Document:

exv10w71

 

Exhibit
10.71

MONEY SERVICES AGREEMENT 1

	 	 	This Money Services Agreement (“Agreement”) is between Travelers Express Company, Inc.
(“Travelers Express”) and MoneyGram Payment Systems, Inc. (“MoneyGram”) (Travelers Express
and MoneyGram collectively, “Company”) and Wal-Mart Stores, Inc. (“Seller”), and shall
become effective on February 1, 2005 (the “Effective Date”). The terms of the Money
Transfer Addendum and Amendment dated November 2, 2001, as amended (the “Original
Agreement”), shall remain in full force and effect until February 1, 2005 at which time the
Original Agreement will terminate in its entirety.
	 
	 	 	The purpose of this Agreement is to authorize Seller to sell Company’s money orders and
money transfer services (the “Services”).
	 
	I.	 	APPOINTMENT. Company appoints Seller to sell the Services only as provided in this Agreement.
Seller accepts the appointment and agrees to provide the Services, in accordance with this
Agreement, at all locations of Seller doing business in the United States and Puerto Rico
while this Agreement is in effect, to the extent permissible by local law or regulations and
not in breach of Company’s pre-existing agreements with other sellers. If Seller acquires or
merges with another company, Seller shall have the option in its sole discretion to convert
acquired stores to selling Company money orders and providing the Money Transfer Services
pursuant to this Agreement. A list of the initial Locations is attached hereto as Schedule A
 — List of Locations. Seller agrees to keep Company informed from time to time of Seller’s
locations and their ownership and to amend Schedule A as appropriate for the addition or
deletion of Locations. Seller agrees to provide the Services during all hours of operation of
the Seller’s courtesy desk. So that the Company may direct transactions accordingly, Seller
agrees to notify Company of the standard hours of operation of Seller’s courtesy desk and in
the event of an emergency or other situation when Seller cannot provide the regular hours of
operation. Seller and Company agree that Seller shall provide the Services in all of the
Locations in which Company has provided Seller access to Company’s Money Order and Money
Transfer System (collectively, the “Systems”). Seller’s acceptance of any form of payment
other than cash is at Seller’s sole and exclusive risk.
	 
	 	 	Seller’s international locations that wish to offer the Services will be subject to
additional or modified terms and conditions, including pricing, which will be negotiated and
set forth in a mutually agreeable amendment to this Agreement.
	 
	II.	 	EXCLUSIVE AGREEMENT.

	 	a.	 	Except as otherwise provided in this Agreement, Seller agrees that in its
Locations, it will sell only Company’s money orders and that it will not provide any
money transfer service similar to the Money Transfer Services whether directly,
indirectly or through a vendor or a self-service or automated method or kiosk, except
pursuant to this Agreement, or an amendment hereto.
	 
	 	b.	 	With regard to money orders, except as otherwise provided in this Agreement,
Seller specifically agrees not to sell money orders for First Data Corporation, Western
Union or any other money order company. This provision shall not apply to in-location
banks or to existing agreements pursuant to which Seller leases space in the Locations
to third parties.
	 
	 	c.	 	[*]

 

			
	1	 	The appearance of [*] denotes confidential information
that has been omitted from this Exhibit and filed separately with the SEC
pursuant to a confidential treatment request under rule 24b-2 of The Securities
Exchange Act of 1934, as amended.

 

 

	 	d.	 	Test of Alternative Technology. [*] provided that it gives Company a right of
first refusal for providing such technologies that may be deemed by Company a competing
product or service, including a reasonable time to develop said technologies.
Company’s Money Order and Money Transfer Services will also be offered in the test
Locations during the test.

	III.	 	ASSIGNMENT. Neither party may assign this Agreement without the written consent of the other
party except to an entity, which controls, is controlled by or is under common control with
the assigning party. Neither party may create a sub-agency. Each party represents that
entering into this Agreement is not a breach of any other agreement.
	 
	IV.	 	SUPPLIES, EQUIPMENT AND COMPANY’S SYSTEMS.

	 	a.	 	Forms. Company will provide Seller during the term of this Agreement, without
charge, with money order and money transfer forms necessary for Seller to provide the
Services. Seller shall be responsible for ordering from Company such forms and
supplies as needed.
	 
	 	b.	 	Company’s Systems. Company shall supply Seller with equipment, hardware and
software (“Company’s Systems”) necessary for Seller to provide the Services at each of
Seller’s Locations. Such equipment may include a personal computer, proprietary
software (including but not limited to Company’s DeltaWorks! Software), Company’s DT3
equipment, or other equipment, hardware or software provided by Company, all of which
shall be deemed part of Company’s Systems. Company grants to Seller a non-exclusive
license to use Company’s Systems, for the term of this Agreement. Seller shall not
remove any part of Company’s Systems from the original installation Location without
first providing notice to Company. Seller agrees that it will not modify, decompile or
reverse engineer any part of Company’s Systems without Company’s consent. Seller is
responsible for any damage, theft or loss to any part of Company’s System in Seller’s
possession or control, to the extent caused by employees of Seller, except for normal
wear and tear. Seller will notify Company if any of Company’s equipment is not working
properly. Upon termination of this Agreement, Seller shall return all parts of
Company’s System in Seller’s possession or control, at Company’s expense. If Seller
fails to return any portion thereof upon termination of this Agreement, Seller shall
pay Company $1000 per Location, representing the replacement cost of such Equipment at
each Location. Company will be responsible for equipment returned by Seller from the
time of shipment if Seller follows Company’s instructions and properly packs and ships
the equipment.
	 
	 	c.	 	Maintenance and Upgrades. Company agrees to maintain equipment provided by Company to
Seller as part of Company’s system, at Company’s own expense, including all upgrades
necessary to accommodate changes that Company may make to the System. Company agrees
that where possible, Company will notify Seller within 24 hours if it determines that
maintenance is required on Seller’s equipment, such equipment is not functioning, or if
the Money Transfer System network is not working properly. Company agrees to provide
upgrades to the System as deemed necessary by Company from time to time, and as they
become generally available to Company’s network. Company agrees that it will pay the
cost of any enhancements or upgrades to the System necessary to accommodate changes
that Company may make that were not initiated at the request of Seller or to
accommodate Seller’s requirements. Seller shall provide all upgrades necessary to
accommodate changes made at the request of Seller, or to accommodate Seller’s
requirements. Company will provide customer service for consumers through Company’s
call centers.

 

			
	[*]	 	Please refer to footnote on page 1.

2

 

	 	d.	 	Telecommunication. Company at its expense will provide and maintain a
dedicated telephone line or Ethernet connection between Seller’s network and Company.

	V.	 	DEVELOPING TECHNOLOGY. Other than as otherwise stated in this Agreement, any development of
future technology (including hardware and/or software) on which the Money Order Services or
Money Transfer Services may be provided, and any related expenses, such as connections or
telecommunications, shall be negotiated in good faith and mutually agreed between the parties.
In the event that the parties agree on such technology development, the terms of the
development and provision of the Services (including pricing of the Services on the modified
technology) shall be documented in a future amendment to this Agreement.
	 
	VI.	 	INDEMNIFICATION. Each party is responsible for, and agrees to
indemnify the other against any and all losses, damages and
expenses, (including reasonable attorneys’ fees) which such other
party may sustain or incur attributable to any act or failure to act
(whether negligent, dishonest, or otherwise) by the party or the
party’s employee (whether or not acting within the scope of
employment) in any way related to this Agreement except to the
extent caused by any act or failure to act (whether negligent,
dishonest or otherwise) by such other party or such other party’s
employee (whether or not acting within the scope of employment.)

	 
	VII.	 	
SECURITY AGREEMENT. Seller grants to Company a security interest in
the money order materials, the proceeds of money order and money
transfer sales and the right to receive payment for money orders and
money transfers sold, and Seller’s rights under this Agreement.
Company has the rights of a secured creditor under the Uniform
Commercial Code solely with regard to the items listed above.
Company agrees not to take any action on its security interest
unless: i) Seller has been given prior written notice, ii) Seller’s
net worth falls below 5 billion dollars, and iii) Seller is in
default under this Agreement.

	 
	VIII.	 	
INTEREST. Any amount not paid to either party when due will bear
interest until paid at the annual rate of two percent above the
prime rate as that prime rate may be from day to day. As used in
this Agreement, “prime rate” means the prime rate published by The
Wall Street Journal for corporate loans by large U.S. money center
commercial banks. Interest will not exceed the amount or rate that
may lawfully be charged, and any amount contracted for, charged, or
taken in excess of the amount or rate allowed by law will be
credited to principal or refunded.

	 
	IX.	 	REMEDIES. All remedies are cumulative. Delay or failure to enforce a
right or pursue a remedy is not a waiver. The parties consent to
jurisdiction and venue in the United States District Court for the
District of Delaware, and in the courts of the state of Delaware.
	 
	X.	 	COMPLIANCE WITH LAW. Each party agrees to comply with all applicable laws and regulations,
including laws and regulations that prohibit money laundering. Seller agrees that it will
comply with local laws relating to money laundering compliance and other laws relating to its
business. Company agrees that it will comply with all federal and state and local laws
concerning money order licensing, regulation and money laundering compliance and will promptly
advise Seller of any such laws which affect or prohibit Seller’s activities pursuant to this
Agreement. The parties acknowledge that isolated incidents of non-compliance which do not
constitute a pattern of non-compliance, and which do not cause either party to incur any
material penalty or to be subject to any regulatory or civil enforcement action, will not be
considered a breach sufficient to give rise to a right of termination of this Agreement
pursuant to Section XIII, below.
	 
	XI.	 	NOTICES. Written notices may be sent by certified mail return receipt requested or delivered
in person and must be addressed as follows:

SELLER:

Wal Mart Stores, Inc.

702 S.W. 8th Street

Bentonville, AR 72716-8001

Attention: Senior Vice President, Wal-Mart Stores, Financial Services Division

3

 

COMPANY:

Travelers Express Company, Inc.

Attention: Contracts Administration

1550 Utica Avenue South

Minneapolis, MN 55416

	XII.	 	ENTIRE AGREEMENT. This Agreement, including any riders, exhibits, or addenda, is the entire
agreement between the parties relating to the subject of this Agreement. This Agreement can
be changed only by a writing signed by both parties. If any part of this Agreement is
invalid, it is severed from the rest of this Agreement, and the rest of this Agreement remains
in effect.
	 
	XIII.	 	TERM AND TERMINATION. This Agreement is effective on the Effective Date indicated above.

	 	a.	 	The initial term of this Agreement begins on the Effective Date and continues
through January 31, 2009, unless extended pursuant to the terms of paragraph e, below.
This Agreement will continue in one year terms thereafter unless terminated by either
party as provided in this Section XIII.
	 
	 	b.	 	This Agreement may be terminated by either party as of the end of the initial
term or at any time thereafter, by written notice given to the other party at least 180
days in advance of such termination. Either party may terminate this Agreement at any
time immediately upon giving written notice if the other party has materially breached
this Agreement and has failed to cure such breach within 30 days after written notice
is given by the other party specifying the breach. The 30 day cure period does not
apply to any failure by Seller to remit amounts owing to Company as agreed. Seller and
Company shall each have as long as 5 days in which to cure an unpaid remittance if due
to delays caused by Company, force majeure including but not limited to: strikes,
riots, labor disputes, war or civil disturbance; court order, acts of God, computer or
power failures (provided that Seller has commercially reasonable disaster recovery
plans in place to protect its business) or other causes outside its reasonable control.
Upon any termination, Seller will immediately remit in good funds all amounts then
owing to Company. Seller remains liable to Company until Seller has fulfilled all of
its obligations to Company.
	 
	 	c.	 	Hardship Termination. In the event that due to regulatory or government
prohibition that renders either party unable to continue to provide the Money Transfer
Services, such party may elect to terminate this Agreement as to the Money Transfer
Services only for hardship in accordance with the following provisions. Before
electing such a hardship termination, the party so electing shall provide the other
party with 180 days (or such shorter period if required by law) advance written notice
of its intention to terminate including the section of the law or regulations or
government action that gives rise to the prohibition. The non-terminating party shall
then have the right to either accept such notice of termination or object to the
termination. If the non-terminating party objects to the hardship termination then
such party shall provide written notice of its objection and rationale no later than 30
days after its receipt of the notice of termination. Upon objection by the
non-terminating party, the matter shall be submitted to dispute resolution pursuant to
the provisions of Section XVI hereof; provided, however, following a hardship
termination hereunder by Company, Seller may engage a third party to provide money
transfer services for the remainder of the current term of this Agreement.
	 
	 	d.	 	Termination for Material Adverse Change. In the event that, in the
commercially reasonable good faith judgment of Company, there has been a material
adverse change in Company’s business or network of representatives due in whole or in
substantial part to the provision of Money Transfer Services by Seller hereunder, then
Company shall have the right to terminate this Agreement as to the Money Transfer
Services only. Before electing such a termination, Company shall provide Seller with
180 days advance written notice of its intention to terminate including a description
of the material adverse change. Seller shall then have the right to accept such notice
of termination or object to the termination. If Seller objects to the termination,
then Seller shall provide written notice of its objection and rationale no later than
30 days after its receipt of the notice of termination. Upon objection by the Seller,
the matter shall be submitted to dispute resolution
pursuant to the provisions of Section XVI hereof; provided, however, following a
material adverse

4

 

	 	 	 	change termination hereunder by Company, Seller may engage a third
party to provide money transfer services for the remainder of the current term of this
Agreement.
	 
	 	 	 	Within 30 days after any termination in accordance with this Section XIII, the parties
shall conduct a final accounting to determine the final amounts due and owing between
them for transactions completed prior to the termination date. All such amounts shall
be paid immediately following such accounting. If the termination is for hardship or
material adverse change in accordance with this Section XIII, then no further damages or
other compensation shall be payable by either party. The provisions of this Agreement
regarding (i) the return of Company’s equipment and other property, including Seller’s
payment therefore, and (ii) each party’s indemnification rights under Section VI shall
remain in effect subsequent to the termination of this Agreement.
	 
	 	e.	 	Extension of Term. In addition to the Commissions specified herein, Seller
shall be entitled to an extension payment, as follows (“Extension Payment”):

	 	(i)	 	Extension Options - On or before the eve of each anniversary
of this Agreement (January 31 of each year during the initial term of this
Agreement) Seller shall have the option to extend the term of this Agreement
by one year (to January 31, 2010) or two years (to January 31, 2011). Seller
shall be entitled to an Extension Payment of an additional [*] of the
applicable Consumer Fee in extending the Agreement by one year (to January 31,
2010) or an additional [*] of the applicable Consumer Fee by extending the
Agreement by two years (to January 31, 2011). The Extension Payment would
apply to the applicable Consumer Fee beginning on the following February
1st, and continuing for the remaining term of this Agreement.

Unless otherwise agreed by both Seller and Company, in no event shall Seller be
entitled to exercise options to extend the term of this Agreement by more than
two additional years extending this Agreement beyond January 31, 2011, or be
entitled to extension payments increasing its base commission by more than [*].

	 	(ii)	 	Extension Notification - Seller will notify Company in
writing of intent to exercise one of the extension options described above on
or before the eve of the anniversary date (January 31 of each calendar year)
to allow for administrative execution of the additional applicable Performance
Bonus referenced in Money Transfer Section 6.b..

	XIV.	 	SIGNAGE/ADVERTISING/PROPRIETARY MATERIAL.
	 
	 	 	Seller shall be solely responsible for advertising and promoting Seller branded Services,
including providing all signage and shall pay all costs and expenses of such advertising.
Seller and Company understand that the decision to display signage at Seller Locations will
be made on a location by location basis. Seller will comply with Company branding
standards. Seller agrees to use its good faith efforts to promote the sale of the Services
according to a mutually agreed upon marketing plan, budget and schedule, both at the
corporate level as well as at the individual Locations.
	 
	 	 	Company shall be solely responsible for advertising and promoting the MoneyGram branded
Money Order, Money Transfer and Express Payment network generally, and shall pay all costs
and expenses of such advertising.
	 
	 	 	Company hereby grants to Seller and Seller hereby grants to Company, a limited,
non-exclusive, non-transferable, royalty-free license to use, solely for use in connection
with the Services during the term of this Agreement, the other party’s name, logo,
trademarks, service marks, related trade names and company names and other identifying marks
(collectively “Marks”). Each use of a party’s Marks hereunder by the other party shall be
subject to the prior written approval by such first party of the form, content and proposed
use of the materials in which the Marks are to be used.

 

			
	[*]	 	Please refer to footnote on page 1.

5

 

	 	 	Each party will use materials containing the other party’s Marks for the benefit of such
other party, and will immediately stop using such materials upon termination of this
Agreement. Each party will return the materials to the other party or destroy them, as
determined to be the most economical means by the party which is the owner of the Marks used
therein, within 14 business days of a request for return or destruction.
	 
	 	 	Company may use Seller’s name and Locations in any listing of Money Transfer Services
network locations, materials and medium, and Seller hereby approves such use.
	 
	XV.	 	CONFIDENTIALITY. The parties agree to keep confidential the terms and conditions of this
Agreement. Neither party will issue a press release except by agreement with the other party.
	 
	XVI.	 	DISPUTE RESOLUTION. The parties agree to resolve any disputes in accordance with the
following procedures:

	 	a.	 	If any controversy arises from or relates to this Agreement or the performance
or breach thereof (“Dispute”), the parties shall make an effort to negotiate a
resolution in accordance with this Section XVI. If either party declares that a
Dispute exists, the parties agree to use their best efforts and to attempt in good
faith to resolve the Dispute promptly by negotiations between the designated
representatives having authority to settle the Dispute. Either party may give the
other party written notice of any Dispute not resolved in the normal course of business
(“Notice of Dispute”). Within 30 days after receipt of the Notice of Dispute by the
receiving party, the receiving party shall submit to the other a written response which
shall include a statement of such party’s position. Within 90 days following receipt
of such Notice of Dispute the parties shall meet at a mutually acceptable time and
place and thereafter as often as they reasonably deem necessary, to attempt to resolve
the Dispute. All reasonable requests for information made by one party to the other
will be honored. In the event that these business-oriented negotiations are
unsuccessful in resolving a Dispute, the parties shall escalate the Dispute first to
the highest ranking officer of the party who shall have operational responsibility for
the Service and in turn to the Vice President and General Manager Global Funds Transfer
of MoneyGram and Senior Vice President Wal-Mart Stores, Financial Services Division
respectively as necessary in further attempt to resolve the Dispute.
	 
	 	b.	 	In the event a Dispute has not been resolved by negotiation, then the parties
agree that Delaware law shall apply.

	XVII.	 	TRAINING.

	 	a.	 	Seller agrees to use its good faith efforts to train its employees on Company’s
products and services, including compliance procedures. Seller may request assistance
from Company, at Seller’s expense.
	 
	 	b.	 	Seller will develop computer based learning (“CBL”) modules for the Money
Transfer Services, to be included with Seller’s other CBL training.

	XVIII.	 	DEFINITIONS. Except as otherwise set forth in the Agreement, the terms below shall be
defined as follows:
	 
	 	 	“Adjusted Company Consumer Fee” means the Company Consumer Fee, adjusted as provided in
Section 4 under Money Transfers.
	 
	 	 	“Company Consumer Fee” means the published consumer fee (exclusive of temporary price
promotions of less than 90 days duration) that Company directs its representatives (other
than Seller) to collect from each consumer sender for the Company’s Money Transfer Services
without regard to the MoneySaver value program or any other loyalty program.

6

 

	 	 	“Commissions” means amounts payable by Company to Seller as a commission on any Transfer
Send, Transfer Receive, or Express Payment transaction; each as further specified in Section
6 under Money Transfers.
	 
	 	 	“Company’s Money Order and Money Transfer System” means hardware, software and/or
specifications provided by Company to Seller to allow Seller to perform Money Order Services
and/or Money Transfer Services, including, but not limited to Company’s DT3 equipment,
DeltaWorks! software, MoneyWorks! software, Agent Connect specification or other proprietary
software, hardware, information or materials.
	 
	 	 	[*]
	 
	 	 	“Confidential Information” means Company’s confidential business or technical information,
including without limitation, terms and conditions of this Agreement, training materials,
transaction software, Identification Number, PIN, Company’s written policies and procedures
and all data regarding consumers which Seller obtains solely as a result of offering Money
Transfer Services.
	 
	 	 	“Contract Year” means each successive period of 12 months starting on February 1 of each
year, and ending on the day prior to the anniversary of that date.
	 
	 	 	“Corridor” means any Market pair designated by Company from time to time, made up of a
Market from which a transaction is sent and the Market in which the sending consumer
designates the transaction is to be received.
	 
	 	 	“Currency Exchange Spread” for any money transfer transaction shall be an amount computed as
follows: (a) The amount that would be paid out in local currency for the Transfer Amount
shall be computed at the average currency conversion rate offered by the applicable money
transfer company during the previous 30 days; (b) The amount that would be paid out in local
currency shall then be computed as though the Transfer Amount would be paid out in local
currency at a currency conversion rate equal to the average rate specified by Bloomberg
during the same 30-day period for the purchase of such local currency (“Bloomberg Rate”);
(c) The difference between the result obtained in (b) and the result obtained in (a) shall
be converted to U.S. dollars at the Bloomberg Rate and shall be considered the Currency
Exchange Spread.
	 
	 	 	“Designated Marketing Area” means a designated market area as defined by Nielsen Media
Research.
	 
	 	 	“ExpressPayment” means the Company’s emergency bill payment service pursuant to which
consumers may pay bills at Seller locations for same-day credit to billers with whom Company
has contracted.
	 
	 	 	“Good Reason” means any event outside the control of Company that increases the cost to
Company of processing money transfer transactions for a Corridor or Corridors as to which
Seller completed at least twenty percent (20%) of its Transfer Send transactions during the
previous twelve months. “Good Reason” includes but is not limited to: increases in the cost
of providing telecommunications services to receiving agents in the Corridor, increased or
new application of taxes, including withholding taxes, to money transfer transactions (other
than U.S. taxes imposed generally on corporate income), increased or different levels of
regulatory compliance applicable to the Corridor or the money transfer business generally,
heightened security or other measures required by law or regulation, war, riots, or natural
disaster.
	 
	 	 	“Location” means a retail store facility operated by Seller from which Money Transfer
Services and Money Orders are offered. The initial Locations are identified in the List of
Locations (Schedule A) attached hereto.

 

			
	[*]	 	Please refer to footnote on page 1.

7

 

	 	 	“Market” means an area designated by Company from time to time, which shall be a
Designated
Marketing Area or larger geographical area from which transactions are sent and a country in
which transactions are received.
	 
	 	 	“Money Order Services” means the money orders, supplies, reconciliation, and related
services provided by Company to Seller pursuant to this Agreement.
	 
	 	 	“Money Transfer Services” means the Transfer Send, Transfer Receive and ExpressPayment
transactional services offered by Company under the trade or service mark MoneyGram®,
“Wal-Mart International Money Transfer by MoneyGram” or any other name, trade name or
service mark Company and Seller may designate.
	 
	 	 	“MoneySaver” means the Company’s loyalty program that provides participating consumers with
better value based on the availability of additional information regarding the consumer and
his or her money transfer transaction history through participation in the program.
	 
	 	 	“Multi-Currency System” means a proprietary system developed by Company that enables Company
to set currency exchange rates among local currencies.
	 
	 	 	“Total Consumer Cost” as to transactions completed entirely in U.S. dollars, and
transactions in any Corridor where the Multi-Currency System is not in effect, means the
total consumer fee or charge (as adjusted by any applicable loyalty or similar program) for
the representative Transfer Amount but not including any Currency Exchange Spread. For any
Corridor as to which the Multi-Currency System is in effect, the Total Consumer Cost shall
include the total consumer fee or charge (as adjusted by any applicable loyalty or similar
program) for the representative Transfer Amount plus the Currency Exchange Spread. The
representative Transfer Amounts shall be $300 and $500 only.
	 
	 	 	“Transfer Amount” means the funds collected from a consumer for the purpose of being
transferred to a recipient, excluding all applicable Wal-Mart Consumer Fees.
	 
	 	 	“Transfer Receive” means the transactional segment of Money Transfer Services wherein Seller
receives a request to disburse funds in accordance with Money Transfer Section 6 of this
Agreement
	 
	 	 	“Transfer Send” means the transactional segment of Money Transfer Services wherein Seller
collects the Transfer Amount and Wal-Mart Consumer Fee from a consumer and initiates an
electronic request to the Company to disburse funds in accordance with Money Transfer
Section 5 of this Agreement.
	 
	 	 	“Wal-Mart Consumer Fee” means the fee, as established by Seller in
accordance with the terms of this Agreement, which Seller shall
charge each consumer sender for the Money Transfer Services.
	 
	XIX.	 	GENERAL PROVISIONS.
	 
	 	 	a. This Agreement may be signed in counterparts, but will not be effective until each party
has signed at least one copy of this Agreement. Each signed copy of this Agreement will be
an original of this Agreement, but all signed copies of this Agreement together will amount
to one and the same Agreement. The parties agree that copies of executed documents received
via facsimile will be deemed to be originals for all purposes.
	 
	 	 	b. As of February 1, 2005, this Agreement supercedes any and all agreements, either oral or
written, between the parties hereto with respect to the subject matter hereof (including the
Original Agreement between the parties) and contains all the covenants and agreements
between the parties with respect thereto. Notwithstanding the foregoing, any existing
agreement or obligation of the parties relating to confidentiality or non-disclosure of
information shall remain in effect.

8

 

MONEY ORDERS

     Company issues money orders, which are drafts drawn by Company on Company. Company is
liable under the law to pay the money orders when they are presented for payment and agrees
to do so unless Company has a legal defense. Seller does not acquire any right, title, or
interest in the money orders. All money orders remain the property of the Company.

	1.	 	SALES. Seller’s acceptance of any form of payment other than cash is at Seller’s sole and
exclusive risk, and Seller shall be liable to Company for the face amounts of all money orders
sold by Seller, regardless of whether Seller ultimately receives payment. Seller agrees to
imprint each money order with the amount. Seller will not issue a money order for more than
$1000.00 per item. In addition, until otherwise agreed, Seller shall have the right to
issue money orders payable to its vendors in face amounts up to but not exceeding
$9,999.99 per item. Seller is authorized to use money orders for its own or its
affiliates’ obligations for payments to store vendors, on an as-needed basis.
	 
	 	 	Seller agrees to suspend selling Company money orders immediately upon written notice from
Company of termination of this Agreement.
	 
	2.	 	COMPENSATION. As compensation for the Money Order Services, Seller agrees to make fee
payments to Company or Company agrees to make rebates to Seller as follows. The fee or rebate
will be recalculated after each calendar quarter based on the previous quarter’s volume. The
new fee/rebate will be effective on the first day of the following quarter. Should Seller be
eligible for a fee rebate based on the schedule below, the rebate will be paid within 30 days
after the end of the applicable calendar quarter.

	 	 	 
	Average Items/Store/Month	 	Fee or Rebate per Item
	Below [*]

	 	[*]
	[*]

	 	[*]
	[*]

	 	[*]
	[*]

	 	[*]
	[*]

	 	[*]
	[*] and above

	 	[*]
	 
	 	 
	Dispenser Fee: None
	 	 

	3.	 	CARE OF BLANK INSTRUMENTS. Seller agrees to use reasonable care to keep blank money orders
safe at all times and safeguard equipment and unissued money orders. Company will be
responsible for loss of blank money order forms only when all of the following conditions
occur:

	 	a.	 	Seller is not at fault, or negligent, or in breach of this Agreement;
	 
	 	b.	 	Seller has given the same protection to the blank money order forms that a
reasonably prudent person would give to his own cash; and
	 
	 	c.	 	Company receives notice, including the serial numbers of the missing blank
money orders, by telephone within 24 hours of the time that Seller learns (or should
have known) of such loss.

	4.	 	REQUESTS FOR STOP PAYMENTS. Seller has no legal right to stop payment of Company’s money
order. Seller may request that Company refuse payment of a money order sold by Seller. If
Company stops payment of a money order at Seller’s request, Seller agrees to indemnify Company
against claims of a holder and pay the reasonable expenses and attorneys’ fees to defend any
legal action that results.
	 
	5.	 	FINANCIAL RESPONSIBILITY. Each party agrees to maintain a sound financial condition. Company will
maintain funds sufficient to pay its money orders when they are presented for payment.

 

			
	[*]	 	Please refer to footnote on page 1.

9

 

	6.	 	REMITTANCES AND REPORTS. Seller agrees to remit to Company the amounts of all money orders
sold and fees as provided in this Agreement. Seller will remit the face amount and fees to
Company daily by bank wire for the previous day’s sales. Remittance will be made on Monday for
the previous Friday, Saturday and Sunday sales. Company to provide Seller with previous day’s
sales by 10:00 a.m.
	 
	 	 	When a remittance day falls on a bank holiday, Seller will remit on the banking day after the
holiday. Seller agrees to allow Company continuous access to the information in electronic
dispensers.
	 
	7.	 	REFUNDS TO PURCHASER; “Safe to Cash.” Seller may cash a money order for a customer (whether
or not the money order was issued by Seller) provided Seller takes the original money order
and deposits it in Seller’s account. Seller acts at its own risk if it cashes a money order
for a purchaser without depositing the money order, except to the extent caused by any act or
failure to act (whether negligent, dishonest, or otherwise) by Company or Company’s employee
(whether or not acting within the scope of employment.)
	 
	 	 	Company may, during the term of this Agreement, develop a system interface that would allow
Seller access to Company’s database in order to confirm the validity of a money order before
Seller cashes it (the “Safe to Cash Service”). If Company develops the Safe to Cash Service,
Company will make it available to Seller for a charge. If Seller uses the service according to
instructions, Company and not Seller will be liable for any money order that Seller cashes based
on information in the systems that the money order is valid and unpaid.

10

 

MONEY CENTER EXPRESS (MCX)

MONEY ORDER PILOT

     The parties intend to pilot a kiosk called the “Money Center Express” or “MCX,” in
connection with certain third parties, for the sale of incremental Company money orders.
The money orders sold through the MCX kiosk during the pilot are subject to the following
additional terms and conditions. In the event of a conflict between the terms contained in
this section and the terms contained in another part of this Agreement, the term contained
in this section shall be controlling with respect to money orders sold through the MCX
kiosk.

	1.	 	Term. The term of the MCX kiosk pilot shall be six months from the date of the first in
store installation. The pilot shall include 25 Locations, unless otherwise mutually agreed by
the parties. At the conclusion of the pilot, the parties will assess the results of the pilot
according to a list of agreed upon metrics. Incremental money order volume metrics measured
will exclude vendor payments. The parties shall negotiate in good faith regarding the MCX
kiosk program. The terms for any continuation or roll-out of the MCX program will be
documented in an addendum to this Agreement.
	 
	2.	 	Fees. As compensation for money orders sold via the MCX kiosk, Seller agrees to make fee
payments to Company of [*] per money order. The fees payable under this section will be
subject to a remittance schedule established by Company.
	 
	3.	 	Compliance. The parties agree to comply with all laws and regulations applicable to selling
Company money orders via the MCX kiosk, including compliance reporting. The parties will
develop and document a program to ensure such compliance, which shall be mutually agreeable to
both parties.

	4.	 	MCX Technology. Certain equipment and software provided by Company to Seller, including the
DT3 terminals and 2100 dispensers (the “MCX Equipment”) which will be provided by Company to
Seller to be incorporated into the MCX kiosk being developed by Seller’s subcontractor(s),
contain trade secrets and technology protected by patents. Neither Seller nor Seller’s
subcontractor shall obtain any rights to any DT3 or 2100 dispenser technology.
	 
	5.	 	Service Levels. The MCX Equipment will be covered by the MCX section in the Service Level
Agreement between the parties.
	 
	6.	 	Supplies. Company will provide Seller with supplies, including money order paper, printer
ribbons, and other supplies for Company equipment. The supplies will be delivered via a
delivery method selected by Company, to an address directed by Seller. Seller shall provide
reasonable notice to Company, in writing, of any change in the delivery address for the
specified MCX Equipment.
	 
	7.	 	Subcontractors. Either party may subcontract all or any part of its obligations with respect
to the MCX kiosk pilot. However, such party will fulfill and perform or cause its
subcontractor(s) to fulfill and perform all of the terms and every payment, covenant and
condition which the party is required to make or perform under this Agreement.

 

			
	[*]	 	Please refer to footnote on page 1.

11

 

MONEY TRANSFERS

     Company’s Money Transfer Services will be offered to Seller’s customers as the “Wal-Mart
International Money Transfer by MoneyGram” or any other name upon which the parties mutually
agree.

	1.	 	COMPANY’S INSTRUCTIONS. Seller agrees to follow Company’s instructions for the provision of
the Money Transfer Services. Company may change the instructions from time to time as long as
they remain reasonable and provided Seller is given reasonable prior written notice thereof.
	 
	2.	 	COMPETING SERVICES. [*] For purposes of this paragraph 2, the provision of money transfer
and/or money orders through a self-service or automated method or kiosk shall not be
considered an additional feature, but rather is a separate product not included as part of
this Agreement. An additional feature or service will be considered material only if it is
likely to result in a material increase in transaction volume for the Money Transfer Service
(e.g., a feature which would make a transaction easier for a consumer to execute or complete,
to a degree that it is likely to result in a material increase in transaction volume).
	 
	3.	 	MONEY TRANSFER PROCEDURES. The Identification Number (as defined below) and PIN (as defined
below) must be provided by Seller to the Company each time a Transfer Send or Transfer Receive
request is made. Identification Number means the unique and confidential Seller
identification number provided by Company to each Seller Location conducting Transfer Send and
Transfer Receive transactions. Personal Identification Number (“PIN”) means a second
confidential identification number provided by Company to each Seller conducting Transfer Send
and Transfer Receive transactions. The PIN will be changed if the security of either
identification number has been compromised. It is Seller’s obligation to ensure that its
Identification Number and PIN (collectively, the “Numbers”) are kept confidential. Seller
agrees to take all commercially reasonable precautions necessary to prevent disclosure of and
access to the Services by unauthorized persons and will notify Company immediately if Seller
knows or suspects that the Numbers have been disclosed. Company will, as soon as practicable,
issue new Numbers to Seller. Seller shall be liable for all use or misuse of its Numbers and
shall assist Company in investigating the circumstances of such misuse. Seller hereby
acknowledges that the Company will refuse to authorize transactions if the correct
Identification Number and PIN are not provided. Seller agrees that Company shall have the
right, at any time, to refuse any Transfer Send or Transfer Receive request. Company will not
refuse Transfer Send or Receive requests unreasonably.
	 
	4.	 	CONSUMER FEE PRICING; TRANSFER SEND AND EXPRESS PAYMENT TRANSACTIONS.

	 	a.	 	For each Transfer Send and Express Payment transaction, Seller shall collect from the
consumer the Transfer Amount and applicable Wal-Mart Consumer Fee (reduced, where
applicable, by the MoneySaver value program). Company will include the Wal-Mart Consumer
Fee schedules, which may be amended from time to time in accordance with the terms of this
Agreement, in Company’s System. [*] and no higher than Company Consumer Fee or Adjusted
Company Consumer Fee for a comparable transaction. Seller agrees to provide the Company
with at least 21 days advance notice of any changes in the Wal-Mart Consumer Fee, to allow
Company sufficient time to adjust its computer systems and provide for adequate
communication to the Company’s agent network.
	 
	 	b.	 	Seller shall offer the MoneySaver value program, which shall be applicable to the
Wal-Mart Consumer Fee at the same rate (as a percentage of Consumer Fee) offered by Company
to all MoneySaver cardholders. Company and Seller will mutually agree on any changes in
the MoneySaver value program relating to pricing for the Money Transfer Services.
	 
	 	c.	 	Seller will follow Company’s prescribed procedures in connection with currency exchange rates as
to international transactions. Seller understands and agrees that Company will not set the
currency exchange rate applicable to all currency conversions. For those Corridors where
Company does not set the rate, the local Company retail representative will determine the
currency exchange rate at the time of the Transfer Receive. Company will determine the
currency exchange rates for all Transfer

 

			
	[*]	 	Please refer to footnote on page 1.

12

 

	 	 	 	Sends from the United States to Mexico and from the United States to certain other countries
pursuant to its Multi-Currency System. Company will determine which currencies and
Corridors will be included in the Multi-Currency System from time to time.
	 
	 	d.	 	Company agrees that it will use best efforts to establish Total Consumer Costs that are
lower than the published Total Consumer Costs established by any money transfer service
competitor with a larger market share than Company, for comparable money transfer service
(exclusive of temporary price promotions of less than 90 days in duration.) [*]

	 	(i)	 	If Company decreases the Company Consumer Fee for any reason,
other than as set forth in section 4.d.(iii), below, then Company’s Consumer
Fee Schedule shall be automatically amended to include the new Company
Consumer Fees which shall also be the Adjusted Company Consumer Fees for
purposes of computing the Commissions hereunder. In addition, the Wal-Mart
Consumer Fee Schedules shall be amended accordingly, if necessary, effective
21 days after notice from Company, or at such earlier date as the parties may
mutually agree.
	 
	 	(ii)	 	If Company wishes to increase any Company Consumer Fee at any
time after the effective date of this Agreement, it will give Seller 21 days
advance written notice (or such lesser notice as the parties may mutually
agree) which shall include the reasons for the Company Consumer Fee increase.
If the Company Consumer Fee increase is for Good Reason, or if Seller does not
deliver written notice of its objection to Company within the 21 day period,
then Company’s Consumer Fee Schedule shall be automatically amended to include
the new Company Consumer Fees, which shall also be the Adjusted Company
Consumer Fees for purposes of computing the Commissions hereunder. If the
Company Consumer Fee increase is not for Good Reason and Seller objects to the
increase within the 21 day period, then for purposes of computing the
Commissions hereunder, the Company Consumer Fee in effect prior to the
increase shall be the Adjusted Company Consumer Fee.
	 
	 	(iii)	 	Notwithstanding anything to the contrary contained herein,
Company may engage in pricing promotions or pricing tests in specified
Designated Marketing Areas. Such temporary price promotions shall not be
deemed a decrease or increase to the Company Consumer Fee or Company Consumer
Fee Schedule for purposes of this section.
	 
	 	(iv)	 	If Company agrees to adjust its pricing according to a
request by Seller, (whether such request is for promotional, test or
permanently modified pricing), the Commission rate payable to Seller under
section 6, below, for transactions subject to the modified pricing may be
subject to renegotiation.

	 	e.	 	Seller shall not charge consumers additional fees of any kind or nature other than as
provided in this Agreement unless agreed to by Company.
	 
	 	f.	 	(i) Seller shall comply with all applicable laws and regulations with respect to the
collection of Wal-Mart Consumer Fees, as directed by Company. If Seller becomes aware of a
law or regulation which applies to a money transfer transaction, but which is or may be
contrary to any direction from Company, Seller shall comply with such law or regulation and
give Company notice of such compliance, directed to Company’s Law Department. Seller shall
be liable to Company for the Transfer Amount and Wal-Mart Consumer Fee related to any
Transfer Send initiated by Seller, regardless of whether Seller ultimately receives
payment. Seller is fully responsible and unconditionally liable for all Transfer Sends
initiated by individuals at the Locations, for giving Seller’s Identification Number and
PIN to the Company’s transaction center, and for all Transfer Sends which are verified by
Company, whether or not Seller gives its Identification Number and PIN. Seller and Company
will cooperate to develop and maintain mutually agreed upon programs intended to prevent
fraud.

(ii) Seller also agrees to take such actions as commercially reasonably requested by
Company to prevent fraudulent Transfer Send and/or Receive transactions. Actions requested
by Company include but are not limited to instructions in Company’s Money Transfer Services
agent guides, fraud and money laundering prevention guides (as updated from time to time)
fraud alert memos,

 

			
	[*]	 	Please refer to footnote on page 1.

13

 

	 	 	     correspondence and various other communications whether verbal or written, from Company to
Seller.
	 
	5.	 	TRANSFER RECEIVE TRANSACTIONS. Seller shall follow the computerized or telephonic
authorization procedures specified by Company prior to disbursement of the Transfer Amount.
Seller shall maintain the ability to disburse at least $900 in cash for each Transfer Receive.
If a Transfer Receive involves an amount which exceeds that amount or if the recipient
requests disbursement in a form other than cash, Seller will disburse the transfer amount by
issuing a money order to the recipient through use of the System. Seller shall deposit a
Money Order in the amount of each Transfer Receive transaction paid out in cash in order to
itself receive reimbursement for cash disbursed. Seller is fully responsible and
unconditionally liable for all amounts which Seller, pursuant to a Transfer Receive,
wrongfully disburses either to a person other than the intended recipient or as a result of
paying out an incorrect amount. Seller shall pay all such wrongful disbursement amounts to
Company upon demand, unless such wrongful disbursement was caused by Company or its employees.
	 
	6.	 	COMPENSATION.

	 	a.	 	Base Commission. Company and Seller agree that beginning on February 1, 2005,
Seller shall be entitled to Commissions on Money Transfer transactions (including
Transfer Sends, Transfer Receives and Express Payment transactions), in the amount of
[*] of the applicable Consumer Fee. Commissions payable to Seller on any new products
will be negotiated.

	 	b.	 	Performance Bonus. In addition to the above Commissions and Extension Payment,
Seller shall be entitled to a Performance Based Bonus, as follows (“Performance
Bonus”):

	 	 	 
	Number of Money Transfer transactions	 	Performance Based Bonus
	(per Contract Year)	 	(as a percentage of the applicable Consumer Fee)
	 
	[*]

	 	[*]
	[*]
	 	[*]
	[*] or more

	 	[*]

	 	 	For example, if Seller completes [*] transactions in a Contract Year, Company will
pay Seller the applicable Performance Bonus on all transactions in excess of [*] in
such Contract Year (e.g., [*] for transactions [*] — [*]; [*] for transactions
[*] — [*], etc.). For the following Contract Year, Company will continue to
pay Seller the same Performance Bonus Seller was entitled to as of the last day of the
preceding year. In the event, at the end of such following Contract Year, Seller’s
transaction volume for such year did not entitle Seller to the Performance Bonus paid by
Company, Seller will refund the Performance Bonus, or applicable portion thereof, to Company
within 30 days following the end of the Contract Year. Seller shall be entitled to a
Performance Bonus in the upcoming Contract Year based on the transaction volume tier reached
in the previous Contract Year.

	 	c.	 	Refunds and Hardship Transactions. No Wal-Mart Consumer Fee will be charged
and no Commissions or other compensation will be paid to Seller for processing refunds
or hardship transactions.

	7.	 	NET SETTLEMENT PROCEDURES. Settlement of funds will be on a daily basis. Amounts owed to
Company for the Transfer Amount(s) and Wal-Mart Consumer Fee(s) relating to Transfer Send and
Express Payment transactions initiated by Seller (“Company Amounts”) shall be totaled on a
daily basis and Seller shall transfer said amount into a banking account designated by Company
by bank wire transfer on the same day. Commissions due to Seller for Transfer Sends, Transfer
Receives and Express Payment transactions shall be calculated on a daily basis and Company
shall initiate the transfer of said amount into a banking account designated by Seller via ACH
on the day following the calculation of the applicable Commissions. Calculation of the daily
Commission shall be based on the Commission rates identified herein. Settlement for
transactions occurring on Friday, Saturday, Sunday, and any day as to which federally
chartered banks in the United States are not open for business shall be made on the following
business day for Company Amounts and on the second business day for Commissions.

 

			
	[*]	 	Please refer to footnote on page 1.

14

 

Company shall make settlement calculations pursuant to its accounting settlement procedures.
Unless either party objects, all settlement reports submitted by Company to Seller shall be
deemed accurate 90 days following the date of preparation.

Wal-Mart Stores, Inc.

SIGNATURE: /S/ Thomas M. Schoewe

PRINT NAME: Thomas M. Schoewe

TITLE: Executive Vice President & Chief Financial Officer

Accepted for Travelers Express Company, Inc. and MoneyGram Payment Systems, Inc.:

SIGNATURE: /S/ Anthony P. Ryan

PRINT NAME: Anthony P. Ryan

TITLE: VP/GM

Schedule A            List of Locations

Schedule B            Service Level Agreement

Schedule C            Agent Connect Addendum

15

 

Amendment 1

to

Money Services Agreement

RECITALS:

	A.	 	MoneyGram and Seller are parties to that certain Money Services Agreement effective February
1, 2005 (the “Agreement”) relating to the rendering of Money Order, Money Transfer and related
services.
	 
	B.	 	The parties wish to amend the Agreement to provide for additional services and to modify
certain terms and conditions of the Agreement, as set forth herein.

AGREEMENT:

In consideration of the following terms and conditions, the parties agree as follows:

I. Money Center Express (MCX)

	 	i.	 	Completion of pilot. The parties have completed the pilot phase of the MCX
project, and intend to roll-out kiosks called the “Money Center Express” (“MCX”) or
“Money Services Express” (“MSX”), in connection with certain third parties, for the
sale of incremental Company money orders.

     The term “MCX” will be used to represent both the MCX and MSX in this Amendment. All terms
and conditions in the Agreement which apply to the MCX shall also apply to the MSX. The money
orders sold through the MCX kiosk are subject to the following additional terms and conditions. In
the event of a conflict between the terms contained in this section and the terms contained in
another part of this Agreement, the term contained in this section shall be controlling with
respect to money orders sold through the MCX.

	 	ii.	 	Roll Out. Seller agrees to provide Company with 16 weeks notice of rollout of
MCX units. Once agreed, any modifications to the roll out schedule shall be mutually
agreed by the parties.
	 
	 	iii.	 	Fees. As compensation for money orders sold via the MCX kiosk, Seller agrees
to make fee payments to Company of [*] per money order for all money orders sold
through January 31, 2006. After January 31, 2006, the fees payable by or rebates
payable to Seller shall be determined pursuant to section II., below.
	 
	 	iv.	 	Non-MCX Money Order Sales. Seller shall maintain non-MCX money order sales at
Associate manned service counters in each Location at all times during this Agreement,
during all hours of operation of such service counters.
	 
	 	v.	 	Compliance. The parties agree to comply with all laws and regulations
applicable to selling Company money orders via the MCX kiosk, including compliance
reporting. The parties will develop and document a program to ensure such compliance,
which shall be mutually agreeable to both parties.
	 
	 	vi.	 	MCX Technology. Certain equipment and software provided by Company to Seller,
including but not limited to the terminals and dispensers (the “MCX Equipment”) which
will be provided by Company to Seller to be incorporated into the MCX kiosk being
developed by Seller’s subcontractor(s), contain trade secrets and technology protected
by patents. Neither Seller nor Seller’s subcontractor shall obtain any rights to any
terminal, dispenser or other equipment or technology provided by Company.
	 
	 	vii.	 	Service Levels. The MCX Equipment will be covered by the MCX section in the Service Level
Agreement between the parties.

 

			
	[*]	 	Please refer to footnote on page 1.

16

 

	 	viii.	 	Supplies. Company will provide Seller with supplies, including money order
paper, printer ribbons, and other supplies for Company equipment. The supplies will be
delivered via a delivery method selected by Company, to an address directed by Seller.
Seller shall provide reasonable notice to Company, in writing, of any change in the
delivery address for the specified MCX Equipment.
	 
	 	ix.	 	Subcontractors and Suppliers. Either party may subcontract all or any part of
its obligations with respect to the MCX kiosk. However, such party will fulfill and
perform or cause its subcontractor(s) to fulfill and perform all of the terms and every
payment, covenant and condition which the party is required to make or perform under
this Agreement. Neither party will involve any subcontractor or supplier in the MCX
kiosk project until the other party shall have negotiated an acceptable Confidentiality
Agreement with such subcontractor or supplier.

	II.	 	COMPENSATION AND FEES.

The following provisions shall amend the Money Services Agreement, as applicable, including
Section XIII., the terms and conditions stated in the “Money Orders” section, and shall further
apply to money orders sold via the Money Center Express (MCX).

	 	A.	 	MONEY ORDERS

i. Remittance Schedule. Fees and/or rebates payable pursuant to this section shall be
subject to the remittance schedule established in the Agreement, or such other remittance
schedule communicated in writing by Company to Seller.

ii. Blended Basis Tiering Options. The compensation schedule specified in section iii.,
below, shall apply to all money orders sold on or after February 1, 2006, whether at a
manned service counter or through an MCX kiosk. The fee or rebate will be recalculated
after each calendar quarter. Any rebate payable to Seller shall be paid within 30 days
after the end of the applicable calendar quarter. The schedule set forth in section iii.
shall amend and replace the terms in paragraph 2. (Compensation) of the Money Order section
of the Agreement.

iii. Money Order Fees. The rebate payable in the first quarter after the effective date of
this Amendment shall be [*]. Thereafter, the fee or rebate shall be recalculated as
specified by the table below and section ii., above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	** Money Orders: Customer Service Desk and MCX Money Order Product
	MCX	 	 	 	 
	Units	 	 	 	Average Items/Store/Month Fee or Rebate per Item for all Money Orders
	 	 	 	 	Below	 	 	 	 	 	 	 	 	 		 		 		 	 
	 	 	Transactions	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]
	[*]

	 	 	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	[*]

	 	 	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	[*]

	 	 	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	[*]

	 	 	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	[*]

	 	 	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]

F= Fee to Company; R= Rebate to Seller

 

			
	[*]	 	Please refer to footnote on page 1.

17

 

B. MONEY TRANSFERS

i. Additional Money Transfer Commission. Seller shall be entitled to an Extension Payment
of an additional [*] of the applicable Consumer Fee. The Extension Payment would apply to
Money Transfer transactions conducted by Seller beginning on February 1, 2006.

ii. Performance Bonuses. The Money Transfer Section of the Agreement, section 6b., is
hereby amended as follows:

In addition to the above Commissions and Extension Payment, Seller shall be entitled to a
Performance Based Bonus, as follows (“Performance Bonus”):

	 	 	 
	Number of Money Transfer transactions	 	Performance Based Bonus
	(per Contract Year)	 	(as a percentage of the applicable Consumer Fee)
	 
	[*]

	 	[*]
	[*]

	 	[*]
	[*]

	 	[*]
	[*]

	 	[*]
	[*]

	 	[*]

iii. Term. Section XIII. of the Money Services Agreement is amended such that the initial
term of the Agreement shall continue through January 31, 2010. This section is further
amended to modify Section XIII. e.(i), as follows:

     “(i) Extension Options — On or before the eve of each anniversary of this Agreement
(January 31 of each year during the initial term of this Agreement) Seller shall have the
option to extend the term of this Agreement by one additional year (to January 31, 2011).
Seller shall be entitled to an Extension Payment of an additional [*] of the applicable
Consumer Fee, beginning on the following February 1st, and continuing for the
remaining term of this Agreement.

If Seller does not give notice of its intent to terminate the Agreement by the end of the
initial term by written notice given on or before January 31, 2009, the Agreement will
automatically renew for an additional one year period (to January 31, 2011). However,
Seller shall not be entitled to the Extension Payment related to the Extension Option.”

     The terms of Section XIII.e.ii. shall remain in effect as originally stated.

III. Additional Products and Services. This Addendum shall modify the Money Services Agreement and
related attachments with respect to Money Orders and the Money Center Express (MCX) and Money
Services Express (MSX) programs. The terms and conditions applicable to Money Transfers or other
products or services shall not be modified by this Amendment.

 

			
	[*]	 	Please refer to footnote on page 1.

18

 

	 	 	 	 	 	 	 	 	 	 	 
	Wal-Mart Stores, Inc.	 	 	 	MoneyGram Payment Systems, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature: /S/ Jane J. Thompson
 

	 	 
	 	Signature: /S/ Anthony P. Ryan 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Print Name:

	 	Jane J. Thompson
	 	 	 	Print Name:
	 	Anthony P. Ryan	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title: President, Financial Services
 

	 	 	 	Title: President, GFT
 

	 	 

19

 

Amendment 2

to

Money Services Agreement

RECITALS:

	A.	 	MoneyGram Payment Systems, Inc., on its own behalf and as successor to Traveler’s Express
Company, Inc. (“MoneyGram”) and Wal-Mart Stores, Inc. (“Seller”) are parties to that certain
Money Services Agreement effective February 1, 2005 relating to the rendering of Money Order,
Money Transfer and related services, and as amended by Amendment 1 to Money Services Agreement
(as amended, the “Agreement”).
	 
	B.	 	The Agreement requires MoneyGram to pay all Money Orders and Money Transfers unless MoneyGram
has a legal defense to such payment.
	 
	C.	 	This Amendment to the Agreement regarding the treatment of proceeds of Money Orders is
necessary and appropriate to (i) be assured that MoneyGram is able to perform its obligations
incurred after the date hereof to pay its Money Orders when they are presented for payment,
and (ii) protect the interests of Seller’s customers and their payees.
	 
	D.	 	Accordingly, the parties wish to amend the Agreement to modify certain terms and conditions
of the Agreement, as set forth herein.

AGREEMENT:

	 	In consideration of the foregoing, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
	 
	 	I.	 	Effect of Amendment.
	 
	 	This Amendment Number 2 to Money Services Agreement shall amend the Agreement, as
applicable, including certain terms and conditions stated in the “Money Orders” section.
	 
	 	II.	 	Money Order Remittances.
	 
	 	Beginning on Monday, February 11, 2008 and until such time as Seller holds (for the benefit
of its customers and their payees) [*] in Money Order face amounts and fees, the Seller
shall withhold the proceeds of Money Orders to MoneyGram pursuant to Section 6 of the Money
Orders section of the Agreement based on the following schedule and in the following amounts
(the “Special Remit Program”):

	 	 	 
	February 11, 2008

	 	[*]
	 
	February 12, 2008

	 	[*]
	 
	February 13, 2008

	 	[*]
	 
	February 19, 2008

	 	[*]
	 
	February 20, 2008

	 	[*]
	 
	February 21, 2008

	 	[*]
	 
	February 25, 2008

	 	[*]
	 
	February 26, 2008

	 	[*]
	 
	February 27, 2008

	 	[*]

	 	 	Thereafter, and with respect to those Money Order sales made after Seller holds the [*]
referenced above, Seller shall resume remittance of Money Order face amounts and fees in
accordance with Section 6 of the Money Orders section of the Agreement, provided that at all
times Seller shall
continue to hold at least [*] pursuant to this Amendment until such time 

as [*]

 

			
	[*]	 	Please refer to footnote on page 1.

20

 

At any time following the execution of this Amendment Number 2, the Seller has the right to
terminate the Special Remit Program in its sole discretion.

III. Trust.

     Immediately after the execution of this Amendment Number 2, the Seller and MoneyGram
shall use commercially reasonable efforts to establish a Trust in order to maintain funds
for the purpose of ensuring payment of Money Orders when such Money Orders are present for
payment. MoneyGram and the Seller shall execute a Trust Agreement which contains the
terms and conditions outlined below, and commence funding such trust (the “Trust”). The
Trust Agreement shall be acceptable to Seller, and at a minimum shall contain the following:
(1) Seller shall collect the proceeds of sales of Money Orders on behalf of its customers;
(2) all amounts collected by Seller from the sales of Money Orders shall be deposited into
the Trust, subject to a [*] cap applicable for a limited period; (3) the principal of the
Trust would be held for the sole benefit of Seller’s customers who purchase Money Orders or
their payees (the “Beneficiaries”), with the income of the Trust belonging to MoneyGram; (4)
MoneyGram would be solely responsible for all Trust expenses; and (5) subject to limitations
designed to adequately protect the interests of the Beneficiaries, MoneyGram would have the
right to periodically request distributions from Trust principal, provided that it certifies
that it is not in default under and has fully satisfied its obligations under all Money
Orders requests. At any time following the execution of this Amendment Number 2, the Seller
has the right to terminate the Trust in its sole discretion. The Trust shall be structured
such that it will comply with all applicable legal and regulatory requirements, including
any requirements pertaining to remittances to a licensed entity.

IV. Representations and Warranties

     On the date hereof, and at all times during the term of the Agreement, MoneyGram hereby
represents and warrants that the execution, delivery and performance by MoneyGram of this
Agreement have been duly authorized by all necessary corporate action. MoneyGram shall use
best efforts to obtain any authorization, consent or approval by, or registration,
declaration or filing with, or notice to, any governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, or any third party (including any
bank), except such authorization, consent, approval, registration, declaration, filing or
notice as has been obtained, accomplished or given prior to the date hereof. MoneyGram
shall immediately notify Wal-Mart if it determines that this Amendment Number 2 or the Trust
to be established hereunder violates any provision of any law, rule or regulation or of any
order, writ, injunction or decree presently in effect having applicability to MoneyGram, and
will use its best efforts to resolve such violation at no cost to and in a manner reasonable
acceptable to Wal-Mart.

     MoneyGram hereby represents and warrants that the Special Remit Program does not result
in a breach of or constitute a default under any indenture or load or credit agreement or
any other material agreement, lease or instrument to which MoneyGram is a party or by which
it or its properties may be bound or affected. MoneyGram will notify the parties to its
credit agreement of the Special Remit Program, and will seek a waiver of any default or term
of such agreement(s), allowing the parties to establish the Trust described above, within
two (2) business days of the execution of this Amendment Number 2. If any third party
(including any bank) requires additional consideration to provide such waiver allowing the
parties to establish the Trust, any such consideration provided will be at no cost to
Wal-Mart. In the event that the Trust is not established for any reason, Wal-Mart at its
sole discretion shall have the right to terminate this Amendment, and exercise all rights
and remedies available to it.

     On the date hereof, and at all times during the term of the Agreement, the Seller
hereby represents and warrants that the execution, delivery and performance by the Seller of
this Agreement have been duly authorized by all necessary corporate action and do not and
will not (i) require any authorization, consent or approval by, or registration, declaration
or filing with, or notice to, any governmental department, commission, board, bureau, agency
or instrumentality, domestic or
foreign, or any third party (including any bank), except such authorization, consent,
approval, registration, declaration, filing or notice as has been obtained, accomplished or
given prior to the date hereof; (ii) violate any provision of any law, rule or regulation or
of any order, writ, injunction or decree

 

			
	[*]	 	Please refer to footnote on page 1.

21

 

presently in effect having applicability to the
Seller; or (iii) result in a breach of or constitute a default under any indenture or loan
or credit agreement or any other material agreement, lease or instrument to which the Seller
is a party or by which it or its properties may be bound or affected.

     MoneyGram and Seller agree to promptly provide any required notice to the parties
involved in the transaction for the recapitalization of MoneyGram International, Inc.

V. Money Order Fees.

During the Special Remit Program and prior to the establishment of the Trust, money order
fees payable by Seller to Company shall be paid as follows, effective February 11, 2008:

	 	 	 
	February 11, 2008

	 	[*]
	 
	February 12, 2008

	 	[*]
	 
	February 13, 2008

	 	[*]
	 
	February 19, 2008

	 	[*]
	 
	February 20, 2008

	 	[*]
	 
	February 21, 2008

	 	[*]
	 
	February 25, 2008

	 	[*]
	 
	February 26, 2008

	 	[*]
	 
	February 27, 2008

	 	[*]

	 	 	 	 	 	 	 	 	 	 	 
	Wal-Mart Stores, Inc.	 	 	 	MoneyGram Payment Systems, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:
/S/ Jeff Gearhart 

	 	 	 	Signature: /S/ Anthony P. Ryan
 

	 	 
	Print Name: Jeff Gearhart

	 	 	 	Print Name: Anthony P. Ryan
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title: Senior Vice President

	 	 	 	Title: EVP & COO
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated: February 11, 2008

	 	 	 	 	 	 	 	 

 

			
	[*]	 	Please refer to footnote on page 1.

22

 

Amendment 3

to

Money Services Agreement

     RECITALS:

	A.	 	MoneyGram Payment Systems, Inc. (“Company”) and Wal-Mart Stores, Inc. (“Seller”) are parties
to that certain Money Services Agreement effective February 1, 2005 relating to the rendering
of Money Order, Money Transfer and related services, and as amended by Amendments 1 and 2 to
Money Services Agreement (as amended, the “Agreement”).
	 
	B.	 	Company’s parent corporation, which indirectly owns one hundred percent (100%) of Company’s
issued and outstanding equity securities, MoneyGram International, Inc., (“MGI”) is
contemplating entering into a transaction with Thomas H. Lee Partners, L.P. and Goldman, Sachs
& Co., and/or their respective Affiliates, for receipt of capital and other funding (the
“Transaction”).
	 
	C.	 	The parties wish to amend the Agreement to modify certain terms and conditions of the
Agreement, as set forth herein.

AGREEMENT:

In consideration of the following terms and conditions, the parties agree as follows:

I. Effect of Amendment. This Amendment Number 3 to Money Services Agreement shall amend
the Agreement, as applicable, including Section XIII and the terms and conditions stated in the
“Money Orders” section and the “Money Transfers” section. Except as modified by this Amendment
Number 3 to Money Services Agreement, the terms and conditions of the Agreement remain in effect
and unchanged. The effective date of this Amendment Number 3 to Money Services Agreement is
February 11, 2008 (the “Effective Date”), subject to the conditions specified in Section VII,
below.

II. Additional Money Transfer Commission. Seller shall be entitled to an Extension Payment
of an additional [*] of the applicable Consumer Fee, making the Commissions rate [*] effective upon
the closing of the Transaction. Effective February 1, 2011, Seller shall be entitled to an
Extension Payment of an additional [*] of the applicable Consumer Fee, making the Commissions rate
[*]. Effective February 1, 2012, Seller shall be entitled to an Extension Payment of an additional
[*] of the applicable Consumer Fee, making the Commissions rate [*]. These Extension Payments
supersede and replace the Extension Option that had been available under the Agreement prior to
this Amendment 3 to Money Services Agreement. Thus, Section XIII e. of the Agreement and Section
6b. of the Money Transfers section of the Agreement are hereby deleted.

III. Co-operative Marketing Allowance. Company agrees to expend on behalf of Seller [*]
each Contract Year to be used for the promotion of Money Transfer Services and Money Order Services
at Seller Locations (the “Marketing Allowance”). The Marketing Allowance shall be used for
mutually agreeable promotions each Contract Year, provided that such agreement shall not be
unreasonably withheld or delayed. The parties agree that any of the Marketing Allowance that
remains unused at the end of any Contract Year will be spent in the first quarter of the subsequent
Contract Year, on mutually agreed signage to be installed in the Locations, marketing campaigns, or
promotions, except that in the case of the final Contract Year such funds may not be carried over.

To ensure that Company and Seller appropriately use and spend the amount designated for the
Marketing Allowance, Company and Seller agree to have their corporate marketing or other personnel
(as opposed to individuals from a specific Location) meet in person at least once per calendar
quarter to discuss the utilization of the Marketing Allowance. The time and place of such
quarterly meetings shall be as mutually agreed upon by Seller and Company.

IV. Creation of Trust. Company agrees to create and maintain a trust or similar entity,
which shall be satisfactory to the Seller in its sole discretion, to provide for payment of money
orders and money transfers

 

			
	[*]	 	Please refer to footnote on page 1.

23

 

sold at Seller’s Locations should Company fail to pay said money orders
and money transfers (the “Trust”).
Company and the Seller shall mutually agree to the payment mechanics of the Trust.

V. Term. Section XIII of the Agreement is amended such that the term of the Agreement
shall continue through January 31, 2013.

VI. Change in Control.

(a) If at any time from the Effective Date to January 31, 2010, there
is a Change of Control of the Company or MGI, Seller shall have the right, for a period of sixty (60) days following
such Change in Control, to terminate the Agreement upon 60 days prior notice to the Company.

(b) If at any time from February 1, 2010 to January 31, 2013, there
is a Special Entity Change in Control of the Company or MGI, Seller shall have the right for a period of sixty (60) days following
such Special Entity Change in Control to terminate the Agreement upon 60 days prior notice to the Company.

(c) Definitions. For purposes of this Amendment Number 3, the following terms shall have meaning
described herein.

“Affiliate” means, with respect to any Person, any other Person directly, or indirectly through one
or more intermediaries, controlling, controlled by or under common control with such Person. For
purposes of this definition, the term “control” (and correlative terms “controlling,” “controlled
by” and “under common control with”) means possession of the power, whether by contract, equity
ownership or otherwise, to direct the policies or management of a Person.

“Beneficially Own” and “Beneficial Ownership” are used herein as defined in Rules 13d-3 and 13d-5
of the Exchange Act, but without taking into account any contractual restrictions or limitations on
voting or other rights.

“Board of Directors” means the board of directors of MGI.

“Business Combination” means: (i) any reorganization, consolidation, merger, share exchange or
similar business combination transaction involving MGI with any Person and/or the Company with any
Person; or (ii) the sale, assignment, conveyance, transfer, lease or other disposition by the MGI
and/or Company of all or substantially all of its assets.

“Change in Control” means the happening of any of the following events:

(i) any Person (other than any Investor or any of its Affiliates) acquires Beneficial
Ownership, directly or indirectly, of 50% or more of the combined voting power of the
then-outstanding voting securities of MGI entitled to vote generally in the election of
directors (“Outstanding MGI Voting Stock”);

(ii) consummation of a Business Combination pursuant to which either (A) the Persons that
were the Beneficial Owners of the Outstanding MGI Voting Stock immediately prior to such
Business Combination Beneficially Own, directly or indirectly, less than 50% of the combined
voting power of the then-outstanding voting securities entitled to vote generally in the
election of directors (or equivalent) of the entity resulting from such Business Combination
(including, without limitation, a company that, as a result of such transaction, owns MGI or
all or substantially all of MGI’s assets either directly or through one or more
subsidiaries), or (B) any Person (other than any Investor or its Affiliates) Beneficially
Owns, directly or indirectly, 50% or more of the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election of directors
(or equivalent) of the entity resulting from such Business Combination; or

(iii) approval by the stockholders of MGI of a liquidation or dissolution of MGI.

“Initial Funding Date” means the Closing Date (as defined in the Purchase Agreement).

24

 

“Investor” shall have the meaning set forth in the Purchase Agreement.

“Person” means an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act).

“Purchase Agreement” means the Amended and Restated Purchase Agreement between Thomas H. Lee
Partners, L.P. and Goldman, Sachs & Co., and/or their respective Affiliates and MGI.

“Special Entity” means [*]

“Special Entity Change in Control” means a Change in Control by a Special Entity

VII. Conditions Precedent.  The obligations of both Seller and Company under this Amendment
Number 3 to Money Services Agreement are expressly subject to and conditioned upon: (a) the closing
of the Transaction without any material amendments to the Purchase Agreement thereto or any
transaction documents related thereto, in each case, that would result in the Transaction closing
regardless of a change in the Company’s financial condition that would be material and adverse to
Wal-Mart; and (b) MGI’s receipt of capital and other funding pursuant to the Transaction without
any reduction thereto except as reflected in the Purchase Agreement or any transaction documents
related thereto. The Transaction shall not constitute a Change in Control 

or [*].

	 	 	 	 	 
	Wal-Mart Stores, Inc.	 	 
	 
	 	 	 	 
	Signature: /S/ Jane J. Thompson
 

	 	 
	 
	 	 	 	 
	Print Name: Jane J. Thompson

	 	 
	 
	 	 	 	 
	Title: SVP and President of Financial Services

	 	 
	 
	 	 	 	 
	MoneyGram Payment Systems, Inc.	 	 
	 
	 	 	 	 
	Signature: /S/ Teresa H. Johnson
 

	 	 
	 
	 	 	 	 
	Print Name: Teresa H. Johnson

	 	 
	 
	 	 	 	 
	Title: EVP, General Counsel & Secretary

	 	 

 

			
	[*]	 	Please refer to footnote on page 1.

25

 

SERVICE LEVEL AGREEMENT

     This Service Level Agreement (“Agreement”) supplements and amends that certain Money
Services Agreement, effective February 1, 2005 by and between Travelers Express Company,
Inc., MoneyGram Payment Systems, Inc. and Wal-Mart Stores, Inc. (the “Money Services
Agreement”). Terms used in this Agreement but not otherwise defined herein shall have the
meanings provided by the Money Services Agreement.

     Whereas, the Money Services Agreement provides that the parties will use and install
the Company’s DeltaWorks! processing system to facilitate Seller’s performance of money
transfers through the Company’s money transfer network, and the sale and printing of money
orders through Company’s money order network; and

     Whereas, the parties wish to further clarify the components of Company’s computer
systems used to process money transfers and money orders and to provide for certain service
levels applicable to those systems; and

     Whereas, the parties wish to require Company to perform the Money Services Agreement in
conformance with these service level requirements.

     Now therefore, the parties agree that this Agreement supplements the Money Services
Agreement to add the following:

Article 1

1.1 The following defined terms shall be used in this Agreement.

1.2 Company Main Processing System. The Company Main Processing System shall mean and
include the following components:

	(a)	 	DeltaWorks: DeltaWorks means all software and the network connectivity from
Company to Seller, terminating at the Seller firewall, comprised of middleware and
operating system services, security and transaction routing capabilities.

	(b)	 	Money Order System: Money Order System means the application(s) processing all
money order transactions through the Company’s Tandem and mainframe computer systems,
but not including the mainframe computer hardware.

	(c)	 	Money Transfer System: Money Transfer System means the application(s)
processing all money transfer authorization transactions through Company’s mainframe
computer but not including the mainframe computer hardware.

1.3 DeltaWorks POS Devices: DeltaWorks POS Devices means the personal computers and
printers located in Seller’s store locations for use by Seller’s customer service associates
in providing the Services, which devices connect to the Seller’s network in order to process
transactions through DeltaWorks.

Article 2

2.1 Service Level Standards. Company agrees that it will meet or exceed the
following service level standards (“Service Level Standards”) in its performance of the
Services.

(a) Computer Systems Redundancy. The Company Main Processing System shall be
configured to load-balance all money transfer authorizations and money order processing
between two redundant DeltaWorks processing systems as described in this subsection. If one
DeltaWorks processing system has severed connectivity and does not respond to authorization
and processing requests, Company will automatically reroute all subsequent requests to the
other DeltaWorks processing system. Company will resume load balancing when its computer
systems detect restored connectivity. The Systems shall be configured to process through the
redundant network; provided

26

 

 however, that Company shall operate the Money Transfer System using a single IBM mainframe
computer.

(b) Computer Systems Availability. The Service will be available to Seller for the
processing of both Money Order Services and Money Transfer Services initiated through
Company’s DeltaWorks POS Devices at the Locations 99.9% of the Committed Time during each
calendar month. Availability shall be measured by dividing the aggregate time of
unscheduled outage periods for a given month by the total amount of Committed Time available
for that month, then multiplying by 100, and subtracting the result from 100.00%. An
Unscheduled Outage shall be considered the amount of time that the Company Main Processing
System (exclusive of individual Deltaworks POS Devices) is not responding to Seller’s
processing requests within a 20 second timeframe of the processing request being sent by
Seller. The following shall not be included in the measurement of Unscheduled Outage periods
but shall be considered in the measurement of Committed Time: Seller network or
telecommunications downtime, downtime at individual DeltaWorks POS Devices or other POS
devises, either at Seller or at individual agent or biller locations. As used in this
Agreement, (a)“Committed Time” shall mean 24 hours per day, 7 days per week, but excluding
the following periods of Scheduled Outage, and (b) “Scheduled Outage” shall mean (1) that
time period from 11 PM Saturday to 5:00 A.M Sunday Central Time each week during which the
Company’s Money Transfer System is unavailable due to routine maintenance; and (2) any time
period as to which Seller has consented to waive that down time as affecting availability.

2.2 Service Interruptions. Company will provide Seller with 48 hours advance notice
of any planned interruption, including the reasons, date(s), and anticipated times for the
outage. If Seller does not object to the planned interruption in writing within 24 hours
after receipt of notice, then Seller shall be deemed to have agreed to the planned outage as
specified in the notice, in which case such outage shall be considered a Scheduled Outage.
If Seller objects to the planned interruption, it shall state the reasons for such objection
and the parties shall work together in good faith to arrive at a mutually agreeable
solution. Seller will not unreasonably withhold or delay consent to any planned outage.

2.3 Evaluation and Reporting of Service Level Standards. Within 15 calendar days
after the end of each calendar month during the term of this Agreement, Company will provide
Seller with an accurate written and graphical evaluation of Company’s performance of each of
the Service Level Standards during the just concluded calendar month for each component of
the Company Main Processing System. For any month in which Company did not meet a Service
Level Standard, the written evaluation shall include a corrective action plan describing
root cause for the failure and steps being taken to-prevent the reoccurrence of such
failure.

2.4 Failure to Meet Service Level Standards. Company shall pay Seller the following
penalties in the event that Company fails to meet the Service Level Standards set forth
above or fails to accurately report those Service Levels to Seller within the allocated time
period. If Company fails to meet anyone of the Service Level Standards during a calendar
month or fails to accurately report those service level standards within the allocated time
period, then Company shall pay Seller a penalty equal to [*] received by Seller during the
previous quarter plus [*] percent. If Company fails to meet any two of the Service Level
Standards during a calendar month, Company shall pay Seller a penalty equal to [*] received
by Seller during the previous quarter plus [*] percent. If at any time Company fails to
meet the SAME Service Level Standard in any 3 consecutive calendar months as to the entire
Company Main Processing System, which results in a substantial impact to the Services,
Seller may terminate the Agreement upon 30 days written notice to Company. Any notice of
termination shall be given within 60 days following the event giving rise to the right to
terminate.

2.5 Monitors and Alerting. Company shall provide continuous monitoring of all
components of the Company Main Processing System to ensure Money Order Services and Money
Transfer Services capabilities. Company shall immediately investigate any reduction in
systems capacity or unavailability of systems at the Company Main Processing System (not
individual Deltaworks P~S Devices) and shall use its best efforts to report to Seller’s
Field Support within fifteen (15) minutes of discovery. Alerting shall be accomplished via
industry standard protocols and methods.

 

			
	[*]	 	Please refer to footnote on page 1.

27

 

2.6 Change Control Procedures. Company agrees to the following change control
procedures for any computer systems changes that Company reasonably believes have the
potential of affecting Seller’s
money order and money transfer services:

     (i) Any minor system changes must be communicated in writing to Seller at least one (1)
business day before they are implemented. Seller will use reasonable and best efforts to
review and respond to Company within one half day of change notification. The parties shall
work together in good faith to attain mutually agreeable systems change procedures.

     (ii) Any major changes must be communicated in writing to Wal-Mart at least five (5)
business days before they are implemented. Seller shall have the right to walk-through and
test the process with Company. Wal-Mart will use reasonable and best efforts to review and
respond to Company within two days of change notification. The parties shall work together
in good faith to attain mutually agreeable systems change procedures.

     (iii) Any emergency changes must be communicated via phone to Seller’s Global
Communications Services (GCS) at 479-277-2674, available 24 hours per day / 7 days per week.

     (iv) Company will provide one single point of contact in case of technical questions or
emergencies, and a backup contact, in case the primary is not available.

2.7 Support Services. Company shall use all best efforts to provide Wal-Mart with
the support services described in this Section.

     (i) Telephone Support. Seller will receive unlimited 7 day by 24 hour (7 x 24)
telephone and / or pager support for the purposes of problem identification and corrections
and assistance from Company for all software, hardware, procedural, operational and
networking services associated with Company’s DeltaWorks.

     (ii) Voice Transactions. Company will provide Seller, on a monthly basis, with
a report regarding the number of Seller’s voice transactions and the number of Seller’s
automated transactions for the previous calendar month. Company and Seller agree that
Seller’s total company voice transactions shall not exceed 10% of actual transactions in any
calendar quarter. If Seller’s voice transactions exceed 10% of actual transactions in any
such calendar quarter then Seller shall pay Company $2.00 per voice transaction for every
such transaction in excess of 10%. Voice transactions conducted during any outage of
Company’s systems shall not be counted towards the limit established in this paragraph.

     (iii) Escalation Procedures To Seller. The following definitions of escalation
levels are to be used as guidelines by Company personnel to define when any problem or issue
will be escalated to the next defined level and what notifications Seller is to receive when
that internal escalation occurs. The activities identified are the minimum required and,
upon the mutual written agreement of both Company and Seller, can be supplemented by further
actions during the course of the investigation in order to affect a resolution for the issue
or problem.

First Level Support

Company is to provide basic help desk functions to Seller’s Locations directly (“First Level
Support”). Typically, First Level Support will include product information, configuration
guidance and assistance, product and problem analysis, fact and information gathering for
correction of problems, as well as attempts to duplicate problems. Company is responsible
for tracking all First Level Support calls and reporting the number of calls and symptom
type of these calls electronically to Seller’s on a daily basis. In the event that Company
First Level Support personnel begin receiving an unusual number of First Level Support calls
from Seller Locations, Company is required to escalate via Seller’s Global Communication
Services (GCS) organization.

Second Level Support

Second Level Support will be provided by Company’s support center in the event First Level
Support is unable to resolve a problem. Company’s second level support may include a more
detailed

28

 

 diagnosis service for identifying complex problems, errors and design faults that
cannot be resolved by First Level Support.

Third Level Support

If a problem cannot be resolved with Second Level Support, Company will provide Seller with
a dedicated program manager until the problem has been resolved, to provide detailed,
in-depth product and problem analysis/solutions, and use all best efforts to duplicate
problems. Company will also provide Seller with reasonable access to senior technical
consultants within Company for final confirmation and resolution of problem analysis and to
formally escalate any unresolved problems to Company’s senior management. In the event that
Third Level support is engaged for any problem, Company is required to escalate via Seller’s
Global Communication Services (GCS) organization.

     (iv) Escalation Procedures From Seller. The following definitions of escalation
levels are to be used as guidelines by Seller personnel to define when any problem or issue
will be escalated to the next defined level within Company. The activities identified are
the minimum required and-upon the mutual written agreement of both Company and Seller, can
be supplemented by further actions during the course of the investigation in order to affect
a resolution for the issue or problem.

     (v) Severity Designations. Company and Seller agree to the following severity
designations for reporting problems to Company. Seller will reasonably and in good faith
designate severity.

Severity 1

Software abnormally ends or program function cannot be used and no usable work-around
exists. Resulting situation is critical to the operation of the business.

Severity 2

Software function cannot be used or impacts Seller operations, but usable work-around
exists. Resulting situation has some material and adverse impact on operation of the
business and work-around allows business to continue with minor restrictions.

Severity 3

Software causes Seller negligible immediate impact, yet is desirable to resolve because of
restrictions to operations or usability issues to Seller personnel.

     (v) Response Times. Company and Seller agree to the following response times
schedule for Errors reported to Company utilizing the above severity designations previously
defined. Three (3) or more failures (in a single calendar month) by Company to meet the
following maximum response times shall result in a penalty to Company of [*] for that
calendar month, to be paid within 15 days of the end of that calendar month.

Severity 1

Fifteen (15) minute response with best efforts at initial diagnosis and problem solving at
Second and Third levels of Support. Company will use all best efforts to provide
workaround(s) or problem resolution within 1 hour of initial escalation to Second Level
Support. Hourly updates on progress from Company to Seller until a workaround is provided,
with Company personnel working around the clock to provide the workaround.

Severity 2

Thirty (30) minute response with best efforts at initial diagnosis and problem solving at
Second and Third levels of Support. Company will use all best efforts to provide additional
workaround(s) or

 

			
	[*]	 	Please refer to footnote on page 1.

29

 

problem resolution within 2 hours of initial escalation to Second Level
Support. Hourly updates on progress from Company to Seller until a workaround is provided.

Severity 3

Four (4) hour response with best efforts at initial diagnosis and problem solving at Second
and Third Levels of Support. Company agrees to use all best efforts to provide additional
workaround(s) or problem resolution within 2 days of initial escalation to Second Level
Support and to provide daily updates on progress to Seller until a workaround is provided.

	2.8	 	Money Center Express (“MCX”). The following additional terms and
conditions apply to the provision of Money Order Services via the MCX Equipment.

	 	2.8.1	 	The severity designations and response times listed above do not
apply to the MCX Equipment.
	 
	 	2.8.2	 	Routine maintenance on the MCX Equipment (e.g., changing printer
ribbons) shall be performed by Seller or its subcontractor(s).
	 
	 	2.8.3	 	Seller shall be entitled to telephone support as identified in
2.7, above, for the MCX Equipment.
	 
	 	2.8.4	 	If a problem cannot be resolved via telephone support, Company
shall contact Seller’s subcontractor within 4 hours to report the problem.
Seller’s subcontractor will perform the testing protocol agreed between Company
and Seller. The testing protocol is expected to be performed within 8 hours of
the report to Seller’s subcontractor. If the problem cannot be resolved after
Seller’s subcontractor completes the testing protocol, Company will send
personnel to address the problem or send replacement equipment. The expected
time frame for replacement of MCX Equipment is ___ days.

Dated this 1st day of February, 2005.

Travelers Express Company, Inc. and MoneyGram Payment Systems, Inc.

	 	 	 	 	 
	By: /S/ Anthony P. Ryan
 

	 	 
	 
	 	 	 	 
	Name: Anthony P. Ryan

	 	 
	 
	 	 	 	 
	Its: VP/GM

	 	 
	 
	 	 	 	 
	Wal-Mart Stores, Inc.	 	 
	 
	 	 	 	 
	By: /S/ Thomas M. Schoewe
 

	 	 
	 
	 	 	 	 
	Name: Thomas M. Schoewe

	 	 
	 
	 	 	 	 
	Its: Executive Vice President & Chief Financial Officer

	 	 

30

 

March 13, 2008

Ms. Jane Thompson

Wal-Mart Stores, Inc.

702 SW 8th Street

Bentonville, AR 72716

Re: Agreements relating to the Trust Agreement dated March 14th,
2008 (the “Trust Agreement”)

Dear Jane:

This letter sets forth several items of agreement between Wal-Mart Stores, Inc. (“Wal-Mart”)
and MoneyGram Payment Systems, Inc. (“MoneyGram”), relating to the Trust Agreement dated
March ___, 2008. If you are in agreement, please countersign this letter and return a fully
executed copy to me.

1. Remittances to the Trust. Upon the establishment of the Trust, Wal-Mart shall remit
funds into the trust established pursuant to the Trust Agreement (the “Trust”), rather than
directly to MoneyGram as previously contemplated by the parties’ Money Services Agreement
dated February 1, 2005, as amended (the “Money Services Agreement”). If for any reason a
remittance is not directed to the Trust, Wal-Mart will make the remittance directly to
MoneyGram as contemplated by the Money Services Agreement.

2. Refund of Special Remit Program Funds to MoneyGram. Beginning with the first remittance
into the Trust, Wal-Mart will release and pay to MoneyGram, on a dollar-for-dollar basis
commensurate with the funds deposited into the Trust, funds which have been withheld by
Wal-Mart pursuant to the Special Remit Program established by Amendment Number 2 to the
Money Services Agreement (the “Special Remit Program Funds”). The Special Remit Program
Funds will be released to MoneyGram in connection with the initial [*] of remittances into
the Trust, and without regard to whether the aggregate balance in the Trust is less than [*]
due to withdrawals from the Trust pursuant to the Trust Agreement.

3. Wal-Mart and MoneyGram intend to minimize the negative financial impact of the Trust
to the extent reasonably practicable. The parties agree that if the mechanics and operation
of the Trust have a negative financial impact on either party, including on MoneyGram’s
yield from the Trust assets, the parties will discuss opportunities for adjustment of the
mechanics and operation of the Trust that may achieve an economic benefit over the current
mechanics and operation of the Trust. For avoidance of doubt, this provision is in no way
meant to modify the permissible investments in which the Trust assets will be invested, or
to allow an increase in the amount of risk associated with such permissible investments.

4. The parties recognize that in the event that a Blocking Period (as defined in the
Trust Agreement) occurs, a reporting and reconciliation system will be required in order to
track items which have been paid or refunded by either party. The parties will work in good
faith to establish and agree on such a system as soon after the establishment of the Trust
as is practicable.

5. MoneyGram shall provide reporting to Wal-Mart, during the term of the Trust Agreement,
in order that Wal-Mart shall have the information necessary to ensure that the amounts
requested by MoneyGram to be released from the Trust pursuant to a Company Order are
accurate. MoneyGram shall provide such reporting to Wal-Mart prior to the submission of any
Company Order to the Trustee under the Trust Agreement. Wal-Mart will continue to provide
all reporting to MoneyGram on Money Orders and Money Transfers sold in Wal-Mart Locations
that was provided prior to the establishment of the Trust, unless otherwise mutually agreed
by the parties.

If you agree with the above, please execute this letter agreement and return a fully
executed copy at your earliest convenience.

	 	 	 	 	 
	MONEYGRAM PAYMENT SYSTEMS, INC.	 	 
	 
	 	 	 	 
	Signature: /S/ Daniel J. O’Malley

 
	 	 
	 
	 	 	 	 
	Print Name: Daniel J. O’Malley

	 	 

	 	 	 	 	 
	Title: SVP — President of the Americas

	 	 
	 
	 	 	 	 
	WAL-MART STORES, INC.	 	 
	 
	 	 	 	 
	Signature: /S/ Jane J. Thompson

 
	 	 
	 
	 	 	 	 
	Print Name: Jane J. Thompson

	 	 
	 
	 	 	 	 
	Title: President, Financial Services

	 	 
	 
	 	 	 	 
	Date: 3/14/08

	 	 

 

			
	[*]	 	Please refer to footnote on page 1.

31exv10w01

 

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

	 	 	 	 	 
	 	PACIFIC OFFICE PROPERTIES TRUST, INC.

 	 
	 	By:  	          /s/ Dallas E. Lucas
 	 
	 	 	Name:  	Dallas E. Lucas 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	PACIFIC OFFICE PROPERTIES, L.P.

 	 
	 	By:  	PACIFIC OFFICE PROPERTIES TRUST, INC., its general partner
 	 
	 
	 	 	 
	 	 	By:  	    /s/ Dallas E. Lucas
 	 
	 	 	Name:  	Dallas E. Lucas 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	PACIFIC OFFICE MANAGEMENT, INC.

 	 
	 	By:  	           /s/ Dallas E. Lucas
 	 
	 	 	Name:  	Dallas E. Lucas 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

S-1

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