Document:

exv10w5

Exhibit 10.5

Execution Version

INTERCREDITOR AGREEMENT

     Intercreditor Agreement (this “Agreement”) dated as of May 18, 2011 among Bank of America,
N.A., as Collateral Agent (in such capacity, with its successors and assigns, the “First Priority
Representative”) for the First Priority Secured Parties (as defined below), Deutsche Bank Trust
Company Americas, as Trustee and Collateral Agent (in such capacities, with its successors and
assigns, the “Second Priority Representative”) for the Second Priority Secured Parties (as defined
below) and MoneyGram Payment Systems Worldwide, Inc., a Delaware corporation, as borrower (the
“Borrower”).

     WHEREAS, the Borrower, MoneyGram International, Inc. (“Holdco”), the First Priority
Representative and certain financial institutions are parties to a $540,000,000 Credit Agreement
dated as of May 18, 2011 (as in effect on the date hereof, the “Existing First Priority
Agreement”), pursuant to which such financial institutions have agreed to make loans and extend
other financial accommodations to the Borrower; and

     WHEREAS, the Borrower, the Guarantors and the Second Priority Representative are parties to an
Indenture dated as of dated as of March 25, 2008 (as amended through the first, second and third
supplemental indentures thereto, the “Existing Second Priority Agreement”), pursuant to which
certain financial institutions are the holders of secured notes; and

     WHEREAS, the Borrower and the other Loan Parties have agreed to (a) grant to the First
Priority Representative security interests in the Common Collateral as security for payment and
performance of the First Priority Obligations, and (b) grant to the Second Priority Representative
junior security interests in the Common Collateral as security for payment and performance of the
Second Priority Obligations; and

     NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and
other good and valuable consideration, the existence and sufficiency of which is expressly
recognized by all of the parties hereto, the parties agree as follows:

ARTICLE 1

Definitions

     Section 1.01. Definitions. The following terms, as used herein, have the following meanings:

     “Affiliate” means, with respect to any Person, any Person that directly or indirectly
controls, is controlled by, or is under common control with, such Person. For purpose of this
definition, “control” means the possession of either (a) the power to vote, or the Beneficial
Ownership of, 10% or more of the voting stock of such Person or (b) the power to direct or cause
the direction of the management and policies of such Person, whether by contract or otherwise;
provided, that, in no event shall GSMP and their subsidiaries and other Persons engaged primarily
in the investment of mezzanine securities that directly or indirectly are controlled by, or under
common control with, the same investment adviser as GSMP (“GS Mezzanine Entities”) by virtue of
their

 

 

affiliation with affiliates other than GS Mezzanine Entities be deemed to control Holdco or
any of its Subsidiaries).

     “Bankruptcy Code” means the United States Bankruptcy Code (11 U.S.C. §101 et seq.), as amended
from time to time.

     “Beneficial Ownership” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act.

     “Business Day” means any calendar day other than a Legal Holiday.

     “Common Collateral” means all assets that are both First Priority Collateral and Second
Priority Collateral.

     “Enforcement Action” means, with respect to the First Priority Obligations or the Second
Priority Obligations, the exercise of any rights and remedies with respect to any Common Collateral
securing such obligations or the commencement or prosecution of enforcement of any of the rights
and remedies under, as applicable, the First Priority Documents or the Second Priority Documents,
or applicable law, including without limitation the exercise of any rights of set off or recoupment
and any rights of a judgment creditor with respect to any Common Collateral, and the exercise of
any rights or remedies of a secured creditor under the Uniform Commercial Code of any applicable
jurisdiction or under the Bankruptcy Code.

     “Existing First Priority Agreement” has the meaning set forth in the first WHEREAS clause of
this Agreement.

     “Existing Second Priority Agreement” has the meaning set forth in the second WHEREAS clause of
this Agreement.

     “First Priority Agreement” means (i) the Existing First Priority Agreement, as amended,
supplemented, restated, amended and restated or otherwise modified from time to time, and (ii) any
other credit agreement, loan agreement, note agreement, promissory note, indenture or other
agreement or instrument evidencing or governing the terms of any indebtedness or other financial
accommodation that has been incurred to extend, replace, refinance, refund or restate in whole or
in part the indebtedness and other obligations outstanding under the Existing First Priority
Agreement or any other agreement or instrument referred to in this clause (ii), including any DIP
Financing agreement, unless such agreement or instrument expressly provides that it is not intended
to be and is not a First Priority Agreement hereunder. Any reference to the First Priority
Agreement hereunder shall be deemed a reference to any First Priority Agreement then extant.

     “First Priority Collateral” means all assets, whether now owned or hereafter acquired by the
Borrower or any other Loan Party, in which a Lien is granted or purported to be granted to any
First Priority Secured Party as security for any First Priority Obligation.

     “First Priority Documents” means the First Priority Agreement or any other document executed
in connection therewith granting any interest in or rights to the First Priority Representative or
the First Priority Lenders in and to the First Priority Collateral.

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     “First Priority Lenders” means the “Lenders” as defined in the First Priority Agreement, or
any Persons that are designated under the First Priority Agreement as the “First Priority Lenders”
for purposes of this Agreement.

     “First Priority Lien” means any Lien created by the First Priority Security Documents.

     “First Priority Obligations” means (i) all principal of and interest (including without
limitation any Post-Petition Interest) and premium (if any) on all loans made pursuant to the First
Priority Agreement, (ii) all reimbursement obligations (if any) and interest thereon (including
without limitation any Post-Petition Interest) with respect to any letter of credit or similar
instruments issued pursuant to the First Priority Agreement, (iii) all Hedging and Cash Management
Obligations of any Loan Party and (iv) all reasonable and customary fees, expenses and other
amounts payable from time to time pursuant to the First Priority Documents as determined by the
First Priority Representative in its discretion taking into account market and economic conditions
the time such fees, expenses and other amounts are incurred, in each case whether or not allowed or
allowable in an Insolvency Proceeding; provided that the First Priority Obligations shall not be in
an amount in excess of the Maximum First Priority Obligations Amount. To the extent any payment
with respect to any First Priority Obligation (whether by or on behalf of any Loan Party, as
proceeds of security, enforcement of any right of setoff or otherwise) is declared to be a
fraudulent conveyance or a preference in any respect, set aside or required to be paid to a debtor
in possession, any Second Priority Secured Party, receiver or similar Person, then the obligation
or part thereof originally intended to be satisfied shall, for the purposes of this Agreement and
the rights and obligations of the First Priority Secured Parties and the Second Priority Secured
Parties, be deemed to be reinstated and outstanding as if such payment had not occurred.

     “First Priority Obligations Payment Date” means the first date on which (i) the First Priority
Obligations (other than those that constitute Unasserted Contingent Obligations) have been
indefeasibly paid in cash in full (or cash collateralized or defeased in accordance with the terms
of the First Priority Documents), (ii) all commitments to extend credit under the First Priority
Documents have been terminated and (iii) there are no outstanding letters of credit or similar
instruments issued under the First Priority Documents (other than such as have been cash
collateralized or defeased in accordance with the terms of the First Priority Documents). Upon the
written request by the Second Priority Representative and/or the Borrower, the First Priority
Representative shall promptly deliver a written notice to the Second Priority Representative
stating that (to the extent such events have occurred) the events described in clauses(i), (ii) and
(iii) have occurred to the satisfaction of the First Priority Secured Parties.

     “First Priority Representative” has the meaning set forth in the introductory paragraph
hereof.

     “First Priority Required Lenders” means the “Required Lenders” as defined in the First
Priority Agreement.

     “First Priority Secured Parties” means the holders of the First Priority Obligations.

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     “First Priority Security Documents” means the “Collateral Documents” as defined in the First
Priority Agreement, and any other documents that are designated under the First Priority Agreement
as “First Priority Security Documents” for purposes of this Agreement.

     “GSMP” means GSMP V Onshore US, Ltd., GSMP V Offshore US, Ltd. and GSMP V Institutional US,
Ltd.

     “Guarantors” has the meaning set forth in the First Priority Agreement.

     “Hedging and Cash Management Obligations” means, with respect to any Loan Party, any (i)
Secured Hedge Obligations and (ii) any Secured Cash Management Obligations, each as defined in the
First Priority Agreement.

     “Holdco” has the meaning set forth in the first WHEREAS clause of this Agreement.

     “Insolvency Proceeding” means any proceeding in respect of bankruptcy, liquidation,
reorganization, insolvency, winding up, receivership, dissolution or assignment for the benefit of
creditors, in each of the foregoing events whether under the Bankruptcy Code or any similar
federal, state or foreign bankruptcy, insolvency, reorganization, receivership or similar law.

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the State
of New York or at a place of payment are authorized bylaw, regulation or executive order to remain
closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such
payment for the intervening period.

     “Lien” means any lien (statutory or other), mortgage, pledge, hypothecation, assignment,
encumbrance or preference, priority or other security agreement of any kind or nature whatsoever
(including, without limitation, the interest of a vendor or lessor under any conditional sale,
Capitalized Lease (as defined in the First Priority Agreement) or other title retention agreement).
For the purposes hereof, none of the following shall be deemed to be Liens: (i) setoff rights or
statutory liens arising in the ordinary course of business, (ii) restrictive contractual
obligations with respect to assets comprising the Payment Instruments Funding Amounts or Payment
Service Obligations (as defined in the First Priority Agreement); provided that such contractual
obligations are no more restrictive in nature than those in effect on the Effective Date, (iii)
Liens purported to be created under Repurchase Agreements (as defined in the First Priority
Agreement); provided that such Liens do not extend to any assets other than those that are the
subject of such Repurchase Agreements, (iv) ordinary course of business contractual obligations
with clearing banks relative to clearing accounts or (v) operating leases.

     “Loan Party” means the Borrower, each of the Guarantors and any other Person (other than the
First Priority Representative and the Second Priority Representative) that has executed or may from
time to time execute a First Priority Security Document and a Second Priority Security Document.

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     “Maximum First Priority Obligations Amount” means the sum of (a) $675 million plus the
principal amount of incremental loans (not to exceed $175 million) made to the Borrower under the
First Priority Agreement to the extent the proceeds of such incremental loans were used to effect
an optional redemption of the Notes (as defined in the Existing Second Priority Agreement), plus
(b)(i) all Hedging and Cash Management Obligations of the Loan Parties and (ii) all interest, fees,
expenses and other amounts payable from time to time pursuant to the First Priority Documents, in
each case whether or not allowed or allowable in an Insolvency Proceeding.

     “Person” means any person, individual, sole proprietorship, partnership, joint venture,
corporation, limited liability company, unincorporated organization, association, institution,
entity, party, including any government and any political subdivision, agency or instrumentality
thereof.

     “Post-Petition Interest” means any interest or entitlement to fees or expenses that accrues
after the commencement of any Insolvency Proceeding, whether or not allowed or allowable in any
such Insolvency Proceeding.

     “Required Holder” has the meaning set forth in the Existing Second Priority Agreement.

     “Second Priority Agreement” means (i) the Existing Second Priority Agreement, as amended,
supplemented, restated, amended and restated or otherwise modified from time to time in accordance
with Section 6(c), and (ii) any other credit agreement, loan agreement, note agreement, promissory
note, indenture, or other agreement or instrument evidencing or governing the terms of any
indebtedness or other financial accommodation that has been incurred to extend, replace, refinance
or refund in whole or in part the indebtedness and other obligations outstanding under the Existing
Second Priority Agreement or other agreement or instrument referred to in this clause (ii) in
accordance with Section 6.01(c), unless such agreement or instrument expressly provides that it is
not intended to be and is not a Second Priority Agreement hereunder. Any reference to the Second
Priority Agreement hereunder shall be deemed a reference to any Second Priority Agreement then
extant.

     “Second Priority Collateral” means all assets, whether now owned or hereafter acquired by the
Borrower or any other Loan Party, in which a Lien is granted or purported to be granted to any
Second Priority Secured Party as security for any Second Priority Obligation.

     “Second Priority Documents” means each Second Priority Agreement and each Second Priority
Security Document.

     “Second Priority Enforcement Date” means the date which is 180 days after the First Priority
Representative’s receipt of written notice from the Second Priority Representative of the
occurrence of an Event of Default (under and as defined in the Second Priority Agreement); provided
that the Second Priority Enforcement Date shall be stayed and deemed not to have occurred for so
long as (i) the First Priority Representative has commenced and is diligently pursuing an
Enforcement Action against, or diligently attempting to vacate any stay of enforcement of their
Liens on, all or a material portion of the Common Collateral, (ii) the Event of Default referenced
in the written notice from the Second Priority Representative is waived or (iii) an Insolvency
Proceeding is commenced

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by or against the Borrower; provided that the foregoing clause (iii) shall not prohibit the
filing of an involuntary proceeding under the Bankruptcy Code by a Second Priority Secured Party to
the extent otherwise permitted pursuant to Sections 3.01 and 3.07.

     “Second Priority Holders” means the “Holders” as defined in the Second Priority Agreement, or
any Persons that are designated under the Second Priority Agreement as the “Second Priority
Holders” for purposes of this Agreement.

     “Second Priority Lien” means any Lien created by the Second Priority Security Documents.

     “Second Priority Obligations” means (i) all principal of and interest (including without
limitation any Post-Petition Interest) and premium (if any) on all indebtedness under the Second
Priority Agreement, and (ii) all fees, expenses and other amounts payable from time to time
pursuant to the Second Priority Documents, in each case whether or not allowed or allowable in an
Insolvency Proceeding. To the extent any payment with respect to any Second Priority Obligation
(whether by or on behalf of any Loan Party, as proceeds of security, enforcement of any right of
setoff or otherwise) is declared to be a fraudulent conveyance or a preference in any respect, set
aside or required to be paid to a debtor in possession, any First Priority Secured Party, receiver
or similar Person, then the obligation or part thereof originally intended to be satisfied shall,
for the purposes of this Agreement and the rights and obligations of the First Priority Secured
Parties and the Second Priority Secured Parties, be deemed to be reinstated and outstanding as if
such payment had not occurred.

     “Second Priority Representative” has the meaning set forth in the introductory paragraph
hereof.

     “Second Priority Secured Party” means the Second Priority Representative and any Second
Priority Holders.

     “Second Priority Security Documents” means the “Security Documents” as defined in the Second
Priority Agreement and any documents that are designated under the Second Priority Agreement as
“Second Priority Security Documents” for purposes of this Agreement.

     “Secured Parties” means the First Priority Secured Parties and the Second Priority Secured
Parties.

     “Unasserted Contingent Obligations” shall mean, at any time, First Priority Obligations for
taxes, costs, indemnifications, reimbursements, damages and other liabilities (excluding (i) the
principal of, and interest and premium (if any) on, and fees and expenses relating to, any First
Priority Obligation and (ii) contingent reimbursement obligations in respect of amounts that may be
drawn under outstanding letters of credit) in respect of which no assertion of liability (whether
oral or written) and no claim or demand for payment (whether oral or written) has been made (and,
in the case of First Priority Obligations for indemnification, no notice for indemnification has
been issued by the indemnitee) at such time.

     “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect from time to
time in the State of New York.

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     Section 1.02. Rules of Construction.

     Unless the context otherwise requires:

          (i) a term has the meaning assigned to it;

          (ii) an accounting term not otherwise defined has the meaning assigned to it, and
shall be construed, in accordance with GAAP;

          (iii) “or” is not exclusive;

          (iv) words in the singular include the plural, and in the plural include the
singular;

          (v) “will” shall be interpreted to express a command;

          (vi) the word “including” means “including without limitation”;

          (vii) any reference to any Person shall be construed to include such Person’s
successors and permitted assigns; and

      (viii) for purposes of computation of periods of time hereunder, the word “from”
means “from and including” and the words “to” and “until” each mean “to but excluding.”

ARTICLE 2

Lien Priorities

     Section 2.01. Subordination of Liens. (a) Any and all Liens now existing or hereafter
created or arising in favor of any Second Priority Secured Party securing the Second Priority
Obligations, regardless of how acquired, whether by grant, statute, operation of law, subrogation
or otherwise are expressly junior in priority, operation and effect to any and all Liens now
existing or hereafter created or arising in favor of the First Priority Secured Parties securing
the First Priority Obligations, notwithstanding (i) anything to the contrary contained in any
agreement or filing to which any Second Priority Secured Party may now or hereafter be a party, and
regardless of the time, order or method of grant, attachment, recording or perfection of any
financing statements or other security interests, assignments, pledges, deeds, mortgages and other
liens, charges or encumbrances or any defect or deficiency or alleged defect or deficiency in any
of the foregoing, (ii) any provision of the Uniform Commercial Code or any applicable law or any
First Priority Document or Second Priority Document or any other circumstance whatsoever and (iii)
the fact that any such Liens in favor of any First Priority Secured Party securing any of the First
Priority Obligations are (x) subordinated to any Lien securing any obligation of any Loan Party
other than the Second Priority Obligations or (y) otherwise subordinated, voided, avoided,
invalidated or lapsed.

     (b) No First Priority Secured Party or Second Priority Secured Party shall object to or
contest, or support any other Person in contesting or objecting to, in any proceeding (including
without limitation, any Insolvency Proceeding), the validity, extent, perfection, priority or
enforceability of any security interest in the Common Collateral

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granted to the other. Notwithstanding any failure by any First Priority Secured Party or
Second Priority Secured Party to perfect its security interests in the Common Collateral or any
avoidance, invalidation or subordination by any third party or court of competent jurisdiction of
the security interests in the Common Collateral granted to the First Priority Secured Parties or
the Second Priority Secured Parties, the priority and rights as between the First Priority Secured
Parties and the Second Priority Secured Parties with respect to the Common Collateral shall be as
set forth herein.

     Section 2.02. No Payment Subordination. The subordination of all Liens on the Common
Collateral securing the Second Priority Obligations to all Liens on the Common Collateral securing
any First Priority Obligations is with respect to only the priority of the Liens held by or on
behalf of the First Priority Secured Parties and shall not constitute a subordination of the Second
Priority Obligations to the First Priority Obligations. Except as provided in Sections 2.01, 4.01
and 5.05, nothing contained in this Agreement is intended to subordinate any debt claim by a Second
Priority Secured Party to a debt claim by a First Priority Secured Party. All debt claims of the
First Priority Secured Parties and Second Priority Secured Parties are intended to be pari passu.

     Section 2.03. Nature of First Priority Obligations. The Second Priority Representative on
behalf of itself and the other Second Priority Secured Parties acknowledges that a portion of the
First Priority Obligations are revolving in nature and that the amount thereof that may be
outstanding at any time or from time to time may be increased or reduced and subsequently
reborrowed, and that the terms of the First Priority Obligations may be modified, extended or
amended from time to time, and that the aggregate amount of the First Priority Obligations may be
increased, replaced or refinanced, in each event, without notice to or consent by the Second
Priority Secured Parties and without affecting the provisions hereof. The lien priorities provided
in Section 2.01 shall not be altered or otherwise affected by any such amendment, modification,
supplement, extension, repayment, reborrowing, increase, replacement, renewal, restatement or
refinancing of either the First Priority Obligations or the Second Priority Obligations, or any
portion thereof.

     Section 2.04. Agreements Regarding Actions to Perfect Liens. (a) The Second Priority
Representative on behalf of itself and the other Second Priority Secured Parties agrees that UCC-1
financing statements, patent, trademark or copyright filings or other filings or recordings filed
or recorded by or on behalf of the Second Priority Representative shall be in form reasonably
satisfactory to the First Priority Representative.

     (b) The Second Priority Representative agrees on behalf of itself and the other Second
Priority Secured Parties that all mortgages, deeds of trust, deeds and similar instruments
(collectively, “mortgages”) now or thereafter filed, or acquired by operation of law or by
assignment against real property in favor of or for the benefit of the Second Priority
Representative shall be in form reasonably satisfactory to the First Priority Representative and
shall contain the following notation: “The lien created by this mortgage on the property described
herein is junior and subordinate to the lien on such property created by any mortgage, deed of
trust or similar instrument now or hereafter granted to Bank of America, N.A., and its successors
and assigns, in such property, in accordance with the provisions of the Intercreditor Agreement
dated as of [      ], 2011 among Bank of America, N.A., as Collateral Agent; Deutsche Bank Trust
Company

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Americas, as Trustee and Collateral Agent; and MoneyGram Payment Systems Worldwide, Inc., as
amended from time to time.”

     (c) The First Priority Representative hereby acknowledges that, to the extent that it holds,
or a third party holds on its behalf, physical possession of or “control” (as defined in the
Uniform Commercial Code) over Common Collateral pursuant to the First Priority Documents, such
possession or control is also for the benefit of the Second Priority Representative and the other
Second Priority Secured Parties solely to the extent required to perfect their security interest in
such Common Collateral. Nothing in the preceding sentence shall be construed to impose any duty on
the First Priority Representative (or any third party acting on its behalf) with respect to such
Common Collateral or provide the Second Priority Representative or any other Second Priority
Secured Party with any rights with respect to such Common Collateral beyond those specified in this
Agreement and the Second Priority Security Documents, provided that subsequent to the occurrence of
the First Priority Obligations Payment Date, the First Priority Representative shall (x) deliver to
the Second Priority Representative, at the Borrower’s sole reasonable cost and expense, the Common
Collateral in its possession or control together with any necessary endorsements to the extent
required by the Second Priority Documents or (y) direct and deliver such Common Collateral as a
court of competent jurisdiction otherwise directs, and provided further that the provisions of this
Agreement are intended solely to govern the respective Lien priorities as between the First
Priority Secured Parties and the Second Priority Secured Parties and shall not impose on the First
Priority Secured Parties any obligations in respect of the disposition of any Common Collateral (or
any proceeds thereof) that would conflict with prior perfected Liens or any claims thereon in favor
of any other Person that is not a Secured Party.

     Section 2.05. Similar Liens and Agreements. The parties hereto agree that it is their
intention that the First Priority Collateral and the Second Priority Collateral shall be identical.
In furtherance of the foregoing, the parties hereto agree, subject to the other provisions of this
Agreement:

     (a) upon request by the First Priority Representative or the Second Priority Representative,
to cooperate in good faith (and to direct their counsel to cooperate in good faith) from time to
time in order to determine the specific items included in the First Priority Collateral and the
Second Priority Collateral and the steps taken to perfect their respective Liens and the identity
of the respective parties obligated under the First Priority Documents and the Second Priority
Documents; and

     (b) that the documents and agreements creating or evidencing the First Priority Collateral and
the Second Priority Collateral and guarantees for the First Priority Obligations and the Second
Priority Obligations shall be in all material respects the same forms of documents other than (i)
with respect to the first priority and the second priority nature of the security interests created
thereunder and (ii) as provided in Section 2.06.

     (c) So long as the First Priority Obligations Payment Date has not occurred, if any Second
Priority Secured Party shall acquire or hold any new Lien on any assets of any Loan Party securing
any Second Priority Obligation which assets are not also subject to the first-priority Lien of the
First Priority Representative under the First Priority Documents, then the Second Priority
Representative, will, without the need for any further consent of any other Second Priority Secured
Party, notwithstanding anything to

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the contrary in any other Second Priority Document, hold such Lien for the benefit of the
First Lien Representative. To the extent that the foregoing provisions are not complied with for
any reason, without limiting any other rights and remedies available to the First Priority Secured
Parties, the Second Priority Representative and the other Second Priority Secured Parties agree
that any amounts received by or distributed to any of them pursuant to or as a result of Liens
granted in contravention of this Section 2.05(c) shall be subject to Section 4.01.

     Section 2.06. Bailee for Perfection. (a) The First Priority Representative agrees to hold
that part of the Common Collateral that is in its possession or control (or in the possession or
control of its agents or bailees) to the extent that possession or control thereof is taken to
perfect a Lien thereon under the Uniform Commercial Code or other applicable law as collateral
agent for the First Priority Secured Parties and as bailee for the Second Priority Representative
(such bailment being intended, among other things, to satisfy the requirements of Sections
8-106(d)(3), 8-301(a)(2) and 9-313(c) of the Uniform Commercial Code) and any assignee solely for
the purpose of perfecting the security interest granted under the First Priority Documents and the
Second Priority Documents, respectively, subject to the terms and conditions of this Section 2.06.
Solely with respect to any deposit accounts under the control (within the meaning of Section 9-104
of the UCC) of the First Priority Representative, the First Priority Representative agrees to also
hold control over such deposit accounts as agent for the Second Priority Representative.

     (b) The First Priority Representative shall have no obligation whatsoever to the First
Priority Secured Parties, the Second Priority Representative or any Second Priority Secured Party
to ensure that the Common Collateral is genuine or owned by any of the Grantors or to preserve
rights or benefits of any Person except as expressly set forth in this Section 2.06. The duties or
responsibilities of the First Priority Representative under this Section 2.06 shall be limited
solely to holding the Common Collateral as agent and bailee in accordance with this Section 2.06
and delivering the Common Collateral upon a discharge of First Priority Obligations as provided in
paragraph (d) below.

     (c) The First Priority Representative acting pursuant to this Section 2.06 shall not have by
reason of the First Priority Security Documents, the Second Priority Security Documents, this
Agreement or any other document a fiduciary relationship in respect of the First Priority Secured
Parties, the Second Priority Representative or any Second Priority Secured Party.

     (d) Upon the discharge of First Priority Obligations under the First Priority Documents to
which the First Priority Representative is a party, the First Priority Representative shall
promptly deliver, at Borrower’s sole reasonable cost and expense, the remaining Common Collateral
(if any) in its possession or control together with any necessary endorsements, first, to the
Second Priority Representative to the extent Second Priority Obligations remain outstanding, and
second, to the Borrower to the extent no First Priority Obligations or Second Priority Obligations
remain outstanding (in each case, so as to allow such Person to obtain control of such Common
Collateral). Upon such discharge of First Priority Obligations, the First Priority Representative
further agrees to take all other action reasonably requested by the Second Priority Representative
in connection with the Second Priority Representative obtaining a first priority interest in the
Common Collateral or as a court of competent jurisdiction may otherwise direct.

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ARTICLE 3

Enforcement Rights

     Section 3.01. Exclusive Enforcement. (a) Until the First Priority Obligations Payment Date
has occurred, whether or not an Insolvency Proceeding has been commenced by or against any Loan
Party, the First Priority Secured Parties shall have the exclusive right to take and continue any
Enforcement Action with respect to the Common Collateral, without any consultation with or consent
of any Second Priority Secured Party. Upon the occurrence and during the continuance of a default
or an event of default under the First Priority Documents, the First Priority Representative and
the other First Priority Secured Parties may take and continue any Enforcement Action with respect
to the First Priority Obligations and the Common Collateral in such order and manner as they may
determine in their sole discretion subject only to any express limitation on taking such
Enforcement Action contained in the First Priority Documents. Except as specifically provided in
this Section 3.01 or 3.07 below, notwithstanding any rights or remedies available to a Second
Priority Secured Party under any of the Second Priority Security Documents, applicable law or
otherwise, no Second Priority Secured Party shall, directly or indirectly, take any Enforcement
Action; provided that, upon the occurrence and continuance of the Second Priority Enforcement Date
the Second Priority Secured Parties may take any Enforcement Action subject to the other terms of
this Agreement;

     (b) The First Priority Representative shall respond to all reasonable written requests from
the Second Priority Representative to provide written statements as to the status of any
Enforcement Action taken by the First Priority Representative. The Second Priority Representative
shall respond to all reasonable written requests from the First Priority Representative to provide
written statements as to the status of any Enforcement Action taken by the Second Priority
Representative. Notwithstanding the occurrence and continuance of the Second Priority Enforcement
Date, in no event shall any Second Priority Secured Parties commence or continue any Enforcement
Action if an Insolvency Proceeding has been commenced by or against any Loan Party and is
continuing; provided that the foregoing shall not prohibit the filing of an involuntary proceeding
under the Bankruptcy Code by a Second Priority Secured Party to the extent otherwise permitted
pursuant to Sections 3.01 and 3.07;

     (c) The Second Priority Representative hereby acknowledges and agrees that the rights and
remedies of the First Priority Representative and First Priority Secured Parties under the First
Priority Documents are independent rights and remedies and that no covenant, agreement or
restriction contained in the Second Priority Security Documents or any other Second Priority
Document (other than this Agreement) shall be deemed to restrict the manner in which the First
Priority Representative and any of the First Priority Secured Parties exercise (or elect not to
exercise) such rights and remedies, it being understood that notwithstanding the foregoing, the
Second Priority Representative and the Second Priority Secured Parties shall, except as expressly
provided in this Agreement, have the right to enforce their rights and remedies under the Second
Priority Documents, and the First Priority Representative hereby acknowledges and agrees that the
rights and remedies of the Second Priority Representative and the Second Priority Secured Parties
under the Second Priority Documents are independent rights and remedies and that no covenant,
agreement or restriction contained in the First Priority Security Documents or the other First
Priority Documents (other than this Agreement) shall be deemed to restrict the manner in which the
Second Priority Representative and any of the Second Priority Secured Parties exercise (or elect
not to

11

 

exercise) such rights and remedies, it is understood that notwithstanding the foregoing, the
First Priority Representative and the First Priority Secured Parties shall have the right to
enforce their rights and remedies under the First Priority Documents.

     (d) Nothing in this Agreement shall be construed to in any way limit or impair the right of
any First Priority Secured Party or any Second Priority Secured Party to join (but not control) any
Enforcement Action initiated by any other person against the Common Collateral, so long as it does
not delay or interfere in any material respect with the exercise by such other person of its rights
as provided in this Agreement. The foregoing shall not be construed as limiting or otherwise
impairing the right of the First Priority Representative to control any Enforcement Action.

     Section 3.02. Standstill and Waivers. The Second Priority Representative, on behalf of
itself and the other Second Priority Secured Parties, agrees that, until the First Priority
Obligations Payment Date has occurred, subject to the proviso set forth in Section 5.01:

     (i) they will not take or cause to be taken any action, the purpose or effect of
which is to make any Lien in respect of any Second Priority Obligation pari passu
with or senior to, or to give any Second Priority Secured Party any preference or priority
relative to, the Liens with respect to the First Priority Obligations or the First
Priority Secured Parties with respect to any of the Common Collateral;

     (ii) subject to Section 4.02, they will not oppose, object to, interfere with, hinder
or delay, in any manner, whether by judicial proceedings (including without limitation the
filing of an Insolvency Proceeding) or otherwise, any foreclosure, sale, lease, exchange,
transfer or other disposition of the Common Collateral by the First Priority
Representative or any other First Priority Secured Party or any other Enforcement Action
taken by or on behalf of the First Priority Representative or any other First Priority
Secured Party;

     (iii) they have no right to (x) direct either the First Priority Representative or
any other First Priority Secured Party to exercise any right, remedy or power with respect
to the Common Collateral or pursuant to the First Priority Documents or (y) consent or
object to the exercise by the First Priority Representative or any other First Priority
Secured Party of any right, remedy or power with respect to the Common Collateral or
pursuant to the First Priority Documents or to the timing or manner in which any such
right is exercised or not exercised (or, to the extent they may have any such right
described in this clause (iii), whether as a junior lien creditor or otherwise, they
hereby irrevocably waive such right);

     (iv) they will not institute any suit or other proceeding or assert in any suit,
Insolvency Proceeding or other proceeding any claim against either First Priority
Representative or any other First Priority Secured Party seeking damages from or other
relief by way of specific performance, instructions or otherwise, with respect to, and
neither the First Priority Representative nor any other First Priority Secured Party shall
be liable for, any action taken or omitted to be taken by the First Priority
Representative or any other First Priority Secured Party with respect to the Common
Collateral or pursuant to the First Priority Documents;

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     (v) they will not make any judicial or nonjudicial claim or demand or commence any
judicial or nonjudicial proceedings against any Loan Party or any of its subsidiaries or
affiliates under or with respect to any Second Priority Security Document seeking payment
or damages from or other relief byway of specific performance, instructions or otherwise
under or with respect to any Second Priority Security Document except for Enforcement
Actions permitted hereby (other than filing a proof of claim) or exercise any right,
remedy or power under or with respect to, or otherwise take any action to enforce, other
than filing a proof of claim, any Second Priority Security Document;

     (vi) they will not commence judicial or nonjudicial foreclosure proceedings with
respect to, seek to have a trustee, receiver, liquidator or similar official appointed for
or over, attempt any action to take possession of any Common Collateral, exercise any
right, remedy or power with respect to, or otherwise take any action to enforce their
interest in or realize upon, the Common Collateral or pursuant to the Second Priority
Security Documents; and

     (vii) they will not seek, and hereby waive any right, to have the Common Collateral
or any part thereof marshaled upon any foreclosure or other disposition of the Common
Collateral.

     Section 3.03. Judgment Creditors. In the event that any Second Priority Secured Party
becomes a judgment lien creditor in respect of Common Collateral as a result of its enforcement of
its rights as an unsecured creditor, such judgment lien shall be subject to the terms of this
Agreement for all purposes (including in relation to the First Priority Liens and the First
Priority Obligations) to the same extent as all other Liens securing the Second Priority
Obligations(created pursuant to the Second Priority Security Documents) subject to this Agreement.

     Section 3.04. Cooperation. The Second Priority Representative, on behalf of itself and the
other Second Priority Secured Parties, agrees that each of them shall take such actions as the
First Priority Representative shall reasonably request in writing in connection with the exercise
by the First Priority Secured Parties of their rights set forth herein.

     Section 3.05. No Additional Rights for the Borrower Hereunder. Except as provided in Section
3.06, if any First Priority Secured Party or Second Priority Secured Party shall enforce its rights
or remedies in violation of the terms of this Agreement, the Borrower shall not be entitled to use
such violation as a defense to any action by any First Priority Secured Party or Second Priority
Secured Party, nor to assert such violation as a counterclaim or basis for set off or recoupment
against any First Priority Secured Party or Second Priority Secured Party.

     Section 3.06. Actions Upon Breach. (a) If any Second Priority Secured Party, contrary to
this Agreement, commences or participates in any action or proceeding against the Borrower or the
Common Collateral, the Borrower, only with the prior written consent of the First Priority Secured
Representative, may interpose as a defense or dilatory plea the making of this Agreement, and any
First Priority Secured Party may intervene and interpose such defense or plea in its or their name
or in the name of the Borrower.

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     (b) Should any Second Priority Secured Party, contrary to this Agreement, in any way take,
attempt to or threaten to take any action with respect to the Common Collateral (including, without
limitation, any attempt to realize upon or enforce any remedy with respect to this Agreement), or
fail to take any action required by this Agreement, any First Priority Secured Party (in its or
their own name or in the name of the Borrower) or the Borrower, only with the prior written consent
of the First Priority Representative, may obtain relief against such Second Priority Secured Party
by injunction, specific performance and/or other appropriate equitable relief, it being understood
and agreed by the Second Priority Representative on behalf of each Second Priority Secured Party
that (i) the First Priority Secured Parties’ damages from its actions may at that time be difficult
to ascertain and may be irreparable, and (ii) each Second Priority Secured Party waives any defense
that the Borrower and/or the First Priority Secured Parties cannot demonstrate damage and/or be
made whole by the awarding of damages.

     Section 3.07. Permitted Actions and Other Agreements. The Second Priority Representative
(acting at the written direction of the majority of Second Priority Holders) and/or the Second
Priority Secured Parties:

     (a) may, but shall not be obligated to, take any action as they deem necessary (subject to
Section 2.01), including to file any proof of claim or other filing or to make any argument or
motion, in order to create, perfect or preserve their Lien on all or any portion of the Common
Collateral;

     (b) shall be entitled to file any necessary responsive or defensive pleadings in opposition to
any motion, claim, adversary proceeding or other pleading made by any Person objecting to or
otherwise seeking the disallowance of the claims of the Second Priority Secured Parties, including
without limitation any claims secured by the Common Collateral, if any, in each case not in
contravention of the express provisions of this Agreement;

     (c) may purchase any Common Collateral at any private or judicial foreclosure sale of such
Common Collateral initiated by any Secured Party or at any Section 363 hearing (i) by an all cash
bid or (ii) by a credit bid pursuant to Section 363(k) of the Bankruptcy Code if, in addition to
such credit bid, such bid includes cash consideration payable to the First Priority Parties equal
to the First Priority Obligations;

     (d) shall be entitled to file a claim, proof of claim or statement of interest with respect to
the Second Priority Obligations in any Insolvency Proceeding; and

     (e) except as provided in Sections 3.01, 3.02, 5.01, 5.02, 5.05, 5.06 and 5.09, may exercise
rights and remedies as unsecured creditors against the Borrower and any other Loan Party, including
without limitation filing any pleadings, objection, motions or agreement which assert right or
interests of unsecured creditors, excluding, prior to the Second Priority Enforcement Date, the
right to file an involuntary proceeding under the Bankruptcy Code, and including the right to file
an involuntary proceeding under the Bankruptcy Code after the occurrence of the Second Priority
Enforcement Date (unless the Second Priority Enforcement Date is deemed not to have occurred
pursuant to the definition thereof).

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     Section 3.08. Option to Purchase.

     (a) The First Priority Representative agrees that it will use commercially reasonable efforts
to give the Second Priority Representative written notice (the “Enforcement Notice”) at least two
Business Days prior to commencing any Enforcement Action with respect to a material portion of the
Common Collateral following the acceleration of the First Priority Obligations. Any Second
Priority Secured Party constituting not less than the Required Holders(the “Purchasing Parties”)
shall have the option to purchase all, but not less than all, of the First Priority Obligations
from the First Priority Secured Parties following delivery of irrevocable written notice (the
“Purchase Notice”) by the Second Priority Representative on behalf of the Purchasing Parties to the
First Priority Representative no later than 25 Business Days after (i) commencement of any
Enforcement Action with respect to a material portion of the Common Collateral following the
acceleration of the First Priority Obligations or (ii) the commencement of an Insolvency Proceeding
by or against the Borrower. If the Second Priority Representative on behalf of the Purchasing
Parties so delivers the Purchase Notice, the First Priority Representative shall terminate any
existing Enforcement Actions and shall not take any further Enforcement Actions, provided, that the
Purchase (as defined below) shall have been consummated on the date specified in the Purchase
Notice in accordance with this Section 3.08.

     (b) On the date specified by the Second Priority Representative on behalf of the Purchasing
Parties in the Purchase Notice (which shall be a Business Day not less than five Business Days, nor
more than 20 Business Days, after receipt by the First Priority Representative of the Purchase
Notice), the First Priority Secured Parties shall, subject to any required approval of any court or
other governmental authority then in effect, sell to the Purchasing Parties, and the Purchasing
Parties shall purchase (the “Purchase”) from the First Priority Secured Parties, the First Priority
Obligations; provided, that the First Priority Obligations purchased shall not include any rights
of First Priority Secured Parties with respect to indemnification and other obligations of the Loan
Parties under the First Priority Documents that are expressly stated to survive the termination of
the First Priority Documents (the “Surviving Obligations”).

     (c) Without limiting the obligations of the Loan Parties under the First Priority Documents to
the First Priority Secured Parties with respect to the Surviving Obligations (which shall not be
transferred in connection with the Purchase), on the date of the Purchase, the Purchasing Parties
shall pay to the First Priority Secured Parties as the purchase price (the “Purchase Price”)
therefor the full amount of all First Priority Obligations then outstanding and unpaid (including
principal, interest, fees, premiums, breakage costs, attorneys’ fees and expenses), and, in the
case of any Hedging and Cash Management Obligations, the amount that would be payable by the
relevant Loan Party thereunder if it were to terminate the Hedging or Cash Management Obligation on
the date of the Purchase or, if not terminated, an amount determined by the relevant First Priority
Secured Party to be necessary to collateralize its credit risk arising out of such Hedging and Cash
Management Obligations, (i) furnish cash collateral (the “Cash Collateral”) to the First Priority
Secured Parties in such amounts as the relevant First Priority Secured Parties determine is
reasonably necessary to secure such First Priority Secured Parties in connection with any
outstanding letters of credit (not to exceed 105% of the aggregate undrawn face amount of such
letters of credit), (ii) agree to reimburse the First Priority Secured Parties for any loss, cost,
damage or expense (including attorneys’ fees and expenses) in connection with any fees, costs or
expenses related to

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any checks or other payments provisionally credited to the First Priority Obligations and/or
as to which the First Priority Secured Parties have not yet received final payment and (iii) agree,
after written request from the First Priority Representative, to reimburse the First Priority
Secured Parties in respect of indemnification obligations of the Loan Parties under the First
Priority Documents as to matters or circumstances known to the Purchasing Parties at the time of
the Purchase which could reasonably be expected to result in any loss, cost, damage or expense to
any of the First Priority Secured Parties, provided that, in no event shall any Purchasing Party
have any liability for such amounts in excess of proceeds of Common Collateral received by the
Purchasing Parties.

     (d) The Purchase Price and Cash Collateral shall be remitted by wire transfer in immediately
available funds to such account of the First Priority Representative as it shall designate to the
Purchasing Parties. The First Priority Representative shall, promptly following its receipt
thereof, distribute the amounts received by it in respect of the Purchase Price to the First
Priority Secured Parties in accordance with the First Priority Agreement. Interest shall be
calculated to but excluding the day on which the Purchase occurs if the amounts so paid by the
Purchasing Parties to the account designated by the First Priority Representative are received in
such account prior to 12:00 Noon, New York City time, and interest shall be calculated to and
including such day if the amounts so paid by the Purchasing Parties to the account designated by
the First Priority Representative are received in such account later than 12:00 Noon, New York City
time.

     (e) The Purchase shall be made without representation or warranty of any kind by the First
Priority Secured Parties as to the First Priority Obligations, the Common Collateral or otherwise
and without recourse to the First Priority Secured Parties, except that the First Priority Secured
Parties shall represent and warrant: (i) the amount of the First Priority Obligations being
purchased, (ii) that the First Priority Secured Parties own the First Priority Obligations free and
clear of any liens or encumbrances and (iii) that the First Priority Secured Parties have the right
to assign the First Priority Obligations and the assignment is duly authorized.

     Section 3.09. Obligations Following Discharge of First Priority Obligations. Following the
First Priority Obligations Payment Date, the First Priority Representative, on behalf of itself and
the First Priority Secured Parties, agrees that it will not take any action that would hinder any
exercise of remedies undertaken by the Second Priority Representative and the Second Priority
Secured Parties, or any of them, under the Second Priority Documents, including any public or
private sale, lease, exchange, transfer, or other disposition of the Common Collateral, whether by
foreclosure or otherwise. Following the First Priority Obligations Payment Date, the First
Priority Representative, on behalf of itself and the First Priority Secured Parties, hereby waives
any and all rights it may have as a lien creditor or otherwise to contest, protest, object to,
interfere with the manner in which the Second Priority Representative or any of the Second Priority
Secured Parties seeks to enforce the Liens in any portion of the Common Collateral (it being
understood and agreed that the terms of this Agreement shall govern with respect to the Common
Collateral even if any portion of the Liens securing the Second Priority Obligations are avoided,
disallowed, set aside or otherwise invalidated in any judicial proceeding or otherwise). If the
First Priority Obligations Payment Date has occurred, whether or not any Insolvency Proceeding has
been commenced by or against the Borrower or any other Loan Party, any Common Collateral or
proceeds thereof received by the First Priority Representative or any First Priority Secured
Parties in contravention

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of this Agreement shall be segregated and held in trust and forthwith paid over to the Second
Priority Representative for the benefit of the Second Priority Secured Parties in the same form as
received, with any necessary or reasonably requested endorsements or as a court of competent
jurisdiction may otherwise direct.

ARTICLE 4

Application of Proceeds of Common Collateral; Dispositions and Releases of

Common Collateral; Inspection and Insurance

     Section 4.01. Application of Proceeds; Turnover Provisions. All proceeds of Common
Collateral (including without limitation any interest earned thereon)resulting from the sale,
collection or other disposition of Common Collateral in connection with or resulting from any
Enforcement Action, and whether or not pursuant to an Insolvency Proceeding, shall be distributed
as follows: first to the First Priority Representative for application to the First Priority
Obligations in accordance with the terms of the First Priority Documents, until the First Priority
Obligations Payment Date has occurred and thereafter, to the Second Priority Representative for
application in accordance with the Second Priority Documents. Until the occurrence of the First
Priority Obligations Payment Date, any Common Collateral, including without limitation any such
Common Collateral constituting proceeds, that may be received by any Second Priority Secured Party
in violation of this Agreement shall be segregated and held in trust and promptly paid over to the
First Priority Representative, for the benefit of the First Priority Secured Parties, in the same
form as received, with any necessary endorsements, and each Second Priority Secured Party hereby
authorizes the First Priority Representative to make any such endorsements as agent for the Second
Priority Representative(which authorization, being coupled with an interest, is irrevocable).

     Section 4.02. Releases of Second Priority Lien. (a) Upon any release, sale or disposition
of Common Collateral that results in the release of the First Priority Lien on any Common
Collateral and (i) is permitted pursuant to the terms of the Second Priority Documents, (ii)
results from any Enforcement Action taken by the First Priority Secured Parties or (iii) occurs
pursuant to a sale under Section 363 of the Bankruptcy Code, the Second Priority Lien on such
Common Collateral (excluding any portion of the proceeds of such Common Collateral remaining after
the First Priority Obligations Payment Date occurs) shall be automatically and unconditionally
released with no further consent or action of any Person.

     (b) The Second Priority Representative shall promptly execute and deliver such release
documents and instruments and shall take such farther actions, at the expense of the Borrower, as
the First Priority Representative shall reasonably request in writing to evidence any release of
the Second Priority Lien described in paragraph (a). The Second Priority Representative hereby
appoints the First Priority Representative and any officer or duly authorized person of the First
Priority Representative, with full power of substitution, as its true and lawful attorney in fact
with full irrevocable power of attorney in the place and stead of the Second Priority
Representative and in the name of the Second Priority Representative or in the First Priority
Representative’s own name, from time to time, in the First Priority Representative’s sole
discretion, for the purposes of carrying out the terms of this paragraph, to take any and all
appropriate action and to execute and deliver any and all documents and instruments as may be
necessary or

17

 

desirable to accomplish the purposes of this paragraph, including, without limitation, any
financing statements, endorsements, assignments, releases or other documents or instruments of
transfer (which appointment, being coupled with an interest, is irrevocable).

     Section 4.03. Inspection Rights and Insurance. (a) Subject to Section 4.02 and any express
limitations contained in the First Priority Documents, any First Priority Secured Party and its
representatives and invitees may at any time inspect, repossess, remove and otherwise deal with the
Common Collateral, and the First Priority Representative may advertise and conduct public auctions
or private sales of the Common Collateral, in each case without notice to, the involvement of or
interference by any Second Priority Secured Party or liability to any Second Priority Secured
Party.

     (b) Until the First Priority Obligations Payment Date has occurred, the First Priority
Representative will have the sole and exclusive right (i) to adjust or settle any insurance policy
or claim covering the Common Collateral in the event of any loss thereunder and (ii) to approve any
award granted in any condemnation or similar proceeding affecting the Common Collateral.

ARTICLE 5

Insolvency Proceedings

     Section 5.01. Filing of Motions. Except as provided in Section 5.04, solely with respect to
seeking adequate protection, until the First Priority Obligations Payment Date has occurred, the
Second Priority Representative agrees on behalf of itself and the other Second Priority Secured
Parties that no Second Priority Secured Party shall, in or in connection with any Insolvency
Proceeding, file any pleadings or motions, take any position at any hearing or proceeding of any
nature, or otherwise take any action whatsoever, in each case in respect of any of the Common
Collateral, including, without limitation, with respect to the determination of any Liens or claims
held by the First Priority Representative (including the validity and enforceability thereof) or
any other First Priority Secured Party or the value of any claims of such parties under Section
506(a) of the Bankruptcy Code or otherwise; provided that the Second Priority Representative may
file a proof of claim in an Insolvency Proceeding, subject to the limitations contained in this
Agreement and only if consistent with the terms and the limitations on the Second Priority
Representative imposed hereby.

     Section 5.02. Financing Matters. If any Loan Party becomes subject to any Insolvency
Proceeding, and if the First Priority Representative or the First Priority Secured Parties desire
to consent (or not object) to the use of cash collateral under the Bankruptcy Code or to provide
financing to any Loan Party under the Bankruptcy Code (including, without limitation, financing
including a priming Lien under Section 364(d) of the Bankruptcy Code) or to consent (or not object)
to the provision of such financing to any Loan Party by any third party (“DIP Financing”), then the
Second Priority Representative agrees, on behalf of itself and the other Second Priority Secured
Parties, that each Second Priority Secured Party (i) will be deemed to have consented to, will
raise no objection to, nor support any other Person objecting to, the use of such cash collateral
or to such DIP Financing, (ii) will not request or accept adequate protection or any other relief
in connection with the use of such cash collateral or such DIP Financing

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except as set forth in paragraph 5.04 below, (iii) will subordinate (and will be deemed
hereunder to have subordinated) the Second Priority Liens (x) to such DIP Financing on the same
terms as the First Priority Liens are subordinated thereto(and such subordination will not alter in
any manner the terms of this Agreement), (y) to any adequate protection provided to the First
Priority Secured Parties and (z) to any “carve-out” agreed to by the First Priority Representative
or the First Priority Secured Parties, and (iv) agrees that notice received two (2) calendar days
prior to the entry of an order approving such usage of cash collateral or approving such financing
shall be adequate notice; provided, however that the Second Priority Second Parties may object to a
DIP Financing (i) on the basis that they are not receiving adequate protection permitted under
paragraph 5.04 below, (ii) to the extent the outstanding principal amount of the DIP Financing and
the principal amount of the other First Priority Obligations exceed the Maximum First Priority
Obligations Amount or (iii) if they do not retain a Lien on the Common Collateral or the proceeds
thereof at the same priority as existed prior to the commencement of such Insolvency Proceeding
subject to any priming Lien in such DIP Financing and the priority of the First Priority Liens
provided hereunder. No Second Priority Secured Party shall propose or support any third party who
proposes any DIP Financing without the express written consent of the First Priority
Representative, which consent may be withheld in the sole discretion of the First Priority
Representative.

     Section 5.03. Relief From the Automatic Stay. The Second Priority Representative agrees, on
behalf of itself and the other Second Priority Secured Parties, that none of them will seek relief
from the automatic stay or from any other stay in any Insolvency Proceeding or take any action in
derogation thereof, in each case in respect of any Common Collateral, without the prior written
consent of the First Priority Representative.

     Section 5.04. Adequate Protection. The Second Priority Representative, on behalf of itself
and the other Second Priority Secured Parties, agrees that none of them shall object, contest, or
support any other Person objecting to or contesting, (i) any request by the First Priority
Representative or the First Priority Secured Parties for adequate protection or (ii) any objection
by the First Priority Representative or any other First Priority Secured Parties to any motion,
relief, action or proceeding based on a claim of a lack of adequate protection or (iii) the payment
of interest, fees, expenses or other amounts to the First Priority Representative or any other
First Priority Secured Party under Section 506(b) or 506(c) of the Bankruptcy Code or otherwise.
Notwithstanding anything contained in this Section and in Section 5.02, in any Insolvency
Proceeding, (x) if the First Priority Secured Parties (or any subset thereof) are granted adequate
protection in the form of additional collateral or superpriority claims in connection with any DIP
Financing or use of cash collateral, and the First Priority Secured Parties do not object to the
adequate protection being provided to them, then the Second Priority Representative, on behalf of
itself and any of the Second Priority Secured Parties, may seek or accept adequate protection
solely in the form of (A) a replacement Lien on such additional collateral, subordinated to the
Liens securing the First Priority Obligations and such DIP Financing on the same basis as the other
Liens securing the Second Priority Obligations are so subordinated to the First Priority
Obligations under this Agreement, (B) accrual (but not current payment) of interest on the Second
Priority Secured Obligations, and (C) payment of reasonable professional fees and expenses of the
Second Priority Representative, and (y) in the event the Second Priority Representative, on behalf
of itself and the Second Priority Secured Parties, seeks or requests adequate protection and such
adequate protection is granted in the form of additional collateral, then the Second

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Priority Representative, on behalf of itself or any of the Second Priority Secured Parties,
agrees that the First Priority Representative shall also be granted a senior Lien on such
additional collateral as security for the First Priority Obligations and any such DIP Financing and
that any Lien on such additional collateral securing the Second Priority Obligations shall be
subordinated to the Liens on such collateral securing the First Priority Obligations and any such
DIP Financing (and all obligations relating thereto) and any other Liens granted to the First
Priority Secured Parties as adequate protection, with such subordination to be on the same terms
that the other Liens securing the Second Priority Obligations are subordinated to such First
Priority Obligations under this Agreement.

     Section 5.05. Avoidance Issues. If any First Priority Secured Party is required in any
Insolvency Proceeding or otherwise to disgorge, turn over or otherwise pay to the estate of any
Loan Party, because such amount was avoided or ordered to be paid or disgorged for any reason,
including without limitation because it was found to be a fraudulent or preferential transfer, any
amount (a “Recovery”), whether received as proceeds of security, enforcement of any right of
set-off or otherwise, then the First Priority Obligations shall be reinstated to the extent of such
Recovery and deemed to be outstanding as if such payment had not occurred and the First Priority
Obligations Payment Date shall be deemed not to have occurred. If this Agreement shall have been
terminated prior to such Recovery, this Agreement shall be reinstated in full force and effect, and
such prior termination shall not diminish, release, discharge, impair or otherwise affect the
obligations of the parties hereto. The Second Priority Secured Parties agree that none of them
shall be entitled to benefit from any avoidance action affecting or otherwise relating to any
distribution or allocation made in accordance with this Agreement, whether by preference or
otherwise, it being understood and agreed that the benefit of such avoidance action otherwise
allocable to them shall instead be allocated and turned over for application in accordance with the
priorities set forth in this Agreement.

     Section 5.06. Asset Dispositions in an Insolvency Proceeding. Neither the Second Priority
Representative nor any other Second Priority Secured Party shall, in an Insolvency Proceeding or
otherwise, oppose any sale or disposition of any assets of any Loan Party that is supported by the
First Priority Required Lenders, and the Second Priority Representative and each other Second
Priority Required Lenders will be deemed to have consented under Section 363 of the Bankruptcy Code
(and otherwise) to any sale supported by the First Priority Secured Parties and to have released
their Liens in such assets.

     Section 5.07. Separate Grants of Security and Separate Classification. Each Second Priority
Secured Party acknowledges and agrees that (i) the grants of Liens pursuant to the First Priority
Security Documents and the Second Priority Security Documents constitute two separate and distinct
grants of Liens and (ii) because of, among other things, their differing rights in the Common
Collateral, the Second Priority Obligations are fundamentally different from the First Priority
Obligations and must be separately classified in any plan of reorganization proposed or adopted in
an Insolvency Proceeding. To further effectuate the intent of the parties as provided in the
immediately preceding sentence, if it is held that the claims of the First Priority Secured Parties
and Second Priority Secured Parties in respect of the Common Collateral constitute only one secured
claim (rather than separate classes of senior and junior secured claims), then the Second Priority
Secured Parties hereby acknowledge and agree that all distributions shall

20

 

be made as if there were separate classes of senior and junior secured claims against the Loan
Parties in respect of the Common Collateral (with the effect being that, to the extent that the
aggregate value of the Common Collateral is sufficient (for this purpose ignoring all claims held
by the Second Priority Secured Parties), the First Priority Secured Parties shall be entitled to
receive, in addition to amounts distributed to them in respect of principal, pre-petition interest
and other claims, all amounts owing in respect of Post-Petition Interest before any distribution is
made in respect of the claims held by the Second Priority Secured Parties, with the Second Priority
Secured Parties hereby acknowledging and agreeing to turn over to the First Priority Secured
Parties amounts otherwise received or receivable by them to the extent necessary to effectuate the
intent of this sentence, even if such turnover has the effect of reducing the claim or recovery of
the Second Priority Secured Parties).

     Section 5.08. No Waivers of Rights of First Priority Secured Parties. Subject to Section
2.01(b), nothing contained herein shall prohibit or in any way limit the First Priority
Representative or any other First Priority Secured Party from objecting in any Insolvency
Proceeding or otherwise to any action taken by any Second Priority Secured Party, including the
seeking by any Second Priority Secured Party of adequate protection or the asserting by any Second
Priority Secured Party of any of its rights and remedies under the Second Priority Documents or
otherwise.

     Section 5.09. Plans of Reorganization. The Second Priority Secured Parties may propose, vote
on, file and prosecute, object to, and make other filings with regard to, any plan of
reorganization, unless such action would directly or indirectly result in a violation of this
Agreement, whether directly by any Second Priority Secured Party or as a result of confirmation of
such plan.

     Section 5.10. Other Matters. To the extent that the Second Priority Representative or any
Second Priority Secured Party has or acquires rights under Section 363 or Section 364 of the
Bankruptcy Code with respect to any of the Common Collateral, the Second Priority Representative
agrees, on behalf of itself and the other Second Priority Secured Parties not to assert any of such
rights without the prior written consent of the First Priority Representative; provided that if
requested in writing by the First Priority Representative, the Second Priority Representative shall
timely exercise such rights in the manner requested by the First Priority Representative, including
any rights to payments in respect of such rights.

     Section 5.11. Effectiveness in Insolvency Proceedings. This Agreement, which the parties
hereto expressly acknowledge is a “subordination agreement” under Section 510(a) of the Bankruptcy
Code, shall be effective before, during and after the commencement of an Insolvency Proceeding.
All references in this Agreement to any Loan Party shall include such Loan Party as a
debtor-in-possession and any receiver or trustee for such Loan Party in any Insolvency Proceeding.

ARTICLE 6

Second Priority Documents and First Priority Documents

     Section 6.01. Second Priority Documents and First Priority Documents. (a) Each Loan Party
and the Second Priority Representative, on behalf of itself and the

21

 

Second Priority Secured Parties, agrees that it shall not at anytime execute or deliver any
amendment or other modification to any of the Second Priority Documents inconsistent with or in
violation of this Agreement.

     (b) The First Priority Obligations may be amended, waived, increased, extended, renewed,
replaced, refinanced or secured with additional collateral (provided that both the First Priority
Liens and the Second Priority Liens shall attach to such additional collateral) without affecting
the lien priorities of the First Priority Liens and the Second Priority Liens, subject to the
covenants in the First Priority Documents and the Second Priority Documents; provided that no such
amendment, waiver, increase, extension, renewal, replacement or refinancing shall increase the
principal amount of the First Priority Obligations to an amount in excess of the Maximum First
Priority Obligations Amount.

     (c) Until the First Priority Obligations Payment Date has occurred, and notwithstanding
anything to the contrary contained in the Second Priority Documents, the Second Priority Secured
Parties shall not, without the prior written consent of the First Priority Representative, agree to
any amendment, restatement, modification, supplement, substitution, renewal or replacement of or to
any or all of the Second Priority Documents to (i) shorten the maturity of the Second Priority
Obligations to be sooner than 91 days following the scheduled maturity date of the First Priority
Obligations under the Existing First Priority Agreement or (ii) impose any amortization payments of
principal in respect of the Second Priority Obligations and/or add any additional mandatory
principal prepayments (or offers to prepay) the Second Priority Obligations, in each case, prior to
the scheduled maturity date of the First Priority Obligations under the Existing First Priority
Agreement.

ARTICLE 7

Reliance; Waivers; etc.

     Section 7.01. Reliance. The First Priority Documents are deemed to have been executed and
delivered, and all extensions of credit thereunder are deemed to have been made or incurred, in
reliance upon this Agreement. The Second Priority Representative, on behalf of itself and the
Second Priority Secured Parties, expressly waives all notice of the acceptance of and reliance on
this Agreement by the First Priority Secured Parties. The Second Priority Documents are deemed to
have been executed and delivered and all extensions of credit thereunder are deemed to have been
made or incurred, in reliance upon this Agreement. The First Priority Representative, on behalf of
itself and First Priority Secured Parties, expressly waives all notices of the acceptance of and
reliance by the Second Priority Representative and the Second Priority Secured Parties.

     Section 7.02. No Warranties or Liability. The Second Priority Representative and the First
Priority Representative acknowledge and agree that neither has made any express or implied
representation or warranty with respect to the execution, validity, legality, completeness,
collectibility or enforceability of any First Priority Document or any Second Priority Document.
Except as otherwise provided in this Agreement, the Second Priority Representative and the First
Priority Representative will be entitled to manage and supervise their respective extensions of
credit to any Loan Party in

22

 

accordance with law and their usual practices, modified from time to time as they deem
appropriate.

     Section 7.03. No Waivers. No right or benefit of any party hereunder shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of such party or any
other party hereto or by any noncompliance by any Loan Party with the terms and conditions of any
of the First Priority Documents or the Second Priority Documents.

ARTICLE 8

Obligations Unconditional

     Section 8.01. First Priority Obligations Unconditional. All rights of the First Priority
Representative hereunder, and all agreements and obligations of the Second Priority Representative,
the Borrower and the other Loan Parties (to the extent applicable) hereunder, shall remain in full
force and effect irrespective of:

     (i) any lack of validity or enforceability of any First Priority Document;

     (ii) any change in the time, place or manner of payment of, or in any other term of,
all or any portion of the First Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of any First Priority Document;

     (iii) prior to the First Priority Obligations Payment Date, any exchange, release,
voiding, avoidance or non-perfection of any security interest in any Common Collateral or
any other collateral, or any release, amendment, waiver or other modification, whether by
course of conduct or otherwise, or any refinancing, replacement, refunding or restatement
of all or any portion of the First Priority Obligations or any guarantee or guaranty
thereof; or

     (iv) prior to the First Priority Obligations Payment Date, any other circumstances
that otherwise might constitute a defense available to, or a discharge of, any Loan Party
in respect of the First Priority Obligations, or of any of the Second Priority
Representative, or any Loan Party, to the extent applicable, in respect of this Agreement.

     Section 8.02. Second Priority Obligations Unconditional. All rights and interests of the
Second Priority Representative under this Agreement, and all agreements and obligations of the
First Priority Representative, the Loan Parties, to the extent applicable, hereunder, shall remain
in full force and effect irrespective of:

     (i) any lack of validity or enforceability of any Second Priority Document;

     (ii) any change in the time, place or manner of payment of, or in any other term of,
all or any portion of the Second Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or

23

 

     otherwise, or any refinancing, replacement, refunding or restatement of any Second
Priority Document;

     (iii) any exchange, release, voiding, avoidance or non-perfection of any security
interest in any Common Collateral, or any release, amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of all or any portion of the Second Priority Obligations or any
guarantee or guaranty thereof; or

     (iv) any other circumstances that otherwise might constitute a defense available to,
or a discharge of, any Loan Party in respect of the Second Priority Obligations, or of any
of the First Priority Representative or any other Loan Party, to the extent applicable, in
respect of this Agreement.

ARTICLE 9

Miscellaneous

     Section 9.01. Conflicts. In the event of any conflict between the provisions of this
Agreement and the provisions of any First Priority Document or any Second Priority Document, the
provisions of this Agreement shall govern.

     Section 9.02. Continuing Nature of Provisions. This Agreement shall continue to be
effective, and shall not be revocable by any party hereto, until the First Priority Obligation
Payment Date shall have occurred. This is a continuing agreement and the First Priority Secured
Parties and the Second Priority Secured Parties may continue, at any time and without notice to the
other parties hereto, to extend credit and other financial accommodations, lend monies and provide
indebtedness to, or for the benefit of, the Borrower or any other Loan Party on the faith hereof.

     Section 9.03. Amendments; Waivers. No amendment or modification of any of the provisions of
this Agreement shall be effective unless the same shall be in writing and signed by the First
Priority Representative and the Second Priority Representative and, in the case of amendments or
modifications of Sections 3.05, 3.06, 3.08, 5.02, 5.04, 6.01, 9.03, 9.05 or 9.06 that directly
adversely affect the rights or duties of any Loan Party, such Loan Party.

     Section 9.04. Information Concerning Financial Condition of the Borrower and the Other Loan
Parties. Each of the Second Priority Representative and the First Priority Representative hereby
assume responsibility for keeping itself informed of the financial condition of the Borrower and
each of the other Loan Parties and all other circumstances bearing upon the risk of nonpayment of
the First Priority Obligations or the Second Priority Obligations. The Second Priority
Representative and the First Priority Representative hereby agree that no party shall have any duty
to advise any other party of information known to it regarding such condition or any such
circumstances. In the event the Second Priority Representative or the First Priority
Representative, in its sole discretion, undertakes at any time or from time to time to provide any
information to any other party to this Agreement, it shall be under no obligation (A) to provide
any such information to such other party or any other party on any subsequent occasion, (B) to

24

 

undertake any investigation not a part of its regular business routine, or (C) to disclose any
other information.

     Section 9.05. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK, EXCEPT AS OTHERWISE REQUIRED BY MANDATORY PROVISIONS
OF LAW AND EXCEPT TO THE EXTENT THAT REMEDIES PROVIDED BY THE LAWS OF ANY JURISDICTION OTHER THAN
THE STATE OF NEW YORK ARE GOVERNED BY THE LAWS OF SUCH JURISDICTION.

     Section 9.06. Submission to Jurisdiction; Waivers. (a) EACH PARTY HERETO HEREBY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT
COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL
CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK
STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES
THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN
OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

     (b) ALL PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT
THEY MAY LEGALLY AND EFFECTIVELY DO SO (X) ANY OBJECTION THEY MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IN
ANY COURT REFERRED TO IN PARAGRAPH (A) OF THIS SECTION AND (Y) THE DEFENSE OF AN INCONVENIENT FORUM
TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING.

     (c) EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
PROVIDED FOR NOTICES IN SECTION 9.07. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY
TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

     Section 9.07. Notices. Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and may be personally
served, telecopied, or sent by overnight express courier service or United States mail and shall be
deemed to have been given when delivered in person or by courier service, upon receipt of a
telecopy or five (5) days after deposit in the United States mail (certified, with postage prepaid
and properly addressed). For the purposes hereof, the addresses of the parties hereto (until
notice of a change thereof is delivered as provided in this Section) shall be as set forth below
each party’s name on the signature

25

 

pages hereof, or, as to each party, at such other address as may be designated by such party
in a written notice to all of the other parties.

     Section 9.08. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and each of the First Priority Secured Parties and Second
Priority Secured Parties and their respective successors and assigns, and nothing herein is
intended, or shall be construed to give, any other Person any right, remedy or claim under, to or
in respect of this Agreement or any Common Collateral. All references to any Loan Party shall
include any Loan Party as debtor-in-possession and any receiver or trustee for such Loan Party in
any Insolvency Proceeding.

     Section 9.09. Headings. Section headings used herein are for convenience of reference only,
are not part of this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

     Section 9.10. Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     Section 9.11. Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement. This Agreement shall
become effective when it shall have been executed by each party hereto.

     Section 9.12. Second Priority Representative Actions. Whenever reference is made in this
Agreement to any action by, consent, designation, specification, requirement or approval of,
notice, request or other communication from, or other direction given or action to be undertaken or
to be (or not to be) suffered or omitted by the Second Priority Representative or to any election,
decision, opinion, acceptance, use of judgment, expression of satisfaction or other exercise of
discretion, rights or remedies to be made (or not to be made) by the Second Priority
Representative, it is understood that in all cases the Second Priority Representative shall be
fully justified in failing or refusing to take any such action under this Agreement if it shall not
have received such advice or concurrence of the Required Holders, as it deems appropriate. This
provision is intended solely for the benefit of the Second Priority Representative and its
successors and permitted assigns and is not intended to and will not entitle the other parties
hereto to any defense, claim or counterclaim, or confer any rights or benefits on any party hereto,
or impose any obligation on the First Priority Representative or any of the other First Priority
Secured Parties to inquire as to the advice or concurrence of the Required Holders received by the
Second Priority Representative prior to relying on the authority of the Second Priority
Representative to take any action permitted hereunder.

     Section 9.13. USA Patriot Act. The Borrower acknowledges that in accordance with Section 326
of the USA Patriot Act, Deutsche Bank Trust Company Americas, like all financial institutions and
in order to help fight the funding of terrorism and money

26

 

laundering, is required to obtain, verify, and record information that identifies each person
or legal entity that establishes a relationship or opens an account. The Borrower agrees that it
will provide Deutsche Bank Trust Company Americas with such information as it may request in order
for Deutsche Bank Trust Company Americas to satisfy the requirements of the USA Patriot Act.

27

 

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	Bank of America, N.A., as First Priority

    Representative for and on behalf of the

    First Priority Secured Parties

 	 
	 	By:  	/s/ Adam Cady
 	 
	 	 	Name:  	Adam Cady	 
	 	 	Title:  	Managing Director 	 

	 	 	 	 	 
	 	

Address for Notices:

	 
	 	Attn:  Joan Mok
	 	Telecopy No.: 	415-503-5085  
	 
	 	

With a copy to:

	 
	 	Attn: Anthony Salvador
	 	Telecopy No.: 	415-249-5033  
	 

[Intercreditor Agreement Signature Page]

 

 

	 	 	 	 	 
	 	Deutsche Bank Trust Company Americas, 

as Second Priority Representative for and

on behalf of the Second Priority Secured Parties

 	 
	 	By:  	Deutsche Bank National Trust Company
 	 
	 	 	 
	 	By:  	/s/ David Contino
 	 
	 	 	Name:  	David Contino 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Chris Niesz
 	 
	 	 	Name:  	Chris Niesz 	 
	 	 	Title:  	Associate 	 
	 
	 	Address for Notices:

Deutsche Bank Trust Company Americas

   Trust & Securities Services

60 Wall Street, MS2710

New York, NY 10005

Attn: Deal Manager — Corporate Team

 	 
	 
	 	With a copy to:

Deutsche Bank Trust Company Americas

c/o Deutsche Bank Trust Company

    Trust & Securities Services

25 DeForest Avenue, MS SUM 01-0105

Summit, NJ 07901

Attn: Deal Manager — Corporate Team

 	 

[Intercreditor Agreement Signature Page]

 

 

	 	 	 	 	 
	 	MONEYGRAM PAYMENT SYSTEMS WORLDWIDE, INC.

 	 
	 	By:  	/s/ James E. Shields
 	 
	 	 	Name:  	James E. Shields 	 
	 	 	Title:  	Executive Vice President
and 

Chief Financial Officer 	 
	 

Signature Page to MoneyGram Intercreditor Agreementexv10w6

Exhibit 10.6

Execution Version

PATENT
SECURITY AGREEMENT

          This PATENT SECURITY AGREEMENT (this “Agreement”), dated as of May 18, 2011 is entered
into between MONEYGRAM INTERNATIONAL, INC., a Delaware corporation (“Grantor”), and BANK OF
AMERICA, N.A., as Collateral Agent for the benefit of the Secured Parties (the “Collateral
Agent”).

W I T N E S S E T H:

     WHEREAS, Grantor has entered into that certain Credit Agreement dated as of even date herewith
by and among MoneyGram International, Inc. (“Holdco”), the Borrower, the Administrative
Agent and the financial institutions so designated on the Commitment Schedule thereto (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”);

     WHEREAS, Grantor has entered into that certain Security Agreement of even date herewith (as
amended, restated, amended and restated, modified or supplemented from time to time, the
“Security Agreement”) with the Collateral Agent, for the benefit of the Secured Parties,
pursuant to which Grantor has granted to the Collateral Agent a security interest in substantially
all the assets of Grantor, including all right, title and interest of Grantor in, to and under all
now owned and hereafter acquired Patents, and all proceeds thereof, to secure the payment of the
Secured Obligations;

     WHEREAS, capitalized terms used but not defined herein are used in the manner provided in the
Security Agreement and the Credit Agreement, as applicable;

     WHEREAS, Grantor owns the registered and pending Patents listed on Schedule 1 annexed
hereto; and

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Grantor does hereby grant to the Collateral Agent, for the benefit of the
Secured Parties, a continuing security interest in all of Grantor’s right, title and interest in,
to and under the following (all of the following items or types of property being herein
collectively referred to as the “Patent Collateral”), whether presently existing or
hereafter created or acquired:

	 	(1)	 	each Patent, including without limitation, each registered and pending Patent
referred to in Schedule 1 annexed hereto, together with any reissues,
continuations or extensions thereof; and
	 
	 	(2)	 	all proceeds of the foregoing, including, without limitation, any claim by
Grantor against third parties for past, present or future infringement of any Patent,
including, without limitation, any registered and pending Patent referred to in
Schedule 1 annexed hereto.

 

 

     The security interests are granted in furtherance, and not in limitation, of the security
interests granted to the Collateral Agent, for the benefit of the Secured Parties, pursuant to the
Security Agreement. Grantor hereby acknowledges and affirms that the rights and remedies of
Collateral Agent with respect to the security interest in the Patent Collateral made and granted
hereby are more fully set forth in the Security Agreement, the terms and provisions of which are
incorporated by reference herein as if fully set forth herein. In the event of any conflict
between the terms of this Agreement and the Security Agreement, the terms of the Security Agreement
shall govern.

     This Agreement shall be construed in accordance with and governed by the laws of the State of
New York.

     Each Grantor hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New York, and any
appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law.

     Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter have to
the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement
in any court referred to in the foregoing paragraph. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

[Signature Page Follows]

2

 

     IN WITNESS WHEREOF, Grantor has caused this Patent Security Agreement to be duly executed by
its duly authorized officer thereunto as of the date first written above.

	 	 	 	 	 
	 	MONEYGRAM INTERNATIONAL, INC. 

 	 
	 	By:  	/s/ James E. Shields
 	 
	 	 	Name:  	James E. Shields 	 
	 	 	Title:  	Executive Vice President
and 

Chief Financial Officer 	 
	 

Acknowledged:

	 	 	 	 	 
	BANK OF AMERICA, N.A., as
Collateral  
Agent for the benefit of
the Secured Parties

 	 
	By:  	/s/ Adam Cady
 	 
	 	Name:  	Adam Cady 	 
	 	Title:  	Managing Director 	 

[Signature Page to Patent Security Agreement]

 

Schedule 1

PATENTS:

	 	 	 	 	 	 	 	 	 	 	 
	Title	 	Owner	 	Pat. No.	 	Issue Date	 	Country
	Method and
Apparatus for
Money Transfer

	 	MoneyGram International, Inc.
	 	 	7,461,776	 	 	12/9/2008
	 	USA
	 
	 	 	 	 	 	 	 	 	 	 
	Systems and
Methods for
Processing
Payments with
Payment Review
Features

	 	MoneyGram International, Inc.
	 	 	7,680,737	 	 	 3/16/2010
	 	USA
	 
	 	 	 	 	 	 	 	 	 	 
	Method and
Apparatus for
Money Transfer

	 	MoneyGram International, Inc.
	 	 	7,798,397	 	 	10/21/2010
	 	USA
	 
	 	 	 	 	 	 	 	 	 	 
	Method and
Apparatus for
Distribution of
Money Transfers

	 	MoneyGram International, Inc.
	 	 	7,878,393	 	 	 2/1/2011
	 	USA
	 
	 	 	 	 	 	 	 	 	 	 
	Method and
Apparatus for
Money Transfer

	 	MoneyGram International, Inc.
	 	 	7,258,268	 	 	8/21/2007
	 	USA

PATENT APPLICATIONS:

	 	 	 	 	 	 	 	 	 
	Patent Applications	 	Owner	 	App. No.	 	Filing Date	 	Country
	Method and Apparatus for WIC
Payment Processing

	 	MoneyGram
International Inc.
	 	11/741,286
	 	4/27/2007
	 	USA
	 
	 	 	 	 	 	 	 	 
	Consumer Database Loyalty
Program for a Money Transfer
System

	 	MoneyGram
International, Inc.
	 	11/846,323
	 	8/28/2007
	 	USA
	 
	 	 	 	 	 	 	 	 
	Global Compliance Processing
System

	 	MoneyGram
International, Inc.
	 	11/874,694
	 	10/18/2007
	 	USA
	 
	 	 	 	 	 	 	 	 
	Agent Portal

	 	MoneyGram
International, Inc.
	 	12/257,120
	 	10/23/08
	 	USA
	 
	 	 	 	 	 	 	 	 
	Due Date Based Fee System

	 	MoneyGram
International, Inc.
	 	12/191,112
	 	8/12/08
	 	USA
	 
	 	 	 	 	 	 	 	 
	Retail Sale Money Transfer
System

	 	MoneyGram
International, Inc.
	 	12/650,209
	 	12/30/09
	 	USA
	 
	 	 	 	 	 	 	 	 
	Virtual Traveler’s Check

	 	MoneyGram
International, Inc.
	 	12/716,355
	 	3/3/10
	 	USA
	 
	 	 	 	 	 	 	 	 
	Systems & Methods for
Processing Payments with
Payment Review Feature
(cont.)

	 	MoneyGram
International, Inc.
	 	12/722,152
	 	3/11/10
	 	USA
	 
	 	 	 	 	 	 	 	 
	Receive Fraud Prevention

	 	MoneyGram
International, Inc.
	 	12/849,543
	 	8/3/10
	 	USA
	 
	 	 	 	 	 	 	 	 
	Method and Apparatus for
Money Transfer (cont. of
CIP)

	 	MoneyGram
International, Inc.
	 	12/870,934
	 	8/10/10
	 	USA
	 
	 	 	 	 	 	 	 	 
	Method and Apparatus for
Distribution of Money
Transfers (cont.)

	 	MoneyGram
International, Inc.
	 	13/017,477
	 	1/31/11
	 	USA
	 
	 	 	 	 	 	 	 	 
	Sending Money to An
Institution for the Benefit
of a Receiver

	 	MoneyGram
International, Inc.
	 	12/028,688
	 	2/16/11
	 	USA
	 
	 	 	 	 	 	 	 	 
	Chargeback Decisioning System

	 	MoneyGram
International, Inc.
	 	12/264,533
	 	11/4/08
	 	USA

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