Document:

EX-10.1

UNITED STATES DEPARTMENT OF THE TREASURY

LENDING AGREEMENT

CREDIT AND SECURITY TERMS

1.0 SCOPE

1.1 This Agreement sets forth the terms under which an entity may, in accordance with

the Housing and Economic Recovery Act of 2008, borrow from and pledge Collateral to

the United States Department of the Treasury (Treasury).

2.0 DEFINED TERMS

Account means the account described in section 3.2 of this Agreement.

Adverse Claim has the meaning set forth in Section 9.1(d).

Application Package means the Application Package, substantially in the form of

Appendix I, which the Borrower submitted in connection with its agreement to this

Agreement.

Borrower means an entity that incurs an Obligation to the Treasury.

Borrower-in-Custody or BIC Arrangement means an arrangement whereby the

Treasury authorizes a Borrower, or an affiliate of the Borrower, to retain possession of

the Collateral, as described in Section 7 of this Agreement.

Business Day means any day the Federal Reserve Bank of New York is open for

conducting all or substantially all its banking functions.

Certificate means the certificate, substantially in the form set forth in the appropriate

Application Package, provided to the Treasury by the Borrower.

Collateral means:

(i) all the Borrower’s rights, title, and interest in property as described in section 7.0 (and

any other property agreed to by Treasury) that is (a) identified on a Collateral Schedule,

(b) identified on the books or records of a Reserve Bank as pledged to, or subject to a

security interest in favor of, the Treasury or (c) in the possession or control of, or

maintained with, the Treasury including;

(ii) all documents, books and records, including programs, tapes, and related electronic

data processing software, evidencing or relating to any or all of the foregoing; and

(iii) to the extent not otherwise included, all proceeds and products of any and all of the

foregoing and all supporting obligations given by any person with respect to any of the

foregoing, including but not limited to interest, dividends, insurance, rents and refunds.

Collateral Schedule means the written, electronic or other statement(s) listing Collateral

in effect at any time. Each statement of Collateral shall be in the form required by the

Treasury and shall identify the items of Collateral with the specificity required by the

Treasury. The removal of an item from a statement of Collateral will not be effective and

will not affect the Treasury’s security interest in the item unless such removal is made in

accordance with this Agreement and the Treasury’s procedures, including prior Treasury

approval or authorization.

Event of Default means any of the following:

(i) the Borrower fails to repay or satisfy any Obligation when due;

(ii) the Borrower fails to perform or observe any of its obligations or agreements under

the Lending Agreement or under any other instrument or agreement delivered or

executed in connection with the Lending Agreement;

(iii) any representation or warranty made or deemed to be made by the Borrower under

or in connection with the Lending Agreement, or that is contained in any certificate,

document, or financial or other statement delivered by it or in connection with the

Lending Agreement, is inaccurate in any material respect on or as of the date made or

deemed made;

(iv) the Insolvency of the Borrower;

(v) the Lending Agreement or any other agreement delivered or executed in connection

with the Lending Agreement ceases, for any reason, to be in full force and effect, or the

Borrower so asserts or any security interest or lien created hereby ceases to be

enforceable or have the same effect and priority purported to be created hereby;

(vi) the creation of an encumbrance upon Collateral, or placement of a levy, judicial

seizure of, or an attachment upon Collateral;

(vii) whenever the Secretary of the Treasury determines that Treasury’s position is

insecure with respect to the financial condition of the Borrower or the Borrower’s ability

to perform its Obligations.

Federal Reserve Bank means any one of the Federal Reserve Banks.

Insolvency means:

(i) the condition of insolvency;

(ii) that a proceeding relating to bankruptcy, insolvency, reorganization or relief of

debtors, seeking to adjudicate an entity bankrupt or insolvent or seeking reorganization,

adjustment, dissolution, liquidation or other relief with respect to the Borrower or the

Borrower’s debt is commenced;

(iii) that an assignment for the benefit of the Borrower’s creditors occurs;

(iv) that a receiver, custodian, conservator, or the like is appointed for the Borrower or for

any of its United States or foreign branches or agencies;

(v) that the Borrower has been closed by order of its supervisory authorities, or a public

officer has been appointed to take over such entity;

(vi) that the Borrower ceases or refuses to make payments in the ordinary course of

business, or admits in a record its inability to pay its debt as they become due;

(vii) the Borrower’s business is suspended, or any party has presented or filed a petition

for winding-up or liquidating the Borrower; or

(viii) any other circumstances that evince the Borrower’s inability to pay its debts when

due.

Lending Agreement means this Agreement, any Collateral Schedule, each document in

the Application Package executed or furnished to the Treasury by the Borrower, and any

other agreement or document executed by the Borrower in connection with this

Agreement, in each case as the same may be amended, supplemented or otherwise

modified from time to time.

Lending Documents has the meaning set forth in Section 8 of this Agreement

Letter of Agreement means the Letter of Agreement, substantially in the form found in

Appendix I pursuant to which the Borrower agrees to be bound by the terms of this

Agreement.

Loan means an extension of credit to the Borrower.

Loan Repayment Amount means the amount of a Loan, plus all accrued and unpaid

interest thereon.

Obligation, whether now existing or hereafter incurred, means:

(i) Loan Repayment Amounts;

(ii) any other liabilities of the Borrower to the Treasury; and

(iv) any expense the Treasury or its designee(s) may incur to:

a. obtain, preserve and/or enforce the Lending Agreement or the Treasury’s security

interest in Collateral and the Borrower’s Obligations under the Lending Agreement,

b. collect any or all of the foregoing, or

c. assemble, transport, maintain or preserve Collateral (including, without limitation,

taxes, assessments, insurance premiums, repairs, reasonable attorneys’ fees, rent,

transportation, storage costs, and expenses of sale).

Treasury means the United States Department of the Treasury. For operational

purposes, the term “Treasury” includes a Federal Reserve Bank acting as fiscal agent to

the Treasury.

UCC means the Uniform Commercial Code.

3.0 LOANS

3.1 A request for a Loan shall be made to the Treasury in a form and time acceptable to

the Treasury. A Loan must be secured by Collateral acceptable to the Treasury. Upon

Treasury’s request, the Borrower shall submit a written application for a Loan.

3.2 The Treasury’s approval of a request for a Loan shall be evidenced by, and the Loan

shall be deemed made at the time of, the Treasury’s record of the credit of the amount of

the Loan to an Account agreed upon by the Borrower and the Treasury.

3.3 Loans to the Federal Home Loan Banks (FHLBs) or any FHLB under this Agreement

shall be joint and several obligations of all the FHLBs, issued under Section 11(a) of the

Federal Home Loan Bank Act, 12 U.S.C. § 1431(a), through the Office of Finance as

agent of the FHLBs, and therefore are consolidated obligations issued pursuant to part

966 of the rules of the Federal Housing Finance Board, in continuing force and effect

under Section 1312 of the Housing and Economic Recovery Act of 2008, and any

successor rule of the Federal Housing Finance Agency.

4.0 INTEREST

4.1 The interest rate applicable to a Loan shall be the rate, as from time to time

established by the Treasury. Interest on a Loan shall accrue from the day the Loan is

credited to the Account and shall be payable at the applicable rate in effect on that day,

except that if the interest rate changes while a Loan is outstanding, the new rate shall

apply as of the day on which the rate change is effective. Interest shall be computed on

the basis of 365 days in a year.

4.2 If all or any portion of a Loan Repayment Amount is not paid when due (whether by

acceleration or otherwise), interest on the unpaid portion of the Loan Repayment

Amount shall be calculated at a rate 500 basis points higher than the applicable rate

then in effect until the unpaid Loan Repayment Amount is paid in full.

5.0 REPAYMENT OF LOAN

5.1 The Borrower promises to pay a Loan Repayment Amount when due in actually and

finally collected funds. A Loan Repayment Amount is immediately due and payable

(a) on demand;

(b) without any demand, notice or other action on the due date and time specified by the

Treasury in writing (provided that if such date falls on a day that is not a Business Day,

the due date shall be extended to the next Business Day) or upon the occurrence of any

Event of Default described in clause (iv), (v) or (vii) of the definition of such term.

5.2 The Borrower waives any right to presentment, notice of dishonor, protest, and any

other notice of any kind except as expressly provided for herein.

5.3 Upon notice to the Treasury at least 2 days in advance, the Borrower may prepay a

Loan Repayment Amount, in whole or in part, without penalty.

5.4 The appropriate Federal Reserve Bank, acting on behalf of the Treasury, will debit

the Borrower’s Account for the Loan Repayment Amount and all other Obligations when

due.

6.0 GRANT OF SECURITY INTEREST

For value received and in consideration of the Treasury permitting the Borrower to obtain

Loans, the Borrower hereby transfers and assigns to the Treasury and grants to the

Treasury a continuing security interest in and lien on the Collateral as collateral security

for the timely and complete payment and performance when due (whether at stated

maturity, by acceleration or otherwise) of all Obligations.

7.0 COLLATERAL

7.1 The Borrower shall ensure that the Collateral meets the requirements set forth in this

section or as the Treasury may otherwise from time to time prescribe.

7.2 Acceptable Collateral consists of Federal Home Loan Bank advances to member

financial institutions that have been collateralized in accordance with Federal Home

Loan Bank standards (FHLB advances) and mortgage backed securities issued by the

Federal National Mortgage Association or the Federal Home Loan Mortgage

Corporation.

7.3 Acceptable FHLB advances shall be valued with a 13% haircut applied to the

outstanding principal amount of the asset on the balance sheet of the Federal Home

Loan Bank. Haircuts may also be applied to the value of mortgage backed securities as

determined by Treasury.

7.4 FHLB advances pledged as Collateral under this Agreement may be held under a

BIC Arrangement subject to section 7.10 herein. FHLB advances must be prepositioned,

in an amount acceptable to the Treasury, before a Federal Home Loan Bank

is eligible to receive a Loan under this Agreement. MBS pledged as Collateral under this

Agreement must be held in a custodial National Book Entry System account established

though the Federal Reserve Bank of New York. MBS pledged hereunder may be

repositioned from an investment account into the custodial account on a same-day basis.

7.5 On a weekly basis, Borrower must submit to the Federal Reserve Bank of New York

acting as fiscal agent of the Treasury, a Collateral Schedule listing the Collateral pledged

to Treasury under this Agreement, including the outstanding principal amount of any

FHLB advances.

7.6 The Treasury may at any time request the Borrower to replace any item of Collateral

or to grant a lien and security interest in additional assets of a type and in an amount

acceptable to the Treasury, and the Borrower shall promptly do so.

7.7 Unless otherwise specified by the Treasury in writing, the Borrower shall promptly

withdraw from the Collateral Schedule:

(a) any Collateral that has a payment of principal or interest past due, in whole or in part,

for more than 30 days;

(b) any Collateral that has been paid in full by the obligor; or

(c) any Collateral if the obligor on such Collateral becomes insolvent, or if a receiver,

custodian, or the like is appointed for the obligor.

Prior to such withdrawal, however, the Borrower shall update any relevant Collateral

Schedule and pledge substitute Collateral acceptable to the Treasury by submitting an

updated Collateral Schedule or otherwise pledging such Collateral to the Treasury.

7.8 The Treasury has no duty to collect any income accruing on Collateral or to preserve

any rights relating to Collateral.

7.9 The Borrower hereby:

(a) authorizes the Treasury at any time to file or record in any filing office in any

jurisdiction which the Treasury determines appropriate to perfect the security interests

set forth hereunder, financing statements, and any amendments or continuation

statements related thereto without the signature of the Borrower therein that describes

the Collateral and the Borrower shall, promptly at the Treasury’s request, provide any

additional information required by Article 9 of the UCC, as in effect in any relevant

jurisdiction, for the sufficiency or acceptability of any financing statement;

(b) ratifies its authorization for the Treasury to have filed any financing statement,

including any amendment or continuation statement related thereto, in any jurisdiction,

where the same has been filed prior to the date on which the Letter of Agreement is

signed by the Borrower;

(c) authorizes the Treasury at any time, to take any and all other actions that may be

necessary or, in the Treasury’s sole discretion, desirable to obtain, preserve, perfect or

enforce the Treasury’s security interest in the Collateral;

(d) authorizes the Treasury to endorse or assign as the Borrower’s agent any item of

Collateral, to inspect Collateral held by the Borrower, and copy any relevant records

and/or documents.

7.10 Treasury will keep all information regarding the identity of borrowers identified in

any collateral documentation confidential and such information will not be disclosed

except to as authorized or necessary to effectuate the terms of this Agreement.

7.11 If the Treasury approves, the Borrower may hold certain Collateral in a BIC

Arrangement (“BIC-held Collateral”) subject to the following:

(a) BIC-held Collateral shall be prominently identified as Pledged to the Treasury and

subject exclusively to the Treasury’s written instructions. At the Treasury’s request, the

Borrower shall, without delay, prominently and conspicuously affix a legend to items of

BIC-held Collateral indicating that such items are subject to a security interest in favor of

the Treasury.

(b) The Borrower shall mark its records to show that BIC-held Collateral has been

pledged to the Treasury and is subject exclusively to the Treasury’s written instructions.

Any computer generated list or report containing BIC-held Collateral must incorporate a

legend indicating that such Collateral is pledged to the Treasury.

(c) Upon the Treasury’s request, the Borrower shall at all times segregate BIC-held

Collateral from its own assets or the assets of any other party and shall hold Collateral in

such location(s) approved by the Treasury. BIC-held Collateral shall not be removed

from such location(s) without the prior written approval of the Treasury.

(d) The Borrower may withdraw or replace BIC-held Collateral only with the approval of

the Treasury and on terms acceptable to the Treasury.

(e) The Treasury may from time to time notify Borrower of additional requirements on

BIC-held Collateral. The Borrower’s failure to comply with such requirements may

disqualify the Borrower from participation in the BIC Arrangement.

7.12 With respect to any item of Collateral not delivered or transferred to the Treasury or

its agent or custodian, including BIC-held Collateral, the Borrower shall hold such item of

Collateral in trust for the Treasury until the Collateral is delivered or transferred in

accordance with the Treasury’s instructions. The Borrower bears the risk of loss for any

Collateral held in the Borrower’s possession, at any custodian, maintained in an account

at a securities intermediary other than a Reserve Bank, or in transit to or from the

Reserve Bank. The Borrower also bears the risk of any accidental loss or damage to

Collateral in the possession of the Treasury or its agent to the extent the Treasury

exercised reasonable care.

7.13 Unless an Event of Default occurs or the Treasury expressly directs otherwise, any

proceeds, dividend, interest, rent, proceeds of redemption, and/or any other payment

received by the Borrower regarding any Collateral may be retained by the Borrower. If

the Treasury directs that any of the foregoing be paid to the Treasury, the Borrower shall

remit those payments, or cause such payments to be remitted, promptly to the Treasury

and, until receipt by the Treasury, such payments are deemed to be held in trust for the

Treasury.

7.14 The Treasury is under no obligation to allow for the withdrawal of any item of

Collateral from the pledge to the Treasury, or to allow the removal of any item of

Collateral from the Collateral Schedule or otherwise release its security interest in any

item of Collateral unless:

(a) the Borrower has provided substitute Collateral acceptable to the Treasury; or

(b) the Treasury has verified, in accordance with its normal customs and procedures,

that all Obligations have been unconditionally repaid in full and that the Borrower is not

currently in default under another agreement with the Treasury.

7.15 Borrower shall submit a written certification to Treasury including the following

information and attestations: (i) the location of all supporting documentation or records;

(ii) a statement that all supporting documentation or records are complete, controlled,

and protected; (iii) a description of the Borrower’s asset valuation criteria; (iv) a

description of the Borrower’s internal loan-rating system; (v) a description of how

Collateral is marked as pledged to the Treasury; and (vi) where applicable, a statement

that Borrower’s Financial Statement including its portfolio of FHLB advances is audited

in accordance with applicable auditing standards. This certification is only required on a

one-time basis, however, Borrower shall notify Treasury if any of the information

contained in the certification changes or is no longer accurate.

8.0 MAINTENANCE OF LENDING DOCUMENTS

The documents specified below must be maintained continuously as official records of

the Borrower. The documents listed in subparagraph (a) shall at all times be kept

together in one place, while the document listed in subparagraph (b) may be kept in any

accessible and secure location on the Borrower’s premises.

(a) a copy of the Lending Agreement; and

(b) a current statement of outstanding Loans.

9.0 REPRESENTATIONS AND WARRANTIES

9.1 The Borrower represents and warrants that:

(a) (i) the Borrower has the power and authority, and the legal right, to make, deliver and

perform the Lending Agreement and to obtain a Loan; (ii) the Borrower has taken all

necessary organizational action to authorize the execution, delivery and performance of

the Lending Agreement and to authorize the obtaining of a Loan on the terms and

conditions of the Lending Agreement; (iii) no consent or authorization of, filing with,

notice to or other act by or in respect of, any governmental authority or any other person

is required in connection with the obtaining of Loans hereunder or with the execution,

delivery, performance, validity or enforceability of the Lending Agreement; and (iv) the

Lending Agreement has been duly executed and delivered on behalf of the Borrower;

(b) the Borrower is duly organized, validly existing and in good standing under the laws

of the jurisdiction of its organization and is not in violation of any laws or regulations in

any respect which could have any adverse effect whatsoever upon the validity,

performance or enforceability of any of the terms of the Lending Agreement;

(c) the Lending Agreement constitutes a legal, valid and binding obligation of the

Borrower, enforceable against the Borrower in accordance with its terms;

(d) the Borrower has rights in Collateral sufficient to grant an enforceable security

interest to the Treasury and its rights in Collateral are free of any assertion of a property

right that would adversely affect the Treasury’s right to Collateral, including but not

limited to any claim, lien, security interest, encumbrance, preference or priority

arrangement or restriction on the transfer or pledge of Collateral (an “Adverse Claim”),

except as created by, or otherwise permitted under, the Lending Agreement or by the

Treasury;

(e) all information set forth on the Certificate is accurate and complete and there has

been no change in such information since the date of the Certificate;

(f) (i) the Lending Agreement is effective to create in favor of the Treasury a legal, valid,

and enforceable security interest in the Collateral described in the Lending Agreement

and proceeds thereof; (ii) when financing statements are filed in the state filing offices

located in the jurisdictions specified on the Certificate, those security interests shall

constitute a fully and validly perfected lien on, and security interest in, all rights, title and

interest of the Borrower in such Collateral as to which perfection can be obtained by

filing, as security for the Obligations, in each case prior and superior in right to any other

person (except for liens that arise by operation of law); and (iii) no financing statement or

other public notice with respect to all or any part of the Collateral is on file or of record in

any public office, except such as have been filed in favor of the Treasury pursuant to the

Lending Agreement, are permitted by the Lending Agreement, or are otherwise

permitted by the Treasury;

9.2 Each time the Borrower requests a Loan or grants a security interest in any

Collateral to Treasury, the Borrower is deemed to make all of the foregoing

representations and warranties on and as of the date such Loan is incurred or security

granted. Such representations and warranties shall be true on and as of such date and

shall remain true and correct so long as the Lending Agreement remains in effect, any

Obligation remains outstanding, or any other amount is owing to the Treasury.

10.0 COVENANTS

The Borrower covenants that so long as the Lending Agreement remains in effect or any

Obligation remains outstanding or any other amount is owing to the Treasury:

(a) except for the security interest herein granted or otherwise permitted hereunder or by

the Treasury, the Borrower shall have rights in the Collateral free from any Adverse

Claim, and shall maintain the security interest created hereby with the priority set forth in

Section 9.1(f) and shall take all actions necessary or prudent to defend against Adverse

Claims;

(b) except as otherwise permitted hereunder or by the Treasury, the Borrower shall not

(i) sell or otherwise dispose of, or offer to sell or otherwise dispose of, the Collateral or

any interest therein, or (ii) pledge, mortgage, or create, or permit the existence of any

right of any person in or claim to, the Collateral other than the security interest granted

herein;

(c) the Borrower shall not perform any act with respect to any Collateral that would

impair the Treasury’s rights or interests therein, nor will the Borrower fail to perform any

act that would reasonably be expected to prevent such impairment or that is necessary

to preserve the Treasury’s rights;

(d) the Borrower shall promptly notify the Treasury if the Borrower fails or is about to fail

to meet the capital requirements required by regulations applicable to the Borrower.

(e) the Borrower shall renew or keep in full force and effect its organizational existence

or take all reasonable action to maintain all rights, privileges, licenses and franchises

necessary or desirable in the normal conduct of its business;

(f) in any BIC Arrangement, the Borrower shall provide for periodic audits of BIC-held

Collateral pledged to the Treasury, shall notify the Treasury immediately of any

irregularities discovered during any audits, and shall certify periodically, as determined

by the Treasury, that it is complying with the requirements of the BIC Arrangement;

(g) without providing at least 30 days’ prior written notice to the Treasury and submitting

an updated Certificate to the Treasury, the Borrower shall not cause or permit any of the

information provided in the Certificate, including its jurisdiction of organization, to

become untrue;

(h) the Borrower shall promptly notify the Treasury of the occurrence or impending

occurrence of any Event of Default; and

(i) the Borrower shall promptly notify the Treasury of any change in applicable law, the

regulations or policies of its chartering and/or licensing authority, or its charter, bylaws,

or other governing documents, or any legal or regulatory process asserted against the

Borrower, that materially affects or may materially affect the Borrower’s authority or

ability to lawfully perform its obligations under the Lending Agreement.

1

11.0 WAIVER OF IMMUNITY; SUBMISSION TO JURISDICTION

11.1 If the Borrower or its property is now, or in the future becomes, entitled to any

immunity, whether characterized as sovereign or otherwise (including, without limitation,

immunity from set-off, from service of process, from jurisdiction of any court or tribunal,

from attachment in aid of execution, from attachment prior to the entry of a judgment, or

from execution upon a judgment) in any legal proceeding in Federal or State court then

the Borrower expressly and irrevocably waives, to the maximum extent permitted by law,

any such immunity. To the extent the Borrower receives any such entitlement in the

future, the Borrower shall promptly notify the Treasury of such entitlement.

11.2 The Borrower submits in any legal action or proceeding relating to or arising out of

the Lending Agreement, or the conduct of any party with respect therefor or for

recognition and enforcement of any judgment in respect thereof, to the nonexclusive

general jurisdiction of the Federal District Court for the District of Columbia and any

appellate court thereof. The Borrower agrees that service of process in any such action

or proceeding may be effected by mailing a copy thereof by registered or certified mail

(or any substantially similar form of mail), postage prepaid, to the address provided in

the Letter of Agreement; and agrees that nothing herein shall affect the right to effect

service of process in any other manner permitted by law or shall limit the right to sue in

any other jurisdiction. The Borrower irrevocably waives, to the fullest extent permitted by

law, any objection which it may now or hereafter have to the venue of any such suit,

action, or proceeding brought in any such court and any claim that any such suit, action

or proceeding brought in such a court has been brought in an inconvenient forum. The

Borrower also agrees that a final judgment in any such suit, action, or proceeding

brought in such court shall be conclusive and binding upon the Borrower. The foregoing

does not diminish or otherwise affect any rights the Treasury may have under law.

12.0 REMEDIES UPON DEFAULT

12.1 Upon the occurrence of, and at any time during the continuance of, an Event of

Default, the Treasury may pursue any of the following remedies, separately,

successively, or concurrently:

(a) cause the Borrower’s Account to be debited in an amount up to the Borrower’s

unpaid Obligations;

(b) set off any Obligation against any amount owed by the Treasury to the Borrower,

whether or not such amount owed is then due and payable;

(c) exercise any right of set-off or banker’s lien provided by applicable law against the

Borrower’s property in the possession or control of, or maintained with, the Treasury,

including but not limited to items in process of collection and their proceeds and any

balance to the credit of the Borrower with the Treasury;

(d) take possession of any Collateral not already in Treasury’s possession, without

demand and without legal process. Upon the Treasury’s demand, the Borrower shall

assemble and make Collateral available to the Treasury as the Treasury directs. The

Borrower grants to the Treasury the right, for this purpose to enter into or on any

premises where Collateral may be located; and

(e) pursue any other remedy available to collect, enforce, or satisfy any Obligation,

including exercising its rights as a secured creditor to collect income on the Collateral, or

to sell, assign, transfer, lease or otherwise dispose of Collateral whether or not Collateral

is in the Treasury’s possession, or to take action against any other property or assets of

the Borrower whether or not pledged to Treasury as Collateral.

Where the Borrower is a FHLB, pursue any and all remedies available to collect,

enforce, or satisfy any Loan Repayment Amount against any other FHLB on the basis

that the Loan Repayment Amount is a consolidated obligation as described in section

3.3.. In the event that a FHLB other than the Borrower satisfies a Loan Repayment

Amount owed by the Borrower pursuant to this subsection, Treasury will release any

collateral remaining upon satisfaction of all Obligations of the Borrower in accordance

with instructions provided by the Office of Finance.

12.2 If the Treasury exercises its rights in Collateral upon an Event of Default:

(a) the Treasury may sell, assign, transfer, and deliver, at the Treasury’s option, all or

any part of Collateral at private or public sale, at such prices as the Treasury may, in

good faith, deem best, without advertisement, and the Borrower waives notice of the

time and place of the sale, except any notice that is required by law and may not be

waived;

(b) the Treasury has no obligation to prepare Collateral for sale, and the Treasury may

sell Collateral and disclaim any warranties without adversely affecting the commercial

reasonableness of the sale;

(c) the Treasury has no obligation to collect from any third party or to marshal any assets

in favor of the Borrower to satisfy any Obligation; and

(d) the Treasury may purchase any or all of Collateral and pay for it by applying the

purchase price to reduce amounts owed by the Borrower to the Treasury.

12.3 The Borrower appoints the Treasury with full power of substitution, as its true and

lawful attorney-in-fact with full irrevocable power and authority in the place and stead of

the Borrower, to endorse, assign, transfer, and deliver Collateral to any party, and to

take any action deemed necessary or advisable by the Treasury either to protect the

Treasury’s interests or exercise its rights under the Lending Agreement, including taking

any action to perfect or maintain the Treasury’s security interest (including but not limited

to recording an assignment of a mortgage or filing a financing statement). This power of

attorney is coupled with an interest and as such is irrevocable and full power of

substitution is granted to the assignee or holder. As attorney-in-fact, the Treasury may

take any lawful action to collect all sums due in connection with Collateral, the Treasury

may release any Collateral, instruments or agreements securing or evidencing the

Obligations as fully as the Borrower could do if acting for itself, and the Treasury may

take any action set forth in Section 7.9, but the Treasury has no obligation to take any

such actions or any other action in respect of the Collateral.

12.4 The proceeds realized by the Treasury upon selling or disposing of Collateral, to

the extent actually received in cash by the Treasury will be applied toward satisfaction of

the Obligations. The Treasury shall apply such proceeds first to any fees, other charges,

penalties, indemnities, and costs and expenses of, collection, or realizing on interests in

Collateral (including reasonable attorneys’ fees), next to accrued but unpaid interest, and

last to the unpaid principal balance. The Treasury will account to the Borrower for any

surplus amount realized upon such sale or other disposition, and the Borrower shall

remain liable for any deficiency.

12.5 No delay or failure by the Treasury to exercise any right or remedy accruing upon

an Event of Default shall impair any right or remedy, waive any default or operate as an

acquiescence to the Event of Default, or affect any subsequent Event of Default of the

same or of a different nature.

12.6 On complying with the provisions of the Lending Agreement and applicable law, the

Treasury is fully discharged from any liability or responsibility to any person regarding

Collateral.

13.0 INDEMNIFICATION

13.1 The Borrower shall indemnify the Treasury and its officers, directors, employees

and agents (each, an “Indemnified Party”) for any loss, claim, damage, liability, and

expense (including, without limitation, reasonable attorneys’ fees, court costs and

expenses of litigation) incurred by an Indemnified Party in the course of or arising out of

the performance of the Lending Agreement, any action related to Collateral, or any

action to which an Indemnified Party may become subject in connection with the

Treasury’s exercise, enforcement or preservation of any right or remedy granted to it

under the Lending Agreement, except to the extent that such loss, claim, damage,

liability, or expense results, as determined by a court, from the Treasury’s gross

negligence or willful misconduct.

13.2 The Treasury will give the Borrower written notice of any claim that the Treasury or

any other person may have under this indemnity. The Borrower is not liable for any claim

that is compromised or settled by the Treasury or such persons without the Borrower’s

prior written consent, provided that the Borrower responded promptly and in the

Treasury’s judgment, adequately, to the Treasury’s notice of such claim. This indemnity

remains an obligation of the Borrower notwithstanding termination of the Lending

Agreement, and is binding on the Borrower’s successors and assigns. Upon written

demand from the Treasury, the Borrower shall pay promptly amounts owed under this

indemnity, free and clear of any right of offset, counterclaim or other deduction, and the

Treasury’s reasonable determination of amounts owing hereunder is binding. If not

promptly paid by the Borrower, such obligation becomes an Obligation secured under

the Lending Agreement.

14.0 MISCELLANEOUS

14.1 The Treasury is not obligated by the Lending Agreement or otherwise to make,

increase, renew, or extend any Loan to the Borrower.

14.2 The Borrower’s obligations under the Lending Agreement shall be performed by it

at its own cost and expense.

14.3 Unless expressly agreed otherwise by the Treasury, Eastern Time shall be used to

determine any deadline hereunder, including the time a Loan Repayment Amount is due

and payable.

14.4 The Treasury or a Federal Reserve Bank acting on behalf of the Treasury may

record telephone communications with the Borrower and such recordings may be

submitted in evidence to any court or in any proceeding for the purpose of establishing

any matters pertinent to the Lending Agreement.

14.5 The Treasury’s rights and remedies under the Lending Agreement are in addition to

any others agreed to by the Borrower or that may exist at law or in equity.

14.6 Any provision of the Lending Agreement that is unenforceable or invalid under any

law in any jurisdiction is ineffective to the extent of such unenforceability or invalidity

without affecting the enforceability or validity of any other provision, and any such

unenforceability or invalidity shall not invalidate or render unenforceable such provision

in any other jurisdiction.

14.7 The Lending Agreement is binding on the receivers, administrators, permitted

assignees and successors, and legal representatives of the Borrower and inures to the

benefit of the Treasury, its assignees and successors.

14.8 The Borrower may not assign its rights or obligations hereunder.

14.9 The Treasury is not required to provide a written advice to the Borrower for any

Loan or Loan Repayment Amount.

14.10 The Treasury has no liability for acting in reliance upon any communication

(including a fax, telex, electronic communication, or similar communication) reasonably

believed by the Treasury to be genuine or to be sent by an individual acting on behalf of

the Borrower.

14.11 The Section headings used herein are for convenience only and are not to affect

the construction hereof or be taken into consideration in the construction hereof.

15.0 AMENDMENT

The Treasury, in its sole discretion, may amend the Lending Agreement without prior

notice at any time. The Treasury shall notify the Borrower of any such amendment and,

thereafter, any pledge of Collateral, request for any Loan or incurrence of any other

Obligation shall constitute the Borrower’s agreement to such amendment as of the

effective date of such amendment. An amendment does not modify the terms of an

outstanding Loan.

16.0 NOTICE

16.1 Any and all notices, statements, demands or other communications hereunder may

be given by a party to the other by mail, facsimile, telegraph, messenger or otherwise to

the address specified in Appendix I hereto, or so sent to such party at any other place

specified in a notice of change of address hereafter received by the other. All notices,

demands and requests hereunder may be made orally, to be confirmed promptly in

writing, or by other communication as specified in the preceding sentence.

16.2 If sent to the Treasury, the notice must be addressed as specified by the Treasury.

17.0 TERMINATION

17.1 The Lending Agreement shall terminate on December 31, 2009 but shall remain in

effect as to any Loan outstanding on that date. Notwithstanding any other provision of

this Agreement, the Borrower may terminate its consent to be bound by the Lending

Agreement prior to that time by giving written notice to the Treasury in the manner

specified by Treasury, so long as no Loan is then outstanding. Termination does not

release the Borrower or affect the Treasury’s rights, remedies, powers, security interests

or liens against Collateral in existence prior to the termination or to Treasury’s receipt of

the notice of termination, nor does termination affect any provision of the Lending

Agreement which by its terms survives termination of the Lending Agreement.

17.2 Upon termination, the Treasury may retain Collateral until the Treasury has had a

reasonable opportunity to verify, in accordance with its normal customs and procedures,

that all of the Borrower’s Obligations, contingent or otherwise, to the Treasury have been

fully satisfied and discharged.

18.0 GOVERNING LAW

The Lending Agreement, including any Loan or any other transaction entered into

pursuant thereto, is governed by federal law or to the extent no applicable federal law

exists by the laws of the State of New York. The Lending Agreement is a security

agreement for purposes of the UCC, as in effect in any relevant jurisdiction, and other

applicable law.

19.0 WAIVER OF JURY TRIAL

THE BORROWER AND THE TREASURY EACH HEREBY UNCONDITIONALLY AND

IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,

SUIT, COUNTERCLAIM, OR CROSS CLAIM ARISING IN CONNECTION WITH, OUT

OF, OR OTHERWISE RELATING TO THE LENDING AGREEMENT, THE

COLLATERAL, OR ANY TRANSACTION OR AGREEMENT ARISING THEREFROM

OR RELATED THERETO.

2

FEDERAL HOME LOAN BANK OF PITTSBURGH

Letter of Agreement

September 9, 2008

Gary Grippo

Deputy Assistant Secretary for Fiscal Operations and Policy

U.S. Department of the Treasury

Domestic Finance

Room 2112, 1500 Pennsylvania Avenue NW

Washington, DC 20220

Fax Number: 202-622-0962

Dear Mr. Grippo:

In consideration of being able to request Loans from you and in consideration of your making Loans
to us, we agree to the provisions of your Lending Agreement, as amended and supplemented from time
to time (capitalized terms used but not defined herein shall have the meaning specified in the
Lending Agreement).

Any notices required under the Lending Agreement may be directed to the following department(s):

	 
	Capital Markets Department
Federal Home Loan Bank of Pittsburgh
ATTN: Paul H. Dimmick
601 Grant Street
Pittsburgh, PA 15219
With copy to:

	Legal Department
Federal Home Loan Bank of Pittsburgh
ATTN: Dana A. Yealy
601 Grant Street
Pittsburgh, PA 15219

Federal Home Loan Bank of Pittsburgh

Full Legal Name of Borrower

By: /s/ John R. Price

Authorized signature(s)

John R. Price

Name(s)

President and Chief Executive Officer

Title(s)

601 Grant Street Pittsburgh, PA 15219-4455 412-288-3400 www.fhlb-pgh.com

3EX-10.01

Exhibit 10.01

2005 DEFERRED COMPENSATION PLAN

FOR DIRECTORS OF

MONEYGRAM INTERNATIONAL, INC.

Adopted December 17, 2004

As Amended and Restated Effective as of March 24, 2008

1. Introduction. The purposes of the Deferred Compensation Plan for Directors
(the “Plan”) were to (i) provide a method for non-employee directors (“Directors”) of MoneyGram
International, Inc. (“MoneyGram”) to voluntarily defer payment of all or a part of their cash
compensation, as fixed from time to time by the Board of Directors of MoneyGram (the “Board”); and
(ii) provide that a portion of each Director’s annual retainer fee would be automatically deferred
in phantom stock units. Effective for Plan Periods beginning on or after January 1, 2009,
voluntary deferrals and automatic stock unit retainer deferrals shall be permanently discontinued.
In addition, directors who join the Board on or after March 24, 2008 shall not be eligible to
participate in this Plan. Deferrals made prior to 2009 will remain in the Plan until such amounts
become distributable in accordance with the Director’s deferral election. Participating Directors
will continue to have the opportunity to invest their voluntary cash deferrals in phantom stock
units which represent the value of MoneyGram Common Stock (“Common Stock”).

1.1. Voluntary Deferral Elections. Effective for Plan Periods beginning on and after
January 1, 2009, voluntary deferrals of cash retainers, cash meeting fees, including committee
meeting fees and any other cash compensation (collectively, “Director Fees”) under this Plan are
permanently discontinued.

1.2. Stock Unit Retainer. Beginning with the 2007 Plan Period, a portion of each
Director’s annual retainer fee was automatically deferred in phantom stock units (“Stock Unit
Retainer”) in accordance with Sections 7 and 8 below. In order to comply with a blackout trading
restriction in effect in February, 2008 that prevented Directors from acquiring phantom stock
units, the Stock Unit Retainer for the 2008 Plan Period that would have been credited to Directors’
Stock Unit Retainer Accounts in February, 2008 was not credited to the Plan. Thereafter, in
connection with MoneyGram’s recapitalization, effective March 24, 2008, seven members of the Board
resigned. The Board thereafter determined that a pro-rata portion of the value of the Stock Unit
Retainer would be credited in cash (as opposed to phantom stock units) to the Voluntary Deferral
Accounts of the Directors who were in office in February. With respect to each of the three
Directors who did not resign in connection with the recapitalization, an additional pro rata amount
of the value of the 2008 Stock Unit Retainer shall be credited in cash to the Director’s Voluntary
Deferral Account on the last day of each calendar quarter in 2008 (if such Director is then serving
on the Board). Effective for Plan Periods beginning on and after January 1, 2009, Stock Unit
Retainers are permanently discontinued.

2. History.

2.1. Establishment of Plan. On August 19, 2004 but effective June 30, 2004, MoneyGram
established a deferred compensation plan for its non-employee Directors that was maintained under a
document entitled “Deferred Compensation Plan for Directors of MoneyGram International, Inc., as
Amended August 19, 2004” (the “Prior Plan”). By action of the Board taken on December 17, 2004,
deferrals made for taxable years beginning on or after January 1, 2005 were permanently
discontinued under the Prior Plan and were instead continued under this Plan, the terms of which
are intended to comply with the deferred compensation provisions under Section 409A of the Internal
Revenue Code (the “Code”). (Deferrals made under the Prior Plan with respect to the 2004 taxable
year shall continue to be invested and distributed pursuant to the terms of the Prior Plan.)

2.2. Amendments. This Plan was amended and restated on November 17, 2005 to permit
Directors to defer grants of Common Stock on or after January 1, 2006. As of February 15, 2007,
MoneyGram determined to discontinue grants of Common Stock and options for Common Stock to its
Directors and to replace such grants with phantom stock units. Thus, as of February 15, 2007, the
Plan was further amended and restated to (i) remove all provisions relating to voluntary Common
Stock deferrals; (ii) add provisions governing the terms of each Director’s annual retainer awarded
as a Stock Unit Retainer under this Plan; and (iii) effective January 1, 2008, permit Directors to
receive hardship withdrawals from the Plan (with respect to deferrals made under the Plan both
before and on or after February 15, 2007, in accordance with transition rules permitting amendments
to change payment provisions under Section 409A of the Code). As of December 28, 2007, the Board
of Directors further amended and restated the Plan to make additional modifications required by
final Treasury regulations issued under Section 409A of the Code. Effective March 24, 2008, the
Plan is further amended as provided herein.

3. Effective Date. The “effective date” as used throughout the Plan document is March
24, 2008 (the effective date of this restatement). The original effective date of the Plan is
January 1, 2005.

4. Eligibility. Directors who are not also officers or other employees of MoneyGram
or any of its subsidiaries are eligible (“Eligible Directors”) to become participants in this Plan
(“Participants”).

5. Plan Periods, Valuation Dates and Fair Market Value. Each plan period shall
commence on January 1 and end on December 31 (a “Plan Period”). Each quarterly valuation date
shall be the last business day of each calendar quarter of the Plan Period (a “Valuation Date”).
For purposes of determining the fair market value of Common Stock (with respect to deferrals made
under the Plan both before and on or after February 15, 2007), “Fair Market Value” shall mean the
per share closing price of the Common Stock on the New York Stock Exchange as reported in the
consolidated transaction reporting system on the determination date or, if such Exchange is not
open for trading on such date, on the most recent preceding date when such Exchange is open for
trading.

6. Administration. This Plan shall be administered by the Human Resources and
Nominating Committee of the Board (the “Committee”).

7. Deferral and Payment Elections.

7.1. Voluntary Deferral Elections. An Eligible Director may not elect to make a
voluntary election (“Deferral Election”) to defer payment of Directors Fees for Plan Periods
beginning on and after January 1, 2009.

7.2. Stock Unit Retainers. Stock Unit Retainers shall be permanently discontinued for
services performed during Plan Periods beginning on and after January 1, 2009.

8. Credits to Accounts. Director Fees deferred hereunder pursuant to a Deferral
Election shall be credited to the Participant’s account (“Voluntary Deferral Account”) in the form
of cash, in the form of stock units, or in a combination of cash and stock units pursuant to the
percentage of the form of deferral specified by the Participant in the Deferral Election. Stock
Unit Retainers automatically deferred hereunder prior to 2008 were credited to the Participant’s
Account (“Stock Unit Retainer Account”) in the form of stock units. Together, both accounts shall
be referred to as the “Account”.

8.1. Voluntary Deferral Accounts.

(a) Deferrals in Cash. If the Participant elects to defer all or a portion of
Director Fees in cash, the Director Fees shall be credited to the Voluntary Deferral Account as of
the Valuation Date for the quarter in which the Director Fees would otherwise have been paid.

(b) Deferrals in Stock Units. If the Participant elects to defer all or a portion of
Director Fees in stock units, the Director Fees shall be converted into stock units and credited to
the Voluntary Deferral Account on the Valuation Date for the quarter in which the Directors Fees
would otherwise have been paid. The number of stock units credited shall be calculated by dividing
the amount of Director Fees for such quarter elected to be deferred in the form of stock units by
the Fair Market Value of the Common Stock on the Valuation Date.

(c) Conversions from Cash to Stock Units. Subject to Section 8.1(e) below, a
Participant may, by delivering a notice (“Conversion Notice”) to the Corporate Secretary of
MoneyGram, convert the aggregate cash balance in his or her Voluntary Deferral Account (either
before or after distributions pursuant to Section 9 have commenced) to stock units. The balance in
the Voluntary Deferral Account shall be converted into stock units and credited on the Valuation
Date for the quarter in which such Conversion Notice is given. The number of stock units credited
shall be calculated by dividing the aggregate cash balance in the Voluntary Deferral Account on the
Valuation Date by the Fair Market Value of the Common Stock on the Valuation Date. Following such
conversion, the stock units in the Voluntary Deferral Account shall accrue dividend equivalents as
set forth in Section 8.3.

(d) Conversions from Stock Units to Cash. Subject to Section 8.1(e) below, a
Participant may, by delivering a Conversion Notice to the Corporate Secretary of MoneyGram, convert
the aggregate vested stock unit balance in his or her Voluntary Deferral Account (either before or
after distributions pursuant to Section 9 have commenced) to cash. The balance of vested stock
units in the Voluntary Deferral Account shall be converted into cash and credited to the Voluntary
Deferral Account on the Valuation Date for the quarter in which such Conversion Notice is given.
The cash amount credited shall be calculated by multiplying the aggregate stock unit balance in the
Voluntary Deferral Account on the Valuation Date by the Fair Market Value of the Common Stock on
the Valuation Date. Following such conversion, the funds in the Voluntary Deferral Account shall
accrue interest as set forth in Section 8.2.

(e) Discretionary Transactions. MoneyGram may not effect a conversion pursuant to
this Section 8.1 if a Conversion Notice is delivered to the Corporate Secretary within six months
following the date of an election by a Participant, with respect to any plan of MoneyGram, that
effected a Discretionary Transaction (as defined in Rule 16b-3(f) under the Securities Exchange Act
of 1934, as amended (“Exchange Act”) that was (i) a disposition, if the Conversion Notice is
pursuant to Section 8.1(c); or (ii) an acquisition, if the Conversion Notice is pursuant to Section
8.1(d).

8.2. Stock Unit Retainer Accounts.

(a) Credit in Stock Units. Prior to 2008, Stock Unit Retainers were credited to the
Stock Unit Retainer Account on the date of the regularly scheduled meeting of the Board held in
February of each year. The number of units awarded was determined by dividing the Stock Unit
Retainer (expressed as a dollar value) by the average of the high and low sales prices of
MoneyGram’s Common Stock on the New York Stock Exchange as reported on the consolidated transaction
reporting system during the ten trading day period beginning on the day following public
announcement of MoneyGram’s year-end financial results for the preceding year or, if the award is
made on joining the Board, the ten trading day period following the most recent annual or quarterly
earnings release shall be used. The number of units credited was rounded to the nearest even
hundred units.

(b) Partial Years. Prior to 2008, Stock Unit Retainers were deemed to be earned in
full when credited to the Participant’s account, regardless of the Participant’s number of days of
service in the Plan Period.

8.3. Accrual of Interest or Dividend Equivalent Payments.

(a) Interest. If a Participant has elected to make deferrals in the form of cash,
interest on the unpaid balance of the Voluntary Deferral Account, consisting of both accumulated
deferrals and interest, if any, will be credited as soon as administratively practicable following
each quarterly Valuation Date based upon the yield on Merrill Lynch Taxable Bond Index-Long Term
Medium Quality (A3) Industrial Bonds in effect at the beginning of such quarter, said interest to
commence with the date such deferrals were otherwise payable. After distribution of a Voluntary
Deferral Account commences pursuant to Section 9, interest shall accrue on the unpaid balance
thereof in the same manner until the entire balance of the Voluntary Deferral Account has been
paid. Notwithstanding the foregoing, the Committee may designate from time to time one or more
alternative investment options in which cash deferrals may be deemed invested. Such deemed
investment options may include any investment which the Committee deems appropriate, including, but
not limited to, fixed interest credits, notional mutual fund(s) or an investment index.

(b) Dividends in Cash or Property Other Than Common Stock. In the event a dividend in
cash, stock of MoneyGram (other than Common Stock) or other property is declared and paid by
MoneyGram, additional stock units shall be credited to the Participant’s Account in the calendar
quarter in which the dividend is declared. The credit shall be effected on the Valuation Date
coincident with or next following the declaration of such dividend. The Participant shall receive
such additional stock units calculated by dividing (A) as applicable, the amount of the dividend
payable to the Participant on the dividend record date or the fair market value of the property
(other than Common Stock) on the dividend record date; by (B) the Fair Market Value of the Common
Stock on the Valuation Date. For purposes of this calculation, stock unit equivalents of the
dividend payable shall be applied on the aggregate balance in the Account as of the dividend record
date, including Stock Unit Retainers granted, and deferred Director Fees for all Board service
occurring, in such quarter up to and including the dividend record date. Dividends shall not be
payable on Stock Unit Retainers which are granted, or deferred Director Fees for Board service
occurring, after the record date and prior to the dividend payment date. Actual credits shall be
made to the Voluntary Deferral Account (even with respect to dividends payable on Stock Unit
Retainers). After distribution of the balance in an Account commences pursuant to Section 9,
dividend equivalents shall accrue on the unpaid balance thereof in the same manner as described in
this Section 8.3(b) until the entire balance of the Account has been distributed.

(c) Dividends in Common Stock. In the event a dividend of Common Stock is declared
and paid by MoneyGram, additional stock unit equivalents of the dividend shares shall be credited
to the Participant’s Account in the calendar quarter in which the dividend is declared. The credit
shall be effected on the Valuation Date coincident with or next following the declaration of such
dividend. The Participant shall receive one stock unit, or such fractional unit thereof, for each
share of Common Stock the Participant is entitled to receive as a dividend as of the dividend
record date. For purposes of this calculation, stock unit equivalents of the dividend shares shall
be applied on the aggregate balance in the Account as of the dividend record date, including Stock
Unit Retainers granted, and deferred Director Fees for all Board service occurring, in such quarter
up to and including the dividend record date. Dividends shall not be payable on Stock Unit
Retainers which are granted, or deferred Director Fees for Board service occurring, after the
record date and prior to the dividend payment date. Actual credits shall be made to the Voluntary
Deferral Account (even with respect to dividends payable on Stock Unit Retainers). Additional
credits for stock dividends shall accrue on the unpaid balance thereof in the same manner set forth
in this Section 8.3(c) until the entire balance of the Account has been distributed pursuant to
Section 9.

9. Distributions of Accounts.

9.1. Voluntary Deferral Accounts.

(a) Lump Sum or Installments. Upon a Participant’s separation from service, his or
her Voluntary Deferral Account shall be distributed in either: (i) a lump sum; (ii) in ten (10)
annual installments; or (iii) in five (5) annual installments, as specified by the Participant on
the Deferral Election made for each Plan Period pursuant to Section 7.1. The first installment (or
the lump sum distribution) shall be made as soon as administratively practicable following the
Valuation Date coincident with or next following the date on which the Participant separates from
service. Any subsequent installments shall be paid as soon as administratively practicable
following each succeeding annual anniversary of such Valuation Date until the entire amount
credited to the Voluntary Deferral Account is distributed. To the extent a distribution in
installments is elected, and the Voluntary Deferral Account consists of a combination of cash and
stock units, a pro rata portion of the cash, and the cash equivalent of a pro rata portion of the
stock units, shall be distributed with each installment. If the Participant dies before receiving
the entire balance of his or her Voluntary Deferral Account, then a distribution shall be made in a
lump sum to any beneficiary or beneficiaries Designated by the Participant in accordance with
Section 9.3 below. If a Participant does not elect the form of distribution in connection with the
Participant’s commencement of participation in the Plan, the Participant shall be deemed to have
elected to receive the distribution in a lump sum.

(b) Distributions To Be Made in Cash. To the extent that the Participant has elected
to make deferrals in the form of cash, MoneyGram shall distribute a sum in cash to such Participant
in a lump sum or installments as specified by the Participant on the Deferral Election made
pursuant to Section 7.1. To the extent that the Participant has elected to make deferrals in the
form of stock units, MoneyGram shall distribute to such Participant, in a lump sum or installments
as specified by the Participant on the Deferral Election made pursuant to Section 7.1, the cash
equivalent of the portion of the stock units being distributed which will be calculated by
multiplying (i) the Fair Market Value of the Common Stock as of the quarterly Valuation Date for
which distribution is to commence, by (ii) the number of stock units being distributed.

9.2. Stock Unit Retainer Accounts.

(a) Lump Sum or Installments. Upon a Participant’s separation from service, his or
her Stock Unit Retainer Account shall be distributed in either: (i) a lump sum; (ii) in ten (10)
annual installments; or (iii) in five (5) annual installments, as specified by the Participant on
the Stock Unit Retainer Payment Election made for each Plan Period pursuant to Section 7.2. The
first installment (or the lump sum distribution) shall be made as soon as administratively
practicable following the Valuation Date coincident with or next following the date on which the
Participant separates from service. Any subsequent installments shall be paid as soon as
administratively practicable following each succeeding annual anniversary of such Valuation Date
until the entire amount credited to the Stock Unit Retainer Account is distributed.

(b) Distributions To Be Made in Common Stock. MoneyGram shall distribute to each
Participant, in a lump sum or installments as specified by the Participant on the Stock Unit
Retainer Payment Election made pursuant to Section 7.2, one share of Common Stock for each stock
unit credited to the Participant’s Stock Unit Retainer Account.

9.3. Beneficiary Designation. Each Participant who elects to participate in this Plan
may file with the Corporate Secretary of MoneyGram a notice in writing, on a form provided by the
Corporate Secretary, designating one or more beneficiaries to whom the distribution shall be made
in the event of the Participant’s death prior to receiving the entire distribution of the balance
in his or her Stock Unit Retainer Account or Voluntary Deferral Account. If no beneficiary
designation is made, or in the event that a beneficiary designated by such Participant predeceases
the Participant, the distribution shall be made to the Participant’s estate.

9.4. Election to Delay Distribution. The Participant may delay the time of
distribution or change the form of distribution by submitting an election to the Corporate
Secretary of MoneyGram in accordance with the following criteria:

(a) Such election must be submitted to and accepted by the Corporate Secretary of MoneyGram in
MoneyGram’s sole discretion at least twelve (12) months prior to the date a distribution to the
Participant would otherwise have been made or commenced upon separation from service; and

(b) The first distribution is delayed at least five (5) years from such date; and

(c) The election shall have no effect until at least twelve (12) months after the date on
which the election is made; and

(d) The election may reduce the number of installment payments; provided that the initial
installment is delayed at least five (5) years from the original date distribution would have been
made upon separation from service; and

(e) Notwithstanding the foregoing, the Committee shall interpret all provisions relating to
changing the distribution election under this Section 9.4 in a manner that is consistent with
Section 409A of the Code and Treasury regulations and other guidance issued thereunder.
Accordingly, if MoneyGram determines that an election is inconsistent with Section 409A of the Code
and other applicable tax law, the election shall not be effective.

9.5. Hardship Withdrawals. Notwithstanding the foregoing provisions of this Section
9, effective January 1, 2008, a Participant who is still in service with MoneyGram but who has
incurred an Unforeseeable Emergency (as defined below) shall receive a withdrawal from his or her
Account in accordance with the following criteria:

(a) In the event that the Committee, upon written petition of the Participant, determines in
its sole discretion that the Participant has suffered an Unforeseeable Emergency, MoneyGram shall
distribute to the Participant as soon as reasonably practicable following such determination, an
amount, not in excess of the value (based on the immediately preceding Valuation Date) of the
Account, necessary to satisfy the emergency.

(b) Immediately upon the distribution, such Participant’s Deferral Election shall be cancelled
in accordance with Section 7.3.

(c) An Unforeseeable Emergency shall mean a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent
(as defined in section 152(a) of the Code) of the Participant, loss of the Participant’s property
due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant.

10. Change in Control Benefit.

10.1. Effect of Change in Control.

(a) If a Change in Control occurs that also constitutes a “change in the ownership of
MoneyGram,” “change in effective control of MoneyGram,” and/or a “change in the ownership of a
substantial portion of MoneyGram’s assets,” each as defined under Treasury Regulation
§1.409A.3(i)(5), a lump sum cash distribution shall be made to each Participant of the entire
balance of his or her Account upon the Participant’s separation from service within two (2) years
following such Change in Control, notwithstanding any other provision herein. In the event of any
such Change in Control, the number of replacement stock units shall be determined by multiplying
the exchange ratio used in connection with such Change in Control for determining the number of
replacement equity securities issuable for the outstanding shares of MoneyGram’s Common Stock, or
if there is no such ratio, an exchange ratio to be mutually agreed upon by the acquirer and
MoneyGram. In the event of any such Change in Control, all references herein to the Common Stock
shall thereafter be deemed to refer to the replacement equity securities, references to MoneyGram
shall thereafter be deemed to refer to the issuer of such replacement equity securities, and all
other terms of this Plan shall continue in effect except as and to the extent modified by this
Section 10.

(b) Notwithstanding the foregoing, MoneyGram, in its sole discretion, and without the consent
of the Participants, may in the event of a Change in Control, convert each Participant’s stock
units into cash by multiplying the number of stock units in the Account by the Fair Market Value of
the Common Stock on the day preceding the date of the Change in Control.

10.2 Change in Control. For purposes of this Plan, a “Change in Control” shall mean
any of the following events:

(a) An acquisition by an individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 20% or more of either: (1) the then outstanding
shares of Common Stock of MoneyGram (the “Outstanding Company Common Stock”) or (2) the combined
voting power of the then Outstanding Voting Securities of MoneyGram entitled to vote generally in
the election of the Board (the “Outstanding Company Voting Securities”); excluding, however the
following: (A) any acquisition directly from MoneyGram or any entity controlled by MoneyGram other
than an acquisition by virtue of the exercise of a conversion privilege unless the security being
so converted was itself acquired directly from MoneyGram or any entity controlled by MoneyGram,
(B) any acquisition by the MoneyGram, or any entity controlled by the MoneyGram, (C) any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by MoneyGram or
any entity controlled by MoneyGram or (D) any acquisition pursuant to a transaction which complies
with clauses (1), (2) and (3) of Section 10.2(c); or

(b) A change in the composition of the Board such that the individuals who, as of the
effective date of the Plan, constitute the Board (such Board shall be hereinafter referred to as
the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, for purposes of this Section 10.2(b) that any individual, who becomes a member
of the Board subsequent to the effective date of the Plan, whose election, or nomination for
election by MoneyGram’s stockholders, was approved by a vote of at least a majority of those
individuals who are members of the Board and who were also members of the Incumbent Board, (or
deemed to be such pursuant to this proviso) shall be considered as though such individual were a
member of the Incumbent Board; but provided further, that any such individual whose initial
assumption of office occurs as a result of either an actual or threatened election contest (as such
terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual
or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board
shall not be so considered as a member of the Incumbent Board; or

(c) Consummation of a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets of MoneyGram (a “Corporate Transaction”) excluding,
however, such a Corporate Transaction pursuant to which (1) all or substantially all of the
individuals and entities who are the beneficial owners, respectively, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate
Transaction (the “Prior Stockholders”) beneficially own, directly or indirectly, more than 60% of,
respectively, the outstanding shares of Common Stock and the combined voting power of the then
Outstanding Voting Securities entitled to vote generally in the election of the Board, as the case
may be, of MoneyGram or other entity resulting from such Corporate Transaction (including, without
limitation, a company or other entity which as a result of such transaction owns MoneyGram or all
or substantially all of MoneyGram’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to such Corporate
Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be, (2) no Person (other than MoneyGram or any entity controlled by MoneyGram, any
employee benefit plan (or related trust) of MoneyGram or any entity controlled by MoneyGram or
such company or other entity resulting from such Corporate Transaction) will beneficially own,
directly or indirectly, 20% or more of, respectively, the outstanding shares of Common Stock of
MoneyGram or other entity resulting from such Corporate Transaction or the combined voting power of
the Outstanding Voting Securities of such company or other entity entitled to vote generally in the
election of members of the Board except to the extent that such ownership existed prior to the
Corporate Transaction and (3) individuals who were members of the Incumbent Board will constitute
at least a majority of the members of the board of the company resulting from such Corporate
Transaction; and further excluding any disposition of all or substantially all of the assets of
MoneyGram pursuant to a spin-off, split-up or similar transaction (a “Spin-off”) if, immediately
following the Spin-off, the Prior Stockholders beneficially own, directly or indirectly, more than
80% of the outstanding shares of common stock and the combined voting power of the then Outstanding
Voting Securities entitled to vote generally in the election of directors of both entities
resulting from such transaction, in substantially the same proportions as their ownership,
immediately prior to such transaction, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities; provided, that if another Corporate Transaction involving MoneyGram
occurs in connection with or following a Spin-off, such Corporate Transaction shall be analyzed
separately for purposes of determining whether a Change in Control has occurred; or

(d) The approval by the stockholders of MoneyGram of a complete liquidation or dissolution of
MoneyGram.

11. Limitation on Rights of Eligible Directors and Participants. Nothing in this Plan
will interfere with or limit in any way the rights of the Board or the stockholders of MoneyGram
not to nominate for re-election, elect or remove an Eligible Director or Participant. Neither this
Plan nor any action taken pursuant to it will constitute or be evidence of any agreement or
understanding, express or implied, that MoneyGram or its Board or stockholders have retained or
will retain an Eligible Director or Participant for any period of time or at any particular rate of
compensation.

12. Plan Amendments, Modifications and Termination. The Committee may amend, suspend
or terminate this Plan at any time. Following a termination of the Plan, Accounts shall remain in
the Plan until the Participant becomes eligible for the benefits provided in Sections 9 and 10.
The termination of the Plan shall not adversely affect any Participant or beneficiary who has
become entitled to the payment of any benefits under the Plan as of the date of termination.
Notwithstanding the foregoing, to the extent permissible under Section 409A of the Code and related
Treasury regulations and guidance, if there is a termination of the Plan with respect to all
Participants, MoneyGram shall have the right, in its sole discretion, and notwithstanding any
elections made by the Participant, to immediately pay all benefits in a lump sum following such
termination of the Plan.

13. Participants are General Creditors of MoneyGram. Participants and their
beneficiaries shall be general, unsecured creditors of MoneyGram with respect to any distributions
to be made pursuant to this Plan and shall not have any preferred interest by way of trust, escrow,
lien or otherwise in any specific assets of MoneyGram. If MoneyGram shall, in fact, elect to set
aside monies or other assets to meet its obligations hereunder (there being no obligation to do
so), whether in a grantor trust or otherwise, the same shall, nevertheless, be regarded as a part
of the general assets of MoneyGram subject to the claims of its general creditors, and neither any
Participants nor any of their beneficiaries shall have a legal, beneficial or security interest
therein.

14. Miscellaneous.

14.1. Nontransferability. Neither a Participant nor any other person shall have any
right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber,
transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any,
payable hereunder, or any part thereof, which are, and all rights to which are expressly declared
to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual
payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any
debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be
transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy
or insolvency or be transferable to a spouse as a result of a property settlement or otherwise
(including without limitation any domestic relations order, whether or not a “qualified domestic
relations order” under section 414(p) of the Code and section 206(d) of ERISA) before the Account
is distributed to the Participant or beneficiary.

14.2. Governing Law. The provisions of this Plan shall be construed and interpreted
according to the internal laws of the State of Minnesota without regard to its conflicts of laws
principles.

14.3. Relation to Stock Incentive Plan. Benefits attributable to stock units which
are paid in shares of Common Stock are subject to any applicable terms, conditions and restrictions
required by the applicable MoneyGram stock incentive plan.

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