Document:

exv10w8

Exhibit 10.8

SEVERANCE AGREEMENT

     SEVERANCE AGREEMENT (the “Agreement”) dated as of July 13, 2010 by and between
MoneyGram International, Inc., a Delaware corporation (together with its parent companies, direct
and indirect subsidiaries, successors and permitted assigns under this Agreement, the
“Company”) and James E. Shields (“Executive”).

     The Company employs Executive as its Executive Vice President, Chief Financial Officer;

     Executive’s employment with the Company is at-will;

     The Company is willing to provide Executive with severance benefits described in this
Agreement and the benefits provided by the MoneyGram International, Inc. 2005 Omnibus Incentive
Plan Non-Qualified Stock Option Agreement (“Option Agreement”) as consideration for
Executive’s agreement to continue providing services to the Company and Executive’s agreement to
enter into an Employee Trade Secret, Confidential Information and Post-Employment Restriction
Agreement.

     In consideration of the promises and mutual covenants herein and for other good and valuable
consideration, the receipt and sufficiency of which is mutually acknowledged, the parties agree as
follows:

     1. Definitions.

          a. “Cause” shall mean (A) Executive’s willful refusal to carry out, in all material
respects, the reasonable and lawful directions of the person or persons to whom the Executive
reports or the Board that are within Executive’s control and consistent with Executive’s status
with the Company and his or her duties and responsibilities hereunder (except for a failure that is
attributable to Executive’s illness, injury or Disability) for a period of 10 days following
written notice by the Company to Executive of such failure, (B) fraud or material dishonesty in the
performance of Executive’s duties hereunder, (C) an act or acts on Executive’s part constituting
(x) a felony under the laws of the United States or any state thereof, (y) a misdemeanor involving
moral turpitude or (z) a material violation of federal or state securities laws, (D) an indictment
of Executive for a felony under the laws of the United States or any state thereof, (E) Executive’s
willful misconduct or gross negligence in connection with Executive’s duties which could reasonably
be expected to be injurious in any material respect to the financial condition or business
reputation of the Company as determined in good faith by the Board, (F) Executive’s material breach
of the Company’s Code of Ethics, Always Honest policy or any other code of conduct in effect from
time to time to the extent applicable to Executive, and which breach could reasonably be expected
to have a material adverse effect on the Company as determined in good faith by the Board, or (G)
Executive’s breach of the Employee Trade Secret, Confidential Information and Post-Employment
Restriction Agreement which breach has an adverse effect on the Company.

SVP/EVP Form 8-2009

 

 

          b. “Disability” shall exist if Executive becomes physically or mentally incapacitated
and is therefore unable for a period of six (6) consecutive months or for an
aggregate of nine (9) months in any twenty-four (24) consecutive month period to perform
Executive’s duties. Any question as to the existence of the Disability of Executive as to which
Executive and the Company cannot agree shall be determined in writing by a qualified independent
physician mutually acceptable to Executive and the Company. If Executive and the Company cannot
agree as to a qualified independent physician, each shall appoint such a physician and those two
physicians shall select a third who shall make such determination in writing. The determination of
Disability made in writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

     2. At-Will Employment. Executive’s employment is at-will and may be terminated by
either Executive or Company at any time and for any reason.

     3. Termination by the Company without Cause. If at any time on or after the first
anniversary of the date Executive first became an employee of the Company Executive’s employment is
terminated by the Company without Cause (other than by reason of death or Disability), Executive
shall be entitled to receive the following payments, each of which shall at all times be made so as
to satisfy the requirements of Section 409A of the Internal Revenue Code of 1986, as amended:

          a. Salary Severance. A sum equal to Executive’s then current monthly base salary multiplied
by twelve, which, subject to Section 5 hereof, shall be payable in equal monthly installments on
the last day of each month over the twelve month period following the date of termination of
employment and in accordance with the Company’s normal payroll practices in effect as of the date
of Executive’s termination of employment; and

          b. Bonus Severance. Provided that the Company actually achieves performance goals for the
applicable performance period necessary for participants in the Company’s Management Incentive Plan
(the “MIP”) to receive cash bonuses pursuant to the MIP with respect to such performance
period and that such cash bonuses are actually paid, a sum equal to a pro rata portion (based on
the period between the beginning of the applicable performance period and the date of termination
of Executive’s employment) of Executive’s cash bonus (up to Executive’s cash bonus at target level)
under the MIP payable for the year in which the termination of employment occurs, which, subject to
Section 5 hereof, shall be paid in a lump sum payable when such cash bonus under the MIP is
regularly paid to other MIP participants for such year, and which amount shall in no event exceed a
pro rata portion of Executive’s annual target incentive opportunity for such year under the MIP.

     Executive acknowledges and agrees that Executive shall not be entitled to any payment or other
benefit pursuant to this Agreement in the event Company terminates Executive’s employment for Cause
or in the event Executive resigns his or her employment for any reason or in the event of
Executive’s death or Disability.

     Executive acknowledges and agrees that as a condition precedent to receiving any payments
pursuant to this Severance Agreement, Executive shall have executed, within twenty-one (21) days,
or if required for an effective release, forty-five (45) days, following Executive’s termination of
employment, a waiver and release substantially in the form attached hereto as Exhibit A and
the applicable revocation period set forth in such release shall have expired.

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     4. Miscellaneous.

          a. No Duplication. Executive acknowledges and agrees that Executive shall not be entitled to
receive any separation payments under any other Company severance or similar policies.

          b. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Minnesota, without regard to conflicts of laws principles thereof, to the
extent Minnesota laws are not preempted by the Employee Retirement Income Security Act of 1974.

          c. Severance Pay Plan Statement. Subject to Section 5 hereof, this Agreement shall be
administered and interpreted in accordance with the MoneyGram International, Inc. Severance Pay
Plan Statement.

          d. Entire Agreement/Amendments. This Agreement and the other agreements, plans and documents
referenced herein contain the entire understanding of the parties with respect to the provision of
any severance rights, payments or benefits by Company to Executive. If any provision of any
agreement, plan, program, policy, arrangement or other written document between or relating to the
Company and Executive conflicts with any provision of this Agreement, the provision of this
Agreement shall control and prevail. This Agreement may not be altered, modified, or amended except
by written instrument signed by the parties hereto.

          e. No Waiver. The failure of a party to insist upon strict adherence to any term of this
Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such
party of the right thereafter to insist upon strict adherence to that term or any other term of
this Agreement.

          f. Severability. In the event that any one or more of the provisions of this Agreement shall
be or become invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions of this Agreement shall not be affected thereby.

          g. Survivorship. The respective rights and obligations of the parties hereunder shall survive
any termination of Executive’s employment to the extent necessary to preserve such rights and
obligations.

          h. Successors; Binding Agreement. This Agreement shall inure to the benefit of and be binding
upon personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

          i. Notice. For the purpose of this Agreement, notices and all other communications provided
for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered
by hand or overnight courier or three days after it has been mailed by United States registered
mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth
below in this Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of
change of address shall be effective only upon receipt.

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     If to the Company:

MoneyGram International, Inc.

1550 Utica Avenue South, Suite 100

Minneapolis, Minnesota 55416

Attention: Chairman of the Human Resources and Nominating Committee of the Board

     If to Executive:

     To the most recent address of Executive set forth in the personnel records of the Company.

          j. Withholding Taxes. The Company may withhold from any amounts payable under this Agreement
such Federal, state and local taxes as may be required to be withheld pursuant to any applicable
law or regulation.

          k. Counterparts. This Agreement may be signed in counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

     5. Code Section 409A.

          a. The parties agree that this Agreement shall be interpreted to comply with or be exempt from
Section 409A of the Internal Revenue Code of 1986 and the regulations and guidance promulgated
thereunder to the extent applicable (collectively “Code Section 409A”), and all provisions
of this Agreement shall be construed in a manner consistent with the requirements for avoiding
taxes or penalties under Code Section 409A. In no event whatsoever will the Company be liable for
any additional tax, interest or penalties that may be imposed on Executive under Code Section 409A
or any damages for failing to comply with Code Section 409A.

          b. A termination of employment shall not be deemed to have occurred for purposes of any
provision of this Agreement providing for the payment of any amounts or benefits subject to Code
Section 409A upon or following a termination of employment unless such termination is also a
“separation from service” within the meaning of Code Section 409A and, for purposes of any such
provision of this Agreement, references to a “termination,” “termination of employment” or like
terms shall mean “separation from service.” If Executive is deemed on the date of termination to
be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then
with regard to any payment or the provision of any benefit that is otherwise considered deferred
compensation under Code Section 409A payable on account of a “separation from service,” such
payment or benefit shall be made or provided at the date which is the earlier of (i) the expiration
of the six (6)-month period measured from the date of such “separation from service” of Executive,
and (ii) the date of Executive’s death (the “Delay Period”). Upon the expiration of the
Delay Period, all payments and benefits delayed pursuant to this Section 5(b) shall be paid or reimbursed to Executive in a lump sum, and any
remaining payments and benefits due under this Agreement shall be paid or provided in accordance
with the normal payment dates specified for them herein.

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          c. Notwithstanding anything to the contrary contained in this Agreement, all reimbursements
for costs and expenses under this Agreement shall be paid in no event later than the end of the
calendar year following the calendar year in which Executive incurs such expense. With regard to
any provision herein that provides for reimbursement of costs and expenses or in-kind benefits,
except as permitted by Code Section 409A, (i) all such expenses or reimbursements shall be made in
any event on or prior to the last day of the taxable year following the taxable year in which such
expenses were incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not
be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses
eligible for reimbursements or in-kind benefits provided during any taxable year shall not affect
the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable
year, provided, however, that the foregoing clause (iii) shall not be violated with regard to
expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such
expenses are subject to a limit related to the period the arrangement is in effect.

          d. For purposes of Code Section 409A, Executive’s right to receive any installment payments
pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct
payments.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written.

	 	 	 	 	 
	MONEYGRAM INTERNATIONAL, INC.

 	 	 
	/s/ Steve Piano
 	 	 
		 	 
	EXECUTIVE

Signature: Steve Piano, EVP Human Resources

 	 	 
	 

	 	 	 	 	 
	 	 	 
	(/s/ James E. Shields)
 	 	 
	James E. Shields 	 	 
	 	 	 

 

 

	 	 	 	 	 

[SIGNATURE PAGE TO THE SEVERANCE AGREEMENT

BETWEEN THE ABOVE-REFERENCED PARTIES]

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Exhibit A

RELEASE

     This RELEASE (“Release”) is dated as of                      between
MoneyGram International, Inc., a Delaware corporation (together with its parent companies, direct
and indirect subsidiaries, successors and assigns, the “Company”), and [                    ]
(“Executive”).

     WHEREAS, the Company and Executive previously entered into a Severance Agreement dated
[                     ], 20[___] (the “Severance Agreement”); and

     WHEREAS, Executive’s employment with the Company (has been) (will be) terminated effective
               ; and

     WHEREAS, pursuant to the Severance Agreement, Executive is entitled to certain compensation
and benefits upon such termination, contingent upon the execution of this Release;

     NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein and in
the Severance Agreement, to which Executive understands and acknowledges he or she may not
otherwise be entitled without executing this Release, the Company and Executive agree as follows:

     1. Executive, on his or her own behalf and on behalf of his or her heirs, estate and
beneficiaries, hereby releases and forever discharges the Company, its parent companies,
predecessors, successors, affiliates, subsidiaries, related companies, shareholders, and their
respective members, managers, partners, employees, officers, agents, and directors (individually a
“Released Party” and collectively the “Released Parties”) from the following:

	 	a.	 	All claims arising out of or relating to Executive’s employment with the
Company and/or Executive’s separation from that employment.
	 
	 	b.	 	All claims arising out of or relating to the statements, actions, or omissions
of the Released Parties.
	 
	 	c.	 	All claims for any alleged unlawful discrimination, harassment, retaliation or
reprisal, or other alleged unlawful practices arising under any federal, state, or
local statute, ordinance, or regulation, including without limitation, claims under
Title VII of the Civil Rights Act of 1964, as amended; the Age Discrimination in
Employment Act of 1967, as amended; the Americans with Disabilities Act of 1990, as
amended; the Family and Medical Leave Act of 1993; the Equal Pay Act of 1963; the
Worker Adjustment and Retraining Notification Act; the Employee Retirement Income
Security Act of 1974; the Fair Credit Reporting Act; the Minnesota Human Rights Act,
any other federal, state or local anti-discrimination acts, state wage payment statutes
and non-interference or non-retaliation statutes.

 

 

	 	d.	 	All claims for alleged wrongful discharge; breach of contract; breach of
implied contract; failure to keep any promise; breach of a covenant of good faith and
fair dealing; breach of fiduciary duty; promissory estoppel; Executive’s activities, if any,
as a “whistleblower”; defamation; infliction of emotional distress; fraud;
misrepresentation; negligence; harassment; retaliation or reprisal; constructive
discharge; assault; battery; false imprisonment; invasion of privacy; interference with
contractual or business relationships; any other wrongful employment practices; and
violation of any other principle of common law.
	 
	 	e.	 	All claims for compensation of any kind, including without limitation,
commission payments, bonus payments, vacation pay, expense reimbursements,
reimbursement for health and welfare benefits, and perquisites.
	 
	 	f.	 	All claims for back pay, front pay, reinstatement, other equitable relief,
compensatory damages, damages for alleged personal injury, liquidated damages, and
punitive damages.
	 
	 	g.	 	All claims for attorneys’ fees, costs, and interest.

     2. The Company acknowledges and agrees that Executive does not release any claims that the law
does not allow to be waived by private agreement.

     3. Executive acknowledges and agrees that even though claims and facts in addition to those
now known or believed by him or her to exist may subsequently be discovered, it is his or her
intention to fully settle and release all claims he or she may have against the Company and the
persons and entities described above, whether known, unknown or suspected.

     4. Executive relinquishes any right to future employment with the Company and the Company
shall have the right to refuse to re-employ Executive, in each case without liability of Executive
or the Company.

     5. Executive reaffirms his or her agreement to the Employee Trade Secret, Confidential
Information and Post-Employment Restriction Agreement to which Executive is a party.

     6. Executive acknowledges that he or she has been provided at least twenty-one (21) days to
review the Release and has been advised to review it with an attorney of his or her choice and at
his or her own expense. In the event Executive elects to sign this Release Agreement prior to this
twenty-one (21) day period, he or she agrees that it is a knowing and voluntary waiver of his or
her right to wait the full twenty-one (21) days. Executive further understands that he or she has
fifteen (15) days after the signing hereof to revoke it by so notifying the Company in writing,
such notice to be received by               within the fifteen (15) day period. Executive
further acknowledges that he or she has carefully read this Release, knows and understands its
contents and its binding legal effect. Executive acknowledges that by signing this Release, he or
she does so of his or her own free will and act and that it is his or her intention that he or she
be legally bound by its terms. Executive acknowledges that in deciding whether to sign this
Release, he or she has not relied upon any statements made by the Company or its agents. Executive
further acknowledges that he or she has not relied on any legal, tax or accounting advice from the
Company or its agents in deciding whether to sign this Release.

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     7. This Release shall be construed and enforced in accordance with, and governed by, the laws
of the State of Minnesota, without regard to principles of conflict of laws. If any clause of this
Release should ever be determined to be unenforceable, it is agreed that this will not affect the
enforceability of any other clause or the remainder of this Release.

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     IN WITNESS WHEREOF, the parties have executed this Release on the date first above written.

	 	 	 	 	 
	 	MONEYGRAM INTERNATIONAL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[___________________]exv10w9

Exhibit 10.9

EMPLOYEE TRADE SECRET, CONFIDENTIAL INFORMATION

AND POST-EMPLOYMENT RESTRICTION AGREEMENT

	 	 	 

	Employee: James E. Shields
	 	—
	 
	 	 
	(Print Employee’s full name)
	 	 

Employer: MoneyGram International, Inc., including its direct and indirect subsidiaries,
affiliates, predecessors, successors, and permitted assigns.

Effective as of the date on which Employee signs this Agreement, Employee agrees as follows:

1. Acknowledgments.

     1.1 Employer is currently engaged in the following businesses:

          (a) providing payment services through independent agents and Employer-owned retail locations
in the United States and internationally, which payment services include, but are not limited to,
money transfers, money orders, bill payment services, stored value cards and related products and
services;

          (b) providing payment services via the Internet, kiosks, automated teller machines and other
unmanned media in the United States and internationally, which payment services include, but are
not limited to, money transfers, money orders, bill payment services, stored value cards and
related products and services;

          (c) providing bill payment services in the United States and internationally to industries
that include, but are not limited to, the credit card, debit card, mortgage, automobile finance,
telecommunications, satellite television, cable television, property management and collection
industries;

          (d) processing of official checks and provision of related services for financial
institutions, either directly or through trusts or other business entities; and

          (e) providing banking and processing services for payments such as rebates/refunds, gift
certificates and government payments.

     1.2 Employer conducts its business and is engaged in competition in a nationwide market; in
the case of its money transfer businesses, Employer’s business and competition are conducted
globally.

     1.3 Employer desires to protect its legitimate proprietary interests, including but not
limited to its confidential business information and trade secrets.

Form 8-2009

 

 

2. Consideration.

     Employee acknowledges that for and in consideration of the agreements and covenants made
herein, Employer has agreed to (i) award a non-qualified stock option (“Option”) to Employee
pursuant to a MoneyGram International, Inc. 2005 Omnibus Incentive Plan Non-Qualified Stock Option
Agreement (“Option Agreement”) and (ii) enter into a Severance Agreement (“Severance Agreement”)
with Employee.

     Employee further acknowledges that he or she has had an opportunity to review this Agreement,
the Severance Agreement and the Option Agreement in their entirety and to consult with Employee’s
attorney and other advisors prior to signing this Agreement.

3. Trade Secrets and Confidential Information and Related Covenants.

     3.1 During the course of Employee’s employment, he or she has had and will have access to and
gain knowledge of the highly confidential and proprietary information (“Confidential Information”)
and trade secrets which are the property of Employer, or which Employer is under an obligation not
to disclose, including but not necessarily limited to the following: information regarding the
Employer’s clients and prospective clients, information regarding Employer’s development of
enhanced or new payment services, the financial terms of Employer’s contracts and proposed
contracts, the expiration dates of such contracts, the key contact individuals at each client
location, the transaction volume and business features of each client and/or location, business
plans, marketing plans and financials, reports, data, figures, margins, statistics, analyses and
other related information, and any other information of whatever nature which gives Employer an
opportunity to obtain a competitive advantage over its competitors who do not know or use it. In
addition, Employer’s Confidential Information and trade secrets include the means by which Employer
provides its services including but not limited to its organizational structure, technology,
management systems, software and computer systems.

     3.2 Employee agrees to use best efforts and the utmost diligence to guard and protect
Employer’s trade secrets and Confidential Information, and Employee agrees that Employee will not,
during or after the period of Employee’s employment by Employer, use or disclose, directly or
indirectly, any of Employer’s trade secrets or Confidential Information which Employee may develop,
obtain or learn about during or as a result of Employee’s employment by Employer, unless previously
authorized to do so by Employer in writing. Employee acknowledges that the Confidential Information
and trade secrets are owned and shall continue to be owned by the Employer and that misuse,
misappropriation or disclosure of this information could cause irreparable harm to Employer both
during and after the term of Employee’s employment.

4. Post-Employment Competitive Activities and Related Covenants.

     4.1 Definitions: For purposes of Section 4, the following terms have the meanings
indicated:

          (a) A “Conflicting Product or Service” means any product, or process, or service in existence
or under development, which is the same as or similar to or improves upon or competes with or is
intended to replace or serve as an alternative to, a product, process, or
service rendered by Employer or which is under development by Employer or the subject of a
pending acquisition or license by Employer or as to which Employer is actively negotiating to
provide services through a business alliance relationship, and

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               (i) which Employee either worked on, performed or sold during his or her last twenty-four (24)
months of employment by Employer; or

               (ii) about which Employee acquired Confidential Information as a result of his or her
employment by Employer.

          (b) A “Conflicting Organization” means any business that is a Customer (as defined below), or
any other person or organization (including one owned in whole or in part by Employee) which is
engaged in or is about to become engaged in the research on, or the development, production,
marketing or sale of a Conflicting Product or Service.

          (c) A “Customer” means any current customer or agent or any prospective or former customer or
agent of Employer with which Employee had any contact or about which Employee had access to
Confidential Information or trade secrets at any time during the twenty-four (24) months preceding
Employee’s termination of employment with Employer.

     4.2 Employment with a Conflicting Organization. Employee agrees that, for a period of
twelve (12) months following Employee’s termination of employment, and in exchange for the
consideration described in Section 2 of this Agreement, he or she shall not accept employment or
otherwise render services as an employee, trustee, principal, agent, consultant, partner, director,
officer or substantial stockholder of any Conflicting Organization unless Employee first obtains
written consent to such engagement from Employer.

     4.3 Interference with Existing Employment or Similar Relationships. During and for a
period of twelve (12) months after termination of his or her employment with Employer, Employee
will not, whether on Employee’s own behalf or on behalf of or in conjunction with any person, firm,
partnership, joint venture, association, corporation or other business organization, entity or
enterprise whatsoever, directly or indirectly hire or cause any third party to hire, recruit,
solicit or induce any employee, contractor, consultant or representative of Employer to terminate
his, her or its relationship with the Employer. Employee further agrees that, during such time, if
a person who is employed by Employer contacts Employee about prospective employment, Employee will
inform such person that Employee cannot discuss the matter without informing Employer and obtaining
permission for such discussions in writing from Employer.

     4.4 Interference with Customer Relationships. During and for a period of twelve (12)
months after termination of his or her employment with Employer, Employee will not, whether on
Employee’s own behalf or on behalf of or in conjunction with any person, firm, partnership, joint
venture, association, corporation or other business organization, entity or enterprise whatsoever,
directly or indirectly interfere with, attempt to influence or otherwise affect Employer’s
commercial relationships with any Customer (as defined above). Employee further agrees that, during
such time, if a Customer contacts Employee about discontinuing business with Employer or otherwise
changing an existing commercial relationship with Employer,
Employee will inform such Customer that Employee cannot discuss the matter without informing
Employer and obtaining permission for such discussions in writing from Employer.

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     4.5 Remedies.

          (a) Injunctive Relief. Employee acknowledges that the damages which may arise from a
breach of Sections 4.2, 4.3, and/or 4.4 of this Agreement are irreparable and difficult to prove
with certainty. If any covenant contained in Sections 4.2, 4.3, and/or 4.4 is breached, in addition
to other legal remedies which may be available (which shall include but not be limited to any
actual damages suffered by Employer), Employer shall be entitled to an immediate injunction from a
court of competent jurisdiction to end such breach, without further proof of damage. The parties
agree that the venue for such action shall be Minneapolis, Minnesota, and Minnesota law shall
govern this Agreement and any proceedings to enforce it. Employer shall be entitled to
reimbursement from Employee of its costs and expenses, including reasonable attorneys’ fees,
incurred in enforcing this Agreement.

          (b) Forfeiture and Repayment.

               (i) Pursuant to Section 6 of the Option Agreement, Employer is authorized to suspend or
terminate the Option and any other outstanding stock option held by Employee prior to or after
termination of employment if Employee engages in any conduct agreed to be avoided pursuant to this
Agreement. If, at any time during the applicable restriction period described in this Agreement,
Employee engages in any conduct agreed to be avoided pursuant to this Agreement, then any gain
(without regard to tax effects) realized by Employee from the exercise of the Option, in whole or
in part, shall be paid by Employee to Employer.

               (ii) In consideration of the particular nature and scope of Employee’s key responsibilities
for Employer, if at any time within eighteen (18) months after the date of Employee’s termination
of employment, Employee accepts employment or otherwise renders services as an employee, trustee,
principal, agent, consultant, partner, director, officer or substantial stockholder of any
Conflicting Organization, or any of its/their subsidiaries, affiliates, or related companies
without first obtaining written consent to such engagement from Employer, then any gain (without
regard to any tax effects) realized by the Employee from the exercise of the Option, in whole or in
part, shall be paid by Employee to Employer.

               (iii) Employee consents to the deduction from any amounts Employer owes to Employee the
amounts Employee owes to Employer under Section 6 of the Option Agreement and Sections 4.5(b)(i)
and/or 4.5(b)(ii) of this Agreement. In addition, Employee agrees to make such payment of any
amounts Employee owes to Employer under Section 6 of the Option Agreement and Sections 4.5(b)(i)
and/or 4.5(b)(ii) of this Agreement within thirty (30) days of receipt of a written demand for
payment received from Employer. Employee agrees that Employer shall be entitled to initiate
judicial proceedings seeking the payments described in Section 6 of the Option Agreement and
Sections 4.5(b)(i) and/or 4.5(b)(ii) of this Agreement if Employee fails or otherwise refuses to
make such payment upon receiving written notice from Employer of the obligation to repay. The
parties agree that the venue for such action shall be Minneapolis, Minnesota, and Minnesota law
shall govern this Agreement and any proceedings to enforce it. Employer shall be entitled to
reimbursement from Employee of its costs and expenses,
including reasonable attorneys’ fees, incurred in enforcing Employee’s obligation under this
Agreement.

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5. Discoveries, Inventions, Improvements and Works by Employee.

     5.1 During Employee’s employment with Employer, Employee will promptly report to Employer all
designs, developments, discoveries, inventions, improvements or works (collectively “Inventions”)
of whatsoever nature conceived or made by Employee. All such Inventions and the patent, copyright,
trade secret and other intellectual property rights therein which are applicable in any way to
Employer’s business shall be the sole and exclusive property of Employer. Whenever requested by
Employer whether during or subsequent to Employee’s employment, Employee agrees to execute any
papers Employer deems necessary for the protection of Employer’s interest in any Invention and the
patent, copyright and other intellectual property rights therein.

     5.2 If Employee is or at any time becomes a resident of California, Delaware, Illinois,
Kansas, Minnesota, North Carolina, Utah or Washington, then the provisions of Section 5.1 shall not
apply to any Invention conceived or made by Employee in that state for which no equipment,
supplies, facility or trade secret information of Employer was used and which was developed
entirely on Employee’s own time, unless:

          (a) the Invention relates directly to the business of Employer, or to Employer’s actual or
demonstrably anticipated research or development, or

          (b) the Invention results from any work performed by Employee for Employer.

6. Non-Disparagement of Employer.

     Employee will not make disparaging statements about Employer or its parent companies,
predecessors, successors, affiliates, subsidiaries, related companies, shareholders (including
their respective members, managers, and partners), officers, directors, agents, employees, products
or services.

7. Return of Documents and Other Property.

     Employee shall return, prior to or on Employee’s employment termination date, all of
Employer’s property and information within Employee’s possession. Such property includes, but is
not limited to, credit cards, computers, copy machines, facsimile machines, lap top computers,
cellular telephones, pagers, entry cards, keys, building passes, computer software, manuals,
journals, diaries, files, lists, codes, documents, correspondence, and methodologies particular to
Employer and any and all copies thereof. Moreover, Employee is strictly prohibited from making
copies, or directing copies to himself through e-mail or other transmission, of any of Employer’s
property covered by this section.

5

 

8. Severability.

     If any provision of this Agreement is held to be unenforceable, the remainder of the Agreement
shall not be affected thereby, but shall remain valid and enforceable, and such provision shall be
sufficiently narrowed so as to make it enforceable.

9. Entire Agreement.

     This Agreement, the Severance Agreement and the Option Agreement contain the entire agreement
between Employer and Employee relating to the subject matter hereof and supersede any prior
Employee Trade Secret, Confidential Information and Post-Employment Restriction Agreement(s)
between Employee and Employer. If any provision of any agreement, plan, program, policy arrangement
or other written document between or relating to Employer and Employee conflicts with any provision
of this Agreement, the provision of this Agreement shall control and prevail.

10. Assignment.

     Employee agrees and acknowledges that the rights and obligations described in this Agreement,
including the right to enforce Employee’s covenants described in Section 4, are assignable by
Employer, without notice to Employee, and without Employee’s consent or agreement.

11. No Waiver Implied.

     The waiver by any party to this Agreement of a breach by the other party of any provision
shall not operate as or be construed as a waiver of any subsequent breach of this Agreement.

12. Survival.

     The duties and obligations of Employee contained in this Agreement shall survive Employee’s
termination of employment with Employer.

6

 

I have read the above, understand its contents and agree to all conditions.

	 	 	 	 	 
	 	Employee:

 	 
	Date: July 21, 2010 	/s/ James E. Shields
 	 
	 	Name:  	James E. Shields 	 
	 	 	 

	 	 	 	 	 
	 	MONEYGRAM INTERNATIONAL, INC.

 	 
	Date: July 23, 2010 	By:  	/s/ Steve Piano
 	 
	 	 	Name:  	Steve Piano 	 
	 	 	Title:  	EVP Human Resources 	 
	 

[SIGNATURE PAGE TO THE EMPLOYEE TRADE SECRET, CONFIDENTIAL

INFORMATION AND POST-EMPLOYMENT RESTRICTION AGREEMENT]

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