Document:

Form of Employee Matters Agreement

 Exhibit 10.2 
  
 EMPLOYEE MATTERS AGREEMENT 
  
 THIS EMPLOYEE MATTERS AGREEMENT is made as of [            ], 2006 between First Data
Corporation, a Delaware corporation (“First Data”), and The Western Union Company, a Delaware corporation (“Western Union”) and, as of the date hereof, a wholly-owned subsidiary of First Data.

  
 RECITALS 
  
 A. First Data and Western Union have entered into a Separation and
Distribution Agreement dated as of [            ], 2006 (the “Distribution Agreement”) pursuant to which First Data will distribute on a pro rata basis to the
holders of First Data’s Common Stock, $0.01 par value per share (“First Data Common Stock”), without any consideration being paid by the holders of such First Data Common Stock, all of the outstanding shares of Western
Union’s Common Stock, $0.01 par value per share (“Western Union Common Stock”) then owned by First Data (the “Distribution”). 
  
 B. In connection with the Distribution, First Data and Western Union desire to enter into this Employee Matters Agreement.

  
 In consideration of the mutual promises contained herein and
in the Distribution Agreement, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.01 Unless otherwise defined herein, each capitalized term shall have
the meaning specified for such term in the Distribution Agreement. As used in this Agreement: 
  
 “Agreement” means this Employee Matters Agreement together with those parts of the Distribution Agreement referenced herein and all Schedules hereto and all amendments, modifications and
changes hereto and thereto. 
  
 “Business
Employee” means a Transferred Employee or any other individual employed at any time on or prior to the Distribution Date by Western Union or any of its Subsidiaries or Affiliates who has, as of the Distribution Date, or who, immediately
prior to his or her termination of employment with all of First Data, its Subsidiaries and their respective Affiliates, had employment duties primarily related to the Transferred Business. 
  
 “COBRA” means the Consolidated Omnibus Budget
Reconciliation Act of 1985, as codified at Part 6 of Subtitle B of Title I of ERISA and at Section 4980B of the Code, as amended. 
  
 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
  
 “Domestic Business Employee” means a Business Employee who is located in the United States or who is
an expatriate Business Employee employed by a Western Union U.S. 

 entity but who is performing services outside of the United States for a temporary period of time at the request of his
employer. 
  
 “ERISA” means the U.S.
Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §1001, et. seq. 
  
 “First Data Non-ERISA Benefit Arrangement” means any Non-ERISA Benefit Arrangement sponsored or maintained by First Data.

  
 “First Data Plan” means any Pension
Plan or Welfare Plan sponsored or maintained by First Data. 
  
 “IRS” means the U.S. Internal Revenue Service. 
  
 “Non-Domestic Business Employee” means a Business Employee who is located outside the United States or who is an inpatriate Business Employee in the U.S. employed by a Western Union Non-U.S.
entity but who is performing services in the United States for a temporary period of time at the request of his employer. 
  
 “Non-ERISA Benefit Arrangement” means any contract, agreement, policy, practice, program, plan, trust or arrangement, other than a
Pension Plan or Welfare Plan, providing for benefits, perquisites or compensation of any nature to any Business Employee, or to any family member, dependent or beneficiary of any such Business Employee, including, without limitation, disability,
severance, health, dental, life, accidental death and dismemberment, travel and accident, tuition reimbursement, supplemental unemployment, vacation, sick, personal or bereavement days, holidays, retirement, deferred compensation, profit sharing,
bonus, stock-based compensation or other forms of incentive compensation. 
  
 “Pension Plan” means any pension plan as defined in Section 3(2) of ERISA, without regard to Section 4(b)(4) or 4(b)(5) of ERISA. 
  
 “Transferred Employee” means an employee of First
Data or any First Data Subsidiary (other than Western Union or any Western Union Subsidiary) whose employment is transferred to Western Union immediately prior to the Distribution Date, as provided in Article II. 
  
 “Welfare Plan” means any employee welfare plan as
defined in Section 3(1) of ERISA, without regard to Section 4(b)(4) or 4(b)(5) of ERISA. 
  
 1.02 In this Agreement, unless the context clearly indicates otherwise: 
  
 (a) words used in the singular include the plural and words used in the plural include the singular;

  
 (b) references to any Person includes such
Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement, and a reference to such Person’s “Affiliates” shall be deemed to mean such Person’s Affiliates
following the Distribution; 
  
 (c) references to
any gender includes the other gender; 
  

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 (d) the words “include,” “includes” and “including” shall
be deemed to be followed by the words “without limitation”; 
  
 (e) references to any Article, Section or Schedules means such Article or Section of, or such Schedule to, this Agreement, as the case may be, and references in any Section or definition to any clause means such
clause of such Section or definition; 
  
 (f) the
words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof; 
  
 (g) references to any agreement, instrument or other document
means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement; 
  
 (h) references to any law (including statutes and ordinances) means such law (including all rules and
regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; 
  
 (i) relative to the determination of any period of time, “from” means “from and
including,” “to” means “to but excluding” and “through” means “through and including”; 
  
 (j) accounting terms used herein shall have the meanings historically ascribed to them by First Data and its Subsidiaries, including
Western Union, in its and their internal accounting and financial policies and procedures in effect prior to the date of this Agreement; 
  
 (k) if there is any conflict between the provisions of the Distribution Agreement and this Agreement, the provisions of this Agreement
shall control with respect to the subject matter hereof; if there is any conflict between the provisions of the body of this Agreement and the Schedule hereto, the provisions of the body of this Agreement shall control unless explicitly stated
otherwise in such Schedule; 
  
 (l) the titles to
Articles and headings of Sections contained in this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement; 
  
 (m) any portion of this Agreement obligating a Party to take
any action or refrain from taking any action, as the case may be, shall mean that such Party shall also be obligated to cause its relevant Affiliates to take such action or refrain from taking such action, as the case may be; and 
  
 (n) unless otherwise specified in this Agreement, all
references to dollar amounts herein shall be in respect of lawful currency of the United States. 
  

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 ARTICLE II 
  

ASSIGNMENT OF EMPLOYEES 
  
 Effective immediately prior to the Distribution Date, the employment of the Transferred Employees by First Data shall be terminated and thereupon shall
commence with and shall be assigned and transferred to Western Union or a Western Union Subsidiary. Notwithstanding anything set forth below or herein to the contrary, nothing in this Agreement shall create any obligation on the part of any Western
Union Party to continue the employment of any employee for any definite period following the Distribution Date or to change the employment status of any employee from “at will.” Notwithstanding the foregoing, if and only to the extent
necessary to preserve payroll, benefits, or other legal entitlements with respect to employees outside the United States, a Western Union Party and a First Data Party may enter into one or more agreements whereby such Party may lease employees from
the other company or its Subsidiary for a period of not more than three calendar months following the Distribution Date. Any such agreement(s) shall require the company benefiting from the services of such employee(s) to fully reimburse the leasing
company for the full cost of the employee(s) remuneration and shall contain other terms and conditions consistent with an arm’s length commercial relationship between the leasing entity and the service recipient. 
  
 ARTICLE III 
  
 PENSION PLANS 
  
 3.01 U.S. Defined Contribution Plans. 
  
 (a) Western Union ISP. 
  
 (1) Establishment of Western Union Company Incentive
Savings Plan. On or before, but effective as of the close of business on the Distribution Date, Western Union shall adopt, establish and maintain a 401(k) profit sharing Pension Plan and trust intended to be qualified under Section 401(a)
of the Code and exempt from federal income tax under Section 501(a) of the Code (the “Western Union ISP”). As soon as practicable after the adoption of the Western Union ISP, Western Union shall submit an application for
determination to the IRS for a determination that the Western Union ISP is qualified under Section 401(a) of the Code and that the related trust is exempt from federal income tax under Section 501(a) of the Code, and shall take any actions
not inconsistent with Western Union’s other general commitments contained in this Agreement and make any amendments necessary to receive such determination. 
  
 (2) Transfer of Account Balances and Unallocated Amounts. As soon as administratively practicable
after the Distribution Date, there shall be transferred from the First Data Corporation Master Trust for Defined Contribution Plans (“DC Master Trust”) to the trust established by Western Union for the Western Union ISP
assets having a value as of the applicable valuation date that are equal to the value of the account balances of, and liabilities with respect to, all Business Employees (other than Business Employees whose employment has 

  

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terminated prior to the Distribution Date and other than Business Employees located in Puerto Rico) with an account balance under the First Data Corporation
Incentive Savings Plan (“First Data ISP”) as of such valuation date. In addition, as soon as administratively practicable after the Distribution Date, there shall be transferred from the DC Master Trust to the trust
established by Western Union to hold Western Union ISP assets a pro rata share of all unallocated amounts held in the DC Master Trust (other than unallocated forfeitures attributable to the Western Union Financial Services, Inc. Retirement Savings
Plan for Bargaining Unit Employees), determined based upon the ratio of the sum of the account balances of the Business Employees described in the immediately preceding sentence as of the applicable valuation date to the sum of all account balances
held in the DC Master Trust as of such valuation date. Such transferred assets shall be in cash, shares of securities, promissory notes evidencing outstanding plan loans of such Business Employees, and shares of First Data Common Stock and Western
Union Common Stock, and such transfer shall be made in accordance with Section 414(l) of the Code. Liabilities under any qualified domestic relations orders (as defined in Section 414(p) of the Code) received with respect to any accounts
transferred to the Western Union ISP shall be transferred to and assumed by the Western Union ISP at the time such assets attributable to such accounts are transferred. Western Union shall assume and thereafter be solely responsible for all then
existing and future employer liabilities related to such Business Employees under the Western Union ISP and the administration thereof, and the First Data Parties shall have no liability therefor. 
  
 (b) Western Union Financial Services, Inc. Retirement
Savings Plan for Bargaining Unit Employees. Following the Distribution Date, Western Union Financial Services, Inc. shall continue to be the plan sponsor of the Western Union Financial Services, Inc. Retirement Savings Plan for Bargaining Unit
Employees (the “RSP”). As soon as administratively practicable after the Distribution Date, there shall be transferred from the DC Master Trust to the trust established by Western Union Financial Services, Inc. (or its
designee) for the RSP assets (the “RSP Trust”) having a value as of the applicable valuation date that are equal to the value of the account balances of, and liabilities with respect to, the RSP as of such valuation date. In
addition, as soon as administratively practicable after the Distribution Date, there shall be transferred from the DC Master Trust to the RSP Trust all unallocated forfeitures attributable to the RSP as well as a pro rata share of all other
unallocated amounts held in the DC Master Trust, determined based upon the ratio of the sum of the account balances of the RSP as of the applicable valuation date to the sum of all account balances held in the DC Master Trust as of such valuation
date. Following the date of such asset transfer, the First Data Parties shall have no liability relating to the RSP. 
  
 (c) Western Union Pension Plan and Western Union Financial Services, Inc. Pension Plan. Following the Distribution Date, Western
Union Financial Services, Inc. shall continue to be the plan sponsor of the Western Union Pension Plan and the Western Union Financial Services, Inc. Pension Plan. As soon as administratively practicable after the Distribution Date, there shall be
retitled in the name of the Western Union Master Pension Trust as established by Western Union Financial Services, Inc. (or its designee) assets having a value as of the applicable valuation date that are equal to the 

  

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value of the accrued benefits of, and liabilities with respect to, the Western Union Pension Plan and the Western Union Financial Services, Inc. Pension Plan
as of such valuation date, as determined by First Data and Western Union. Following the date of the transaction contemplated in the immediately preceding sentence, the First Data Parties shall have no liability arising out of or otherwise with
respect to the Western Union Pension Plan or the Western Union Financial Services, Inc. Pension Plan. 
  
 3.02 Supplemental Non-Qualified Deferred Compensation Plan. On or before, but effective as of the close of business on Distribution Date, Western
Union shall adopt a non-qualified deferred compensation plan (the “Western Union Supplemental Incentive Savings Plan”). Western Union shall assume, and shall cause the Western Union Supplemental Incentive Savings Plan to
assume, responsibility for all liabilities and fully perform, pay and discharge all obligations, when such obligations become due, to the Business Employees under the First Data Corporation Supplemental Incentive Savings Plan (“SISP-1 and
SISP-2”) immediately prior to the Distribution Date. Following such date, the First Data Parties shall have no liability arising out of or otherwise with respect to the SISP-1 and SISP-2. 
  
 3.03 Non-U.S. Retirement Plans. Following the Distribution Date,
Western Union shall cause its Non-U.S. Subsidiaries to continue to maintain in full force and effect retirement plans as were sponsored and maintained by such Subsidiaries immediately prior to the Distribution Date, and neither First Data nor any
First Data Subsidiary shall have any liability or obligation with respect to such plans or any participants or former participants in such plans with respect to their participation therein. In addition, effective either prior to or as of the
Distribution Date, Western Union shall cause its Non-U.S. Subsidiaries in the United Kingdom, Japan, Canada, and Australia to adopt retirement plans with appropriate eligibility and benefits terms to ensure that Non-Domestic Business Employees in
such countries are either (1) eligible to participate in the same type of plan and enjoy the same level of benefits for which such Non-Domestic Business Employees were eligible immediately prior to the Distribution Date (or date of plan
adoption, if earlier), or (2) eligible to participate in a plan intended to provide a comparable level of benefits for which such Non-Domestic Business Employees were eligible immediately prior to the Distribution Date (or date of plan
adoption, if earlier). 
  
 ARTICLE IV 
  
 WELFARE PLANS 
  
 4.01 Western Union Financial Services, Inc. Health and Welfare Benefit
Plan. Following the Distribution Date, Western Union Financial Services, Inc. shall continue to be the plan sponsor of the Western Union Financial Services, Inc. Health and Welfare Benefit Plan, and the First Data Parties shall have no liability
relating to such plan. The Western Union Financial Services, Inc. Health and Welfare Benefit Plan covers only collectively bargained employees. As of the date of this Agreement, all eligible non-union Domestic Business Employees participate in the
First Data Corporation Health and Welfare Benefit Plan. 
  

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 4.02 Continued Participation in First Data U.S. Welfare Plans; Establishment of Separate U.S. Welfare
Plan Contracts. For the period beginning at the close of business on the Distribution Date and ending as of 11:59 p.m. on December 31, 2006, all eligible non-union Domestic Business Employees shall continue to be eligible to participate in
the First Data Corporation Health and Welfare Benefit Plan. First Data and Western Union shall take reasonable steps to have separate provider contracts established under the terms of the First Data Corporation Health and Welfare Benefit Plan to
provide coverage to Domestic Business Employees during such period. In consideration for the continued participation of the eligible non-union Domestic Business Employees in the First Data Corporation Health and Welfare Benefit Plan through
December 31, 2006, Western Union shall pay to First Data, or reimburse it for, such amounts as are set forth in the Health and Life Benefits Schedule to the Transition Services Agreement. 
  
 4.03 Western Union’s Welfare Plans. (a) On or before, but
effective as of January 1, 2007, Western Union shall have adopted for the benefit of eligible Domestic Business Employees and their respective eligible dependents, health (including medical, vision and dental), life, accidental death and
dismemberment, disability and other Welfare Plans as determined by Western Union (the “Western Union Welfare Plans”). Domestic Business Employees shall be eligible to participate in the Western Union Welfare Plans as of
January 1, 2007 on the terms established by Western Union. 
  
 (b) Following the Distribution Date, Western Union shall cause its Non-U.S. Subsidiaries to continue to maintain in full force and effect Welfare Plans as were sponsored and maintained at such Subsidiaries immediately prior to the
Distribution Date, and neither First Data nor any First Data Subsidiary shall have any liability or obligation with respect to such plans or any participants or former participants in such plans with respect to their participation therein. First
Data and Western Union shall have separate provider contracts established for employees of First Data and Western Union Non-U.S. Subsidiaries effective on or prior to the Distribution Date. In addition, effective either prior to or as of the
Distribution Date, Western Union shall cause its Non-U.S. Subsidiaries in the United Kingdom, Japan, Canada, and Australia to adopt Welfare Plans with appropriate eligibility and benefits terms, to ensure that Non-Domestic Business Employees in such
countries are either (1) eligible to participate in the same type of plan and enjoy the same level of benefits for which such Non-Domestic Business Employees were eligible immediately prior to the Distribution Date (or date of plan adoption, if
earlier), or (2) eligible to participate in a plan intended to provide a comparable level of benefits for which such Non-Domestic Business Employees were eligible immediately prior to the Distribution Date (or date of plan adoption, if
earlier), and neither First Data nor any First Data Subsidiary shall have any liability or obligation with respect to such plans or any participants in such plans. 
  
 4.04 Welfare Plan Liabilities. 
  
 (a) Western Union Liabilities. Except as otherwise provided in this Agreement, Western Union shall assume, and be
solely responsible for all First Data and Western Union Welfare Plan liabilities incurred by any Business Employee on or after the Distribution Date. 
  

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 (b) First Data Liabilities. First Data shall continue to be responsible after the Distribution
Date for employer liabilities under the First Data Corporation Health and Welfare Benefit Plan and any Non-U.S Welfare Benefit Plan incurred with respect to Business Employees and their eligible dependents only with respect to the following (except
as otherwise provided in this Agreement): 
  
 (1)
Continuation Coverage for Terminated Domestic Business Employees and their Dependents. Any Domestic Business Employee whose employment terminates prior to January 1, 2007 for any reason, including a Domestic Business Employee currently
receiving First Data Corporation Health and Welfare Plan benefits pursuant to a termination agreement or an “Agreement and Release” under the applicable First Data severance policy, and any dependent of such Domestic Business Employee, who
elected or is eligible to elect, pursuant to rights under COBRA or any comparable state law, to continue participation in the First Data Corporation Health and Welfare Benefit Plan on the applicable date of termination; 
  
 (2) Disabled Persons. First Data shall continue to be
responsible after the Distribution Date for all claims for long-term disability incurred prior to the Distribution Date by any non-union Domestic Business Employee who is absent from active employment due to a total disability, as defined in the
First Data Corporation Health and Welfare Benefit Plan, on or prior to the Distribution Date to the extent that such long-term disability benefits are provided under an insurance contract. First Data shall also be responsible for long-term
disability benefits for any Domestic Business Employee who is receiving weekly short-term disability benefits as of the Distribution Date and who becomes eligible for long-term disability benefits thereafter, provided that the total disability
relates to the same condition for which weekly short-term disability benefits were paid and, provided further, that such long-term disability benefits are payable under an insurance contract. Western Union shall assume and be solely responsible for
all other claims for long-term disability payable on or after the Distribution Date with respect to any Business Employee and shall continue to be responsible for all claims for short-term disability benefits for any Domestic Business Employee,
without regard to when the disability occurred. 
  
 4.05
Flexible Spending Accounts. For the period beginning at the close of business on the Distribution Date and ending as of 11:59 p.m. on December 31, 2006, all eligible non-union Domestic Business Employees shall continue to be eligible to
participate in the First Data Flexible Spending Account Plan (the “First Data FSA”). Payflex, the current First Data FSA vendor, shall maintain the flexible spending account balances for all Domestic Business Employees under
the First Data FSA as of December 31, 2006. All 2006 Claims made by Domestic Business Employees shall be submitted to Payflex. Any forfeitures attributable to Domestic Business Employees under the First Data FSA which occur after all 2006
Claims have been processed by Payflex shall be used by First Data as permitted under applicable regulations and an equivalent amount reimbursed to Western Union. For purposes of this Section 4.05, the term “2006 Claims”
means: (i) any claims by Domestic Business Employees incurred on or prior to December 31, 2006, and (ii) any claims by Domestic Business Employees incurred through March 

  

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15, 2007 and which are designated by the Domestic Business Employees to be offset against their respective December 31, 2006 balances under the First
Data FSA. Effective January 1, 2007, Western Union shall adopt and maintain a flexible spending account plan (the “Western Union FSA”) with a new FSA vendor. All claims incurred under the Western Union FSA by Domestic
Business Employees shall be made to the new Western Union FSA vendor. 
  
 4.06 First Data Assets. First Data shall retain all claim reserves, bank accounts, trust funds or other balances maintained by or on behalf of the First Data Corporation Health and Welfare Benefit Plan. 
  
 ARTICLE V 
  
 EQUITY COMPENSATION PLANS 
  
 5.01 Stock Options. 
  
 (a) First Data and Western Union shall take any and all action as shall be necessary or appropriate, including without limitation, approval of the
provisions of this Article V by the Western Union Board of Directors and the Compensation Committee of the First Data Board of Directors, so that options issued under the First Data Corporation 1992 Long Term Incentive Plan, the 2002 First Data
Corporation Long Term Incentive Plan, the First Data Corporation 1993 Director’s Stock Option Plan, the Concord EFS, Inc. 1993 Incentive Stock Option Plan, the Concord EFS, Inc. 2002 Stock Option Plan, and the Star Systems, Inc. 2000 Equity
Incentive Plan (collectively, the “First Data LTIPs”) to purchase First Data Common Stock (“First Data Stock Options”) held at the close of business on the Distribution Date by current and former
employees and directors of First Data and its Subsidiaries and Affiliates who will not be Transferred Employees and Business Employees whose employment terminated prior to the Distribution Date (or their respective transferees) shall be replaced
pursuant to the terms of the First Data LTIPs with an adjusted First Data Stock Option with an adjusted exercise price and a substitute option issued under The Western Union Company 2006 Long Term Incentive Plan or The Western Union Company 2006
Non-Employee Directors’ Equity Plan (collectively the “Western Union LTIPs”) to purchase Western Union Common Stock (a “Western Union Stock Option”). Such replacement will be implemented in a
manner such that immediately following the Distribution (i) the number of shares relating to the adjusted First Data Stock Option will be equal to the number of shares of First Data Common Stock subject to such option immediately prior to the
Distribution, (ii) the number of shares subject to the substitute Western Union Stock Option will be equal to the number of shares of Western Union Common Stock that the option holder would have received in the Distribution had the First Data
Common Stock subject to the option represented outstanding shares of First Data Common Stock, and (iii) the per share option exercise price of the original First Data Stock Option will be proportionally allocated between such separate stock
options based upon the relative per share trading prices of First Data Common Stock and Western Union Common Stock immediately following the Distribution, with the intention that such adjustment and substitution satisfy the requirements of
Section 424 of the Code and avoid treatment as non-qualified deferred 

  

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compensation subject to Section 409A of the Code. Each adjusted First Data Option and substituted Western Union Option adjusted from or substituted for
an original First Data Option described in this Section 5.01(a), when combined, will in the exclusive and sole discretion of the Compensation Committee of the First Data Board of Directors preserve the intrinsic value of such original
First Data Option, and each will preserve the ratio from the original option of the exercise price to the fair market value of the stock subject to the option. Fractional shares shall be adjusted or compensated by First Data as appropriate in the
sole discretion of the Compensation Committee of the First Data Board of Directors. 
  
 (b) First Data and Western Union shall take any and all action as shall be necessary or appropriate, including without limitation, approval of the provisions of this Article V by the Western Union Board of
Directors and the Compensation Committee of the First Data Board of Directors, so that First Data Stock Options held at the close of business on the Distribution Date by a Business Employee, other than a Business Employee whose employment terminated
prior to the Distribution Date, and each First Data Stock Option held by a director of First Data who will become a director of Western Union on or before the Distribution Date (or their respective transferees) will, pursuant to the terms of the
applicable First Data LTIP and the applicable Western Union LTIP and this Agreement, be replaced with a substitute Western Union Stock Option issued under the Western Union LTIPs, with the intention that such substitution satisfy the requirements of
Section 424 of the Code and avoid treatment as non-qualified deferred compensation subject to Section 409A of the Code. Each such substitute option will in the absolute discretion of the Compensation Committee of the First Data Board of
Directors preserve the intrinsic value of the original First Data Stock Option for which it is substituted and the ratio in the original option of the exercise price to the fair market value of the stock by adjusting for the such number of shares
purchasable and the exercise price, based on a comparison of the trading price of First Data Common Stock on the last trading day immediately prior to the Distribution, which includes the value of Western Union, and the trading price of Western
Union Common Stock on the first trading day immediately after the Distribution. Fractional shares shall be adjusted or compensated by First Data as appropriate in the sole discretion of the Compensation Committee of the First Data Board of
Directors. 
  
 5.02 Restricted Stock. First Data and
Western Union shall take any and all action as shall be necessary or appropriate, including without limitation, approval of the provisions of this Article V by the Western Union Board of Directors and the Compensation Committee of the First
Data Board of Directors pursuant to the terms of the applicable First Data LTIP and the applicable Western Union LTIP and this Agreement, so that current and former employees and directors of First Data and its Subsidiaries and Affiliates who will
not be Transferred Employees, and Business Employees whose employment terminated prior to the Distribution Date, (or their respective transferees) and who on the Distribution Date hold shares of First Data Common Stock issued under one or more First
Data LTIPs that are subject to restrictions on sale and transfer (“First Data Restricted Stock”) receive shares of Western Union Common Stock that are subject to restrictions on sale and transfer (“Western Union
Restricted Stock”) in connection with the Distribution under the applicable Western Union LTIP based upon the number of shares of First Data Restricted Stock they hold. First Data and Western Union shall take 

  

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any and all action as shall be necessary or appropriate, including without limitation, approval of the provisions of this Article V by the Western
Union Board of Directors and the Compensation Committee of the First Data Board of Directors pursuant to the terms of the applicable First Data LTIP and the applicable Western Union LTIP and this Agreement, so that the shares of First Data
Restricted Stock held by Business Employees, other than Business Employees whose employment terminated prior to the Distribution Date, and any First Data director who will become a director of Western Union on or before the Distribution Date, (or
their respective transferees) will be replaced with substitute shares of Western Union Restricted Stock issued under the applicable Western Union LTIP. Each such substitute Western Union Restricted Stock award will in the absolute discretion of the
Compensation Committee of the First Data Board of Directors preserve the intrinsic value of the original First Data Restricted Stock award for which it was substituted by adjusting the number of restricted shares based on a comparison of the trading
price of First Data Common Stock on the last trading date immediately prior to the Distribution, which includes the value of Western Union, and the trading price of Western Union Common Stock on the first trading date immediately after the
Distribution. All employment with both First Data and Western Union shall be taken into account for purposes of determining when the restrictions on the sale and transfer of such shares lapse. Such substitution and replacement shall be intended to
satisfy the requirements of Section 424 of the Code and avoid treatment as non-qualified deferred compensation subject to Section 409A of the Code. Fractional shares shall be adjusted or compensated by First Data as appropriate in the sole
discretion of the Compensation Committee of the First Data Board of Directors. 
  
 5.03 Restricted Stock Units. First Data and Western Union shall take any and all action as shall be necessary or appropriate, including without limitation, approval of the provisions of this Article V by
the Western Union Board of Directors and the Compensation Committee of the First Data Board of Directors pursuant to the terms of the applicable First Data LTIP and the applicable Western Union LTIP and this Agreement, so that current and former
employees and directors of First Data and its Subsidiaries and Affiliates who will not be Transferred Employees and Business Employees whose employment terminated prior to the Distribution Date (or their respective transferees) will have each of
their First Data Restricted Stock Units (as defined in the First Data LTIPs) replaced with an adjusted First Data Restricted Stock Unit and a substitute Western Union restricted stock unit issued under the Western Union LTIPs (“Western
Union Restricted Stock Unit”). The number of Western Union Restricted Stock Units issued in replacement for such First Data Restricted Stock Units shall be calculated so that immediately following the Distribution (i) the number of
First Data Restricted Stock Units will be equal to the number of First Data Restricted Stock Units held by the participant immediately prior to the Distribution, and (ii) the number of Western Union Restricted Stock Units will be equal to the
number of shares of Western Union Common Stock that the holder of the restricted stock unit would have received in the Distribution had the First Data Restricted Stock Unit represented outstanding shares of First Data Common Stock. First Data and
Western Union shall take any and all action as shall be necessary or appropriate, including without limitation, approval of the provisions of this Article V by the Western Union Board of Directors and the Compensation Committee of the First
Data Board of Directors pursuant to the terms of the applicable First Data LTIP and the applicable Western Union LTIP and this Agreement, so that each First Data Restricted Stock Unit held by a Business 

  

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Employee (or their respective transferees), other than a Business Employee whose employment terminated prior to the Distribution Date, will be replaced with
a substitute Western Union Restricted Stock Unit issued under the applicable Western Union LTIP. It is intended that each substitute restricted stock unit will in the sole and absolute judgment of the Compensation Committee of the First Data Board
of Directors preserve the intrinsic value of the original First Data Restricted Stock Unit for which it was substituted by representing a number of Western Union Restricted Stock Units based on a comparison of the trading price of First Data Common
Stock on the last trading date immediately prior to the Distribution, which includes the value of Western Union, and the trading price of Western Union Common Stock on the first trading date immediately after the Distribution. Such substitute
Western Union Restricted Stock Units will take into account all employment with both First Data and Western Union, and their respective Subsidiaries and Affiliates, for purposes of determining when the restricted stock unit vests. Such substitution
and replacement shall be intended to satisfy the requirements of Section 424 of the Code and avoid treatment as non-qualified deferred compensation subject to Section 409A of the Code. Fractional shares shall be adjusted or compensated by
First Data as appropriate in the sole discretion of the Compensation Committee of the First Data Board of Directors. 
  
 5.04 Approval and Terms of Equity Awards. By its approval of this Article V, the Board of Directors of Western Union, as issuer of
substitute and replacement awards provided hereunder, and the Compensation Committee of the Board of Directors of First Data, as sole shareholder of Western Union, hereby adopt and approve, respectively, the issuance of the substitute and
replacement options and awards provided for herein. Except as set forth above, the terms of the First Data LTIPs and of the outstanding equity compensation awards held by participants under the First Data LTIPs and this Agreement and the substitute
Western Union equity awards shall be subject to the terms of such plans and applicable award agreements. Notwithstanding the foregoing, substitute awards made under the Western Union LTIPs pursuant to Western Union’s obligations under this
Agreement shall take into account all employment with both First Data and Western Union, and their respective Subsidiaries and Affiliates, for purposes of determining when such awards vest and terminate. Such substitution shall be intended to
satisfy the requirements of Section 424 of the Code and avoid treatment as non-qualified deferred compensation subject to Section 409A of the Code. 
  
 5.05 No Change of Control. The Distribution will not constitute a “change of control” for purposes of First Data equity awards which are
outstanding as of the Distribution Date. 
  
 5.06 Establishment
of Western Union Equity Plans. Effective as of the Distribution Date, Western Union shall establish the Western Union LTIPs to provide for awards which include the following: (i) stock options (both qualified and nonqualified),
(ii) stock appreciation rights, (iii) restricted stock awards, (iv) restricted stock unit awards, (v) phantom stock units, (vi) performance grants and (vii) bonus awards, including, without limitation, the awards
provided for herein. In exercising its power and authority hereunder with respect to replacement and substitute stock-based awards held by employees of First Data, Western Union shall, in good faith, cooperate with and give due regard to any
information provided by First Data. 
  

 12 

 ARTICLE VI 
  

COMPENSATION MATTERS 
 AND GENERAL
BENEFIT MATTERS 
  
 6.01 Cessation of Participation in
First Data Plans and Non-ERISA U.S. Benefit Arrangements. Except as otherwise provided in this Agreement or as required by the terms of any First Data Plan or First Data Non-ERISA Benefit Arrangement, or by applicable law, First Data and Western
Union shall take any and all action as shall be necessary or appropriate so that participation in First Data Plans and First Data Non-ERISA Benefit Arrangements by all Business Employees shall terminate as of the close of business on the
Distribution Date and Western Union shall cease to be a participating employer under the terms of such First Data Plans and First Data Non-ERISA Benefit Arrangements as of such time. 
  
 6.02 Assumption of Certain Employee Related Obligations. Except as otherwise provided in this Agreement, effective as
of the close of business on the Distribution Date, Western Union shall assume, and none of First Data or any of its Subsidiaries or Affiliates shall have any further liability for, the following agreements, obligations and liabilities and Western
Union shall indemnify First Data and its Subsidiaries and Affiliates, and the officers, directors, and employees of each, and hold them harmless with respect to such agreements, obligations or liabilities: 
  
 (a) Agreements entered into between First Data, its Subsidiaries or
Affiliates and Business Employees. 
  
 (b) Agreements entered into
between First Data, its Subsidiaries or Affiliates and independent contractors providing services solely to the Transferred Business. 
  
 (c) All collective bargaining agreements, collective agreements, trade union, or works council agreements entered into between First Data, its
Subsidiaries or Affiliates and any union, works council, or other body representing only Business Employees. 
  
 (d) All wages, salary, incentive compensation, commissions and bonuses payable to Business Employees on or after the Distribution Date, without regard to
when such wages, salary, incentive compensation, commissions and bonuses are or may have been earned. 
  
 (e) All moving expenses and obligations related to relocation, repatriation, transfers, or similar items incurred by or owed to Business Employees [except
those listed on Schedule 6.02(e) hereto]. 
  
 (f) All
immigration-related, visa, work application, or similar rights, obligations and liabilities related to Business Employees. 
  
 (g) All liabilities and obligations whatsoever of the Transferred Business with respect to claims made by or with respect to Business Employees or any
other persons who at any time prior to the Distribution Date had employment duties primarily related to 

  

 13 

 
the Transferred Business relating to any employee benefit plan, program or policy not otherwise retained or assumed by First Data pursuant to this Agreement,
including such liabilities relating to actions or omissions of or by Western Union or any officer, director, employee or agent thereof prior to the Distribution Date. 
  
 6.03 Restrictive Covenants in Employment and Other Agreements. To the extent permitted under applicable law,
following the Distribution, Western Union and its Subsidiaries and Affiliates shall be considered to be successors to First Data and its Subsidiaries and Affiliates for purposes of all agreements containing restrictive covenants (including but not
limited to confidentiality and non-competition provisions) between First Data (or a First Data Subsidiary or Affiliate) and Business Employees, employees of First Data (or a First Data Subsidiary or Affiliate) as of the Distribution Date that
Western Union reasonably determines have substantial knowledge of the Transferred Business, former employees and independent contractors executed prior to the Distribution Date such that each of First Data, Western Union and their respective
Subsidiaries and Affiliates shall all enjoy the rights and benefits under such agreements, with respect to such party’s and their respective Subsidiaries” and Affiliates’ business operations; provided, however, that
(a) in no event shall First Data be permitted to enforce the restrictive covenant agreements against Business Employees in their capacity as employees of Western Union or its Subsidiaries, and (b) in no event shall Western Union be
permitted to enforce the restrictive covenants agreements of First Data employees in their capacity as employees of First Data or its Subsidiaries. 
  
 6.04 Severance. Effective as of the Distribution Date, Western Union may establish one or more severance plans and policies with respect to
Business Employees as Western Union deems appropriate in its discretion. First Data shall have no liability or obligation under any First Data severance plan or policy with respect to Business Employees whose employment terminates on or after the
Distribution Date. Following the Distribution Date, First Data shall continue to be responsible for administering all payments and benefits under the applicable First Data severance policies or any termination agreements with Business Employees,
with respect to Business Employees whose employment has terminated prior to the Distribution Date for an eligible reason under such policies or in accordance with such agreements; provided that Western Union shall reimburse, and shall indemnify
First Data, and its Subsidiaries and Affiliates, for any amounts payable to Business Employees under such policies and that Western Union shall be charged for the continuation of Welfare Plan benefits to such terminated Business Employees and their
dependents on and after the Distribution Date on terms consistent with the methodology specified in the Health and Life Benefits Schedule to the Transition Services Agreement. First Data agrees to indemnify Western Union against any loss or
liability resulting from First Data’s gross negligence, willful misconduct or bad faith in the administration of its severance policies or any termination agreement with a Business Employee. It is not intended that any Business Employee will be
eligible for termination or severance payments or benefits from First Data or its Subsidiaries or Affiliates as a result of the transfer or change of employment from First Data to Western Union or their respective Subsidiaries or Affiliates.
Notwithstanding the preceding sentence, in the event that any such termination or severance payments or benefits become payable on account of such transfer, change or the refusal of a Business Employee to accept employment with Western Union,
Western Union shall indemnify First Data, and its Subsidiaries and Affiliates, for the amount of such termination or severance payments or benefits. 
  

 14 

 6.05 Past Service Credit. With respect to all Domestic Business Employees, Western Union shall
recognize all service recognized under the comparable First Data Plans and First Data Non-ERISA Benefit Arrangements for purposes of determining eligibility, participation, vesting, and calculation of benefits under Western Union’s comparable
plans and programs, provided that there shall be no duplication of benefits for Business Employees under Western Union’s plans and programs. First Data will provide to Western Union copies of any records available to First Data to document such
service, plan participation and membership and cooperate with Western Union to resolve any discrepancies or obtain any missing data for purposes of determining benefit eligibility, participation, vesting and calculation of benefits with respect to
such Domestic Business Employees. With respect to retaining, destroying, transferring, sharing, copying and permitting access to all such information, First Data and Western Union shall each comply with all applicable laws, regulations and internal
policies and each party shall indemnify and hold harmless the other party from and against any and all liability, claims, actions, and damages that arise from a failure (by the indemnifying party) to so comply with all applicable laws, regulations
and internal policies applicable to such information. 
  
 6.06
Accrued Vacation Days Off. Western Union shall recognize and assume all liability for all vacation, holiday, sick leave, flex days and personal days off, including banked vacation, accrued by Business Employees as of the Distribution Date and
Western Union shall credit each Business Employee with such days off accrual. 
  
 6.07 Leaves of Absence. Western Union will continue to apply the leave of absence policies maintained by First Data to inactive Business Employees who are on an approved leave of absence as of the Distribution
Date. Leaves of absence taken by Business Employees prior to the Distribution Date shall be deemed to have been taken as employees of Western Union. 
  
 6.08 First Data Assets. Except as otherwise set forth herein, First Data shall retain all reserves, bank accounts, trust funds or other balances
maintained with respect to First Data’s Non-ERISA Benefit Arrangements. 
  
 6.09 Further Cooperation/Personnel Records/Data Sharing. The parties shall provide each other such records and information only as necessary or appropriate to carry out their obligations under law, this
Agreement, or for the purposes of administering the Western Union plans and policies. The parties shall take commercially reasonable actions so that after the Distribution, Western Union equity awards issued to individuals who immediately after the
Distribution remain employees and directors of First Data or its Subsidiaries or Affiliates can be administered by First Data. Subject to applicable law, all information and records regarding employment and personnel matters of Business Employees
shall be accessed, retained, held, used, copied and transmitted after the Distribution Date by Western Union in accordance with all laws and policies relating to the collection, storage, retention, use, transmittal, disclosure and destruction of
such records. Access to such records after the Distribution Date will be provided to First Data in accordance with Article [        ] of the Distribution Agreement. Notwithstanding the foregoing, First
Data shall retain reasonable access to those records necessary for First Data’s continued administration of any plans or programs on behalf of Business Employees after the Distribution Date, provided that such access shall be limited to 

  

 15 

 
individuals who have a job-related need to access such records. First Data shall also retain copies of all confidentiality and non-compete agreements with
any Business Employee in which First Data has a valid business interest. With respect to retaining, destroying, transferring, sharing, copying and permitting access to all such information, First Data and Western Union shall each comply with all
applicable laws, regulations and internal policies, and each party shall indemnify and hold harmless the other party from and against any and all liability, claims, actions, and damages that arise from a failure (by the indemnifying party) to so
comply with all applicable laws, regulations and internal policies applicable to such information. 
  
 ARTICLE VII 
  
 GENERAL PROVISIONS 
  
 7.01 Preservation of
Rights to Amend. The rights of First Data or Western Union to amend or terminate any plan, program, or policy referred to herein shall not be limited in any way by this Agreement. 
  
 7.02 Confidentiality. Each Party agrees that the specific terms and conditions of this Agreement and any information
conveyed or otherwise received by or on behalf of a Party in conjunction herewith are confidential and are subject to the terms of the confidentiality provisions set forth in Section 14.8 of the Distribution Agreement. 
  
 7.03 Administrative Complaints/Litigation. Except as otherwise
provided in this Agreement, as of and after the Distribution Date, Western Union shall assume, and be solely liable for, the handling, administration, investigation, and defense of actions, including, without limitation, ERISA, occupational safety
and health, employment standards, union grievances, wrongful dismissal, discrimination or human rights and unemployment compensation claims, asserted at any time against First Data or Western Union by any Business Employee (including any dependent
or beneficiary of a Business Employee), or any other person to the extent such actions or claims arise out of or relate to employment or the provision of services (whether as an employee, contractor, consultant, or otherwise) to or with the
Transferred Business. Any Losses arising from such actions shall be deemed Assumed Liabilities under the Distribution Agreement. 
  
 7.04 Reimbursement and Indemnification. The parties hereto agree to reimburse each other, within 30 days of receipt from the other party of
appropriate verification, for all costs and expenses which each may incur on behalf of the other as a result of any of the Welfare Plans, Pension Plans and Non-ERISA Benefit Arrangements and, as contemplated by Section 6.04, any termination or
severance payments or benefits. All liabilities retained, assumed or indemnified against by Western Union pursuant to this Agreement, and all liabilities retained, assumed or indemnified against by First Data pursuant to this Agreement, shall in
each case shall be subject to the indemnification provisions of Article XII of the Distribution Agreement. 
  
 7.05 Entire Agreement. This Agreement, including the Schedules hereto and the sections of the Distribution Agreement referenced herein, constitutes
the entire agreement between the Parties with respect to the subject matter contained herein, and supersedes all 

  

 16 

 
prior agreements, negotiations, discussions, understandings, writings and commitments between the Parties with respect to such subject matter. 
  
 7.06 Choice of Law. This Agreement shall be governed by and construed
and enforced in accordance with the substantive laws of the State of Delaware, as though all acts and omissions related hereto occurred in Delaware. 
  
 7.07 Amendment. This Agreement shall not be amended, modified or supplemented except by a written instrument signed by an authorized representative
of each of First Data and Western Union. 
  
 7.08 Waiver.
Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party or Parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this
Agreement if, as to any Party, it is in writing signed by an authorized representative of such Party. The failure of any Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, or in any
way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent
breach. 
  
 7.09 Partial Invalidity. Wherever possible,
each provision hereof shall be interpreted in such a manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in
any respect, such provision or provisions shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions
hereof, unless such a construction would be unreasonable. 
  
 7.10 Execution in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original instrument, but all of which shall be considered one and the same agreement, and shall become
binding when one or more counterparts have been signed by and delivered to each of the Parties. 
  
 7.11 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted
assigns; provided, however, that the rights and obligations of either Party under this Agreement shall not be assignable by such Party without the prior written consent of the other Party. The successors and permitted assigns hereunder shall include
any permitted assignee as well as the successors in interest to such permitted assignee (whether by merger, liquidation (including successive mergers or liquidations) or otherwise). 
  
 7.12 Notices. All notices or other communications under this Agreement shall be in writing and shall be deemed to be
duly given when delivered or mailed in accordance with the terms of Section 15.9 of the Distribution Agreement. 
  
 7.13 Performance. Each Party shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set
forth herein to be performed by any Affiliate of such Party. 
  

 17 

 7.14 No Public Announcement. Neither First Data nor Western Union shall, without the approval of
the other, make any press release or other public announcement concerning the transactions contemplated by this Agreement, except as and to the extent that either Party shall be so obligated by law or the rules of any regulatory body, stock exchange
or quotation system, in which case the other Party shall be advised and the Parties shall use commercially reasonable efforts to cause a mutually agreeable release or announcement to be issued; provided, however, that the foregoing shall not
preclude communications or disclosures necessary to implement the provisions of this Agreement or to comply with applicable law, accounting and SEC disclosure obligations or the rules of any stock exchange. 
  
 7.15 Limited Liability. Notwithstanding any other provision of this
Agreement, no individual who is a stockholder, director, employee, officer, agent or representative of Western Union or First Data, in its capacity as such, shall have any liability in respect of or relating to the covenants or obligations of such
Party under this Agreement and, to the fullest extent legally permissible, each of Western Union and First Data, for itself and its respective stockholders, directors, employees, officers and Affiliates, waives and agrees not to seek to assert or
enforce any such liability that any such Person otherwise might have pursuant to applicable law. 
  
 7.16 Mutual Drafting. This Agreement shall be deemed to be the joint work product of First Data and Western Union and any rule of construction that
a document shall be interpreted or construed against a drafter of such document shall not be applicable. 
  
 7.17 Dispute Resolution. The Parties agree that any dispute, controversy or claim between them with respect to the matters covered hereby shall be
governed by and resolved in accordance with the procedures set forth in Article XIII of the Distribution Agreement. 
  
 7.18 No Third Party Beneficiaries. No Business Employee or other current or former employee of First Data or Western Union or any Subsidiary or
Affiliate of either (or his/her spouse, dependent or beneficiary), or any other person not a party to this Agreement, shall be entitled to assert any claim hereunder. The provisions of this Agreement are solely for the benefit of the Parties and
their respective Affiliates, successors and permitted assigns and shall not confer upon any third Person any remedy, claim, liability, reimbursement or other right in excess of those existing without reference to this Agreement. 
  
 7.19 Effect if Distribution Does Not Occur. Notwithstanding anything
in this Agreement to the contrary, if the Distribution Agreement is terminated prior to the Distribution Date, this Agreement shall be of no further force and effect. 
  
 7.20 Corporate Authorization. The officers of First Data and Western Union are hereby authorized, empowered and
directed, in the name and on behalf of each of First Data and Western Union, respectively, to take or cause to be taken all such further action, to execute and deliver or cause to be executed and delivered all such further agreements, certificates,
instruments and documents, to make or cause to be made all such filings with 

  

 18 

 
governmental or regulatory authorities, and to pay or cause to be paid all such fees and expenses, in each case which shall in such officers’ judgment
be deemed necessary, proper or advisable to effect and carry out the intent of this Agreement, such determination to be evidenced conclusively by such officers’ execution and delivery thereof or taking of action in respect thereto. 

 

 19 

 IN WITNESS WHEREOF, the parties have caused this agreement to be executed in their names by a duly
authorized officer as of the date first written above. 
  

			
	FIRST DATA CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	THE WESTERN UNION COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 20Form of Transition Services Agreement

 Exhibit 10.3 
 TRANSITION SERVICES AGREEMENT 
 THIS TRANSITION SERVICES AGREEMENT is made as of [•], 2006 by
and between First Data Corporation, a Delaware corporation (“First Data”), and The Western Union Company, a Delaware corporation (“Western Union”). 
 WHEREAS, First Data, through certain of its Subsidiaries, is, among other things, engaged in the business of providing money transfer, consumer to biller
payment services, retail money orders and certain prepaid services (the “Western Union Business”); 
 WHEREAS, the
Board of Directors of First Data has determined that it would be advisable and in the best interests of First Data and its stockholders for First Data to transfer to Western Union those Subsidiaries of First Data that are engaged in the Western
Union Business and certain other assets related thereto; 
 WHEREAS, First Data has agreed to transfer, or cause to be transferred, to
Western Union such Subsidiaries; 
 WHEREAS, the Board of Directors of First Data has determined that it would be advisable and in the best
interests of First Data and its stockholders for First Data to distribute on a pro rata basis to the holders of First Data’s common stock, $0.01 par value, without any consideration being paid by the holders of such common stock, all of the
outstanding shares of Western Union common stock, $0.01 par value, then owned by First Data; 
 WHEREAS, First Data and Western Union have
entered into a Separation and Distribution dated as of the date hereof (the “Distribution Agreement”) in order to carry out, effect and consummate the foregoing transactions; and 
 WHEREAS, to facilitate the transactions described above, First Data and Western Union deem it to be appropriate and in the best interests of First Data
and Western Union that First Data provide certain Services to Western Union and Western Union provide certain Services to First Data, on the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS

 Section 1.1 Definitions. Unless otherwise defined herein, each capitalized term shall have the meaning specified
for such term in the Distribution Agreement. As used in this Agreement: 
 (a) “Action” means any action, claim,
demand, suit, arbitration, inquiry, subpoena, discovery request, proceeding or investigation by or before any court or grand jury, any Governmental Authority. 

 (b) “Additional Services” means the Additional First Data Services or the
Additional Western Union Services, individually, or the Additional First Data Services and the Additional Western Union Services, collectively, as the context may indicate. Any Additional Services provided pursuant to this Agreement shall be deemed
to be “Services” under this Agreement. 
 (c) “Affiliate” means, with respect to any Person, any
other Person that directly or indirectly Controls, is Controlled by or is under common Control with such Person. After the Distribution, Western Union and First Data shall not be deemed to be under common Control for purposes hereof due solely to
the fact that Western Union and First Data have common stockholders. 
 (d) “Agreement” means this Transition
Services Agreement together with those portions of the Distribution Agreement referenced herein and all Annexes attached hereto and incorporated herein by this reference and all amendments, modifications and changes hereto and thereto. 

(e) “Authorized Representative” means any of the individuals listed on Annex A. 
 (f) “Consent” means a Governmental Consent or a Third Party Consent. 
 (g) “Control” means the power to direct the management of an entity, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “Controlled by” and “under common Control” have meanings correlative to the foregoing. 
 (h) “Distributed Companies” means FDCS Holdings, CESI Holdings, TeleCheck EBP RE, Ltd., IPS Holdings, Inc., Virtual Financial Services, LLC, First Data Canada Limited and their respective
Subsidiaries (including those formed or acquired after the date hereof). 
 (i) “Expenses” means any and all expenses
incurred in connection with investigating, defending or asserting any claim, action, suit or proceeding incident to any matter indemnified against hereunder (including court filing fees, court costs, arbitration fees or costs, witness fees, and
reasonable fees and disbursements of legal counsel, investigators, expert witnesses, consultants, accountants and other professionals). 
 (j) “Fees” for a particular Service shall be as set forth on Annex B or Annex C, as the case may be. 
 (k) “First Data Indemnified Parties” means the First Data Parties (for so long as such Person is a First Data Party) and each of their Affiliates, directors, officers, employees and agents, and each of the heirs,
executors, successors and assigns of any of the foregoing. 
 (l) “First Data Parties” means First Data and its
Subsidiaries (including those formed or acquired after the date hereof), other than the Western Union Parties. 
 (m) “First Data
Services” means the Services generally described on Annex B and any other Service provided by First Data or its Affiliates pursuant to this Agreement. 
  

 2 

 (n) “First Data Systems” means any computer software program or routine or part
thereof owned, licensed or provided by or for any First Data Party which is used by any Western Union Party or its suppliers on any First Data Party’s behalf pursuant to this Agreement, and any other computer software program or routine so
designated in Annex B or Annex C, each as modified, maintained or enhanced from time to time by any First Data Party, any Western Union Party or any Third Party. 
 (o) “Governmental Authority” means any foreign, federal, state, local or other government, governmental, statutory or administrative authority, regulatory body or commission or
any court, tribunal or judicial or arbitral body. 
 (p) “Governmental Consents” means any material notices, reports
or other filings to be made with or to, or any material consents, registrations, approvals, permits, clearances or authorizations to be obtained from, any Governmental Authority. 
 (q) “Losses” means any and all losses, costs, obligations, liabilities, settlement payments, awards, judgments, fines, penalties,
damages, fees, expenses, deficiencies, claims or other charges. 
 (r) “Party” means a First Data Party or a Western
Union Party, as applicable. 
 (s) “Person” means any individual, corporation, partnership, joint venture, limited
liability company, association, joint-stock company, trust, unincorporated organization or Governmental Authority. 
 (t)
“Services” means the First Data Services or the Western Union Services, individually, or the First Data Services and the Western Union Services, collectively, as the context may indicate. “Services” shall
also include those First Data and Western Union functions described in Sections 7.2(a) through 7.2(f). 
 (u)
“Subsidiary” means, when used with reference to any Person, any corporation or other organization whether incorporated or unincorporated of which at least a majority of the securities or interests having by the terms thereof
ordinary voting power to elect at least a majority of the board of directors or others performing similar functions with respect to such corporation or other organization is directly or indirectly owned or Controlled by such Person or by any one or
more of its Subsidiaries, or by such Person and one or more of its Subsidiaries; provided, however, that no Person that is not directly or indirectly wholly-owned by any other Person shall be a Subsidiary of such other Person unless
such other Person Controls, or has the right, power or ability to Control, that Person. After the Distribution, First Data and Western Union shall not be deemed to be under common Control for purposes hereof due solely to the fact that First Data
and Western Union have common stockholders. 
 (v) “Systems” means the First Data Systems or the Western Union
Systems, individually, or the First Data Systems and the Western Union Systems, collectively, as the context may indicate. 
 (w)
“Third Party” means a Person that is not an Affiliate of any Party hereto. 
  

 3 

 (x) “Third Party Consents” means any material consent, approval or authorization
to be obtained from any Third Party that is not a Governmental Authority. 
 (y) “Western Union Indemnified Parties”
means the Western Union Parties (for so long as such Person is a Western Union Party) and each of their Affiliates, directors, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.

 (z) “Western Union Parties” means Western Union, the Western Union Subsidiaries and any other Subsidiary of
Western Union (including those formed or acquired after the date hereof), in each case, other than the Distributed Companies. 
 (aa)
“Western Union Services” means the Services generally described on Annex C and any other Service provided by Western Union or its Affiliates pursuant to this Agreement. 
 (bb) “Western Union Subsidiaries” means, collectively, ECG, FFMC, GMT, Paymap, WUSI and each Subsidiary of any of the foregoing
other than the Distributed Companies. 
 (cc) “Western Union Systems” means any computer software program or routine
or part thereof owned, licensed or provided by or for any Western Union Party which is used by any First Data Party or its suppliers on any Western Union Party’s behalf pursuant to this Agreement, and any other computer software program or
routine so designated on Annex B or Annex C, each as modified, maintained or enhanced from time to time by any Western Union Party, any First Data Party or any Third Party. 
 Section 1.2 Interpretation. (a) In this Agreement, unless the context clearly indicates otherwise: 
 (i) words used in the singular include the plural and words used in the plural include the singular; 
 (ii) references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by
this Agreement, and a reference to such Person’s “Affiliates” shall be deemed to mean such Person’s Affiliates following the Distribution; 
 (iii) references to any gender includes the other gender; 
 (iv) the words “include,”
“includes” and “including” shall be deemed to be followed by the words “without limitation”; 
 (v) references
to any Article, Section or Annex means such Article or Section of, or such Annex to, this Agreement, as the case may be, and references in any Section or definition to any clause means such clause of such Section or definition; 
 (vi) the words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references
to this Agreement as a whole and not to any particular Section or other provision hereof; 
  

 4 

 (vii) references to any agreement, instrument or other document means such agreement, instrument or other
document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement; 
 (viii) references to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of
determining compliance or applicability; 
 (ix) relative to the determination of any period of time, “from” means “from and
including,” “to” means “to but excluding” and “through” means “through and including”; 
 (x)
accounting terms used herein shall have the meanings historically ascribed to them by First Data and its Subsidiaries, including Western Union, in its and their internal accounting and financial policies and procedures in effect prior to the date of
this Agreement; 
 (xi) if there is any conflict between the provisions of the Distribution Agreement and this Agreement, the provisions of
this Agreement shall control with respect to the subject matter hereof; if there is any conflict between the provisions of the body of this Agreement and the Annexes hereto, the provisions of the body of this Agreement shall control unless
explicitly stated otherwise in such Annex; 
 (xii) the titles to Articles and headings of Sections contained in this Agreement have been
inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement; 
 (xiii) any portion of this Agreement obligating a Party to take any action or refrain from taking any action, as the case may be, shall mean that such Party shall also be obligated to cause its relevant Affiliates to take such action or
refrain from taking such action, as the case may be (and, accordingly, if Services are provided by Affiliates of First Data, references to “First Data” shall be deemed to be references to such Affiliate which shall provide the Services
under this Agreement; if Services are provided by Affiliates of Western Union, references to “Western Union” shall be deemed to be references to such Affiliate which shall provide the Services under this Agreement); and 
 (xiv) unless otherwise specified in this Agreement, all references to dollar amounts herein shall be in respect of lawful currency of the United States.

 ARTICLE II 
 TERM

 Section 2.1 Term. The term of this Agreement shall commence on the Distribution Date and end on the first
anniversary of the Distribution Date (the “Term”). 
  

 5 

 ARTICLE III 
 PERFORMANCE OF SERVICES 
 Section 3.1 General. (a) During the Term, and
subject to the terms and conditions of this Agreement, First Data will provide, or will cause to be provided, the First Data Services to Western Union and its Affiliates. Unless specifically provided to the contrary on Annex B (including any
performance standards set forth therein) or Annex D, all First Data Services provided pursuant to this Agreement shall be performed or provided, as applicable: (i) with the use of reasonable care; (ii) consistent with this Agreement
and in substantially the same manner (including as to level, quality and timeliness) as such Services have been provided to the Western Union Business by the First Data Parties on or prior to the Distribution Date; (iii) in material compliance
with applicable laws, rules and regulations; (iv) in a manner substantially consistent with the First Data Parties’ usual and customary practices with respect to the Western Union Business on or prior to the Distribution Date; and
(v) with substantially the same priority under comparable circumstances as it provides such services to itself and its Subsidiaries. 
 (b) During the Term, and subject to the terms and conditions of this Agreement, Western Union will provide, or will cause to be provided, the Western Union Services to First Data and its Affiliates. Unless specifically provided to the
contrary on Annex C (including any performance standards set forth therein) or Annex D, all Western Union Services provided pursuant to this Agreement shall be performed or provided, as applicable: (i) with the use of reasonable
care; (ii) consistent with this Agreement and in substantially the same manner (including as to level, quality and timeliness) as such Services have been provided to the First Data Business by the Western Union Parties on or prior to the
Distribution Date; (iii) in material compliance with applicable laws, rules and regulations; (iv) in a manner substantially consistent with the Western Union Parties’ usual and customary practices with respect to the First Data
Business on or prior to the Distribution Date; and (v) with substantially the same priority under comparable circumstances as it provides such services to itself and its Subsidiaries. 
 Section 3.2 Additional Services. (a) If Western Union reasonably determines that additional transition services of the type
previously provided by the First Data Parties to the Western Union Business are necessary to conduct the Western Union Business and Western Union or its Affiliates are not able to provide such services to the Western Union Business (each such
service an “Additional First Data Service”), then Western Union may provide written notice thereof to First Data. Upon receipt of such notice by First Data, if First Data is willing, in its sole discretion, to provide such
Additional First Data Service during the Term, the Parties will negotiate in good faith an amendment to Annex B setting forth the Additional First Data Service, the terms and conditions for the provision of such Additional First Data Service
and the Fees payable by Western Union for such Additional First Data Service, such Fees to be determined on an arm’s-length basis. 
 (b) If First Data reasonably determines that additional transition Services of the type previously provided by the Western Union Parties to the First Data Business are necessary to conduct the First Data Business and First Data or its
Affiliates are not able to provide such services to the First Data Business (each such service an “Additional Western Union Service”), then First Data may provide written notice thereof to Western Union. Upon receipt of such
notice by Western Union, if Western Union is willing, in its sole discretion, to provide such Additional Western Union Service during the Term, the Parties will negotiate in good faith an amendment to Annex C setting forth the Additional
Western Union Service, the terms and conditions for the provision of such Additional Western Union Service and the Fees payable by First Data for such Additional Western Union Service, such Fees to be determined on an arm’s-length basis.

  

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 Section 3.3 Procedure. (a) Any requests by a Party to the other Party regarding
(i) the Services or (ii) any modification or alteration to the provision of the Services must be made by an Authorized Representative (it being understood that the receiving Party shall not be obligated to agree to any modification or
alteration requested thereby). A Party receiving Services shall provide no less than 30 days written notice (unless a shorter time is mutually agreed upon by the Parties) to the other Party of any Services that, prior to the expiration of the Term,
are no longer needed from the other Party, in which case this Agreement shall terminate as to such Services, provided that the Party providing such Services must consent to such early termination, such consent not to be unreasonably withheld,
conditioned or delayed (a “Partial Termination”). The parties shall mutually agree as to the effective date of any Partial Termination. In the event of any termination prior to the expiration of the Term or of any Partial
Termination hereunder, (x) with respect to any terminated Services in which the Fee for such terminated Services is charged as a flat monthly rate, the Fee for the month in which the termination occurs shall be 0% of the monthly rate for such
terminated Service, in the event that the effective date of termination occurs on or prior to the 10th calendar day
of such month, or 100% of the monthly rate for such Service, in the event that the effective date of termination occurs on or after the 11th calendar day of such month, and (y) with respect to any other terminated Services, all amounts due pursuant to the terms hereof with respect to the terminated Services shall be appropriately pro rated and reduced to
reflect such shortened period during which such Services are actually provided hereunder, and each Party shall refund to the other Party an appropriate pro rated amount for any such Services that have been paid for in advance. Notwithstanding the
preceding sentence, to the extent any amounts due or advances made hereunder related to costs or expenses that have been or will be incurred and that cannot be recovered by a Party providing Services, such amounts due or advances made shall not be
pro rated or reduced and such Party shall not be required to refund to the other Party any pro rated amount for such costs or expenses; and the terminating Party shall reimburse the Party providing such Service for any Third Party cancellation or
similar charges incurred as a result of such early termination. Notwithstanding anything to the contrary hereunder, each Party may avail itself of the remedies set forth in Sections 3.4(b) and 10.2 without fulfilling the notice
requirements of this Section 3.3(a). 
 (b) In the event of a Partial Termination, this Agreement shall remain in full force and
effect with respect to the Services which have not been terminated by the Parties as provided herein. 
 (c) Each Party acknowledges and
agrees that certain of the Services to be provided under this Agreement have been, and will continue to be provided (in accordance with this Agreement) to the First Data Business or the Western Union Business, as applicable, by Third Parties
designated by the Party responsible for providing such Services. To the extent so provided, the Party responsible for providing such Services shall use commercially reasonable efforts to (a) cause such Third Parties to provide such Services
under this Agreement and/or (b) enable the Party seeking the benefit of such Services and its Affiliates to avail itself of such Services; provided, however, that if any such Third Party is unable or unwilling to provide any such
Services, the Parties agree to use their commercially reasonable efforts to determine the manner in which such Services can best be provided (it being acknowledged and agreed that any costs or 
  

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 expenses to be incurred in connection with obtaining a Third Party to provide any such Services shall be paid by the
Party to which such Services are provided; provided that the Party responsible for providing such Services shall use commercially reasonable efforts to communicate the costs or expenses expected to be incurred in advance of incurring such
costs or expenses). 
 Section 3.4 Disclaimer of Warranties; Force Majure. 
 (a) Except as expressly set forth in this Agreement: (i) each Party acknowledges and agrees that the other Party makes no warranties with respect to
the Services to be provided hereunder; and (ii) each Party hereby expressly disclaims all warranties, expressed or implied, of any kind with respect to the Services to be provided hereunder, including, without limitation, any warranty of
merchantability or fitness for a particular purpose as to the Services provided hereunder. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE SERVICES TO BE PURCHASED UNDER THIS AGREEMENT ARE PROVIDED AS IS, WHERE IS, WITH ALL FAULTS, AND WITHOUT
WARRANTY OR CONDITION OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT OR ANY OTHER WARRANTY WHATSOEVER. 
 (b) If either Party, any of its Affiliates or any Third Party service provider is prevented from or delayed in complying, either totally or in part, with
any of the terms or provisions of this Agreement by reason of fire, flood, storm, strike, walkout, lockout or other labor trouble or shortage, delays by unaffiliated suppliers or carriers, shortages of fuel, power, raw materials or components, any
law, order, proclamation, regulation, ordinance, demand, seizure or requirement of any Governmental Authority, riot, civil commotion, war, rebellion, acts of terrorism, nuclear accident or other acts of God, or acts, omissions or delays in acting by
any governmental or military authority or the other Party or other causes beyond the reasonable control and without the fault or negligence of such Party, then upon notice to the other Party, the affected provisions and/or other requirements of this
Agreement shall be suspended during the period of such disability and, unless otherwise set forth herein to the contrary, the affected Party shall have no liability to the other Party, its Affiliates or any other Person in connection therewith. Each
Party shall use commercially reasonable efforts to promptly remove such disability as soon as possible, but in any event no later than 30 days after giving notice of such disability; provided, however, that nothing in this
Section 3.4(b) will be construed to require the settlement of any strike, walkout, lockout or other labor dispute on terms which, in the reasonable judgment of the affected Party, are contrary to its interest. It is understood that the
settlement of a strike, walkout, lockout or other labor dispute will be entirely within the discretion of the affected Party. If a Party is unable to provide any of the Services due to such a disability, each Party shall use commercially reasonable
efforts to cooperatively seek a solution that is mutually satisfactory. In addition, upon becoming aware of a disability causing a delay in performance or preventing performance of any obligations of a Party under this Agreement, the otherwise
defaulting Party shall promptly notify the other Party in writing of the existence of such disability and the anticipated duration of the disability. The Party entitled to the benefit of the Services shall have the right, but not the obligation, to
engage subcontractors to perform such obligations for the duration of the period during which such disability delays or prevents the performance of such obligation by the affected Party, it being agreed that the Fees paid or 
  

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 payable under this Agreement with respect to the Service affected by the disability shall be reduced (or refunded, if
applicable) on a dollar for dollar basis for all amounts paid by the affected Party to such subcontractors, provided that the affected Party shall not be responsible for the amount of excess fees charged by the subcontractor to perform such Services
to the extent they exceed the Fees for the applicable period of disability. Notwithstanding anything to the contrary hereunder, each Party shall make the mitigation and resolution of any disability affecting its ability to perform hereunder a high
priority and shall use efforts of a type, intensity and duration which, taking into account the type of Services and the significance of such Services to the other Party’s business, represent a good and professional response to such disability,
but in any event no less than commercially reasonable efforts. In addition, and notwithstanding anything hereunder to the contrary, the Parties agree that this Section 3.4(d) shall not be construed so as to excuse a Party of its
obligations to perform in accordance with Article VII and Article VIII at all times during the Term. 
 Section 3.5
Transition of Responsibilities. Each Party agrees to use commercially reasonable efforts to reduce or eliminate its and its Affiliates’ dependency on each Service as soon as is reasonably practicable. Each Party agrees to
cooperate with the other Party to facilitate the smooth transition of the Services being provided to such Party by the other Party. 
 ARTICLE IV 
 COOPERATION 
 Section 4.1 Cooperation. Each Party shall, and shall cause its Affiliates to, use good faith efforts to cooperate with the other Party in all matters relating to the provision and receipt of the
Services, including providing information and documentation sufficient for the other Party to provide the Services and making available, as reasonably requested by the other Party, timely decisions, approvals and acceptances in order that the other
Party and its Affiliates may perform their respective obligations under this Agreement in a timely manner. 
 Section 4.2
Consents. (a) Each Party shall, and shall cause its Affiliates to, cooperate to obtain all Consents for any Third Party software or other Third Party intellectual property related to the provision of the Services sufficient to
enable the Parties to perform the Services in accordance with this Agreement; provided, however, that neither Party shall be obligated under this Agreement to pay any consideration, grant any concession or incur any Liability to any
third Person to obtain any such Consent. Lists that identify all Third Party software or other Third Party intellectual property the Parties reasonably believe will be used to provide the Services (other than Additional Services), whether any
Consent is believed to be required and whether such Consent has been obtained as of the date hereof are set forth on Annex D. 
 (b)
In the event that any Consent is not obtained, then, unless and until such Consent is obtained, the Parties shall cooperate with each other in achieving a reasonable alternative arrangement for the Party entitled to the benefit of the Services to
continue to process its work and for the Party providing the Services to perform such Services. 
 Section 4.3 Informal Dispute
Resolution. The Authorized Representatives of First Data and Western Union (each of whom shall have the authority to legally bind the Party it represents) shall meet as often as shall reasonably be requested by either Party to review the

  

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 performance of the other Party under this Agreement. Written minutes of such meetings may be kept. In the event of any
dispute or disagreement between the Parties either with respect to the interpretation of any provision of this Agreement, or with respect to the performance by First Data or Western Union hereunder, then upon the written request of First Data or
Western Union each Party shall appoint within 14 calendar days a designated officer whose task it shall be to meet for the purpose of endeavoring to resolve such dispute or to negotiate for an adjustment to such provision of the Agreement. The
Parties shall use commercially reasonable efforts to cause their respective designated officers to meet within 15 days following identification of the designated officers. The designated officers shall meet as often as the Parties reasonably deem
necessary in order to gather and furnish to the other all information with respect to the matter in issue which the Parties believe to be appropriate and germane in connection with its resolution. Such officers shall discuss the problem and/or
negotiate in good faith in an effort to resolve the dispute or renegotiate the applicable provision without the necessity of any formal proceeding relating thereto. During the course of such negotiation, subject to the Parties’ respective
confidentiality obligations, all reasonable requests made by either Party to the other for information shall be honored in order that each of the Parties may be fully advised in the matter. The specific format for such discussions shall be left to
the discretion of the designated officers but may include the preparation of agreed upon statements of fact or written statements of position furnished to the other Party. Except for claims arising under Articles VII or VIII, the
Parties agree to follow the dispute resolution process set forth in this Section 4.3 prior to the commencement of any Action under Section 12.14. 
 ARTICLE V 
 FEES 
 Section 5.1 Fees. Each Party shall pay the other Party the Fees for the Services provided by such other Party under this Agreement. The Fees for the First Data Services are set forth on Annex
B and the Fees for the Western Union Services are set forth on Annex C. 
 Section 5.2 Taxes. To the extent
required or permitted by applicable law, there shall be added to any Fees due under this Agreement, and each Party agrees to pay to the other, amounts equal to any taxes, however designated or levied, based upon such Fees, or upon this Agreement or
the Systems, Services or materials provided under the Agreement, or their use, including state and local privilege or excise taxes based on gross revenue and any taxes or amounts in lieu thereof paid or payable by the Party providing Services
hereunder. In the event taxes are not added to an invoice from the Party providing Services hereunder, the Party purchasing such Services is responsible to remit to the appropriate tax jurisdiction any additional amounts due including tax, interest
and penalty. If additional amounts are determined to be due on the Services provided hereunder as a result of an audit by a tax jurisdiction, the Party purchasing the Services hereunder agrees to reimburse the Party providing the Services for the
additional amounts due including tax, interest and penalty. The Party providing Services hereunder will be responsible for penalty or interest associated with its failure to remit invoiced taxes. The Parties further agree that no Party to this
Agreement shall be required to pay any franchise taxes, taxes based on the net income of the other Party or personal property taxes on property owned or leased by a Party and used by such Party to provide Services. 
  

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 ARTICLE VI 
 INVOICE AND PAYMENT; AUDIT 
 Section 6.1 Invoices and Payment. Within 20 days
following the end of each month during the Term (or within 20 days after receipt of a Third Party supplier’s invoice in the case of Services that are provided by a Third Party supplier), each Party will submit to the other Party for payment a
written statement of amounts due under this Agreement for such month. For Services set forth on Annex B or Annex C, the statement will set forth the Fees, in the aggregate and itemized, set forth on Annex B or Annex C as
the case may be. Each statement will specify the nature of any amounts due for any Fees as set forth on Annex B or Annex C and will contain reasonably satisfactory documentation in support of such amounts as specified therein and such
other supporting detail as the other Party may reasonably require to validate such amounts due. 
 Section 6.2 Timing of Payment; No
Offsets. Each Party will pay all undisputed amounts due pursuant to this Agreement within 30 days after the date upon which each such statement that is required to be provided hereunder is received by such Party. Neither Party shall offset
any amounts owing to it by the other Party or any of its Affiliates against amounts payable by such Party hereunder or any other agreement or arrangement. 
 Section 6.3 Non-Payment. If either Party fails to pay the full amount of any invoice within 45 days after its receipt of the invoice, such failure shall be considered a material breach of this
Agreement (except to the extent any invoiced amounts are reasonably disputed by the non-paying Party in good faith and of which dispute the non-paying Party has notified the other Party in accordance with the requirements of this Agreement). The
remedies provided to each Party by this Section 6.3 and by Section 10.2 shall be without limitation of any other applicable provisions of this Agreement. 
 Section 6.4 Late Payments. Payments made after the date they are due shall bear interest at a rate per annum equal to the Prime Rate
plus 2.0%. 
 Section 6.5 Audit Rights. (a) Each Party may audit (or cause an independent Third Party auditor to
audit) the books, records and facilities of the other Party to the extent necessary to determine the other Party’s compliance with this Agreement with respect to Fees paid or payable pursuant to this Article VI, or the performance of its
other obligations set forth in this Agreement. For any given Service, each Party shall have the right to audit the books, records and facilities of the other Party pertaining to such Service once for each twelve month period during which payment
obligations are due (and at such other times as may be required by applicable law). Each Party shall also have the right to audit (or cause an independent Third Party auditor to audit) the books, records and facilities of the other Party pertaining
to a particular Service within six months after the termination of such Service. 
 (b) Any audit shall be conducted during regular business
hours and in a manner that complies with the building and security requirements of the Party being audited. Such audits shall not interfere unreasonably with the operations of the Party being audited. The Party desiring to conduct an audit shall
provide notice to the Party to be audited not less than 30 days prior to the commencement of the audit and shall specify the date on which the audit will commence. The Party conducting an audit shall pay the costs of conducting such audit, unless

  

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 the results of an audit reasonably indicate an overpayment by the Party conducting the audit of 10% or more (such
percentage to be determined by reference to the Services which are subject to the specific audit), in which case the Party being audited shall pay the reasonable out-of-pocket costs of the Party conducting such audit. If the audit reasonably
concludes that an overpayment or underpayment has occurred during the audited period, such payment shall be remitted by the Party responsible for such payment to the other Party within 30 days after notice to the Party responsible for such payment.

 ARTICLE VII 
 INDEPENDENCE; OWNERSHIP OF ASSETS 
 Section 7.1 Independence. All employees and representatives of a
Party and any of its Affiliates will be deemed for purposes of all compensation and employee benefits to be employees or representatives of such Party or its Affiliates (or their subcontractors) and not employees or representatives of the other
Party or any of its Affiliates. In providing the Services, such employees and representatives will be under the direction, control and supervision of the Party or its Affiliates (or their subcontractors) providing such Services, and not of the Party
receiving such Services. The Party or its Affiliates (or their subcontractors) providing the Services will have the sole right to exercise all authority with respect to the employment (including termination of employment), assignment and
compensation of such employees and representatives. 
 Section 7.2 Ownership of Assets. (a) First Data
Systems. First Data Systems and any and all enhancements thereof or improvements thereto are and shall remain the sole exclusive property of the First Data Parties and their suppliers. From and after the creation of any and all such First Data
Systems or enhancements thereof or improvements thereto by Western Union or by any contractor, Affiliate or other Third Party on Western Union’s behalf, in each case, pursuant to this Agreement, Western Union agrees to assign and hereby assigns
to First Data or the applicable First Data Party, any and all right, title and interest that Western Union or such contractor, Affiliate or Third Party may have in such First Data Systems or enhancements thereof or improvements thereto. 

(b) Western Union Systems. Western Union Systems and any and all enhancements thereof or improvements thereto are and shall remain the sole
exclusive property of the Western Union Parties and their suppliers. From and after the creation of any and all such Western Union Systems or enhancements thereof or improvements thereto by First Data or by any contractor, Affiliate or Third Party
on First Data’s behalf, in each case, pursuant to this Agreement, First Data agrees to assign and hereby assigns to Western Union or the applicable Western Union Party, any and all right, title and interest that First Data or such contractor,
Affiliate or Third Party may have in such Western Union Systems or enhancements thereof or improvements thereto. 
 (c) License.
During the Term, each Party grants to the other and its respective suppliers a non-exclusive, royalty-free right and license to use the First Data Systems or the Western Union Systems, as applicable, solely to provide the Services contemplated
hereunder. Notwithstanding anything to the contrary hereunder, each Party agrees to cooperate with the other (and shall cause its suppliers to so cooperate) to cause the orderly return of the other Party’s Systems and property upon the
expiration of the Term or upon written request, whichever is earlier. 
  

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 (d) Maintenance. With respect to any Systems that a First Data Party or a Western Union Party, as
applicable, is required to maintain or enhance hereunder, such First Data Party or Western Union Party shall maintain the existing documentation and make any revisions to such documentation resulting from such enhancements. All right, title and
interest in and to such enhancements and such documentation, whether created by the Party that provides the Service or any contractor, Affiliate or supplier on such Party’s behalf, shall be owned exclusively by and vested exclusively in the
Party which owns the applicable System. 
 (e) Data Ownership. As between any First Data Party, on the one hand, and any Western Union
Party, on the other hand, all right, title and interest in and to all data processed hereunder shall be owned exclusively by the First Data Party or Western Union Party that originally supplied it to the other. First Data and Western Union hereby
assign to the other, and shall cause any of its or their contractors, Affiliates or suppliers to assign to the other, as applicable, all right, title and interest that First Data or Western Union, as applicable, may have in the other’s data.

 (f) Third Party Suppliers. Each Party shall have written agreements with its employees consistent with past practices, and shall
cause any contractor, Affiliate or Third Party performing Services on its behalf pursuant to this Agreement to also have written agreements with its employees that are consistent with its obligations hereunder, including the obligations to disclose
and assign all right, title and interest in intellectual property rights as contemplated in this Section 7.2 and Article VIII. Each Party agrees not to voluntarily terminate or to amend or modify such agreements with respect to
the provisions described above without providing at least 30 days prior written notice thereof and further agrees that any such amendments or modifications to such agreements shall be prospective only. 
 Section 7.3 Other Assets. Except as otherwise noted in Sections 7.1 and 7.2, all procedures, methods, systems,
strategies, tools, equipment, facilities and other resources used by a Party, any of its Affiliates or any Third Party service provider in connection with the provision of the Services hereunder shall remain the property of such Party, its
Affiliates or such service providers and, except as otherwise provided herein, shall at all times be under the sole direction and control of such Party, its Affiliates or such Third Party service provider. 
 ARTICLE VIII 
 CONFIDENTIALITY

 Section 8.1 Confidentiality. Each Party agrees that the specific terms and conditions of this Agreement and any
information conveyed or otherwise received by or on behalf of a Party in conjunction herewith are confidential and are subject to the terms of the confidentiality provisions set forth in Section 14.8 of the Distribution Agreement. 

ARTICLE IX 
 NO AGENCY
RELATIONSHIP 
 Section 9.1 No Agency Relationship. Nothing in this Agreement shall be deemed to make either Party
or its Affiliates the agent of the other Party or its Affiliates. 
  

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 ARTICLE X 
 TERMINATION 
 Section 10.1 General. This Agreement shall terminate, and the
obligation of each Party to provide all Services shall cease, on the earliest to occur of (i) the date on which the provision of all Services has been terminated by the Parties pursuant to Section 3.3, subject to the terms of
Section 3.3, or (ii) the date on which the Term of this Agreement has ended pursuant to Section 2.1 or 10.2. 
 Section 10.2 Termination of Entire Agreement. A Party shall have the right to terminate this Agreement or effect a partial termination effective upon delivery of written notice to the other Party if the other Party:
(a) makes an assignment for the benefit of creditors, or becomes bankrupt or insolvent, or is petitioned into bankruptcy, or takes advantage of any state, federal or foreign bankruptcy or insolvency act, or if a receiver or receiver/manager is
appointed for all or any substantial part of its property and business and such receiver or receiver/manager remains undischarged for a period of 30 days; or (b) materially defaults in the performance of any of its covenants or obligations
contained in this Agreement (or, in the case of a partial termination, with respect to the Services being terminated) and such default is not remedied to the nondefaulting Party’s reasonable satisfaction within 45 days after receipt of written
notice by the defaulting Party informing such Party of such default, or if such default is not capable of being cured within 45 days, if the defaulting Party has not promptly begun to cure the default within such 45 day period and thereafter
proceeded with all diligence to cure the same. 
 Section 10.3 Procedures on Termination. Following any termination of
this Agreement in whole or in part, each Party will cooperate with the other Party as reasonably necessary to avoid disruption of the ordinary course of the other Party’s and its Affiliates’ business. Termination shall not affect any right
to payment for Services provided prior to termination. 
 Section 10.4 Effect of Termination. Sections 3.4(c),
4.3, Article V (with respect to Fees and Taxes attributable to periods prior to termination), 6.1, 6.2, 6.4, 6.5, 10.3, this Section 10.4 and Articles I, VII, VIII,
XI and XII shall survive any termination of this Agreement. For the avoidance of doubt, neither (a) termination of a particular Service hereunder nor (b) termination of this Agreement with respect to the Services provided
under one Annex, but not the other Annex, shall be a termination of this Agreement. 
 ARTICLE XI 
 INDEMNIFICATION 
 Section 11.1
Indemnification by Western Union. Western Union shall indemnify, defend and hold harmless the First Data Indemnified Parties for any Losses and Expenses incurred by them in connection with or arising out of any (i) material breach
of this Agreement by Western Union, its Affiliates, employees, suppliers or contractors, (ii) Western Union’s, its Affiliates’, employees’, suppliers’ or contractors’ gross negligence, willful misconduct or bad faith in
the provision of the Western Union Services by Western Union, its Affiliates, employees, suppliers or contractors pursuant to this Agreement, (iii) any Action that determines that the provision by any Western Union Party and/or the receipt by
the First Data Indemnified Parties of any Western 
  

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 Union Services infringes upon or misappropriates the intellectual property of any Third Party, to the extent that any
such Losses and Expenses are determined to have resulted from Western Union’s, its Affiliates’, employees’, suppliers’ or contractors’ gross negligence, willful misconduct or bad faith, and (iv) Third Party claims
arising out of the provision of the First Data Services, except to the extent that such third Person claims for Losses and Expenses are finally determined by a final non-appealable decision of a court having jurisdiction over Western Union and First
Data or pursuant to Article XIII of the Distribution Agreement to have arisen out of the material breach of this Agreement, gross negligence, bad faith or willful misconduct of First Data, its Affiliates, employees, suppliers or contractors in
providing the First Data Services. 
 Section 11.2 Indemnification by First Data. First Data shall indemnify, defend and
hold harmless the Western Union Indemnified Parties for any Losses and Expenses incurred by them in connection with or arising out of (i) any material breach of this Agreement by First Data, its Affiliates, employees, suppliers or contractors,
(ii) First Data’s, its Affiliates’, employees’, suppliers’ or contractors’ gross negligence, willful misconduct or bad faith in the provision of the First Data Services by First Data, its Affiliates, employees,
suppliers or contractors pursuant to this Agreement, (iii) any Action that determines that the provision by any First Data Party and/or the receipt by the Western Union Indemnified Parties of any First Data Services infringes upon or
misappropriates the intellectual property of any Third Party to the extent that any such Losses and Expenses are determined to have resulted from First Data’s, its Affiliates’, employees’, suppliers’ or contractors’ gross
negligence, willful misconduct or bad faith, and (iv) Third Party claims arising out of the provision of the Western Union Services, except to the extent that such Losses and Expenses are finally determined by a final non-appealable decision of
a court having jurisdiction over First Data and Western Union or pursuant to Article XIII of the Distribution Agreement to have arisen out of the material breach of this Agreement, gross negligence, bad faith or willful misconduct of Western Union,
its Affiliates, employees, suppliers or contractors in providing the Western Union Services. 
 Section 11.3 Limitations and
Liability. Each Party shall have a duty to mitigate the Losses and Expenses for which the other is responsible hereunder. Except for Losses or Expenses arising out of or related to the gross negligence or willful misconduct of the defaulting
Party or in respect of Article VIII, in no event shall a Party’s (including its Affiliates’, employees’, contractors’ or suppliers’) cumulative aggregate liability arising under or in connection with this Agreement
(or the provision of Services hereunder) exceed the greater of $10,000,000 and the amount of payments received by such Party from the other Party pursuant to this Agreement. EXCEPT FOR CLAIMS ARISING OUT OF OR RELATING TO ARTICLE VIII, IN NO EVENT
SHALL ANY PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL (INCLUDING LOSS OF REVENUES OR PROFITS), EXEMPLARY OR PUNITIVE DAMAGES OR THE LIKE ARISING UNDER ANY LEGAL OR EQUITABLE THEORY OR ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT
(OR THE PROVISION OF SERVICES HEREUNDER), ALL OF WHICH ARE HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER OR NOT ANY PARTY TO THIS AGREEMENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  

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 Section 11.4 Indemnification Is Exclusive Remedy. Except for equitable relief and
rights pursuant to Section 6.3 or Article X, the indemnification provisions of this Article XI shall be the exclusive remedy for breach of this Agreement. 
 Section 11.5 Risk Allocation. Each Party agrees that the Fees charged under this Agreement reflect the allocation of risk between
the Parties, including the disclaimer of warranties in Section 3.4(a) and the limitations on liability in Section 11.3. Modifying the allocation of risk from what is stated here would affect the Fees that each Party charges,
and in consideration of those Fees, each Party agrees to the stated allocation of risk. 
 Section 11.6 Indemnification
Procedures. All claims for indemnification pursuant to this Article XI shall be made in accordance with the provisions set forth in Sections 12.6 and 12.7 of the Distribution Agreement. Notwithstanding anything to the
contrary hereunder, no cause of action, dispute or claim for indemnification may be asserted against either Party or submitted to arbitration or legal proceedings which accrued more than two years after the later of (a) the occurrence of the
act or event giving rise to the underlying cause of action, dispute or claim and (b) the date on which such act or event was, or should have been, in the exercise of reasonable due diligence, discovered by the Party asserting the cause of
action, dispute or claim. 
 ARTICLE XII 
 MISCELLANEOUS 
 Section 12.1 Entire Agreement. This Agreement, including the Annexes
hereto and the sections of the Distribution Agreement referenced herein, constitutes the entire agreement between the Parties with respect to the subject matter contained herein, and supersedes all prior agreements, negotiations, discussions,
understandings, writings and commitments between the Parties with respect to such subject matter. 
 Section 12.2 Choice of
Law. This Agreement shall be governed by and construed and enforced in accordance with the substantive laws of the State of Delaware, as though all acts and omissions related hereto occurred in Delaware. 
 Section 12.3 Amendment. This Agreement shall not be amended, modified or supplemented except by a written instrument signed by an
authorized representative of each of First Data and Western Union. 
 Section 12.4 Waiver. Any term or provision of this
Agreement may be waived, or the time for its performance may be extended, by the Party or Parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to any Party, it is
in writing signed by an authorized representative of such Party. The failure of any Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, or in any way to affect the validity of this
Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. 
 Section 12.5 Partial Invalidity. Wherever possible, each provision hereof shall be interpreted in such a manner as to be effective and
valid under applicable law, but in case any 
  

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 one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in
any respect, such provision or provisions shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions
hereof, unless such a construction would be unreasonable. 
 Section 12.6 Execution in Counterparts. This Agreement may be
executed in two or more counterparts, each of which shall be deemed an original instrument, but all of which shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by and delivered to
each of the Parties. 
 Section 12.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the Parties and their successors and permitted assigns; provided, however, that the rights and obligations of either Party under this Agreement shall not be assignable by such Party without the prior written consent of the other Party.
The successors and permitted assigns hereunder shall include any permitted assignee as well as the successors in interest to such permitted assignee (whether by merger, liquidation (including successive mergers or liquidations) or otherwise).

 Section 12.8 Third Party Beneficiaries. Except to the extent otherwise provided in Article XI, the provisions of this
Agreement are solely for the benefit of the Parties and their respective Affiliates, successors and permitted assigns and shall not confer upon any third Person any remedy, claim, liability, reimbursement or other right in excess of those existing
without reference to this Agreement. 
 Section 12.9 Notices. All notices or other communications under this Agreement
shall be in writing and shall be deemed to be duly given when delivered or mailed in accordance with the terms of Section 15.9 of the Distribution Agreement. 
 Section 12.10 Performance. Each Party shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any Affiliate of
such Party. 
 Section 12.11 No Public Announcement. Neither First Data nor Western Union shall, without the approval of the
other, make any press release or other public announcement concerning the transactions contemplated by this Agreement, except as and to the extent that either Party shall be so obligated by law or the rules of any regulatory body, stock exchange or
quotation system, in which case the other Party shall be advised and the Parties shall use commercially reasonable efforts to cause a mutually agreeable release or announcement to be issued; provided, however, that the foregoing shall
not preclude communications or disclosures necessary to implement the provisions of this Agreement or to comply with applicable law, accounting and SEC disclosure obligations or the rules of any stock exchange. 
 Section 12.12 Limited Liability. Notwithstanding any other provision of this Agreement, no individual who is a stockholder,
director, employee, officer, agent or representative of Western Union or First Data, in its capacity as such, shall have any liability in respect of or relating to the covenants or obligations of such Party under this Agreement and, to 

 

 17 

 the fullest extent legally permissible, each of Western Union and First Data, for itself and its respective stockholders,
directors, employees, officers and Affiliates, waives and agrees not to seek to assert or enforce any such liability that any such Person otherwise might have pursuant to applicable law. 
 Section 12.13 Mutual Drafting. This Agreement shall be deemed to be the joint work product of First Data and Western Union and any
rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable. 
 Section 12.14 Dispute Resolution. The Parties agree that any dispute, controversy or claim between them with respect to the matters covered hereby shall be governed by and resolved in accordance with the procedures set
forth in Section 4.3 hereof and in Article XIII of the Distribution Agreement. 
  

 18 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their authorized
representatives as of the date first above written. 
  

			
	FIRST DATA CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	THE WESTERN UNION COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	

 Signature Page to Transition Services Agreement 

 Annex A 
 AUTHORIZED REPRESENTATIVES 
 [Intentionally omitted] 
  

 A-1 

 Annex B 
 FIRST DATA SERVICES AND FEES 
 [Intentionally omitted] 
  

 B-1 

 Annex C 
 WESTERN UNION SERVICES AND FEES 
 [Intentionally omitted] 
  

 C-1 

 Annex D 
 THIRD PARTY SOFTWARE 
 [Intentionally omitted] 
  

 D-1

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