MoneyGram 2005 Annual Report Download - page 113

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commencing January 1, 2006, the earliest Scheduled Distribution could become payable during a sixty (60)-day period commencing January 1, 2010.
7.1.3. Event of Maturity Takes Precedence Over Scheduled Distributions. If an Event of Maturity occurs that triggers payment under Section 7.3, any
Scheduled Distribution elections outstanding but unpaid shall not be paid in accordance with this Section 7.1, but shall be paid in accordance with Section 7.3.
Notwithstanding the foregoing, the Human Resources Committee shall interpret this Section 7.1.3 in a manner that is consistent with Code Section 409A and
other applicable tax law, including but not limited to guidance issued after the effective date of this Plan.
7.2. Hardship Withdrawals. A Participant who has not incurred an Event of Maturity but who has incurred an Unforeseeable Emergency may request a
withdrawal from such Participant's Account. In the event that MGI, upon written petition of the Participant, determines in his or her sole discretion that the
Participant has suffered an Unforeseeable Emergency, the Employer 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 Participant's Account, necessary to satisfy
the emergency. Immediately upon the distribution, such Participant's deferral agreement shall be cancelled in accordance with Section 2.2.
7.3. Payment Upon Event of Maturity.
7.3.1. Time of Payment. Upon the occurrence of an Event of Maturity effective as to a Participant, payment of such Participant's entire Account balance
(reduced by the amount of any applicable payroll, withholding and other taxes) shall commence in the form designated under Section 7.3.2 below.
Distribution shall not be made to any Beneficiary until MGI has determined that the Beneficiary is entitled to payment. Notwithstanding the foregoing, where
payment under this Section 7 is made to any "key employee" (as defined under section 409A of the Code) on account of Termination of Employment, such
payment shall commence no earlier than six (6) months following a Termination of Employment (or upon the death of the employee, if earlier) if required to
comply with section 409A of the Code.
7.3.2. Form of Payment. If a Participant's Account becomes distributable by reason of one of the Events of Maturity listed in Section 6, distribution of the
Participant's entire Account balance shall be made in a single lump sum; provided, however, that if the Event of Maturity is the Participant's Termination of
Employment, distribution shall be made: (i) in a single lump sum, or (ii) in annual installments over a period not to exceed five (5) years, in accordance with
such Participant's initial enrollment election under Section 2.2 (on forms furnished and filed with MGI). In the event no election is made by the Participant,
payment shall be made in a single lump sum. For purposes of this Section 7.3.2, the following rules shall apply:
(a) Lump sum distributions shall be valued as soon as administratively practicable following the Valuation Date coincident with or next following the
Participant's Event of Maturity (or in the case of a key employee whose Event of Maturity is a Termination of Employment, the date which is six (6)
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