MoneyGram 2005 Annual Report Download - page 109

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relates. Each eligible Participant who wishes to defer Incentive Pay for a subsequent performance period must make an election to defer
Incentive Pay no later than six (6) months prior to the end of that subsequent performance period.
(iii) Irrevocability. A deferral agreement accepted by the Employer shall become irrevocable as of the date that is six (6) months before the end of
the performance period applicable to such Incentive Pay; provided, however, that if the Participant receives a distribution on account of a
Disability or Unforeseeable Emergency occurs during such performance period, the Participant's agreement shall be cancelled, and further
deferrals shall not be made.
(b) Maximum/Minimum Amounts. The terms of any such agreement shall provide that the employee elects a deferral of Incentive Pay equal to any
percentage of Incentive Pay for the applicable performance period, not to exceed one hundred percent (100%), or be less than one percent (1%) of
such Incentive Pay.
(c) Withholding. In the event an employee elects to defer an amount of his or her Incentive Pay that would not allow for the full payment of all FICA,
federal, state and/or local income tax liabilities, the actual amount deferred shall be the maximum amount allowable after all applicable taxes.
2.2.3. Election As to Time and Form of Payment. In connection with the Participant's initial enrollment in the Plan, the Participant shall elect the form in
which his or her Account shall be paid upon such Participant's Termination of Employment (to the extent not previously distributed as a Scheduled
Distribution). The Participant may elect to receive his or her Account at Termination of Employment in the form of a lump sum or pursuant to an annual
installment method of up to five (5) years (in accordance with Section 7). In addition, in connection with each election to defer an Annual Deferral Amount,
the Participant may elect whether to receive all or a portion of his or her Annual Deferral Amount as a Scheduled Distribution. An election as to the time and
form of payment, once accepted by the Employer and made effective, may not be changed.
SECTION 3
CREDITS TO ACCOUNTS
3.1. Elective Deferral Credits. Elective deferrals of Compensation shall be credited to the Participant's Account throughout the Plan Year as the Participant
otherwise would have been paid the deferred portion of the Participant's Compensation. Elective deferrals of Incentive Pay shall be credited to the
Participant's Account as of the date on which (or as soon as administratively practicable thereafter) such amounts would otherwise have been paid under the
applicable incentive plan of the Employer. Such credits shall be recorded in cash.
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