Exhibit 10.4

March 17, 2008
THL Managers VI, LLC
c/o Thomas H. Lee Partners, L.P.
100 Federal Street, 35th Floor
Boston, Massachusetts 02110
Fax No.: (617) 227-3514
Attn: Thomas M. Hagerty
MoneyGram Payment Systems Worldwide, Inc.
MoneyGram International Inc.
1500 Utica Avenue South, MS 8020
Minneapolis, Minnesota 55416
Fax No.: (952) 591-3859
Attn: Teresa H. Johnson, Esq.
GSMP/GSCP
c/o Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004
Attention: Edward Pallesen
Amended and Restated Fee Letter
Ladies and Gentlemen:
     Reference is hereby made to that certain Contingent Fee Letter, by and
between THL MANAGERS VI, LLC (“THL Managers”), GSMP V ONSHORE US, LTD., an
exempted company incorporated in the Cayman Islands with limited liability
(“GSMP V Onshore”), GSMP V OFFSHORE US, LTD., an exempted company incorporated
in the Cayman Islands with limited liability (“GSMP V Offshore”), and GSMP V
INSTITUTIONAL US, LTD., an exempted company incorporated in the Cayman Islands
with limited liability (“GSMP Institutional and, together with GSMP V Onshore
and GSMP V Offshore, “GSMP”), GS CAPITAL PARTNERS VI FUND, L.P., GS CAPITAL
PARTNERS VI OFFSHORE FUND, L.P., GS CAPITAL PARTNERS VI GmbH & Co. KG, and GS
CAPITAL PARTNERS VI PARALLEL, L.P., and MONEYGRAM PAYMENT SYSTEMS WORLDWIDE,
INC., a Delaware corporation (the “Company”), dated as of February 11, 2008 (the
“Original Contingent Fee Letter”), which the parties hereby amend and restate in
full, as more fully set forth below:
     Reference is made to (a) that certain Amended and Restated Note Purchase
Agreement (the “Note Purchase Agreement”), dated as of March 17, 2008, by and
between MONEYGRAM INTERNATIONAL, INC., a Delaware corporation (“HoldCo”), the
Company, GSMP and THL Credit Partners, L.P., which amended and restated the Note
Purchase Agreement as of February 11, 2008 (the “Original Note Purchase
Agreement”) dated and (b) that certain Amended and Restated Purchase Agreement
(the “Equity Purchase Agreement”), dated as of March 17, 2008, as may be
amended, by and between Holdco, GSMP, the parties set forth on Schedule A
attached thereto under the heading THL (collectively, “THL”) and the parties set
forth on Schedule A attached hereto under the heading Goldman Sachs Capital
Partners (collectively, “GSCP” and, together with THL and GSMP, the
“Investors”). Capitalized terms used herein and not otherwise defined have the
meanings given in the Note Purchase Agreement or Equity Purchase Agreement, as
applicable.

 

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  1.   Fee. In connection with the execution of the Original Note Purchase
Agreement, the Company deposited into the escrow (the “Escrow”) established
pursuant to that certain escrow agreement (the “Original Escrow Agreement”),
dated as of February 11, 2008, among the Company, THL Managers VI, LLC (“THL
Managers”), GSCP, GSMP and Fried, Frank Harris Shriver & Jacobson, LLP as escrow
agent, a deposit with respect to a contingent break-up fee equal to $15,000,000,
representing 3.00% of the maximum principal amount of the Notes to be purchased
by GSMP pursuant to the Original Note Purchase Agreement (such amount, together
with all investment earnings thereon, the “Fee”). On March 14, 2008 the Original
Escrow Agreement was amended and restated (the “Escrow Agreement”). Pursuant to
the Escrow Agreement, the Bank of New York, or any successor thereto, shall act
as escrow agent (the “Escrow Agent”) as of March 14, 2008.     2.   Payment of
Fee. In consideration for amending the Note Purchase Agreement and other
consideration (the adequacy of which is hereby acknowledged by the other parties
hereto), the parties hereto hereby agree (i) that the Fee shall be disbursed and
paid by the Escrow Agent to GSMP on the date hereof and (ii) that,
notwithstanding anything to the contrary in the Original Contingent Fee Letter
or the Original Note Purchase Agreement or any other document or agreement, in
no event shall all or any portion of the Fee be refunded or otherwise repaid to
the Company, and the Company shall have no interest therein or claim thereto.  
  3.   Subsequent Transaction. If the Equity Purchase Agreement is terminated
for any reason and (x) the Company enters into a definitive agreement with
respect to, or consummates, any transaction contemplated by a Company
Transaction Proposal (other than a transaction entered into or consummated
following any voluntary or involuntary petition by Holdco, the Company or any
subsidiary of the Company under the federal bankruptcy code (a “Subsequent
Transaction”) within nine (9) months of the date of termination of the Equity
Purchase Agreement and (y) GSMP provides or commits to provide second lien or
subordinated debt financing with respect to the Subsequent Transaction, then,
the Fee shall be paid (or retained by GSMP) as follows: (a) if such financing is
consummated, GSMP shall pay (or retain, as applicable) the Fee (net of any
withholding tax paid by GSMP as a result of its receipt of the Fee)
(i) 80 percent to THL Managers and (ii) 20 percent to GSCP and GSMP, pro rata
among GSCP and GSMP, in accordance with the aggregate relative purchase price
committed to be paid by each of them pursuant to the Equity Purchase Agreement
(such allocation, the “80/20 Allocation”), in each case, as promptly as
possible, but in any event on the date of the consummation of such Subsequent
Transaction and (b) if such financing is not consummated, GSMP shall also pay
(or retain, as applicable) the portion of the Fee, if any, equal to any fees
paid to and retained by GSMP in connection with such financing (net of any
withholding tax paid by GSMP as a result of its receipt of the Fee) to THL, GSCP
and GSMP in accordance with the 80/20 Allocation, which such amounts shall be
paid on the first date on which GSMP is not subject to any obligation to return
or otherwise disgorge such fees.     4.   Further Agreements. The parties agree
to jointly and irrevocably instruct the Escrow Agent, in accordance with the
Escrow Agreement, to effect payment of the Fee on the date hereof, by wire
transfer in immediately available funds, in accordance with the terms of
Section 2 above. Any earnings on the funds deposited in Escrow will be paid to
GSMP. To effectuate the foregoing, the Company, THL, GSCP and GSMP have jointly
and irrevocably instructed the Escrow Agent as provided in the certificate
attached hereto as Exhibit A.     5.   GOVERNING LAW; JURISDICTION. EACH OF THE
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ANY SUIT OR
PROCEEDING ARISING IN RESPECT TO THIS LETTER OR OUR COMMITMENT WILL BE TRIED
EXCLUSIVELY

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      (SUBJECT TO THE PROVISO BELOW) IN THE U.S. DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK OR, IF THAT COURT DOES NOT HAVE SUBJECT MATTER
JURISDICTION, IN ANY STATE COURT LOCATED IN THE CITY OF NEW YORK, AND YOU AGREE
TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF, AND TO VENUE IN, SUCH COURT. THIS
LETTER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO PRINCIPALS OF CONFLICTS OF LAWS THAT WOULD
CAUSE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.     6.   WAIVER OF
JURY TRIAL. ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION OR PROCEEDING
ARISING IN CONNECTION WITH OR AS A RESULT OF EITHER OUR COMMITMENT OR ANY MATTER
REFERRED TO IN THIS LETTER IS HEREBY WAIVED BY THE PARTIES HERETO.     7.  
Counterparts. This letter may be executed in counterparts, each of which shall
be deemed to constitute an original but all of which shall constitute one and
the same instrument. Delivery of an executed signature page of this letter by
facsimile, e-mail or similar transmission shall be effective as delivery of a
manually executed counterpart hereof.

[SIGNATURE PAGES FOLLOW]

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     If the foregoing terms and conditions are acceptable to you, please so
indicate by signing both of the enclosed copies of this letter where indicated
and returning one to the undersigned, whereupon this letter shall become a
binding agreement between us.

            Very truly yours,

MONEYGRAM PAYMENT SYSTEMS WORLDWIDE, INC.
      By:   /s/ Philip W. Milne       Name:   Philip W. Milne      Title:  
Chairman, President and Chief Executive Officer     

 

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Goldman Sachs Mezzanine Partners

            GSMP V ONSHORE US, LTD.
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GSMP V OFFSHORE US, LTD.
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GSMP V INSTITUTIONAL US, LTD.
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

 

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Goldman Sachs Capital Partners

            GS CAPITAL PARTNERS VI FUND, L.P.

By: GSCP VI Advisors, L.L.C., its General Partner
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GS CAPITAL PARTNERS VI OFFSHORE FUND, L.P.

By: GSCP VI Offshore Advisors, L.L.C., its General Partner
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GS CAPITAL PARTNERS VI GmbH & Co. KG

By: GS Advisors VI, L.L.C., its Managing Limited Partner
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GS CAPITAL PARTNERS VI PARALLEL, L.P.

By: GS Advisors VI, L.L.C., its General Partner
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

 

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THL

            THL MANAGERS VI, LLC

By: Thomas H. Lee Partners, L.P., its managing member
By: Thomas H. Lee Advisors, LLC, its general partner
      By:   /s/ Scott Jaeckel       Name:   Scott Jaeckel      Title:   Managing
Director     

 

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Escrow Amount Release Certificate
     This certificate is being delivered pursuant to Section 4 of the Amended
and Restated Escrow Agreement, dated as of March 14, 2008 (the “Escrow
Agreement”), by and between the Escrow Parties and The Bank of New York, as
escrow agent (“Escrow Agent”). Capitalized terms used but not defined herein
have the respective meanings specified in the Escrow Agreement. The Escrow
Parties hereby jointly certify to the Escrow Agent and direct the Escrow Agent
through the undersigned officer as follows:
     The Escrow Agent shall release the Escrow Amount (including any accrued
interest) held in the Escrow Account in accordance with the terms of the Escrow
Agreement and the Amended and Restated Contingent Fee Letter, dated as of
March 17, 2008, by and between the Escrow Parties (the “Contingent Fee Letter”),
by wire transfer, as follows:
[Only one payment to be checked]
o To GSMP in accordance with Section 2 of the Contingent Fee Letter.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

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Goldman Sachs Mezzanine Partners

            GSMP V ONSHORE US, LTD.
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GSMP V OFFSHORE US, LTD.
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GSMP V INSTITUTIONAL US, LTD.
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

 

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Goldman Sachs Capital Partners

            GS CAPITAL PARTNERS VI FUND, L.P.

By: GSCP VI Advisors, L.L.C., its General Partner
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GS CAPITAL PARTNERS VI OFFSHORE FUND, L.P.

By: GSCP VI Offshore Advisors, L.L.C., its General Partner
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GS CAPITAL PARTNERS VI GmbH & Co. KG

By: GS Advisors VI, L.L.C., its Managing Limited Partner
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

            GS CAPITAL PARTNERS VI PARALLEL, L.P.

By: GS Advisors VI, L.L.C., its General Partner
      By:   /s/ Oliver Thym       Name:   Oliver Thym      Title:   Managing
Director and Vice President     

 

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THL

            THL MANAGERS VI, LLC

By: Thomas H. Lee Partners, L.P., its managing member
By: Thomas H. Lee Advisors, LLC, its general partner
      By:   /s/ Scott Jaeckel       Name:   Scott Jaeckel      Title:   Managing
Director and Vice President