Document:

exv10w11

Exhibit 10.11

THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

Amended and Restated Effective January 1, 2010

	1.	 	Purpose
	 
	 	 	This severance/change in control policy (the “Policy”) is maintained by The Western Union
Company, a Delaware corporation (“Western Union”), to enable Western Union to offer a form
of income protection to its Eligible Executives in the event their employment with the
Company is involuntarily terminated other than for Cause or, in the event of a Change in
Control, if their employment terminates involuntarily other than for Cause or for Good
Reason during the twenty-four months following the Change in Control.
	 
	 	 	This Policy shall constitute a “welfare plan” within the meaning of Section 3(1) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and shall be construed
in a manner consistent with such intent.
	 
	2.	 	Effective Date
	 
	 	 	This Policy was originally adopted as of September 29, 2006 (the “Effective Date”). The
Policy is hereby amended and restated effective January 1, 2010.
	 
	3.	 	Definitions
	 
	 	 	Base Salary means the Eligible Executive’s current annualized rate of base cash
compensation as paid on each regularly scheduled payday for the Eligible Executive’s regular
work schedule as of his or her Termination Date, including any before-tax contributions that
are deducted for Company benefit plan purposes. Base Salary shall not include taxable or
nontaxable fringe benefits or awards, vacation, performance awards, bonus, commission or
other incentive pay, or any payments which are not made on each regular payday, regardless
of how such payments may be characterized.
	 
	 	 	Board means the Board of Directors of Western Union.
	 
	 	 	Cause means the willful and continued failure by an Eligible Executive to
substantially perform the duties assigned by the Company (other than a failure resulting
from Disability), the willful engagement by an Eligible Executive in conduct which is
demonstrably injurious to the Company (monetarily or otherwise), any act of dishonesty, the
commission of a felony, the continued failure by an Eligible Executive to meet performance
standards, an Eligible Executive’s excessive absenteeism or a significant violation by an
Eligible Executive of any statutory or common law duty of loyalty to the Company.
	 
	 	 	Change in Control means

	 	(a)	 	the acquisition by any individual, entity or group (a “Person”), including any
“person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, of
beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange
Act, of 25% or more of either (i) the then outstanding shares of common stock of
Western Union (the “Outstanding Common Stock”) or (ii) the combined voting power of the
then outstanding securities of Western Union entitled to vote generally in the election
of directors (the “Outstanding Voting Securities”); excluding, however, the following:
(A) any acquisition directly from Western Union (excluding any acquisition resulting
from the exercise of an exercise, conversion or
exchange privilege unless the security being so exercised, converted or exchanged was
acquired directly from Western Union), (B) any acquisition by Western Union, (C) any
acquisition by an

 

 

THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	 	employee benefit plan (or related trust) sponsored or maintained by
Western Union or any corporation controlled by Western Union or (D) any acquisition
by any corporation pursuant to a transaction which complies with clauses (i), (ii),
and (iii) of subsection (c) of this definition; provided further, that for purposes
of clause (B), if any Person (other than Western Union or any employee benefit plan
(or related trust) sponsored or maintained by Western Union or any corporation
controlled by Western Union) shall become the beneficial owner of 25% or more of the
Outstanding Common Stock or 25% or more of the Outstanding Voting Securities by
reason of an acquisition by Western Union, and such Person shall, after such
acquisition by Western Union, become the beneficial owner of any additional shares of
the Outstanding Common Stock or any additional Outstanding Voting Securities and such
beneficial ownership is publicly announced, such additional beneficial ownership
shall constitute a Change in Control;
	 
	 	(b)	 	the cessation of individuals who constitute the Board (the “Incumbent Board”)
as of the date this Policy is adopted by the Committee, to constitute at least a
majority of such Incumbent Board; provided that any individual who becomes a director
of Western Union subsequent to the date this Policy is adopted by the Committee whose
election, or nomination for election by Western Union’s stockholders, was approved by
the vote of at least a majority of the directors then comprising the Incumbent Board
shall be deemed a member of the Incumbent Board; and provided further, that any
individual who was initially elected as a director of Western Union as a result of an
actual or threatened solicitation by a Person other than the Board for the purpose of
opposing a solicitation by any other Person with respect to the election or removal of
directors, or any other actual or threatened solicitation of proxies or consents by or
on behalf of any Person other than the Board shall not be deemed a member of the
Incumbent Board;
	 
	 	(c)	 	the consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of Western Union (a “Corporate
Transaction”); excluding, however, a Corporate Transaction pursuant to which (i) all or
substantially all of the individuals or entities who are the beneficial owners,
respectively, of the Outstanding Common Stock and the Outstanding Voting Securities
immediately prior to such Corporate Transaction will beneficially own, directly or
indirectly, more than 60% of, respectively, the outstanding shares of common stock, and
the combined voting power of the outstanding securities entitled to vote generally in
the election of directors, as the case may be, of the corporation resulting from such
Corporate Transaction (including, without limitation, a corporation which as a result
of such transaction owns Western Union or all or substantially all of Western Union’s
assets either directly or indirectly) in substantially the same proportions relative to
each other as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Common Stock and the Outstanding Voting Securities, as the case may be,
(ii) no Person (other than Western Union; any employee benefit plan (or related trust)
sponsored or maintained by Western Union or any corporation controlled by Western
Union; the corporation resulting from such Corporate Transaction; and any Person which
beneficially owned, immediately prior to such Corporate Transaction, directly or
indirectly, 25% or more of the Outstanding Common Stock or the Outstanding Voting
Securities, as the case may be) will beneficially own, directly or indirectly, 25% or
more of, respectively, the outstanding shares of common stock of the corporation
resulting from such Corporate Transaction or the combined voting power of the
outstanding securities of such corporation entitled to vote generally in the election
of directors
and (iii) individuals who were members of the Incumbent Board will constitute at
least a majority of the members of the board of directors of the corporation
resulting from such Corporate Transaction; or

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THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

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

	 	 	Committee means the Compensation and Benefits Committee of the Board or its delegate
or successor.
	 
	 	 	Company means Western Union, including any of its 50% or more owned or controlled
subsidiaries or any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization or otherwise, including, without limitation, any successor due
to a Change in Control) to substantially all of the business or assets of Western Union,
except that for purposes of Section 16, the definition of Change in Control, and other
provisions where the context so requires, Company means Western Union or any such successor.
	 
	 	 	Disability means the inability of the Eligible Executive to substantially perform
such Eligible Executive’s duties and responsibilities due to a physical or mental condition
(i) that would entitle such Eligible Executive to benefits under the Company’s long-term
disability plan under which he or she is covered or, if the Committee deems it relevant, any
disability rights provided as a matter of local law or (ii) if such Eligible Executive is
not eligible for long-term disability benefits under any plan sponsored by the Company, that
would, as determined by the Committee, entitle such Eligible Executive to benefits under the
Company’s long-term disability plan if the Eligible Executive were eligible therefor.
	 
	 	 	Eligible Executive means, effective prior to October 1, 2008, an individual who is
designated by Western Union as an insider for purposes of Section 16 of the Exchange Act and
who is a member of Western Union’s Executive Committee on the earlier of his or her
Termination Date or the date of a Change in Control. Effective October 1, 2008, Eligible
Executive means an individual who is designated by Western Union as an insider for purposes
of Section 16 of the Exchange Act and who is the Chief Executive Officer of Western Union or
is an Executive Vice President of Western Union who reports directly to the Chief Executive
Officer on the earlier of his or her Termination Date or the date of a Change in Control,
provided that individuals who were Eligible Executives as defined under this Policy as of
September 30, 2008 shall remain eligible for this Policy (other than individuals who have
waived their eligibility for this Policy in writing).
	 
	 	 	Exchange Act means the Securities Exchange Act of 1934, as amended.
	 
	 	 	Good Reason means any one or more of the following: (i) action by the Company
resulting in a material diminution of the Eligible Executive’s titles or positions with the
Company, (ii) a reduction in the Eligible Executive’s Base Salary or bonus, or (iii) action
by the Company to require the relocation of the Eligible Executive more than fifty (50)
miles from the Eligible Executive’s current principal work location without the executive’s
consent. Within 30 days after the Eligible Executive becomes aware of one or more actions
or inactions described in the preceding sentence, the Eligible Executive shall deliver
written notice to the Company of the action(s) or inaction(s) (the “Good Reason Notice”).
The Company shall have 30 days after the Good Reason Notice is delivered to cure the
particular action(s) or inaction(s). If the Company so effects a cure, the Good Reason
Notice will be deemed rescinded and of no further force and effect.
	 
	 	 	Severance Benefits means the benefits payable to an Eligible Executive pursuant to
this Policy, other than the Change in Control benefits payable pursuant to Sections
7(c)(ii)(b) and 8 hereof.

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THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	Severance Period means with respect to Western Union’s Chief Executive Officer, the
36 consecutive month period commencing on the executive’s Termination Date, and with respect
to all other Eligible Executives, the 24 consecutive month period commencing on the Eligible
Executive’s Termination Date.
	 
	 	 	Termination Date means the date on which the Eligible Executive’s employment with
the Company terminates for a reason set forth under Section 5.
	 
	4.	 	Eligibility
	 
	 	 	All Eligible Executives who have been on the Company’s payroll for at least three months are
eligible to receive benefits according to the terms of this Policy. Eligible Executives are
not eligible for any benefits under this Policy during the first three months of their
employment.
	 
	5.	 	Eligible Termination Reasons

	 	(a)	 	Prior to the occurrence of a Change in Control, action by the Company to
involuntarily terminate the employment of an Eligible Executive with the Company, but
not including a separation from service on account of death, Disability or for Cause.
	 
	 	(b)	 	After the occurrence of a Change in Control, (i) action by the Company to
involuntarily terminate the employment of an Eligible Executive with the Company, but
not including a separation from service on account of death, Disability or for Cause,
or (ii) voluntary separation from service from the Company by an Eligible Executive for
Good Reason during the twenty-four (24) month period commencing on the date of the
Change in Control.

	 	 	An Eligible Executive shall not be entitled to any benefits under this Policy upon a
separation from service for an eligible termination reason under this Section 5 if the
Eligible Executive becomes employed by any subsidiary or affiliate of Western Union (as
determined under Internal Revenue Code (“Code”) Section 414(b) or (c), but substituting a 50
percent ownership level for the 80 percent ownership level therein) immediately following
his or her termination of employment from the Company by which the Eligible Executive is
employed.
	 
	6.	 	Non-Eligible Termination Reasons
	 
	 	 	A non-eligible termination reason is any reason for an Eligible Executive’s separation from
service by or from the Company that is not an eligible termination reason described in
Section 5.
	 
	7.	 	Severance and Change in Control Benefits. The provisions of this Section 7 are
subject, without limitation, to the provisions of Section 9 hereof.

	 	(a)	 	Post-Termination Payments. If an Eligible Executive’s employment with
the Company is terminated after the Effective Date for any reason set forth in Section
5, the Company shall pay to the Eligible Executive the following amounts in accordance
with Section 10:

	 	(i)	 	Severance Pay. An amount equal to 2 multiplied by the
sum of (1) 100% of the Eligible Executive’s Base Salary and (2) the percentage
of the Eligible Executive’s Base Salary established as the target bonus for the
Eligible Executive under the Company’s Senior

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THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	 	Executive Annual Incentive Plan
(or the bonus plan then applicable to the Eligible Executive), for the year in
which the Termination Date occurs. If an Eligible Executive’s target bonus for
the year in which the Termination Date occurs has not been established at the
time an amount is payable under this subsection 7(a)(i), then such amount shall
be calculated using the Eligible Executive’s annual target bonus for the
immediately preceding year, or, if no such prior year target bonus exists with
respect to the Eligible Executive, the prior year target bonus established for a
similarly situated Eligible Executive, as determined by the Committee. (The
reference to the Eligible Executive’s target bonus for the year in which the
Termination Date occurs in this subsection 7(a)(i) is solely for purposes of
calculating the Eligible Executive’s severance pay, and shall not give the
Executive any right to be paid an amount for the year in which the Termination
Date occurs under the Company’s Senior Executive Annual Incentive Plan (or the
bonus plan then applicable to the Eligible Executive)).
	 
	 	(ii)	 	Bonus for Year of Termination. Subject to the
Committee’s certification that the applicable performance goals for the year in
which the Termination Date occurs have been achieved, an amount equal to the
lesser of (1) the maximum bonus which could have been paid to the Eligible
Executive under the Company’s Senior Executive Annual Incentive Plan (or the
bonus plan then applicable to the Eligible Executive) for the year in which the
Termination Date occurs based on actual performance for such year and (2) a
prorated amount (equal to the product of (A) the Eligible Executive’s target
bonus for the year in which the Termination Date occurs and (B) the ratio of the
number of days elapsed during such year prior to the Termination Date to 365) of
the Eligible Executive’s target bonus under the Company’s Senior Executive
Annual Incentive Plan (or the bonus plan then applicable to the Eligible
Executive) for the year in which the Termination Date occurs.

	 	(b)	 	Continued Benefits Coverage. If an Eligible Executive’s employment
with the Company terminates after the Effective Date for any reason set forth in
Section 5, the Eligible Executive and his or her eligible dependents shall be given the
opportunity to elect continued group health coverage under the Consolidated Omnibus
Budget Reconciliation Act of 1986, as amended (“COBRA”) with respect to all group
health plans that are subject to COBRA in which the Eligible Executive and his or her
dependents were participating immediately prior to such termination. Provided that the
Eligible Executive (and/or his or her dependents) timely elects such coverage, the
Company shall pay to the Eligible Executive, as an additional Severance Benefit, a lump
sum approximately equal to the difference in cost between COBRA premiums and active
employee premiums for 18 months of COBRA coverage as calculated by the Company in its
discretion as of the Termination Date, which payment shall constitute taxable income to
the Eligible Executive and which shall be paid in a lump sum in accordance with Section
10.
	 
	 	 	 	An Eligible Executive receiving Severance Benefits under this Policy shall also be
entitled to receive during the Severance Period any financial planning benefits which
the Eligible Executive was receiving as of the Termination Date, subject to the terms
of the Executive Committee Financial Planning Program, but shall not be entitled to
receive any other perquisites after the Termination Date. The Eligible Executive’s
continued group health coverage under this subsection shall cease as of the date the
Eligible Executive becomes eligible to receive such benefits under a subsequent
employer’s benefit program, to the extent permitted under COBRA.

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THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	 	Eligible Executives
receiving Severance Benefits under this Policy are not eligible to continue
contributions to the Company’s qualified retirement plans or nonqualified deferred
compensation program.
	 
	 	(c)	 	Long-Term Incentive Awards

	 	(i)	 	Non-Change in Control.

	 	a.	 	Long-Term Incentive Awards Granted On and After
February 17, 2009. Effective for awards granted on and after
February 17, 2009 to an Eligible Executive under The Western Union
Company 2006 Long-Term Incentive Plan (or a successor plan) (the “LTIP”),
if the Eligible Executive’s employment with the Company is terminated for
an eligible termination reason described in Section 5(a), then awards
held by the Eligible Executive that are eligible to become fully vested
and exercisable or payable contingent upon the Eligible Executive’s
continued employment and the passage of time (whether or not the Company
or the Eligible Executive have attained any specified performance goals)
(“Time Vested Awards”), other than awards classified by the Committee at
the time of grant as “Career Shares” (if applicable to the Eligible
Executive) and awards that provide for a deferral of compensation within
the meaning of Code Section 409A, shall vest on a prorated basis
effective on the Eligible Executive’s Termination Date. Such prorated
vesting shall be calculated on a grant-by-grant basis by multiplying the
unvested portion of each such award by a fraction, the numerator of which
is the number of days that have elapsed between the grant date and the
Eligible Executive’s Termination Date and the denominator of which is the
number of days between the grant date and the date the award would have
become fully vested had the Eligible Executive not terminated his or her
employment. For awards subject to a graduated vesting schedule, the
foregoing calculation shall be performed as if each vesting tranche of
the award was a separate grant. Fractions of a share resulting from the
calculations shall be rounded to the nearest whole share. The prorated
portion of any nonqualified stock option and stock appreciation right
awards that become vested in accordance with this subsection shall be
exercisable until the end of the Eligible Executive’s Severance Period
(or, if earlier, the expiration of the original term of the award) but
not thereafter.
	 
	 	 	 	If an Eligible Executive’s employment with the Company is terminated
during a performance period for an eligible termination reason described
in Section 5(a), any cash Performance Grants (as defined in the LTIP)
awarded to the Eligible Executive under the LTIP (if applicable) with
respect to such performance period
shall be payable on a prorated basis based upon actual performance results
at the end of the applicable performance period as determined by the
Committee in its sole discretion, and shall be paid at the time specified
in the applicable award (and if applicable, deferral) agreement. Such
prorated payment shall be calculated on a grant-by-grant basis by
multiplying the Performance Grant award the Eligible Executive would have
received had the Eligible Executive remained employed (based upon actual
performance results at the end of the applicable performance period as
determined by the Committee) by a fraction, the numerator of which is the
number of days that have elapsed between the grant date and the Eligible

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THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	 	Executive’s Termination Date and the denominator of which is the number of
days in the performance period. All other outstanding awards granted to
the Eligible Executive under the LTIP on and after February 17, 2009, and
any Time Vested Awards that provide for a deferral of compensation within
the meaning of Code Section 409A, shall be payable, if at all, in
accordance with the terms of the LTIP and the applicable award (and, if
applicable, deferral) agreements.
	 
	 	b.	 	Long-Term Incentive Awards Granted Prior to
February 17, 2009. Effective for awards granted prior to February
17, 2009 to an Eligible Executive under the LTIP, if the Eligible
Executive’s employment with the Company is terminated for an eligible
termination reason described in Section 5(a), all outstanding
nonqualified stock options held by the Eligible Executive shall continue
to vest solely on account of the passage of time during the Eligible
Executive’s Severance Period and, to the extent vested, shall be
exercisable in accordance with their terms until the end of the Eligible
Executive’s Severance Period (or, if earlier, the expiration of the
original term of the award) but not thereafter. All Stock Awards (as
defined in the LTIP) held by an Eligible Executive whose employment with
the Company is terminated for an eligible termination reason described in
Section 5(a) shall vest on a prorated basis effective on the Eligible
Executive’s Termination Date. Such prorated vesting shall be calculated
on a grant-by-grant basis by multiplying the number of unvested shares
subject to each Stock Award by a fraction, the numerator of which is the
number of days that have elapsed between the grant date and the Eligible
Executive’s Termination Date and the denominator of which is the number
of days between the grant date and the date the shares would have become
fully vested had the Eligible Executive not terminated his or her
employment. Fractions of a share resulting from the calculations shall
be rounded to the nearest whole share.

	 	(ii)	 	Change in Control.

	 	a.	 	Long-Term Incentive Awards Granted On and After
February 17, 2009. Effective for awards granted on and after
February 17, 2009 to an Eligible Executive under the LTIP, if the
Eligible Executive’s employment with the Company terminates for an
eligible termination reason described in Section 5(b) during the 24-month
period commencing on the effective date of a Change in Control, then Time
Vested Awards held by the Eligible Executive (including but not limited
to grants of nonqualified stock options, stock appreciation rights,
restricted stock awards, and restricted stock unit awards), other than
awards that provide for a deferral of
compensation within the meaning of Code Section 409A, shall become fully
vested and exercisable or payable effective on the Eligible Executive’s
Termination Date. In the event this subsection applies, nonqualified
stock options and stock appreciation rights granted to an Eligible
Executive shall be exercisable until the end of the Eligible Executive’s
Severance Period (or, if earlier, the expiration of the original term of
the award) but not thereafter. If an Eligible Executive’s employment with
the Company terminates for an eligible termination reason described in
Section 5(b) after the 24-month period commencing on the effective date of
a Change in Control, then Time Vested Awards held by the Eligible
Executive, other than awards that provide for a deferral of compensation
within the

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THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	 	meaning of Code Section 409A, shall vest on a prorated basis
effective on the Eligible Executive’s Termination Date, and such prorated
vesting shall be calculated in the manner described in Section 7(c)(i)a
above.
	 
	 	 	 	In the event of a Change in Control, any cash Performance Grants awarded
to an Eligible Executive under the LTIP (if applicable) shall be converted
into restricted cash (representing only a contingent, unfunded and
unsecured obligation of the Company) as of the effective date of
the Change in Control, such conversion to be based upon target performance
if less than 50% of the performance period has elapsed as of the effective
date of the Change in Control, or based upon actual performance results as
determined by the Committee in its sole discretion if 50% or more of the
performance period has elapsed as of the effective date of the Change in
Control. If the Eligible Executive’s employment with the Company
terminates for an eligible termination reason described in Section 5(b)
during the 24-month period commencing on the effective date of a Change in
Control, then such restricted cash shall be paid to the Eligible Executive
in a lump sum within 30 days following the six month anniversary of the
Eligible Executive’s separation from service (or, if different, on the
date specified in the applicable award and, if applicable, deferral
agreement). In the event of a Change in Control, all other outstanding
awards granted to the Eligible Executive under the LTIP, and any awards
that provide for a deferral of compensation within the meaning of Code
Section 409A, shall be payable, if at all, in accordance with the terms of
the LTIP and the applicable award (and, if applicable, deferral)
agreements.
	 
	 	b.	 	Long-Term Incentive Awards Granted Prior to
February 17, 2009. In the event of a Change in Control, all
outstanding awards granted prior to February 17, 2009 to an Eligible
Executive under the LTIP shall become fully vested and exercisable or
payable as of the effective date of the Change in Control. In the event
this subsection applies, if the Eligible Executive’s employment with the
Company terminates for an eligible termination reason described in
Section 5(b) during the 24-month period beginning on the effective date
of the Change in Control, then nonqualified stock options granted to the
Eligible Executive shall remain exercisable until the end of the Eligible
Executive’s Severance Period (or, if earlier, the expiration of the
original term of the award) but not thereafter.

	 	(d)	 	Legal Fees. Effective for Termination Dates occurring on or after the
date of a Change in Control, if after exhausting the administrative remedies provided
for in Section 20 herein, an Eligible Executive commences litigation regarding a bona fide claim for damages or
other relief arising as a result of a claim for benefits under the Policy, and as a
result thereof, whether by judgment or settlement, becomes entitled to receive
benefits in an amount greater than prior to such litigation, the Company shall
reimburse the reasonable legal fees and related expenses that are incurred by the
Eligible Executive in connection with such litigation. Any such reimbursement shall
be paid as soon as practicable following the resolution of the litigation, and in no
event later than March 15 of the calendar year following the calendar year in which
the resolution of such litigation occurs.

	8.	 	Certain Additional Payments

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THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	(a)	 	In the event it is determined that any payments or benefits provided by the
Company to or on behalf of an Eligible Executive who first became an Eligible Executive
before April 30, 2009 (whether pursuant to the terms of this Policy or otherwise) (any
such payments or benefits being referred to in this Section as “Payments”), but
determined without taking into account any additional payments required under this
Section, would be subject to the excise tax imposed by Code Section 4999, or any
interest or penalties are incurred by the Eligible Executive with respect to such excise
tax (such excise tax, together with any such interest and penalties, collectively
referred to herein as the “Excise Tax”), then the Eligible Executive shall be entitled
to receive an additional payment (a “Gross-Up Payment”) in an amount so that after
payment by the Eligible Executive of all federal, state and local taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any federal, state or local income taxes (and any interest and penalties
imposed with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment, the
Eligible Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments. Notwithstanding the foregoing, if it is determined that the
Eligible Executive otherwise would be entitled to a Gross-Up Payment, but that the
Payments to the Eligible Executive do not exceed 110% of the amount which is one dollar
less than the smallest amount that would give rise to any Excise Tax (the “Reduced
Amount”), then no Gross-Up Payment shall be made to the Eligible Executive and the
Payments shall be reduced to the Reduced Amount. In such event, the reduction will
occur in the following order: (i) reduction of cash payments; (ii) cancellation of
accelerated vesting of equity awards; and (iii) reduction of other employee benefits. If
acceleration of vesting of compensation from an Eligible Executive’s equity awards is to
be reduced, such acceleration of vesting shall be cancelled in the reverse order of the
date of grant unless the Eligible Executive elects in writing a different order for
cancellation. Any Gross-Up Payment made pursuant to this Section 8(a) shall be made to
the Eligible Executive no later than December 31 of the year following the year in which
any Excise Tax is remitted to the taxing authority. No Gross-Up Payment shall be made
pursuant to this Section 8(a) to any Eligible Executive who first becomes an Eligible
Executive on or after April 30, 2009.
	 
	 	(b)	 	Subject to the provisions of Section 8(c), all determinations required to be made
under this Section, including whether and when a Gross-Up Payment is required and the
amount of such Gross-Up Payment and the assumptions to be used in arriving at such
determination, shall be made by the independent registered public accounting firm
engaged by the Company for general audit purposes as of the day prior to the effective
date of the Change in Control (the “Accounting Firm”). In the event that the Accounting
Firm is serving as accountant or auditor for the individual, entity or group effecting
the Change in Control, the Company shall appoint
another nationally recognized independent registered public accounting firm to make
the determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). The Accounting Firm shall provide its
calculations, together with detailed supporting documentation, to the Company and the
Eligible Executive within fifteen (15) calendar days after the date on which the
Eligible Employee’s right to Payment is triggered (if requested at that time by the
Company or the Eligible Executive) or such other time as agreed between the Company
and the Eligible Executive. All fees and expenses of the Accounting Firm shall be
borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this
Section 8, shall be paid by the Company to the Eligible Executive within five
business days of the receipt of the Accounting Firm’s determination. If the
Accounting Firm determines that no Excise Tax is payable by the Eligible Executive,
it shall furnish the Eligible Executive with a written opinion that no Excise Tax
will be imposed. Any good faith

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THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	 	determination by the Accounting Firm shall be binding
upon the Company and the Eligible Executive. As a result of the uncertainty in the
application of Code Section 4999 at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have
been made by the Company should have been made (“Underpayment”), consistent with the
calculations required to be made hereunder. In the event that the Company exhausts
its remedies pursuant to Section 8(c) and the Eligible Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Eligible Executive. If the
related Excise Taxes have been remitted to the taxing authority by the Eligible
Executive, the Company shall reimburse the Eligible Executive for the Underpayment no
later than December 31 of the year following the year in which the Excise Taxes were
remitted to the taxing authority.
	 
	 	(c)	 	The Eligible Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the Company
of the Gross-Up Payment. Such notification shall be given as soon as practicable, but
no later than 10 business days after the Eligible Executive is informed in writing of
such claim, and shall apprise the Company of the nature of such claim and the date on
which such claim is requested to be paid. The Eligible Executive shall not pay such
claim prior to the expiration of the 30-day period following the date on which the
Eligible Executive gives such notice to the Company (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due). If the Company
notifies the Eligible Executive in writing prior to the expiration of such period that
it desires to contest such claim, the Eligible Executive shall:

	 	(i)	 	give the Company any information reasonably requested by the
Company relating to such claim;
	 
	 	(ii)	 	take such action in connection with contesting such claim as the
Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by
an attorney reasonably selected by the Company;
	 
	 	(iii)	 	cooperate with the Company in good faith in order effectively to
contest such claim; and
	 
	 	(iv)	 	permit the Company to participate in any proceedings relating to such claim;

	 	 	 	provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred by the Eligible
Executive in connection with such contest and shall indemnify and hold the Eligible
Executive harmless, on an after-tax basis, for any Excise Tax or federal, state or
local income tax (including interest and penalties with respect thereto) imposed as a
result of such representation and payment of costs and expenses. Without limitation
on the foregoing provisions of this Section 8(c), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may pursue
or forgo any and all administrative appeals, proceedings, hearings and conferences
with the taxing authority in respect of such claim and may, at its sole option,
either direct the Eligible Executive to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Eligible Executive agrees to
prosecute such contest to a determination before

- 10 -

 

THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	 	any administrative tribunal, in a
court of initial jurisdiction and in one or more appellate courts, as the Company
shall determine; provided further, that if the Company directs the Eligible Executive
to pay such claim and sue for a refund, the Company shall advance the amount of such
payment to the Eligible Executive on an interest-free basis and shall indemnify and
hold the Eligible Executive harmless, on an after-tax basis, from any Excise Tax or
federal, state or local income tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed income
with respect to such advance; and provided further, that any extension of the statute
of limitations relating to payment of taxes for the taxable year of the Eligible
Executive with respect to which such contested amount is claimed to be due is limited
solely to such contested amount. Furthermore, the Company’s control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and the Eligible Executive shall be entitled to settle or contest, as the
case may be, any other issue raised by the Internal Revenue Service or any other
taxing authority. Any payment or cost owed to the Eligible Executive pursuant to
this Section 8(c) shall be made no later than December 31 of the year following the
year in which the related taxes are remitted to the taxing authority or, if no taxes
are paid, the end of the taxable year following the year in which such contest is
finally resolved.
	 
	 	(d)	 	If, after the receipt by the Eligible Executive of an amount advanced by the
Company pursuant to Section 8(c), the Eligible Executive becomes entitled to receive,
and receives, any refund with respect to such claim, the Eligible Executive shall
(subject to the Company’s complying with the requirements of Section 8(c)) promptly pay
to the Company the amount of such refund
(together with any interest paid or credited thereon after taxes applicable thereto).
If, after the receipt by the Eligible Executive of an amount advanced by the Company
pursuant to Section 8(c), a determination is made that the Eligible Executive shall
not be entitled to any refund with respect to such claim and the Company does not
notify the Eligible Executive in writing of its intent to contest such denial of
refund prior to the expiration of 30 days after such determination, then such advance
shall be forgiven and shall not be required to be repaid and the amount of such
advance shall offset, to the extent thereof, the amount of Gross-Up Payment required
to be paid.

	9.	 	Requirement of Release and Restrictive Covenant
	 
	 	 	The provision of Severance Benefits under this Policy is conditioned upon the Eligible
Executive timely signing an Agreement and Release (in a form satisfactory to the Company)
which will include restrictive covenants and a comprehensive release of all claims. In this
Agreement and Release, the Eligible Executive will be asked to release the Company and its
directors, officers, employees and agents from any and all claims the Eligible Executive may
have against them, including but not limited to any contract, tort, or wage and hour claims,
and any claims under Title VII, the ADEA, the ADA, ERISA, and other federal, state, local or
foreign laws. Under the Agreement and Release, the Eligible Executive must also agree not
to solicit business similar to any business offered by the Company from any Company
customer, not to advise any entity to cancel or limit its business with the Company, not to
recruit, solicit, or encourage any employee to leave their employment with the Company, not
to perform the same or substantially the same functions or job duties that the Eligible
Executive performed for the Company for any business enterprise engaging in activities that
compete with the business activities of the Company, not to disclose any of Company’s trade
secrets or confidential information, and not to disparage the Company or its employees in
any way. These obligations are in addition to any other non-solicitation, noncompete,
nondisclosure, or confidentiality agreements the Eligible Executive may

- 11 -

 

THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	have executed while
employed by Company. No Severance Benefits will commence under this Policy prior to the
eighth day following the date on which the Company has received the Eligible Executive’s
fully executed Agreement and Release.
	 
	10.	 	Method of Payment of Severance Benefits Under Sections 7(a) and 7(b)

	 	(a)	 	Severance Benefits payable hereunder to an Eligible Executive pursuant to
Section 7(a)(i) of this Policy on account of a separation from service for an eligible
termination reason under Section 5(a) shall be paid in substantially equal installments
consistent with the Company’s payroll practice during the Eligible Executive’s
Severance Period and shall be paid in full no later than the end of such period. The
bonus for the year in which the Termination Date occurs payable hereunder to an
Eligible Executive pursuant to Section 7(a)(ii) of this Policy on account of a
separation from service for an eligible termination reason under Section 5(a) shall be
paid to the Eligible Executive in a lump sum cash payment at the same time as bonus
payments for such year are paid to other executives under the Company’s Senior
Executive Annual Incentive Plan (or other bonus plan applicable to the Eligible
Executive for such year). The cash payment referenced in Section 7(b) of this Policy
shall be made in a lump sum on or as soon as practicable after the first date on which
the Eligible Executive begins to receive severance payments in accordance with the
first sentence of this Section 10(a), and in no event later than March 15 of the
calendar year following the calendar year in which the Eligible Executive’s separation
from service occurs.
	 
	 	(b)	 	Severance Benefits payable hereunder to an Eligible Executive pursuant to
Sections 7(a) and 7(b) of this Policy on account of a separation from service for an
eligible termination reason under Section 5(b) shall be paid, if the Change in Control
which makes Section 5(b) applicable constitutes a “change in control event” under
Treasury Regulation §1.409A-3(i)(5), in a lump sum within 30 days following the
Eligible Executive’s separation from service, and, if such Change in Control does not
constitute a “change in control event” under Treasury Regulation §1.409A-3(i)(5), in
the manner set forth in Section 10(a).
	 
	 	(c)	 	If an Eligible Executive dies after becoming eligible for Severance Benefits
and executing an Agreement and Release but before full receipt of Severance Benefits,
the remaining Severance Benefits, if any, will be paid to the Eligible Executive’s
estate in one lump sum upon the Eligible Executive’s death. If an Eligible Executive
dies after becoming eligible for Severance Benefits but prior to executing an Agreement
and Release, his or her estate or representative may not execute an Agreement and
Release and no Severance Benefits will be paid under this Policy. All payments will be
net of amounts withheld with respect to taxes, offsets, or other obligations.

	11.	 	Offsets 

	 	(a)	 	Non-duplication of Benefits. The Company may, in its discretion and to
the extent permitted under applicable law, offset against the Eligible Executive’s
Severance Benefits under this Policy any other severance, termination, or similar
benefits payable to the Eligible Executive by the Company, including, but not limited
to any amounts paid under any employment agreement or other individual contractual
arrangement, amounts paid pursuant to federal, state, or local workers’ notification or
office closing requirements, or statutory severance benefits or payments

- 12 -

 

THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	 	made on
account of notice periods during which the Eligible Executive is released from further
duties as provided pursuant to the law of any country or political subdivision thereof.
	 
	 	(b)	 	Debts and Property. The Company also may, in its discretion and to the
extent permitted under applicable law, offset against the Eligible Executive’s
Severance Benefits under this Policy the value of unreturned property and any
outstanding loan, debt or other amount the Eligible Executive owes to the Company. The
entire amount of any offset taken pursuant to this Section 11(b) shall not exceed
$5,000 in any taxable year, and the offset shall be taken at the same time and in the
same amount as such amount would have been otherwise due from the Eligible Executive.
	 
	 	(c)	 	Overpayment. The Company may recover any overpayment of Severance
Benefits made to an Eligible Executive or an Eligible Executive’s estate under this
Policy or, to the extent permitted by applicable law, offset any other overpayment made
to the Eligible Executive against any Severance Benefits or other amount the Company
owes the Eligible Executive or the Eligible Executive’s estate.

	12.	 	Outplacement
	 
	 	 	In the Committee’s sole and absolute discretion, Eligible Executives who are eligible for
Severance Benefits under the Policy also may be eligible for outplacement services selected
by the Company. Eligibility for and the scope of any outplacement services will be
determined in the sole discretion of the Committee. Under no circumstances shall any
Eligible Executive be eligible to receive a cash payment or any other benefit in lieu of
outplacement services.
	 
	 	 	Any outplacement services provided under this Section 12 must be provided to the Eligible
Employee no later than December 31 of the second calendar year following the calendar year
in which the Termination Date occurs.
	 
	13.	 	Re-employment and Other Employment
	 
	 	 	In the event an Eligible Executive is re-employed by the Company prior to the commencement
of or within the Severance Period, the payment of any Severance Benefits payable with
respect to the prior termination immediately will cease and such Severance Benefits shall no
longer be payable under this Policy.
	 
	 	 	Subject to Section 9 of this Policy, if an Eligible Executive obtains employment (other than
with the Company) while receiving Severance Benefits, the Eligible Executive shall continue
to receive any remaining cash Severance Benefits in accordance with the payment schedule
then in effect, but, except as otherwise required under applicable law, he or she will no
longer be eligible to receive continued benefits under Section 7(b) of this Policy as of the
date the Eligible Executive becomes eligible to receive such benefits under a subsequent
employer’s benefit programs.
	 
	14.	 	Funding
	 
	 	 	This Policy is not funded, and payment of benefits hereunder shall be made solely from the
general assets of the Company. An Eligible Executive entitled to benefits hereunder shall
have only the rights of a general creditor of the Company.

- 13 -

 

THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	15.	 	Administration
	 
	 	 	This Policy shall be administered by the Committee, which as the Named Fiduciary shall have
the absolute discretion and exclusive right to interpret, construe and administer the Policy
and to make final determinations on all questions arising under the Policy, including but
not limited to questions concerning eligibility for, the amount of and receipt of Policy
benefits. All decisions of the Committee will be conclusive, final and binding upon the
parties. Notwithstanding the foregoing, upon the occurrence of a Change in Control,
determinations of the Committee hereunder shall be subject to de novo judicial review.
	 
	16.	 	Amendment or Termination of the Policy
	 
	 	 	Western Union reserves the right to amend or terminate this Policy at any time in its sole
discretion, provided, however, that during the period commencing upon the earliest of (a)
the signing of a definitive agreement that, if consummated, would result in a Change in
Control, (b) the filing of a tender offer with the Securities and Exchange Commission that,
if accepted, would result in a Change in Control, or (c) the election of a director to the
Board who is not a member of the Incumbent Board
(each, a “Triggering Event”) and ending upon the earlier of (x) the date on which the
Committee in its sole discretion determines that the Triggering Event will not actually
result in a Change in Control, or (y) the 36-month anniversary of the Change in Control, the
Company shall not amend or terminate this Policy as it applies to an Eligible Executive
without the consent of such affected Eligible Executive. Notwithstanding the foregoing, this
Policy may be amended at any time, without the consent of any Eligible Executive, as
necessary or desirable to comply with the requirements, or avoid the application, of Code
Section 409A.
	 
	17.	 	Limitation on Individually Negotiated Severance Arrangements 
	 
	 	 	As of the Effective Date, this Policy is intended to be the sole source of severance and
change in control benefits for Eligible Executives. Absent prior Board approval, no
individual agreement shall be entered into with any Eligible Executive or any person being
considered for promotion or hire as an Eligible Executive which would provide severance or
change in control-type benefits.
	 
	18.	 	Section 409A
	 
	 	 	Notwithstanding any provision of this Policy, the Policy will be construed, administered or
deemed amended as necessary to comply with the requirements of Code Section 409A to avoid
taxation under Code Section 409A(a)(1) to the extent subject to Code Section 409A. The
Committee, in its sole discretion shall determine the requirements of Code Section 409A
applicable to the Policy and shall interpret the terms of the Policy consistently therewith.
Under no circumstances, however, shall the Company or any affiliate or any of its or their
employees, officers, directors, service providers or agents have any liability to any person
for any taxes, penalties or interest due on amounts paid or payable under the Policy,
including any taxes, penalties or interest imposed under Code Section 409A. The payments to
Eligible Executives pursuant to this Policy are also intended to be exempt from Code Section
409A to the maximum extent possible, first, to the extent such payments are scheduled to be
paid and are in fact paid during the short-term deferral period, as short-term deferrals
pursuant to Treasury regulation §1.409A-1(b)(4), and then under the separation pay exemption
pursuant to Treasury regulation §1.409A-1(b)(9)(iii), and for this purpose each payment
shall be considered a separate

- 14 -

 

THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	payment such that the determination of whether a payment
qualifies as a short-term deferral shall be made without regard to whether other payments so
qualify and the determination of whether a payment qualifies under the separation pay
exemption shall be made without regard to any payments which qualify as short-term
deferrals. To the extent any amounts under this Policy are payable by reference to an
Eligible Executive’s “termination of employment,” such term shall be deemed to refer to the
Eligible Executive’s “separation from service,” within the meaning of Code Section 409A.
Notwithstanding any other provision in this Policy, if an Eligible Executive is a “specified
employee,” as defined in Section 409A of the Code, as of the date of the Eligible
Executive’s separation from service, then to the extent any amount payable under this Policy
(i) constitutes the payment of nonqualified deferred compensation, within the meaning of
Code Section 409A, (ii) is payable upon the Eligible Executive’s separation from service and
(iii) under the terms of this Policy would be payable prior to the six-month anniversary of
the Eligible Executive’s separation from service, such payment shall be delayed until the
earlier to occur of (a) the six-month anniversary of the separation from service or (b) the
date of the Eligible Executive’s death.
	 
	19.	 	Miscellaneous
	 
	 	 	No Eligible Executive shall vest in any entitlement to or eligibility for benefits under
this Policy until he or she has satisfied all requirements for eligibility and the
conditions required to receive the benefits specified in this Policy have been satisfied.
No interest shall accrue on any benefit to which an Eligible Executive may be entitled under
this Policy. No benefits hereunder, whether or not in pay status, shall be subject to any
pledge or assignment, and no creditor may attach or garnish any Eligible Executive’s Policy
benefits. This Policy does not create any contract of employment or right to employment for
any period of time. Employment with the Company is at-will, and may be terminated by either
the Company or the Eligible Executive at any time for any reason.
	 
	20.	 	Review Procedure
	 
	 	 	Executives eligible to receive benefits under this Policy will be notified of such
eligibility as soon as administratively practicable after the event occurs which gives rise
to the provision of Policy benefits. If an executive who believes he or she is eligible to
receive Policy benefits does not receive such notice or disagrees with the amount of
benefits set forth in such notice, or if an executive is informed that he or she is not
eligible for benefits under this Policy, the executive (or his or her legal representative)
may file a written claim for benefits with the Company’s senior human resources executive or
such other officer or body designated by the Committee for this purpose. The written claim
must include the facts supporting the claim, the amount claimed, and the executive’s name
and mailing address.
	 
	 	 	If the claim is denied in part or in full, the Company’s senior human resources executive
(or other designated officer or body) will notify the executive by mail no later than 90
days after receipt of the written claim. If special circumstances require an extension of
time for processing the claim, the executive will be notified in writing before the end of
the initial 90-day period. If the claim is denied, the notice of denial will state the
specific reasons for the denial, the provisions of the Policy on which the denial is based,
a description of any additional information or material required by the Committee to
consider the claim (if applicable), as well as an explanation as to why such information or
material is necessary, an explanation of the Policy’s review procedures and the time limits
applicable to such procedures, as well as a statement of the executive’s right to bring a
civil action under ERISA Section 502(a) in the event of an adverse determination upon
review.

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THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	An executive (or his or her legal representative) may appeal a denial by filing a written
appeal with the Committee. The written appeal must be received no later than 60 days after
the executive or legal representative received the notice of denial. During the same 60-day
period, the executive or legal representative may have reasonable access to relevant
documents, records, or other information and may submit written comments and supporting
documents, records and other materials to the Committee. A document, record, or other
information shall be considered relevant to the claim if such document, record, or other
information (i) was relied upon in making the benefit determination, (ii) was submitted,
considered, or generated in the course of making the benefit determination, without regard
to whether such document, record, or other information was relied upon in making the benefit
determination, or (iii) demonstrates compliance with the administrative processes and
safeguards designed to ensure and verify that benefit claim determinations are made in
accordance with the Policy and that, where appropriate, the Policy provisions have been
applied consistently with respect to similarly situated executives or designated
beneficiaries.
	 
	 	 	The Committee will review the appeal and notify the executive or legal representative by
mail of its final decision within 60 days. If special circumstances require and extension of
time for processing the
claim, the executive will be notified in writing before the end of the initial 60-day
period. If the claim is denied, the notice of denial will state the reason for the denial,
references to the specific Sections of the Policy on which the denial is based, a statement
that the executive may receive, upon request and free of charge, copies of all documents and
information relevant to the appeal, a description of the Policy’s claims and appeals
procedures, and a statement of the executive’s right to bring an action under Section 502 of
ERISA.

Rights Under the Employee Retirement Income Security Act (ERISA)

	 	 	As a participant in the Policy, an Eligible Executive is entitled to certain rights and
protections under ERISA which provides that all Policy participants shall be entitled to:
	 
	 	 	Receive Information About The Policy And Benefits
	 
	 	 	The executive may examine, without charge, at the Policy administrator’s office and at other
specified locations such as worksites, all documents governing the policy and a copy of the
latest annual report (Form 5500 Series) filed with the U.S. Department of Labor and
available at the Public Disclosure Room of the Employee Benefits Security Administration.
	 
	 	 	The executive may obtain, upon written request to the Policy administrator, copies of
documents governing the operation of the Policy including copies of the latest annual report
(Form 5500 Series). The Policy administrator may make a reasonable charge for the copies.
	 
	 	 	The executive may receive a summary of the Policy’s annual financial report. The Policy
administrator is required by law to furnish each participant with a copy of this summary
annual report.
	 
	 	 	Prudent Actions by Policy Fiduciaries 

- 16 -

 

THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	In addition to creating rights for Policy participants, ERISA imposes duties upon the people
who are responsible for the operation of the Policy. The people who operate the Policy,
called “fiduciaries” of the Policy, have a duty to do so prudently and in the interest of
the Policy participants and beneficiaries. No one, including an executive’s employer or any
other person, may fire an executive or otherwise discriminate against an executive in any
way to prevent such executive from obtaining a welfare benefit or exercising his or her
rights under ERISA.
	 
	 	 	Enforcement of Rights
	 
	 	 	If an executive’s claim for benefits is denied or ignored, in whole or in part, the
executive has a right to know why this was done, to obtain copies of documents relating to
the decision without charge, and to appeal any denial, all within certain time schedules.
	 
	 	 	Under ERISA, there are steps that can be taken to enforce the above rights. For example, if
an executive requests a copy of Policy documents or the latest annual report from the Policy
and does not receive them within 30 days, the executive may file suit in a Federal court.
In such a case, the court may require the Policy administrator to provide the materials, and
pay the executive up to $110 a day
until the executive receives the materials, unless the materials were not sent because of
reasons beyond the control of the Policy administrator. If an executive has a claim for
benefits which is denied or ignored, in whole or in part, he or she may file suit in a state
or Federal Court. If it should happen that the fiduciaries misuse Policy money, or if an
executive is discriminated against for asserting his or her rights, the executive may seek
assistance from the U.S. Department of Labor, or may file a suit in a Federal court. The
court will decide who should pay court costs and legal fees. If the executive is successful
the court may order the person the executive has sued to pay these costs and fees. If the
executive loses, the court may order the executive to pay these costs and fees, for example,
if it finds the executive’s claim is frivolous.
	 
	 	 	Assistance With Questions
	 
	 	 	An executive who has questions about the Policy should contact the Policy administrator. If
an executive has any questions about this statement or about his or her rights under ERISA,
or if the executive needs assistance in obtaining documents from the Policy administrator,
he or she should contact the nearest office of the Employee Benefits Security
Administration, U.S. Department of Labor, listed in a telephone directory or the Division of
Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S.
Department of Labor, 200 Constitution Avenue, NW, Washington, D.C. 20210. The executive may
also obtain certain publications about his or her rights and responsibilities under ERISA by
calling the publication’s hotline of the Employee Benefits Security Administration.
	 
	 	 	ADDITIONAL INFORMATION
	 
	 	 	The details on the following chart are provided for the Eligible Executive’s information and
possible use.

	 	 	 	 	 
	Name of Policy	 	Type of Policy	 	Policy Year:
	The Western Union Company Severance/Change 

in Control Policy

	 	Welfare
	 	1/1 - 12/31

- 17 -

 

THE WESTERN UNION COMPANY

SEVERANCE/CHANGE IN CONTROL POLICY

(Executive Committee Level)

	 	 	(Executive Committee Level)
	 
	 	 	Type of Policy Administration
	 
	 	 	Self-Administered
	 
	 	 	Policy Sponsor
	 
	 	 	The Western Union Company

12500 E. Belford Avenue

Englewood, CO 80112
	 
	 	 	Policy Administrator
	 
	 	 	Compensation and Benefits Committee of the Board of Directors

c/o The Western Union Company

Office of the General Counsel

12500 E. Belford Avenue

Englewood, CO 80112
	 
	 	 	Agent for Service of Legal Process
	 
	 	 	The Western Union Company

Office of the General Counsel

12500 E. Belford Avenue

Englewood, CO 80112

	 
	 	 	In addition, service of legal process may be made upon the Policy administrator.
	 
	 	 	Identification Number (Policy Sponsor)
	 
	 	 	20-4531180
	 
	 	 	Identification Number (Policy)
	 
	 	 	506
	 
	 	 	THIS DESCRIPTION OF THE WESTERN UNION COMPANY SEVERANCE/CHANGE IN CONTROL POLICY FOR EXECUTIVE
COMMITTEE-LEVEL PARTICIPANTS SERVES AS THE OFFICIAL POLICY DOCUMENT AND AS THE LEGAL
SUMMARY PLAN DESCRIPTION.

- 18 -exv10w13

Exhibit 10.13

The Western Union Company

Supplemental Incentive Savings Plan

ARTICLE I

PURPOSE AND HISTORY OF THE PLAN

     1.1 Plan History. The Western Union Company Supplemental Incentive Savings Plan (the
“Plan”) was established effective as of September 29, 2006, the date that The Western Union Company
(the “Company”) was spun off from First Data Corporation (the “Spin-Off Date”). As further
described herein, certain liabilities under the First Data SISP were transferred to the Plan as of
that time. The Plan is hereby amended and restated effective as of January 1, 2010.

     1.2 Accounts Transferred From the First Data SISP. The following accrued liabilities
were transferred from the First Data SISP to the Plan as of the Spin-Off Date:

	 	(a)	 	liability equal to the bookkeeping accounts for deferrals contributed after
December 31, 2004, plus related earnings, by Participants who are Business Employees.
	 
	 	(b)	 	liability equal to the bookkeeping accounts for employer matching
contributions, Service-Related Contributions, and ISP Plus Contributions to the extent
non-vested as of December 31, 2004, and for employer matching contributions,
Service-Related Contributions, and ISP Plus Contributions credited after December 31,
2004, plus related earnings, by Participants who are Business Employees.

For purposes of this Section 1.2, “Business Employee” means a Transferred Employee or any other
individual employed at any time on or prior to the Spin-Off Date by the Company or its Affiliates
who has, as of the Spin-Off Date, or who, immediately prior to his or her termination of employment
with all of First Data Corporation and its affiliates, had employment duties primarily related to
the business of providing consumer to consumer money transfer services, consumer to business
payment services, retail money order services and certain prepaid services. For purposes of this
Section 1.2, “Transferred Employee” means an employee of First Data Corporation or any of its
affiliates (other than the Company or any of its Affiliates) whose employment is transferred to the
Company or any of its Affiliates immediately prior to the Spin-Off Date.

     1.3 Purpose of the Plan. The purpose of the Plan is to further the growth and
development of the Company by enhancing the Company’s ability to attract and retain select
employees by providing a select group of senior management and highly compensated employees of the
Company and its Affiliates the opportunity to defer a portion of their cash compensation. The Plan
is intended to provide Participants with an

 

 

opportunity to supplement their retirement income through deferral of current compensation.
The Plan is an unfunded plan that is intended to comply with the requirements of Code § 409A. The
Plan is intended to be an unfunded plan maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees within the meaning of
Title I of the Employee Retirement Income Security Act of 1974, as amended.

ARTICLE II

DEFINITIONS

     2.1 “Account” means any of the unfunded notional accounts established for a Participant under
the Plan, including the Participant’s Deferral Account, Western Union Matching Account, First Data
Matching Account, First Data ISP Plus Contributions Account, First Data Service-Related
Contributions Account, and First Data eOne Global Employer Basic Contributions Account, if
applicable.

     2.2 “Affiliate” means any entity that is treated as a single employer together with the
Company pursuant to Code § 414(b) or (c).

     2.3 “Base Salary” means a Participant’s annualized base salary, without taking into account
(a) commissions, bonus amounts of any kind, reimbursements of expenses, income realized upon
exercise of stock options or sales of stock, or (b) deferrals of income under this Plan or any
other employee benefit plan of the Company or an Affiliate.

     2.4 “Board” means the Board of Directors of the Company.

     2.5 “Bonus” means the payout amount earned by a Participant under one of the Company’s annual
bonus or incentive compensation plans.

     2.6 “Change in Control” means Change in Control as defined in The Western Union Company 2006
Long-Term Incentive Plan, or a successor plan.

     2.7 “Code” means the United States Internal Revenue Code of 1986, as amended.

     2.8 “Committee” means The Western Union Company Employee Benefits Committee, or its
successor.

     2.9 “Company” means The Western Union Company.

     2.10 “Deferral Account” means the record maintained by the Company for each Participant who
has an account balance for the cumulative amount of (a) account balance liabilities accumulated
under the First Data SISP with respect to deferred salary and bonus amounts which were transferred
from the First Data SISP to this Plan as of the Spin-off Date, (b) Salary, Bonus and/or Performance
Grant amounts deferred pursuant to

			
	 	 	 
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this Plan, and (c) imputed gains or losses on those amounts accrued as provided in Article IV of
the Plan.

     2.11 “Deferred Compensation Agreement” means, collectively, the written agreements between a
Participant and the Company (or an Affiliate), or between a Participant and First Data Corporation
(or any of First Data Corporation’s affiliates), in the form prescribed by the Committee, whereby a
Participant makes a Distribution Election and may agree to defer a portion of his or her Salary,
Bonus and/or Performance Grants.

     2.12 “Designated Beneficiary” means the person or persons designated by a Participant pursuant
to rules prescribed by the Committee to receive any benefits payable pursuant to the Plan upon his
or her death. In the absence of a beneficiary designation, or if a Participant’s Designated
Beneficiary dies prior to the Participant’s death, the Participant’s Designated Beneficiary shall
be his or her surviving spouse, if any, and if none, his or her estate.

     2.13 “Disability” means that the Participant (a) is unable to engage in any substantially
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months, or (b) is, by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous period of not less than
12 months, receiving income replacement benefits for a period of not less than 3 months under a
disability or accident or health plan covering employees of the Company and Affiliates.

     2.14 “Distribution Election” means the election by a Participant made in accordance with
Articles III and VI that specifies the time and form in which the Participant’s Account will be
distributed.

     2.15 “Employee” means a full-time employee on the United States payroll of the Company or an
Affiliate.

     2.16 “First Data eOne Global Employer Basic Contributions Account” means the record maintained
by the Company for each Participant who has an account balance for the cumulative amount of
(a) account balances accumulated under the First Data SISP with respect to First Data eOne Global
Employer Basic Contributions (as defined under the First Data SISP) the liability for which was
transferred from the First Data SISP to this Plan, and (b) imputed gains or losses on those amounts
accrued as provided in Article IV of the Plan.

     2.17 “First Data ISP Plus Contributions Account” means the record maintained by the Company
for each Participant who has an account balance for the cumulative amount of (a) account balances
accumulated under the First Data SISP with respect to ISP Plus Contributions (as defined under the
First Data SISP) the liability for

			
	 	 	 
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which was transferred from the First Data SISP to this Plan, and (b) imputed gains or losses on
those amounts accrued as provided in Article IV of the Plan.

     2.18 “First Data Service-Related Contributions Account” means the record maintained by the
Company for each Participant who has an account balance for the cumulative amount of (a) account
balances accumulated under the First Data SISP with respect to Service-Related Contributions (as
defined under the First Data SISP) the liability for which was transferred from the First Data SISP
to this Plan, and (b) imputed gains or losses on those amounts accrued as provided in Article IV of
the Plan.

     2.19 “First Data SISP” means the First Data Corporation Supplemental Incentive Savings Plan
and the First Data Corporation Supplemental Incentive Savings Plan-2.

     2.20 “First Data Matching Account” means the record maintained by the Company for each
Participant who has an account balance for the cumulative amount of (a) account balances
accumulated under the First Data SISP with respect to employer matching contributions the liability
for which was transferred from the First Data SISP to this Plan, and (b) imputed gains or losses on
those amounts accrued as provided in Article IV of the Plan.

     2.21 “Incentive Savings Plan” or “ISP” means The Western Union Company Incentive Savings Plan,
as amended from time to time.

     2.22 “Investment Fund” means any of the notional investments or hypothetical investment
measures as may be designated by the Company from time to time for purposes of determining the
gains or losses to be assigned to the Accounts. Investment Funds shall be notional, unfunded, and
used solely for the purpose of determining imputed gains or losses in a Participant’s Account.
Except as may otherwise be determined by the Company in its sole discretion, the available
Investment Funds shall be the same investment options available to participants under the Incentive
Savings Plan, excluding any brokerage account option or any employer stock fund.

     2.23 “LTIP” means The Western Union Company 2006 Long-Term Incentive Plan, as amended from
time to time.

     2.24 “Participant” means an Employee who has satisfied the Plan’s eligibility criteria, has
entered into a written Deferred Compensation Agreement in accordance with the provisions of the
Plan, and has not received a complete distribution of his Accounts.

     2.25 “Performance Grant” means the cash amount payable with respect to a Performance Grant
under the LTIP that is “performance-based compensation” within the meaning of Code § 409A and the
regulations thereunder.

     2.26 “Performance Measures” means the term Performance Measures as defined in the LTIP.

			
	 	 	 
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     2.27 “Person” shall have the meaning given in Section 3(a)(9) of the Securities Exchange Act
of 1934, as modified, and used in Sections 13(d) and 14(d) thereof, except that such term shall not
include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its subsidiaries, (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company.

     2.28 “Plan” means The Western Union Company Supplemental Incentive Savings Plan.

     2.29 “Plan Year” means the calendar year.

     2.30 “Potential Change in Control” means any of the following: (a) the Company enters into an
agreement, the consummation of which would result in the occurrence of a Change in Control of the
Company; (b) the Company or any Person publicly announces an intention to take or consider taking
actions which if consummated would constitute a Change in Control of the Company; (c) any Person
becomes the beneficial owner, directly or indirectly, of securities of the Company representing
9.5% or more of either the then outstanding shares of common stock of the Company or the combined
voting power of the Company’s then outstanding securities; unless that Person has filed a schedule
under Section 13 of the Securities Exchange Act of 1934 and the rules and regulations promulgated
under Section 13, and that schedule (including any and all amendments) indicates that the Person
has no intention to (i) control or influence the management or policies of the Company, or
(ii) take any action inconsistent with a lack of intention to control or influence the management
or policies of the Company; or (d) the Board adopts a resolution to the effect that a Potential
Change in Control has occurred.

     2.31 “Salary” means a Participant’s Base Salary plus commissions and incentive compensation,
other than Bonus or Performance Grants, paid to the Participant for personal services rendered by
the Participant to the Company or an Affiliate during a calendar year.

     2.32 “Separation from Service” means a “separation from service” under Code § 409A. A
Separation from Service occurs if the facts and circumstances indicate that the Company and its
Affiliates and the Participant reasonably anticipate that no further services will be performed
after a certain date or that the level of bona fide services the Participant will perform after
such date (whether as an Employee or as an independent contractor) will decrease to no more than 20
percent of the average level of bona fide services performed (whether as an Employee or as an
independent contractor) over the immediately preceding 36-month period (or the full period of
services if the Participant has been providing services for less than 36 months). Notwithstanding
the foregoing, the employment relationship is treated as continuing while the Participant is on
military leave, sick leave or other bona fide leave of absence if the period of leave does not

			
	 	 	 
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exceed six months, or if longer, so long as the Participant retains the right to reemployment with
the Company or an Affiliate under an applicable statute or contract.

     2.33 “Severe Financial Hardship” means an unforeseeable emergency causing severe financial
hardship to the Participant resulting from one or more of the following:

	 	(a)	 	Accident or illness of the Participant, the Participant’s spouse or dependent
(as defined in Code § 152, without regard to Code § 152(b)(1), (b)(2) and (d)(1)(B));
	 
	 	(b)	 	Loss of the Participant’s property due to casualty; or
	 
	 	(c)	 	Similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant.

The purchase of a home or payment of college tuition is not a Severe Financial Hardship. Whether a
Participant has experienced a Severe Financial Hardship and the amount available to the Participant
as a result of a Severe Financial Hardship shall be determined by the Committee in accordance with
Code § 409A based on the relevant facts and circumstances.

     2.34 “Specified Employee” means a Participant who is a “key employee” (as defined in Code
§ 416(i)(1)(A)(i), (ii) or (iii) without regard to Code § 416(i)(5)) at any time during the 12
month period ending on the December 31 of a Plan Year (the “Identification Date”). An Employee
shall be treated as a Specified Employee only for the 12 month period beginning on the next April 1
following the Identification Date (each such April 1 being the “Specified Employee Effective
Date”). Notwithstanding the foregoing, compensation that is excluded from an employee’s gross
income on account of the location of the services or the identity of the employer that is not
effectively connected with a trade or business within the United States and is excludable as
foreign compensation under Code § 415 shall not be treated as compensation for purposes of
determining Specified Employees.

     2.35 “Spin-Off Date” means September 29, 2006, the date that the Company was spun off from
First Data Corporation.

     2.36 “Vested Interest” means a Participant’s nonforfeitable interest in his or her Account,
determined in accordance with Article V.

     2.37 “Western Union Matching Account” means the record maintained by the Company for each
Participant who has an account balance for the cumulative amount of (a) Company matching
contributions pursuant to this Plan, and (b) imputed gains or losses on those amounts accrued as
provided in Article IV of the Plan.

     2.38 “Year of Service” means a year of service as defined in the Incentive Savings Plan.

			
	 	 	 
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ARTICLE III

PARTICIPANT DEFERRALS AND COMPANY CONTRIBUTIONS

     3.1 Eligibility. The Company shall identify those Employees who are eligible to defer
amounts under the Plan. Eligibility to be a Participant in the Plan and to defer amounts under the
Plan is entirely at the discretion of the Company and shall be limited to a select group of senior
management or highly compensated employees. Eligibility to defer amounts under the Plan for any
calendar year shall not confer the right to defer amounts for any subsequent year.

     3.2 Deferrals. A Participant may elect to defer up to 80% of the Participant’s Salary
and Bonus and up to 100% of a Performance Grant, subject to such additional guidelines and
limitations adopted by the Committee, by entering into a Deferred Compensation Agreement in
accordance with Section 3.3. The Salary and Bonus otherwise payable to a Participant for each Plan
Year beginning after the date of the election and any Performance Grant specified in a Deferred
Compensation Agreement shall be reduced by the amount elected to be deferred, and the Participant’s
Deferral Account shall be credited for the amount deferred. Participants shall make separate
elections with respect to deferrals of Salary, Bonus and Performance Grants. Deferrals from Salary
shall be withheld in substantially equal amounts from Salary payable for the Plan Year to which the
Deferred Compensation Agreement relates. Deferrals from Bonus shall be withheld from the Bonus
otherwise payable for the Plan Year to which the Deferred Compensation Agreement relates, and
deferrals from a Performance Grant shall be withheld from the Performance Grant specified in the
Deferred Compensation Agreement. Elections to defer Salary, Bonus and Performance Grants are
irrevocable, except as otherwise provided in the Plan. With respect to Business Employees who
continue to be eligible to defer amounts under the Plan, Deferred Compensation Agreements entered
into before the Spin-Off Date shall be continued as if the Deferred Compensation Agreements had
been made under this Plan and will be continued as provided in Section 3.3.

     3.3 Elections to Defer.

	 	(a)	 	Newly Eligible Employees. An eligible Employee who has not
previously been eligible to participate in the Plan (or any other plan required to be
aggregated with the Plan pursuant to Code § 409A) and who wishes to participate in the
Plan must execute a Deferred Compensation Agreement within 30 days after he or she
first becomes eligible to participate in the Plan (or any other plan required to be
aggregated with the Plan pursuant to Code § 409A). The Deferred Compensation Agreement
shall be irrevocable with respect to the current Plan Year, except as otherwise
provided in the Plan, and shall be effective only with respect to compensation payable
for services performed subsequent to the execution of the Deferred Compensation
Agreement. The Employee may change his or her Deferred Compensation Agreement
election with respect to services

			
	 	 	 
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	 	 	 	to be performed in any subsequent Plan Year under the provisions in Section 3.3(c).
	 
	 	 	 	In the Employee’s first year of participation, if the Bonus or Performance Grant
for which the election is made is an annual bonus or is otherwise based on a
specified performance period, then the Employee’s Deferred Compensation Agreement
election with respect to the Bonus or Performance Grant will apply only to the
portion of the Bonus or Performance Grant equal to the total amount of the Bonus or
Performance Grant multiplied by the ratio of the number of days remaining in the
performance period after the date of the Deferred Compensation Agreement over the
total number of days in the performance period.
	 
	 	(b)	 	Former Participants with No Account Balance and Employees Ineligible for
Two Years. If a former Participant has been paid all amounts deferred under the
Plan (and all other plans required to be aggregated with the Plan pursuant to Code §
409A) and on or before the date of the last payment was not eligible to continue to
participate in the Plan (or any other plan required to be aggregated with the Plan
pursuant to Code § 409A) for periods after the last payment (other than through an
election of a different time and form of payment with respect to amounts paid), the
Employee may be treated as newly eligible to participate in the Plan pursuant to
Section 3.3(a) as of the first date following such payment that the Employee again
becomes eligible to participate in the Plan. If an Employee has ceased to be eligible
to defer amounts under the Plan (and all other plans required to be aggregated with
the Plan pursuant to Code § 409A) (other than the accrual of earnings), regardless of
whether all amounts deferred under the Plan (and all other plans required to be
aggregated with the Plan pursuant to Code § 409A) have been paid, and subsequently
becomes eligible to participate in the Plan again, the Employee may be treated as
newly eligible to participate pursuant to Section 3.3(a) if the Employee has not been
eligible to participate in the Plan (or any other plan required to be aggregated with
the Plan pursuant to Code § 409A) (other than the accrual of earnings) at any time
during the 24-month period ending on the date that the Employee again becomes eligible
to participate in the Plan.
	 
	 	(c)	 	Previously Eligible Employees. An eligible Employee who has
previously been eligible to participate in the Plan (or any other plan required to be
aggregated with the Plan pursuant to Code § 409A) but is not treated as newly eligible
to participate in the Plan under Section 3.3(b) and who wishes to change his or her
deferral election or make an initial deferral election must enter into a Deferred
Compensation Agreement with respect to compensation paid for services performed during
a Plan Year at any time prior to the beginning of that Plan Year. The new Deferred
Compensation Agreement election shall be effective for such Plan Year

			
	 	 	 
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	 	 	 	and all subsequent Plan Years, except that the Employee may change his or her
Deferred Compensation Agreement deferral election at any time through the
December 31 prior to the beginning of a Plan Year. After the December 31 prior to
the beginning of the Plan Year, the Deferred Compensation Agreement deferral
election shall become irrevocable with respect to that Plan Year, except as
otherwise provided in the Plan. The Committee may, in its sole discretion,
establish earlier deadlines or annual enrollment periods for such election changes
during which such elections must be made.
	 
	 	(d)	 	Elections to Defer Performance Grants. Notwithstanding the forgoing
provisions of this Section 3.3, an eligible Employee may elect to defer a Performance
Grant at any time on or before the date that is six months before the end of the
applicable performance period, provided (i) the Employee has performed services for
the Company or an Affiliate continuously from the later of the beginning of the
performance period or the date the Performance Measures are established for the
Performance Grant in writing (which shall be no later than 90 days after the
commencement of the performance period) through the date of this election and (ii) the
amount payable in respect of the Performance Grant is not calculable and substantially
certain to be paid as of the time of this election.
	 
	 	(e)	 	Cancellation of Deferral Election for 401(k) Plan Hardship
Distribution. Notwithstanding a Participant’s deferral election in his or her
Deferred Compensation Agreement, a Participant’s deferral election shall be cancelled
if required under the 401(k) plan sponsored by the Company or an Affiliate which is
the Participant’s Employer due to the Participant’s receipt of a hardship distribution
from such 401(k) plan, pursuant to the requirements of Code § 1.401(k)-1(d)(3). After
the cancellation required under the 401(k) plan has expired, the Participant may
execute a new Deferred Compensation Agreement, in accordance with the timing
requirements for previously eligible employees under Section 3.3(c).

     3.4 Company Matching Contributions. For any Plan Year in which a Participant is
deferring amounts under the Plan, the Participant’s Western Union Matching Account shall be
credited with an amount each pay period, calculated as follows:

	 	(a)	 	dollar for dollar on the sum of the Participant’s contributions to the ISP
(other than catch-up contributions) and the Participant’s contributions of Salary and
Bonus to the Plan, up to the first 3% of the sum of (i) the Participant’s Compensation
(as defined in the ISP without regard to the Code § 401(a)(17) limitation) for the pay
period, plus (ii) Salary and Bonus amounts deferred under the Plan for the pay period,
and $.50 for each dollar on the sum of the Participant’s contributions to the ISP
(other than catch-up

			
	 	 	 
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	 	 	 	contributions) and the Participant’s Salary and Bonus contributions to the Plan, up
to the next 2% of the sum of (i) the Participant’s Compensation (as defined in the
ISP without regard to the Code § 401(a)(17) limitation) for the pay period, plus
(ii) Salary and Bonus amounts deferred under the Plan for the pay period,
	 
	 	(b)	 	minus the amount of employer matching contributions contributed to the
Participant’s ISP accounts for the pay period;

provided, however, that the amounts credited to the Participant’s Western Union Matching Account
for any year pursuant to the foregoing shall not exceed the total employer matching contributions
that would be provided under the ISP absent any plan-based restrictions that reflect limits on
qualified plan contributions under the Code.

To the extent the Participant receives additional employer matching contributions under the ISP
when employer matching contributions are recalculated on an annual basis under the ISP, the
Participant’s Western Union Matching Account under the Plan may be reduced by the amount of the
additional employer matching contributions contributed to the ISP for the Plan Year.

     3.5 Company Discretionary Contributions. For any Plan Year, the Company may, in its
discretion, credit a Participant’s Account in an amount determined in the sole discretion of the
Committee at any time and without regard to any amount credited to the Account of any other
Participant. Company discretionary contributions credited to a Participant’s Account pursuant to
this Section 3.5 shall vest in accordance with the schedule applicable to the Participant’s Western
Union Matching Account, as set forth in Section 5.2.

ARTICLE IV

DEEMED INVESTMENT OF ACCOUNTS

     4.1 Selection of Investment Funds. Except as may otherwise be determined by the
Company in its sole discretion, the Investment Funds available under the Plan shall be the same
investment options available to participants under the Incentive Savings Plan, excluding any
brokerage account option or any employer stock fund. The availability of an Investment Fund shall
not give, or be deemed for any purpose to give, a Participant an interest in any asset or
investment held by the Company for any purpose.

     4.2 Participant Identification of Investment Funds. Participants shall select one or
more Investment Funds with respect to which imputed gains or losses shall be calculated and
attributed (credited or debited) to the Participant’s Account. Participants who are active
Employees may change the Investment Funds with respect to which gains or losses on their future
deferrals are calculated on any business day, with any change effective as soon as administratively
practicable. All Participants may, upon notice to the Plan’s recordkeeper, change the Investment
Funds with respect to which gains or losses on their Account balance will be calculated on any
business day. Changes

			
	 	 	 
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received by the Plan’s recordkeeper prior to the close of trading on the New York Stock Exchange
will be effective as of that day. Changes received by the recordkeeper after such time on any day
will be effective as of the end of the next trading day on the New York Stock Exchange. If a
Participant does not choose any Investment Fund, the gains or losses on the amounts credited to the
Participant’s Account shall be calculated by reference to the Target Retirement fund based on the
Participant’s age as of the default investment election date.

     4.3 Daily Valuation. The Committee shall maintain a record of each Participant’s
Account. Each Participant’s Account shall be adjusted on a daily basis to reflect the deemed gains
or losses of the Investment Funds selected by the Participant.

ARTICLE V

VESTING

     5.1 Vesting in Deferral Account, First Data ISP Plus Contributions Account, and First Data
Service-Related Contributions Account. Each Participant shall be 100% vested in the
Participant’s Deferral Account, First Data ISP Plus Contributions Account, and First Data
Service-Related Contributions Account at all times.

     5.2 Vesting in Western Union Matching Account. Each Participant shall be vested in
the Participant’s Western Union Matching Account in accordance with the following vesting schedule:

	 	 	 	 	 	 
	Years of Service	 	 	Vesting Percentage
	Less than 1
	 	 	 	0	%
	1
	 	 	 	25	%
	2
	 	 	 	50	%
	3
	 	 	 	75	%
	4 or more
	 	 	 	100	%

     5.3 Vesting in First Data Matching Account and First Data eOne Global Employer Basic
Contributions Account. The vested portion in each Participant’s First Data Matching Account at
the time of the determination will be equal to the sum of the Participant’s First Data Matching
Account in the Plan at the time of the determination and the Participant’s First Data Matching
Account under The Western Union Company Grandfathered Supplemental Incentive Savings Plan at the
time of the determination, multiplied by the Participant’s vesting percentage at the time of the
determination, minus the Participant’s First Data Matching Account under The Western Union Company
Grandfathered Supplemental Incentive Savings Plan at the time of the determination. The vested
portion in each Participant’s First Data eOne Global Employer Basic Contributions Account at the
time of the determination will be equal to the sum of the Participant’s First Data eOne Global
Employer Basic Contributions Account in the Plan at the time of the determination and the
Participant’s First Data eOne Global Employer Basic Contributions Account under The Western Union
Company Grandfathered Supplemental Incentive Savings Plan at the time of the determination,
multiplied by the

			
	 	 	 
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Participant’s vesting percentage at the time of the determination, minus the Participant’s First
Data eOne Global Employer Basic Contributions Account under The Western Union Company Grandfathered
Supplemental Incentive Savings Plan at the time of the determination.

     The following vesting schedule applies for purposes of this Section 5.3, based on the
Participant’s Years of Service at the time of the determination:

	 	 	 	 	 	 
	Years of Service	 	 	Vesting Percentage
	Less than 1
	 	 	 	0	%
	1
	 	 	 	25	%
	2
	 	 	 	50	%
	3
	 	 	 	75	%
	4 or more
	 	 	 	100	%

     5.4 100% Vesting Events. Each Participant shall be 100% vested in the
Participant’s entire Account to the extent not already vested upon the Participant’s death, the
Participant’s Disability, the Participant’s attainment of age 65, or the termination of the Plan.

     5.5 Violation of Agreement. If a Participant violates any restrictive covenants
agreement or any non-solicitation or non-compete agreement that the Participant has signed with the
Company or an Affiliate, the Participant shall forfeit the Participant’s entire Account under the
Plan, other than the Participant’s Deferral Account, regardless of whether the Participant was
vested in the amounts being forfeited. The Committee shall determine whether a Participant has
violated any such agreement in its sole discretion.

ARTICLE VI

DISTRIBUTIONS

     6.1 Timing of Commencement of Distributions. A Participant shall elect one of the
following times for commencement of distributions with respect to: (a) unvested amounts transferred
to this Plan from the First Data SISP that were credited to the Participant’s Account prior to
January 1, 2005, (b) amounts credited to the Participant’s Accounts for the 2005 Plan Year and the
2006 Plan Year and (c) amounts credited to the Participant’s Accounts each Plan Year, commencing
with the 2007 Plan Year.

	 	(a)	 	Specified Payment Date. The date the Participant specifies in a
Distribution Election that has not been postponed pursuant to Section 6.4. With
respect to elections for Plan Years commencing on and after January 1, 2007, the
payment date may be any calendar date that is more than four years following the end
of the Plan Year to which the Deferred Compensation Agreement relates.
	 
	 	(b)	 	Separation from Service. The date the Participant has a Separation
from Service, or a specified time following the Participant’s Separation from

			
	 	 	 
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	 	 	 	Service. A Participant may elect immediate commencement or a time following
Separation from Service that is prior to the 5th anniversary of the
Participant’s Separation from Service. Notwithstanding any other provision of the
Plan, if the Participant is a Specified Employee on the date of his or her
Separation from Service, any amounts otherwise payable prior to the 6th
month anniversary of the Participant’s Separation from Service shall be delayed
until the day following the 6th month anniversary of the Participant’s
Separation from Service.

     6.2 Form of Distributions. A Participant shall elect one of the following forms of
distribution with respect to: (a) unvested amounts transferred to this Plan from the First Data
SISP that were credited to the Participant’s Account prior to January 1, 2005, (b) amounts credited
to the Participant’s Accounts for the 2005 Plan Year and the 2006 Plan Year and (c) amounts
credited to the Participant’s Accounts each Plan Year, commencing with the 2007 Plan Year. A
Participant may elect distribution in the form of a lump sum payment or quarterly or annual
installments over a period of up to 10 years. Each installment shall be determined by dividing the
Participant’s Account balance as of the end of the month immediately preceding the month of the
distribution by the number of remaining installments.

     6.3 Special Distribution Provisions.

     (a) Default Distribution Election. If a Participant fails to make an election
(including an election carryover pursuant to Section 6.3(c)) specifying the time or form in which
all or any portion of the amounts credited to the Participant’s Account will be paid, the
Participant shall be deemed to have elected to receive (i) a lump sum distribution, if the
Participant has failed to make an election specifying the form of payment, and (ii) a payment upon
Separation from Service, if the Participant has failed to make an election specifying the time of
payment. The default election provisions of this section will be effective as of the date the
initial Deferred Compensation Agreement is effective, and as of that date, cannot be changed except
as provided in the Plan with respect to changing Distribution Elections.

     (b) Distribution Elections for Accounts From the First Data SISP. A Participant who
was formerly a participant in the First Data SISP and whose balance under the First Data SISP was
transferred from the First Data SISP to this Plan shall be deemed to have the same Distribution
Election as previously filed with respect to the First Data SISP (if such an election was filed),
unless the Participant changes the election in accordance with the procedures in this Plan.

     (c) Election Carryover. If a Participant makes a Distribution Election for a Plan Year
or has a Distribution Election carried over from the First Data SISP, the Distribution Election
will remain in effect for all subsequent Plan Years for which the Participant fails to make a new
Distribution Election. The election carryover will apply to all subsequent Plan Years until the
Participant actually makes a new Distribution Election for a Plan Year.

			
	 	 	 
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     (d) Small Account Balance. Notwithstanding a Participant’s Distribution Election(s),
if the Participant’s Account balance under the Plan (and all plans required to be aggregated with
the Plan under Code § 409A) is less than or equal to the applicable dollar amount under Code
§ 402(g)(1)(B) on the date a distribution is to commence, the recipient shall receive a lump sum
payment of the Participant’s Account balance, provided the payment results in the termination and
liquidation of the entirety of the Participant’s interest in the Plan (and all plans required to be
aggregated with the Plan under Code § 409A).

     (e) Election Changes Permitted On or Before December 31, 2008 Pursuant to Internal Revenue
Service Transition Relief. Notwithstanding anything in this Article to the contrary, a
Participant may be permitted to make a new Distribution Election on or before December 31, 2008
with respect to the time and/or form of payment of (a) unvested amounts transferred to this Plan
from the First Data SISP that were credited to the Participant’s Account prior to January 1, 2005,
(b) amounts credited to the Participant’s Accounts for the 2005 Plan Year and the 2006 Plan Year,
(c) amounts credited to the Participant’s Accounts for the 2007 Plan Year, and (d) amounts credited
to the Participant’s Accounts for the 2008 Plan Year. However, any such new Distribution Elections
will apply only to amounts that would not otherwise be payable in 2008 and may not cause an amount
to be paid in 2008 that would not otherwise be payable in 2008. In addition, any such new
Distribution Election that specifies a distribution commencement date prior to June 1, 2009 will be
deemed to be an election to commence distribution on June 1, 2009.

     6.4 Changing Distribution Elections. A Participant may change his or her Distribution
Election as to timing and/or form of payment if:

	 	(a)	 	the change does not accelerate any payments within the meaning of Code § 409A;
	 
	 	(b)	 	the Participant executes a new Distribution Election at least 12 months prior
to the earliest date payment would have commenced under the prior Distribution
Election;
	 
	 	(c)	 	any payments under the new Distribution Election will not commence earlier
than 5 years from the date the payments would have otherwise commenced under the prior
Distribution Election; and
	 
	 	(d)	 	the new Distribution Election will not take effect until 12 months after the
date it was executed by the Participant.

For purposes of this Section 6.4, payments made in the form of installments shall be treated as a
single payment.

			
	 	 	 
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     6.5 Designation of Beneficiary. A Participant may designate one or more Designated
Beneficiaries (who may be designated contingently or successively) by filing a written notice of
designation with the Committee in such form as the Committee may prescribe. Each designation will
automatically revoke any prior designations by the same Participant. Any beneficiary designation
will be effective as of the date on which the written designation is received by the Committee
during the lifetime of the Participant.

     6.6 Severe Financial Hardship. In the event of a Severe Financial Hardship of a
Participant, the Participant may request distribution of some or all of the Participant’s Account
or the cancellation of the Participant’s election to defer Salary or Bonus for the remainder of the
Plan Year. The Committee shall require such evidence as is reasonably necessary to determine if a
distribution is warranted and satisfies the requirements of a Severe Financial Hardship pursuant to
Code § 409A. The Committee shall determine the amount available to the Participant, if any, in its
sole discretion based on the relevant facts and circumstances and in accordance with Code § 409A.
If the Committee grants a Participant’s request to cancel an election to defer Salary or Bonus, the
Participant may again make an election to defer Salary or Bonus only in accordance with Article
III.

     6.7 Payments on Account of Failure to Comply with Code § 409A. If any portion of the
Participant’s Account that has not yet been distributed must be included in the Participant’s
taxable income for a calendar year pursuant to Code § 409A, the Committee shall distribute the
portion of the Account that has been included in the Participant’s taxable income as soon as
administratively practicable.

ARTICLE VII

DEFERRED COMPENSATION AND BENEFITS TRUST

     Upon the occurrence of any Potential Change in Control, the Company may in its discretion
transfer to a Deferred Compensation and Benefits Trust ( “DCB Trust”) an amount of cash, marketable
securities, or other property acceptable to the trustee equal in value of up to 105% of the amount
necessary to pay the Company’s obligations with respect to Accounts under this Plan (the “Funding
Amount”). Any cash, marketable securities, and other property so transferred shall be held,
managed, and disbursed by the trustee subject to and in accordance with the terms of the DCB Trust.
In addition, from time to time, the Company may make any and all additional transfers of cash,
marketable securities, or other property acceptable to the trustee as may be necessary in order to
maintain the Funding Amount with respect to this Plan. Any amounts transferred to the DCB Trust
under this paragraph shall, at any time prior to the consummation of a Potential Change in Control,
be returned to the Company by the Trustee at the Company’s request. The Company and any successor
shall continue to be liable for the ultimate payment of Participants’ Accounts.

     Notwithstanding the immediately preceding paragraph, the Company will not transfer any cash,
securities, or other property to the DCB Trust at a time when such a transfer would cause adverse
tax consequences under Code § 409A.

			
	 	 	 
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ARTICLE VIII

AMENDMENT, MODIFICATION AND TERMINATION

     8.1 Amendment and Termination. The Company may, at its sole discretion, amend or
terminate the Plan at any time provided that the amendment or termination shall not adversely
affect the vested or accrued rights or benefits of any Participant without the Participant’s prior
consent. Notwithstanding the foregoing, the Company may amend the Plan at any time, without the
consent of any Participant, as necessary or desirable to comply with the requirements, or avoid the
application, of Code § 409A. Any termination of the Plan will be made in compliance with the
requirements of Code § 409A and the regulations thereunder.

     8.2 Further Actions to Conform to Code § 409A. Notwithstanding any provision of the
Plan, the Plan will be construed, administered or deemed amended as necessary to comply with the
requirements of Code § 409A to avoid taxation under Code § 409A(a)(1) to the extent subject to Code
§ 409A. The Committee, in its sole discretion shall determine the requirements of Code § 409A
applicable to the Plan and shall interpret the terms of the Plan consistently therewith. Under no
circumstances, however, shall the Company or any affiliate or any of its or their employees,
officers, directors, service providers or agents have any liability to any person for any taxes,
penalties or interest due on amounts paid or payable under the Plan, including any taxes, penalties
or interest imposed under Code § 409A.

ARTICLE IX

ADMINISTRATION AND INTERPRETATION

     The Committee shall have final discretion, responsibility, and authority to administer and
interpret the Plan. This includes the discretion and authority to determine all questions of fact,
eligibility, or benefits relating to the Plan. The Committee may also adopt any rules it deems
necessary to administer the Plan. The Committee’s responsibilities for administration and
interpretation of the Plan shall be exercised by Company employees who have been assigned those
responsibilities by the Company’s management. Any Company employee exercising responsibilities
relating to the Plan in accordance with this Article shall be deemed to have been delegated the
discretionary authority vested in the Committee with respect to those responsibilities, unless
limited in writing by the Committee. Any Participant may appeal any action or decision of these
employees to the Committee. Claims for benefits under the Plan and appeals of claim denials shall
be in accordance with Articles XI and XII. Any interpretation by the Committee shall be final and
binding on the Participants and any Designated Beneficiary.

ARTICLE X

MISCELLANEOUS

     10.1 Non-assignability. Neither a Participant nor a Designated Beneficiary may
voluntarily or involuntarily anticipate, assign, or alienate (either at law or in equity)

			
	 	 	 
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any benefit under the Plan, and the Committee shall not recognize any such anticipation,
assignment, or alienation. Furthermore, a benefit under the Plan shall not be subject to
attachment, garnishment, levy, execution, or other legal or equitable process. Any attempted sale,
conveyance, transfer, assignment, pledge or encumbrance of the rights, interests, or benefits
provided pursuant to the terms of the Plan or the levy of any attachment or similar process
thereupon, shall be null and void and without effect.

     10.2 Taxes. The Company shall deduct from all payments made under this Plan all
applicable federal or state taxes required by law to be withheld.

     10.3 Governing Law. To the extent not preempted by federal law, the Plan shall be
construed in accordance with, and shall be governed by, the laws of the state of Colorado without
regard to any conflict of laws provisions thereunder.

     10.4 Form of Communication. Any election, application, claim, notice, or other
communication required or permitted to be made by a Participant or Designated Beneficiary to the
Committee shall be made in such form as the Committee may prescribe, and shall not be effective
until the date specified in the Plan or by the Committee for such communication. If no form or
date is specified, such communication shall be effective upon receipt of the communication in
writing by the Company’s Senior Vice President, Compensation and Benefits at 12500 East Belford
Avenue, Englewood, CO 80112.

     10.5 Service Providers. The Company or Committee may, in their sole discretion,
retain one or more independent entities to provide services in connection with the operation and
administration of the Plan. Except as may be specifically delegated or assigned to any such entity
in writing or as otherwise provided in this Plan, the Committee shall retain all discretionary
authority under this Plan. No Participant or other person shall be a third party beneficiary with
respect to, or have any rights or recourse under, any contractual arrangement between the Company
or Committee and any such service provider.

     10.6 Unsecured General Creditor. Participants and their beneficiaries, heirs,
successors, and assigns shall have no legal or equitable rights, interest, or claims in any
property or assets of the Company. The assets of the Company shall not be held under any trust for
the benefit of Participants, their beneficiaries, heirs, successors, or assigns, or held in any way
as collateral security for the fulfilling of the obligations of the Company under this Plan. Any
and all Company assets shall be, and remain, the general, unpledged, unrestricted assets of the
Company. The Company’s obligation under the Plan shall be an unfunded and unsecured promise of the
Company to pay money in the future.

     10.7 Gender and Number. Except when otherwise indicated by the context, the masculine
gender shall also include the feminine gender and vice versa, and the singular shall also include
the plural and vice versa.

			
	 	 	 
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     10.8 No Right to Continued Employment. Nothing contained in the Plan shall confer
upon any Participant any right with respect to the continuation of the Participant’s employment by,
or consulting relationship with, the Company, or interfere in any way with the right of the
Company, subject to the terms of any separate employment agreement or other contract to the
contrary, at any time to terminate such services or to increase or decrease the compensation of the
Participant. Nothing in this Plan shall limit or impair the Company’s right to terminate the
employment of any employee. Participation in this Plan is a matter entirely separate from any
pension right or entitlement the Participant may have and from the terms or conditions of the
Participant’s employment. Any Participant who leaves the employment of the Company shall not be
entitled to any compensation for any loss of any right or any benefit or prospective right or
benefit under this Plan which the Participant might otherwise have enjoyed whether such
compensation is claimed by way of damages for wrongful dismissal or other breach of contract or
otherwise.

     10.9 Participation in Other Plans. Nothing in this Plan shall affect any right which
the Participant may otherwise have to participate in any retirement plan or agreement which the
Company or an Affiliate has adopted or may adopt.

     10.10 Entire Understanding. This instrument contains the entire understanding between
the Company and the Participants participating in the Plan relating to the Plan, and supersedes any
prior agreement between the parties, whether written or oral. Neither this Plan nor any provision
of the Plan may be waived, modified, amended, changed, discharged or terminated except as provided
in the Plan.

     10.11 Provisions Severable. To the extent that any one or more of the provisions of
the Plan shall be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired.

     10.12 Headings. The article and section headings are for convenience only and shall
not be used in interpreting or construing the Plan.

     10.13 Successors, Mergers, or Consolidations. Any agreement under the Plan shall
inure to the benefit of and be binding upon (a) the Company and its successors and assigns and upon
any corporation into which the Company may be merged or consolidated, and (b) the Participant and
his or her heirs, executors, administrators, and legal representatives.

ARTICLE XI

CLAIMS PROCEDURE

     Claims for benefits under the Plan shall be filed in writing, within 180 days after the event
giving rise to a claim, with the Company’s Senior Vice President, Compensation and Benefits (the
“Plan Administrator”), who shall have absolute discretion to determine whether benefits are payable
under the Plan, interpret and apply

			
	 	 	 
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the Plan, evaluate the facts and circumstances, and make a determination with respect to the claim
in the name and on behalf of the Committee. The claim shall include a statement of all relevant
facts and copies of all documents, materials, or other evidence that the claimant believes relevant
to the claim.

     The Plan Administrator shall furnish a notice to any claimant whose claim for benefits under
the Plan has been denied within 90 days from receipt of the claim. This 90-day period may be
extended if special circumstances require an extension, provided that the time period cannot exceed
a total of 180 days from the Plan’s receipt of the claimant’s claim and the written notice of the
extension is provided before the expiration date of the initial 90-day claim period. If an
extension is required, the Plan Administrator shall provide a written notice of the extension that
contains the expiration date of the initial 90-day claim period, the special circumstances that
require an extension, and the date by which the Plan Administrator expects to render its benefits
determination.

     If the adverse decision relates to a claim involving the Disability of a Participant, the Plan
Administrator shall furnish a notice to the claimant whose claim for benefits has been denied
within 45 days from receipt of the claim. This 45-day period may be extended for an additional
30-day period if special circumstances require an extension, and the additional 30-day period may
be further extended for up to 30 more days if special circumstances require a further extension.
If any extension of the time period for notifying a claimant is required, the Plan Administrator
shall provide a written notice of the extension to the claimant containing the expiration date of
the then-applicable claim period, the special circumstances that require an extension, and the date
by which the Plan Administrator expects to render the benefits determination.

	 	 	The Plan Administrator’s claim denial notice shall set forth:

	 	(b)	 	the specific reason or reasons for the denial;
	 
	 	(c)	 	specific references to pertinent Plan provisions on which the denial is
based;
	 
	 	(d)	 	a description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why the material or information is
necessary; and
	 
	 	(e)	 	an explanation of the Plan’s claims review procedure describing the steps to
be taken by a claimant who wishes to submit his or her claim for review, including any
applicable time limits, and a statement of the Participant’s or beneficiary’s right to
bring a civil action under ERISA § 502(a) if the claim is denied on review.

     A claimant who wishes to appeal the adverse determination must submit a request for review in
writing to the Plan Administrator within 60 days (180 days in the event of a claim involving a
Disability) after the appealing claimant receives notice of the denial of benefits.

			
	 	 	 
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ARTICLE XII

CLAIMS REVIEW PROCEDURE

     Any Participant, former Participant, or Designated Beneficiary of either, who has been denied
a benefit claim, shall be entitled, upon written request, to a review of the denied claim by the
Committee. A claimant appealing a denial of benefits (or the authorized representative of the
claimant) shall be entitled to:

	 	(f)	 	submit in writing any comments, documents, records and other information
relating to the claim and request a review;
	 
	 	(g)	 	review pertinent Plan documents; and
	 
	 	(h)	 	upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant to the claim. A document, record,
or other information shall be considered relevant to the claim if such document,
record, or other information (i) was relied upon in making the benefit determination,
(ii) was submitted, considered, or generated in the course of making the benefit
determination, without regard to whether such document, record, or other information
was relied upon in making the benefit determination, or (iii) demonstrates compliance
with the administrative processes and safeguards designed to ensure and verify that
benefit claim determinations are made in accordance with the Plan and that, where
appropriate, the Plan provisions have been applied consistently with respect to
similarly situated Participants or Designated Beneficiaries.

     The Committee shall reexamine all facts related to the appeal and make a final determination
as to whether the denial of benefits is justified under the circumstances.

     Decision on Review. The decision on review of a denied claim shall be made in the
following manner:

	 	(a)	 	The decision on review shall be made by the Committee, who may in its
discretion hold a hearing on the denied claim. The Committee shall make its decision
solely on the basis of the written record, including documents and written materials
submitted by the Participant or Designated Beneficiary (or the authorized
representative of the Participant or Designated Beneficiary). The Committee shall
make its decision promptly, which shall ordinarily be not later than 60 days (45 days
in the event of a claim involving a Disability) after the Plan’s receipt of the
request for review, unless special circumstances (such as the need to hold a hearing)
require an extension of time for processing. In that case a decision shall be
rendered as soon as possible, but not later than 120 days (90 days in the event of a
claim involving a Disability) after receipt of the request for review. If an
extension of time is required due to special circumstances, the Committee will provide
written notice of the extension to the Participant or Designated Beneficiary prior to
the time the

			
	 	 	 
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	 	 	 	extension commences, stating the special circumstances requiring the extension and
the date by which a final decision is expected.
	 
	 	(b)	 	The decision on review shall be in writing, written in a manner calculated to
be understood by the Participant or Designated Beneficiary. If the claim is denied,
the written notice shall include specific reasons for the decision, specific
references to the pertinent Plan provisions on which the decision is based, a
statement of the Participant’s or Designated Beneficiary’s right to bring an action
under ERISA § 502(a), and a statement that the Participant or Designated Beneficiary
is entitled to receive, upon request and free of charge, reasonable access to, and
copies of, all documents, records and other information relevant to the claimant’s
claim for benefits. A document, record, or other information shall be considered
relevant to the claim if such document, record, or other information (i) was relied
upon in making the benefit determination, (ii) was submitted, considered, or generated
in the course of making the benefit determination, without regard to whether such
document, record, or other information was relied upon in making the benefit
determination, or (iii) demonstrates compliance with the administrative processes and
safeguards designed to ensure and verify that benefit claim determinations are made in
accordance with the Plan and that, where appropriate, the Plan provisions have been
applied consistently with respect to similarly situated claimants.
	 
	 	(c)	 	The Committee’s decision on review shall be final. In the event the decision
on review is not provided to the Participant or Designated Beneficiary within the time
required, the claim shall be deemed denied on review.

ARTICLE XIII

LAWSUITS, JURISDICTION, AND VENUE

     No lawsuit claiming entitlement to benefits under this Plan may be filed prior to exhausting
the claims and claims review procedures described in Articles XI and XII. Any such lawsuit must be
initiated no later than (a) one year after the event(s) giving rise to the claim occurred, or (b)
60 days after a final written decision was provided to the claimant under Article XII, whichever is
sooner. Any legal action involving benefits claimed or legal obligations relating to or arising
under this Plan may be filed only in Federal District Court in the city of Denver, Colorado.
Federal law shall be applied in the interpretation and application of this Plan and the resolution
of any legal action. To the extent not preempted by federal law, the laws of the state of Colorado
shall apply.

ARTICLE XIV

EFFECTIVE DATE OF PLAN

     This Plan, as amended and restated, shall be effective as of January 1, 2010.

			
	 	 	 
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     The Company hereby agrees to the provisions of the Plan and in witness of its agreement, the
Company by its duly authorized officer has executed the Plan on the date written below.

	 	 	 	 	 	 	 
	 	 	THE WESTERN UNION COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

			
	 	 	 
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