grant
earlier than the date set forth in the Agreement.




     (b) Other Termination. Unless otherwise set forth in the Agreement, if the employment
with or service to the Company of the holder of a Performance Grant terminates during the
Performance Period for any reason other than Disability, Retirement or death, each Performance
Grant that is not vested shall be immediately forfeited.



V. GENERAL



5.1. Effective Date and Term of Plan. This Plan shall be submitted to the stockholders of
the Company for approval and, if approved, shall become effective as of September 28, 2006, the
date on which the 2006 LTIP was approved by First Data in its capacity as sole stockholder of the
Company. This Plan shall terminate on the tenth anniversary of the date of approval of the Plan by
the Board or Committee, or if earlier when shares of Common Stock are no longer available for the
grant, exercise or settlement of awards, unless terminated earlier by the Board or the Committee.
Termination of this Plan shall not affect the terms or conditions of any award granted prior to
termination. If this Plan is not approved by the stockholders of the Company, this Plan shall be
null and void and the 2006 LTIP shall remain in full force and effect.



5.2. Amendments. The Board or the Committee may amend or terminate this Plan, and except
as provided in Sections 2.1(e) and 2.2(e), the Committee may amend outstanding awards under this
Plan in any manner as it shall deem advisable in its sole discretion, subject to any requirement of
stockholder approval required by applicable law, rule or regulation, including Section 162(m) and
Section 422 of the Code and the rules of the New York Stock Exchange; provided, however, that no
amendment of the Plan shall be made without stockholder approval if such amendment would increase
the maximum number of shares of Common Stock available under this Plan (subject to Section 5.7).
No amendment of the Plan or an outstanding award may impair the rights of a holder (the
determination of which shall be made by the Committee in its sole discretion) of an outstanding
award without the consent of such holder.



5.3. Agreement. The Company may condition an award holder’s right (a) to exercise, vest or
settle the award and (b) to receive delivery of shares, on the execution and delivery to the
Company of the Agreement and the completion of other requirements, including, but not limited to,
the execution of a nonsolicitation agreement by the recipient and delivery thereof to the Company.
Notwithstanding anything contained herein to the contrary, the Committee may approve an Agreement
that, upon the termination of an award holder’s employment or service, provides that, or may, in
its sole discretion based on a review of all relevant facts and circumstances, otherwise take
action regarding an Agreement such that (i) any or all outstanding Stock Options and SARs shall
become exercisable in part or in full, (ii) all or a portion of the Restriction Period applicable
to any outstanding Stock Award shall lapse, (iii) all or a portion of the Performance Period
applicable to any outstanding Performance Grant shall lapse and (iv) the Performance Measures
applicable to any outstanding award (if any) shall be deemed to be satisfied at the maximum or any
other level.



5.4. Transferability of Stock Options. Stock Options may not be sold, assigned,
transferred, pledged, hypothecated or otherwise disposed of by the holder thereof, except by will
or the laws






-18-









 







of descent and distribution; provided, however, that unless otherwise specified in the Agreement,
as long as the holder continues employment with or service to the Company, such holder may transfer
Stock Options to a Family Member or Family Entity without consideration; provided, however, in the
case of a transfer of Stock Options to a limited liability company or a partnership which is a
Family Entity, such transfer may be for consideration consisting solely of an equity interest in
the limited liability company or partnership to which the transfer is made. Any transfer of Stock
Options shall be in a form acceptable to the Committee, shall be signed by the holder and shall be
effective only upon written acknowledgement by the Committee of its receipt and acceptance of such
notice. If a Stock Option is transferred to a Family Member or to a Family Entity, such Stock
Option may not thereafter be sold, assigned, transferred, pledged, hypothecated or otherwise
disposed of by such Family Member or Family Entity except by will or the laws of descent and
distribution.



5.5. Tax Withholding. The Company shall have the right to require, as of the grant,
vesting, or exercise of an award, the sale of any shares of Common Stock, the receipt of any
dividends or the payment of any cash pursuant to an award made hereunder, payment by the holder of
such award of any federal, state, local or other income, social insurance, payroll or other
tax-related items which may be required to be withheld or paid in connection with such award. An
Agreement may provide that (i) the Company shall withhold whole shares of Common Stock which would
otherwise be delivered to a holder having an aggregate Fair Market Value determined as of the date
the obligation to withhold or pay taxes arises in connection with an award (the “Tax Date”)
in the amount necessary to satisfy any such obligation, or withhold an amount of cash which would
otherwise be payable to a holder, including withholding from wages or other cash compensation
otherwise due to the holder, in the amount necessary to satisfy any such obligation or (ii) the
holder may satisfy any such obligation by any of the following means: (A) a cash payment to the
Company, (B) delivery (either actual delivery or by attestation procedures established by the
Company) to the Company of Common Stock having an aggregate Fair Market Value, determined as of the
Tax Date, equal to the amount necessary to satisfy any such obligation, (C) authorizing the Company
to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate
Fair Market Value, determined as of the Tax Date, or withhold an amount of cash which would
otherwise be payable to a holder, equal to the amount necessary to satisfy any such obligation, (D)
in the case of the exercise of a Stock Option, a cash payment by a broker-dealer acceptable to the
Company to whom the optionee has submitted an irrevocable notice of exercise, in each case to the
extent set forth in the Agreement relating to an award, or (E) any combination of (A) and (B).
Shares of Common Stock to be delivered or withheld may not have an aggregate Fair Market Value in
excess of the amount determined by applying the minimum statutory withholding rate. Any fraction
of a share of Common Stock which would be required to satisfy such an obligation shall be
disregarded and the remaining amount due shall be paid in cash by the holder



5.6. Restrictions on Shares. Each award made hereunder shall be subject to the requirement
that if at any time the Company determines that the listing, registration or qualification of the
shares of Common Stock subject to such award upon any securities exchange or under any law, or the
consent or approval of any governmental body, or the taking of any other action is necessary or
desirable as a condition of, or in connection with, the vesting, exercise or settlement of such
award or the delivery of shares thereunder, such award shall not vest, be exercised or settled and
such shares shall not be delivered unless such listing, registration, qualification, consent,
approval or other action shall have been effected or obtained, free of any conditions not
acceptable to the






-19-









 







Company. In addition, the Committee may condition the grant of an award on compliance with certain
listing, registration or other qualifications applicable to the award under any law or any
obligation to obtain the consent or approval of a governmental body. The Company may require that
certificates or other indicia of ownership evidencing shares of Common Stock delivered pursuant to
any award made hereunder bear a legend indicating that the sale, transfer or other disposition
thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as
amended, and the rules and regulations thereunder.



5.7. Adjustment. In the event of any stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or
other similar change in capitalization or event, or any distribution to holders of Common Stock
other than a regular cash dividend, the number, class and kind of securities (including, for this
purpose, securities of any other entity that is a party to any such transaction) available under
this Plan, the maximum number of securities available for Stock Awards and Performance Grants, the
number, class and kind of securities (including, for this purpose, securities of any other entity
that is a party to any such transaction) subject to each outstanding Stock Option and the purchase
price per security, the terms of each outstanding Stock Option, the maximum number of securities
with respect to which Stock Options or SARs (or a combination thereof), or Stock Awards or
Performance Grants may be made or granted during any calendar year to any person, the number, class
and kind of securities (including, for this purpose, securities of any other entity that is a party
to any such transaction) subject to each outstanding SAR and the base price per SAR, the terms of
each outstanding SAR, the number, class and kind of securities (including, for this purpose,
securities of any other entity that is a party to any such transaction) subject to each outstanding
Stock Award or Performance Grant, and the terms of each outstanding Stock Award or Performance
Grant shall be appropriately adjusted by the Committee, such adjustments to be made in the case of
outstanding Stock Options and SARs without an increase in the aggregate purchase price or base
price. The decision of the Committee regarding any such adjustment shall be final, binding and
conclusive. If any such adjustment would result in a fractional security being (a) available under
this Plan, such fractional security shall be disregarded, or (b) subject to an award under this
Plan, the Company shall pay the holder of such award, in connection with the adjustment or first
vesting, exercise or settlement of such award in whole or in part occurring after such adjustment,
as the Committee may determine , an amount in cash determined by multiplying (i) the fraction of
such security (rounded to the nearest hundredth) by (ii) the excess, if any, of (A) the Fair Market
Value on the vesting, exercise or settlement date over (B) the exercise or base price, if any, of
such award.



5.8. Change in Control.




     (a) Awards Granted On and After February 17, 2009. Effective for awards granted under
the Plan on and after February 17, 2009, if an award holder’s employment is terminated by the
Company, a Subsidiary or an Affiliate without Cause (or otherwise terminates for an eligible reason
according to the terms of the Company severance policy applicable to the holder as of the effective
date of a Change in Control) during the period commencing on and ending twenty-four months after
the effective date of the Change in Control, then effective on the holder’s date of termination of
employment (i) each outstanding Stock Option and SAR held by such holder shall become fully vested
and exercisable, and (ii) the Restriction Period applicable to each outstanding Stock Award held by
such holder shall lapse; provided, however, that awards that will vest or become exercisable or
payable only if specified Performance Measures are attained and awards



-20-









 




that provide for a deferral of compensation within the meaning of Code § 409A shall vest or be
exercisable or payable in accordance with the applicable Agreements, subject to the terms of the
Plan. All other awards granted under the Plan to such holder, including Performance Grants, shall
vest or be exercisable or payable, if at all, in accordance with the applicable Agreements, subject
to the terms of the Plan. Notwithstanding any provision of this Plan to the contrary, each Stock
Option or SAR granted to such holder shall remain exercisable by the holder (or his or her legal
representative or similar person) until the earlier of (y) the end of the severance period
applicable to the holder under the Company severance policy (if any) applicable to the holder as of
the effective date of a Change in Control or, if later, the end of the otherwise applicable
Post-Termination Exercise Period, or (z) the expiration date of the term of the Stock Option or
SAR.




     (b) Awards Granted Prior to February 17, 2009. Effective for awards granted under the
Plan prior to February 17, 2009, as of the effective date of a Change in Control (i) each
outstanding Stock Option and SAR shall become fully vested and exercisable, (ii) the Restriction
Period applicable to each outstanding Stock Award shall lapse, (iii) the Performance Period
applicable to any outstanding Performance Grant shall lapse, and (iv) the Performance Measures
applicable to any outstanding award shall be deemed to be satisfied at the target level (or if
greater, at the performance level actually attained). Notwithstanding any provision of this Plan
to the contrary, each Stock Option or SAR granted to a holder whose employment is terminated for an
eligible reason according to the terms of the Company severance policy applicable to the holder as
of the effective date of a Change in Control during the period commencing on and ending twenty-four
months after the effective date of the Change in Control shall remain exercisable by such holder
(or his or her legal representative or similar person) until the earlier of (y) the end of the
severance period applicable to the holder under such severance policy or, if later, the end of the
otherwise applicable Post-Termination Exercise Period, or (z) the expiration date of the term of
the Stock Option or SAR.


5.9. No Right of Participation or Employment. No person shall have any right to
participate in this Plan. Neither this Plan nor any award made hereunder shall confer upon any
person any right to continued employment by the Company, any Subsidiary or any Affiliate of the
Company or affect in any manner the right of the Company, any Subsidiary or any Affiliate of the
Company to terminate the employment of any person at any time without liability hereunder.



5.10. Rights as Stockholder. No person shall have any right as a stockholder of the
Company with respect to any shares of Common Stock or other equity security of the Company which is
subject to an award hereunder unless and until such person becomes a stockholder of record with
respect to such shares of Common Stock or equity security.



5.11. Designation of Beneficiary. If permitted by the Committee, the holder of an award
may file with the Committee a written designation of one or more persons as such holder’s
beneficiary or beneficiaries (both primary and contingent) in the event of the holder’s death. To
the extent an outstanding Stock Option or SAR granted hereunder is exercisable, such beneficiary or
beneficiaries shall be entitled to exercise such Stock Option or SAR to the extent permitted under
local law.




     Each beneficiary designation shall become effective only when filed in writing with the
Committee during the holder’s lifetime on a form prescribed by the Committee. The spouse of a
married holder domiciled in a community property jurisdiction shall join in any designation of a



-21-









 




beneficiary other than such spouse. The filing with the Committee of a new beneficiary
designation shall cancel all previously filed beneficiary designations.




     If a holder fails to designate a beneficiary, or if all designated beneficiaries of a holder
predecease the holder, then each outstanding Stock Option and SAR hereunder held by such holder, to
the extent exercisable, may be exercised by such holder’s executor, administrator, legal
representative or similar person.


5.12. Governing Law. This Plan, each award hereunder and the related Agreement, and all
determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the
Code or the laws of the United States, shall be governed by the laws of the State of Delaware and
construed in accordance therewith without giving effect to principles of conflicts of laws.



5.13. Replacement and Substitute Awards. Notwithstanding anything in this Plan to the
contrary, any Stock Option or Stock Award that is intended to be a Replacement or Substitute Award
granted in connection with the spin-off of the Company shall be subject to the same terms and
conditions as the original First Data award to which it relates; provided, however that such awards
shall be administered by the Committee.



5.14. Foreign Employees. The Committee may adopt, amend or rescind rules, procedures or
sub-plans relating to the operation and administration of the Plan to accommodate the specific
requirements of local laws and procedures and to foster and promote achievement of the purposes of
this Plan. Without limiting the generality of the foregoing, the Committee is specifically
authorized to adopt rules, procedures and sub-plans with provisions that limit or modify rights on
death, Disability or Retirement or on termination of employment; available methods of exercise or
settlement of an award; payment of income, social insurance contributions and payroll taxes; the
withholding procedures and handling of any stock certificates or other indicia of ownership which
vary with local requirements. The Committee may also adopt rules, procedures or sub-plans
applicable to particular Subsidiaries, Affiliates or locations. The rules of such sub-plans may
take precedence over other provisions of this Plan, with the exception of Sections 1.5 and 5.2, but
unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern
the operation of such sub-plan.



5.15. Termination of Employment or Service. Unless otherwise determined by the Committee,
an award holder employed by or providing service to an entity that is a Subsidiary or an Affiliate
under this Plan shall be deemed to have terminated employment with or service to the Company for
purposes of this Plan on the date that such entity ceases to be a Subsidiary or an Affiliate
hereunder.



5.16 Code Section 409A. Notwithstanding anything in this Plan to the contrary (for
purposes of this Section 5.16, “Plan” shall include all Agreements under the Plan), the Plan will
be construed, administered or deemed amended as necessary to comply with the requirements of
Section 409A of the Code to avoid taxation under Section 409A(a)(1) of the Code to the extent
subject to Section 409A of the Code. The Committee, in its sole discretion, shall determine the
requirements of Section 409A of the Code applicable to the Plan and shall interpret the terms of
the Plan consistently therewith. Under no circumstances, however, shall the Company or any
Subsidiary or Affiliate or any of its or their employees, officers, directors, service providers or
agents have any liability to any person for any taxes, penalties or interest due on amounts paid or






-22-









 







payable under the Plan, including any taxes, penalties or interest imposed under Section 409A of
the Code. Any payments to award holders pursuant to this Plan are also intended to be exempt from
Section 409A of the Code to the maximum extent possible, first, to the extent such payments are
scheduled to be paid and are in fact paid during the short-term deferral period, as short-term
deferrals pursuant to Treasury regulation §1.409A-1(b)(4), and then, if applicable, under the
separation pay exemption pursuant to Treasury regulation §1.409A-1(b)(9)(iii), and for this purpose
each payment shall be considered a separate payment such that the determination of whether a
payment qualifies as a short-term deferral shall be made without regard to whether other payments
so qualify and the determination of whether a payment qualifies under the separation pay exemption
shall be made without regard to any payments which qualify as short-term deferrals. To the extent
any amounts under this Plan are payable by reference to an award holder’s “termination of
employment,” such term shall be deemed to refer to the award holder’s “separation from service,”
within the meaning of Section 409A of the Code. Notwithstanding any other provision in this Plan,
if an award holder is a “specified employee,” as defined in Section 409A of the Code, as of the
date of the award holder’s separation from service, then to the extent any amount payable under
this Plan (i) constitutes the payment of nonqualified deferred compensation, within the meaning of
Section 409A of the Code, (ii) is payable upon the award holder’s separation from service and (iii)
under the terms of this Plan would be payable prior to the six-month anniversary of the award
holder’s separation from service, such payment shall be delayed until the earlier to occur of (a)
the six-month anniversary of the separation from service or (b) the date of the award holder’s
death.





-23-