Document:

EX-4.1

 

Exhibit 4.1

FIRST AMENDMENT TO RIGHTS AGREEMENT

     This FIRST AMENDMENT TO RIGHTS AGREEMENT (this “Amendment”) is entered into as of February
11, 2008, between MoneyGram International, Inc., a Delaware corporation (the “Company”), and Wells
Fargo Bank, N.A., as rights agent (the “Rights Agent”).

RECITALS

     WHEREAS, the Company and the Rights Agent are parties to that certain Rights Agreement, dated
as of June 30, 2004 (the “Rights Agreement”); and

     WHEREAS, the several investors listed on Schedule A hereto and the Company contemplate
entering into a Purchase Agreement (as defined below) that provides for, among other things, the
purchase by the Investors of (i) shares of a new series of preferred stock of the Company, the
Series C Participating Preferred Stock, par value $0.01 per share, (ii) shares of a new series of
convertible preferred stock of the Company, the Series D Participating Convertible Preferred Stock,
par value $0.01 per share, and (iii) Common Shares (as defined in the Rights Agreement) of the
Company, where (i), (ii) and (iii) (collectively, the “Temporary Securities”) are, upon the terms
and subject to the conditions set forth in the Purchase Agreement, mandatorily exchangeable for
shares of Series B Participating Convertible Preferred Stock and Series B-1 Participating
Convertible Preferred Stock (each as defined below); and

     WHEREAS, Section 27 of the Rights Agreement permits the Company, from time to time and at any
time prior to such time as any person becomes an Acquiring Person, to supplement or amend the
Rights Agreement without the approval of any holders of the Rights Certificates; and

     WHEREAS, the Board of Directors of the Company has determined that it is in the best interests
of the Company and its shareholders to modify the terms of the Rights Agreement to exempt the
Purchase (as defined below), the Purchase Agreement and all of the transactions contemplated
thereby from the application of the Rights Agreement, and in connection therewith the Company is
entering into this Amendment and directing the Rights Agent to enter into this Amendment; and

     WHEREAS, all acts and things necessary to make this Amendment a valid agreement, enforceable
according to its terms have been done and performed, and the execution and delivery of this
Amendment by the Company and the Rights Agent have been in all respects duly authorized by the
Company and the Rights Agent.

     NOW, THEREFORE, in consideration of the premises and mutual agreements herein set forth, the
parties hereby agree as follows:

     A. Amendment of Section 1. Section 1 of the Rights Agreement is supplemented to add
the following definitions in the appropriate locations:

(i) “Exchange” shall mean the exchange of any Temporary Securities for shares of
Series B Preferred Stock or shares of Series B-1 Preferred Stock, as the

 

 

case may be.

(ii) “Excluded Securities” shall mean (A) shares comprising Temporary Securities,
(B) shares of Series B Preferred Stock, (C) shares of Series B-1 Preferred Stock,
(D) Common Shares issued upon conversion of shares of Series B Preferred Stock, (E)
shares of Series D Preferred Stock issued upon conversion of shares of Series B
Preferred Stock or shares of Series B-1 Preferred Stock, (F) Common Shares issued
upon conversion of shares of Series D Preferred Stock, and (G) Common Shares (and
options, warrants or other rights to acquire Common Shares, or securities
convertible into or exercisable or exchangeable for, Common Shares) (1) issued as a
dividend or distribution on any shares referred to in (A) through (F) of this
definition or (2) acquired by an Investor in connection with such Investor’s
exercise of rights under Section 4.7 of the Purchase Agreement.

(iii) “Investors” shall mean the several investors listed on Schedule A hereto
(together with their respective successors and assigns and transferees of Excluded
Securities; in each case, who are Affiliates or Associates of any such Investors or
who are Affiliates of Thomas H. Lee Partners, L.P. ) (and each, an “Investor”).

(iv) “Purchase Agreement” shall mean the Purchase Agreement, dated as of January 31,
2008, by and between the Company and the Investors listed on Schedule A hereto, as
it may be amended or supplemented from time to time.

(v) “Purchase” shall mean all of the transactions contemplated by the Purchase
Agreement.

(vi) “Series B Preferred Stock” shall mean the shares of Series B Participating
Convertible Preferred Stock of the Company, par value $0.01 per share, issuable upon
Exchange of Temporary Securities pursuant to the Purchase Agreement and the shares
of Series B Preferred Stock issuable upon conversion of shares of Series B-1
Preferred Stock.

(vii) “Series B-1 Preferred Stock” shall mean the shares of Series B-1 Participating
Convertible Preferred Stock of the Company, par value $0.01 per share, issuable upon
Exchange of Temporary Securities pursuant to the Purchase Agreement.

(viii) “Series C Preferred Stock” shall mean the shares of Series C Participating
Preferred Stock of the Company, par value $0.01 per share, issuable pursuant to the
Purchase Agreement.

(ix) “Series D Preferred Stock” shall mean the shares of Series D Participating
Convertible Preferred Stock of the Company, par value $0.01 per share, issuable
pursuant to the Purchase Agreement, issuable pursuant to the conversion of shares of
Series B-1 Preferred Stock, and issuable pursuant to the conversion of shares of
Series B Preferred Stock.

2

 

(x) “Temporary Securities” shall mean the shares of Series C Preferred Stock, the
shares of Series D Preferred Stock and the Common Shares, in each case, issued by
the Company to the Investors pursuant to the Purchase Agreement.

     B. Amendment of the definition of “Acquiring Person”. The definition of “Acquiring
Person” in Section 1(a) of the Rights Agreement is amended by adding the following sentence at the
end thereof:

     “Notwithstanding anything in this Agreement to the contrary, no Investor nor any of its
Affiliates or Associates shall be deemed to be an Acquiring Person and no Distribution Date
or Shares Acquisition Date shall be deemed to occur, in each case, solely by virtue of (i)
the approval, execution or delivery of the Purchase Agreement, (ii) the consummation of the
Purchase or (iii) the consummation of any other transaction contemplated in the Purchase
Agreement or by the respective Certificates of Designations, Preferences and Rights of the
Series B Participating Convertible Preferred Stock, the Series B-1 Participating Convertible
Preferred Stock, the Series C Participating Preferred Stock and the Series D Participating
Convertible Preferred Stock, including, without limitation, acquisition by the Investors of
beneficial ownership of Excluded Securities.”

     C. Amendment of Section 3. Section 3 of the Rights Agreement is amended to add the
following sentence at the end thereof as Section 3(d):

     “(d) Nothing in this Agreement shall be construed to give any holder of the Rights or
any other Person any legal or equitable rights, remedies or claims under this Agreement by
virtue of the approval, execution or delivery of the Purchase Agreement or by virtue of any
of the transactions provided for by the Purchase Agreement, including, without limitation,
the consummation thereof, the Exchange, conversion of shares of Series B Preferred Stock
into Common Shares, conversion of shares of Series B-1 Preferred Stock into shares of Series
B Preferred Stock, conversion of shares of Series B-1 Preferred Stock into shares of Series
D Preferred Stock, conversion of shares of Series B Preferred Stock into shares of Series D
Preferred Stock, and conversion of shares of Series D Preferred Stock into Common Shares;”

     D. Effectiveness. This Amendment shall be deemed effective as of the date first
written above, as if executed on such date. To the extent that the terms and provisions of the
Rights Agreement do not conflict with the terms and provisions of this Amendment, then such terms
and provisions shall remain in full force and legal effect. To the extent that there is a conflict
between the terms and provisions of the Rights Agreement and this Amendment, the terms and
provisions of this Amendment shall govern for purposes of the subject matter of this Amendment
only.

     E. Miscellaneous. This Amendment may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument. This Amendment shall be
deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be
governed by and construed in accordance with the laws of such state

3

 

applicable to contracts to be made and performed entirely within such state. If any
provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction
or other authority to be invalid, illegal or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Amendment shall remain in full force and effect and shall in no
way be effected, impaired or invalidated. Except as otherwise expressly provided herein, or unless
the context otherwise requires, all terms used herein have the meanings assigned to them in the
Rights Agreement. The Rights Agent and the Company hereby waive any notice requirement under the
Rights Agreement pertaining to the matters covered by this Amendment.

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
attested, all as of the day and year first above written.

	 	 	 	 	 	 	 
	Attest:	 	MONEYGRAM INTERNATIONAL, INC.
	 
	By:

	 	/s/ Teresa H. Johnson	 	By:	 	/s/ Philip W. Milne
	 

	 	 
	 	 	 	 
	 

	 	Name: Teresa H. Johnson
	 	 	 	Name: Philip W. Milne
	 

	 	Title: Secretary
	 	 	 	Title: President and Chief Executive Officer
	 
	Attest:	 	WELLS FARGO BANK, N.A.
	 
	By:

	 	/s/ Christine A. Garrick	 	By:	 	/s/ John D. Baker
	 

	 	 
	 	 	 	 
	 

	 	Name: Christine A. Garrick
	 	 	 	Name: John D. Baker
	 

	 	Title: Assistant Vice President
	 	 	 	Title: Vice President

5

 

SCHEDULE A

Investors

THOMAS H. LEE EQUITY FUND VI, L.P.

THOMAS H. LEE PARALLEL FUND VI, L.P.

THOMAS H. LEE PARALLEL (DT) FUND VI, L.P.

GS CAPITAL PARTNERS VI FUND, L.P.

GS CAPITAL PARTNERS VI OFFSHORE FUND, L.P.

GS CAPITAL PARTNERS VI GmbH & Co. KG

GS CAPITAL PARTNERS VI PARALLEL, L.P.

GSMP V ONSHORE US, LTD.

GSMP V OFFSHORE US, LTD.

GSMP V INSTITUTIONAL US, LTD.

6EX-10.1

 

Exhibit 10.1

EXECUTION COPY

 

PURCHASE AGREEMENT

dated as of February 11, 2008

among

MONEYGRAM INTERNATIONAL, INC.

and

THE SEVERAL INVESTORS PARTY HERETO

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Recitals
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Purchase; Closings
	 	 	 	 
	 
	 	 	 	 
	1.1 Purchase
	 	 	2	 
	1.2 Closing
	 	 	4	 
	1.3 Exchange of Temporary Security Units
	 	 	10	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	Representations and Warranties
	 	 	 	 
	 
	 	 	 	 
	2.1 Disclosure
	 	 	12	 
	2.2 Representations and Warranties of the Company
	 	 	14	 
	(a) Organization and Authority
	 	 	14	 
	(b) Company’s Subsidiaries
	 	 	14	 
	(c) Capitalization
	 	 	15	 
	(d) Authorization; No Default
	 	 	16	 
	(e) SEC Documents
	 	 	17	 
	(f) Taxes
	 	 	18	 
	(g) Ordinary Course
	 	 	19	 
	(h) Commitments and Contracts
	 	 	19	 
	(i) Litigation and Other Proceedings
	 	 	20	 
	(j) Insurance
	 	 	20	 
	(k) Compliance with Laws
	 	 	20	 
	(l) Benefit Plans
	 	 	21	 
	(m) Environmental Liability
	 	 	23	 
	(n) Intellectual Property
	 	 	24	 
	(o) Anti-takeover Provisions Not Applicable
	 	 	25	 
	(p) Board Approvals
	 	 	25	 
	(q) Brokers and Finders
	 	 	25	 
	(r) Exemption from Registration
	 	 	26	 
	(s) Opinion of Financial Advisor
	 	 	26	 
	(t) No Other Representations or Warranties
	 	 	26	 
	2.3 Representations and Warranties of the Investor
	 	 	26	 
	(a) Organization and Authority
	 	 	26	 
	(b) Authorization
	 	 	26	 
	(c) Purchase for Investment
	 	 	27	 
	(d) Financial Capability
	 	 	28	 
	(e) Brokers and Finders
	 	 	28	 
	(f) No Exclusivity
	 	 	28	 

 

 

	 	 	 	 	 
	 	 	Page	 
	(g) No Other Representations or Warranties
	 	 	28	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	3.1 Filings; Other Actions
	 	 	28	 
	3.2 Access, Information and Confidentiality
	 	 	31	 
	3.3 Certain Additional Covenants of the Company
	 	 	32	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Additional Agreements
	 	 	 	 
	 
	 	 	 	 
	4.1 Governance Matters
	 	 	34	 
	4.2 Legend
	 	 	38	 
	4.3 Reservation for Issuance
	 	 	38	 
	4.4 Lost, Stolen or Destroyed Certificates
	 	 	39	 
	4.5 Restrictions on Transfers
	 	 	39	 
	(a) Transfer of Temporary Security Units
	 	 	39	 
	(b) Transfer of the Series B Preferred Stock and the Series B-1 Preferred Stock
	 	 	39	 
	4.6 Withholding
	 	 	40	 
	4.7 Anti-Dilution Rights
	 	 	40	 
	(a) Sale of New Stock
	 	 	41	 
	(b) Notice
	 	 	41	 
	(c) Purchase Mechanism
	 	 	42	 
	(d) Failure of Purchase
	 	 	43	 
	4.8 Indemnity
	 	 	44	 
	4.9 Go-Shop Period
	 	 	46	 
	4.10 Share Listing
	 	 	48	 
	4.11 Filing of Certificates of Designation
	 	 	48	 
	4.12 Public Announcements
	 	 	48	 
	4.13 Right to Use Trademarks
	 	 	48	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Termination
	 	 	 	 
	 
	 	 	 	 
	5.1 Termination
	 	 	49	 
	5.2 Termination Fee
	 	 	49	 
	5.3 Expenses
	 	 	50	 
	5.4 Effects of Termination
	 	 	50	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	6.1 Survival of Representations, Warranties, Agreements, Etc.
	 	 	51	 

 

 

	 	 	 	 	 
	 	 	Page	 
	6.2 Amendment
	 	 	51	 
	6.3 Waiver
	 	 	51	 
	6.4 Counterparts and Facsimile
	 	 	51	 
	6.5 Governing Law; Jurisdiction
	 	 	51	 
	6.6 WAIVER OF JURY TRIAL
	 	 	51	 
	6.7 Notices
	 	 	51	 
	6.8 Entire Agreement, Etc.
	 	 	53	 
	6.9 Definitions of “subsidiary,” “Affiliate,” “knowledge,” “person
	 	 	53	 
	6.10 Captions
	 	 	54	 
	6.11 Severability
	 	 	54	 
	6.12 No Third Party Beneficiaries
	 	 	54	 
	6.13 Specific Performance
	 	 	54	 
	6.14 Several, Not Joint, Liability
	 	 	55	 

 

 

LIST OF EXHIBITS

	 	 	 	 	 
	Form of Series B Participating Convertible Preferred Stock Certificate of Designations
	 	 	1	 
	Form of Series B-1 Participating Preferred Stock Certificate of Designations
	 	 	2	 
	Form of Series C Participating Preferred Stock Certificate of Designations
	 	 	3	 
	Form of Series D Convertible Participating Preferred Stock Certificate of Designations
	 	 	4	 
	Form of Registration Rights Agreement
	 	 	5	 
	Form of Rights Plan Amendment
	 	 	6	 
	Form of Management Rights Letter
	 	 	7	 
	Form of Proxy
	 	 	8	 

LIST OF SCHEDULES

	 	 	 	 	 
	Investors
	 	 	A	 
	Portfolio Securities to be Sold
	 	 	B	 
	Valuation of Residual Portfolio Securities
	 	 	C	 
	Terms of Amendment to Amended and Restated Credit Agreement
	 	 	D	 
	Unrestricted Assets Definition and Calculation
	 	 	E	 
	Investment Policy
	 	 	F	 
	Payment of Termination Fees
	 	 	G	 

INDEX OF DEFINED TERMS

	 	 	 
	 	 	Location of
	Term	 	Definition
	85% Condition 
	 	1.3(c)(ii)
	85% Requisite Regulatory Approvals 
	 	1.3(c)(ii)
	95% Condition 
	 	1.3(c)(ii)
	95% Requisite Regulatory Approvals 
	 	1.3(c)(ii)
	Affiliate 
	 	6.9(b)
	Affiliated Transaction 
	 	4.1(h)(ii)
	Agreement 
	 	Preamble
	Anti-Dilution Right Entity 
	 	4.7(a)
	Applicable Threshold 
	 	4.5(c)
	beneficial ownership 
	 	2.2(b)(i)
	Benefit Plan 
	 	2.2(l)(i)
	Board Observers 
	 	4.1(a)
	Board of Directors 
	 	2.2(d)(i)
	Board Representative 
	 	4.1(a)
	Bylaws 
	 	2.2(a)
	Certificate of Incorporation 
	 	2.2(a)
	Certificates of Designations 
	 	Recitals
	Closing 
	 	1.2(a)
	Closing Date 
	 	1.2(a)

 

 

	 	 	 
	 	 	Location of
	Term	 	Definition
	Code 
	 	2.2(f)(i)
	Common Stock 
	 	Recitals
	Company 
	 	Preamble
	Company Board Recommendation 
	 	3.1(c)
	Company Disclosure Schedule 
	 	2.1(a)
	Company Intellectual Property 
	 	2.2(n)(iii)
	Company Stock Option 
	 	2.2(c)
	Company Subsidiary/Company Subsidiaries 
	 	2.2(b)(i)
	Company Transaction Proposal 
	 	4.9(f)(i)
	Confidentiality Agreements 
	 	3.2(b)
	Continuing Directors 
	 	4.1(h)(iii)
	Contract 
	 	2.2(d)(ii)
	control 
	 	6.9(b)
	Disclosed Contracts 
	 	2.1(h)(ii)
	Draft Going Concern Audit Opinion 
	 	1.2(c)(viii)(1)
	Environmental Claims 
	 	2.2(m)
	Environmental Law 
	 	2.2(m)
	ERISA 
	 	2.2(l)(ii)
	Escrow Agent 
	 	1.3(b)
	Escrow Agreement 
	 	1.3(b)
	Exchange Act 
	 	1.2(c)(viii)
	Exchange Date 
	 	1.3(c)(i)
	Exclusivity Agreement 
	 	5.2
	Existing Credit Facilities 
	 	1.2(a)(iv)
	Extended Date 
	 	3.1(c)
	Fairness Opinions 
	 	2.2(s)
	Filed SEC Documents 
	 	2.1(c)
	Foreign Plans 
	 	2.2(l)(vii)
	GAAP 
	 	2.2(e)(i)
	German Antitrust Act 
	 	1.2(c)(i)
	Governmental Entities 
	 	2.1(b)
	GS 
	 	Preamble
	GSCP 
	 	Preamble
	GSMP 
	 	Preamble
	Hazardous Materials 
	 	2.2(m)
	HSR Act 
	 	1.2(c)(i)
	Indemnified Party/Indemnified Parties 
	 	4.8(a)
	Indenture 
	 	1.2(c)(iv)
	Independent Director(s) 
	 	4.1(h)(i)
	Information 
	 	3.2(b)
	Infringe 
	 	2.2(n)(ii)
	Intellectual Property 
	 	2.2(n)(i)
	Investment 
	 	Recitals
	Investment Policy 
	 	3.3(g)
	Investors 
	 	Preamble
	IRS 
	 	3.1(a)

 

 

	 	 	 
	 	 	Location of
	Term	 	Definition
	knowledge 
	 	6.9(c)
	Law(s) 
	 	6.9(e)
	Licensee 
	 	3.3(b)
	Losses 
	 	4.8(a)
	Material Adverse Effect 
	 	2.1(b)
	Money Transfer Volume 
	 	1.3(c)(ii)
	MPSI 
	 	1.2(c)(vi)
	Multiemployer Plan 
	 	2.2(l)(iii)
	New Security 
	 	4.7(a)
	Nominating Committee 
	 	4.1(c)
	Note Purchase Agreement 
	 	1.2(c)(iv)
	Notice Period 
	 	4.9(b)(i)
	Outside Date 
	 	4.5(a)
	Outside Receipt Date 
	 	1.2(c)(viii)(2)
	Permits 
	 	2.1(k)(i)
	Permitted Liens 
	 	2.2(b)(iii)
	person 
	 	6.9(d)
	Pre-Closing Certificate 
	 	1.2(d)
	Preferred Stock/Preferred Share 
	 	Recitals
	Previously Disclosed 
	 	2.1(c)
	Private Placement 
	 	4.7(b)(ii)
	Proceeds Excess 
	 	1.1(c)
	Purchase 
	 	1.1(a)
	Purchase Price 
	 	1.1(a)
	Qualifying Ownership Interest 
	 	4.1(a)
	Regulatory Approval 
	 	3.3(b)
	Release 
	 	2.2(m)
	Representatives 
	 	4.9(a)
	Satisfaction Date 
	 	1.1(c)
	Satisfactory Audit Opinion 
	 	1.2(c)(viii)
	Schedule A Purchase Amount 
	 	1.1(c)
	SEC 
	 	2.1(c)
	SEC Documents 
	 	2.2(e)(i)
	Second Lien Notes 
	 	1.2(c)(iv)
	Securities 
	 	Recitals
	Securities Act 
	 	2.2(e)(i)
	Series B Certificate 
	 	1.3(c)
	Series B Preferred Stock/Series B Preferred Shares 
	 	Recitals
	Series B-1 Preferred Stock/Series B-1 Preferred Shares 
	 	Recitals
	Series B-1 Certificate 
	 	1.3(c)
	Series C Certificate 
	 	1.2(b)(ii)
	Series C Preferred Stock/Series C Preferred Shares 
	 	Recitals
	Series D Certificate 
	 	1.3(a)(ii)
	Series D Preferred Stock/Series D Preferred Shares 
	 	Recitals
	Shareholder Approval 
	 	2.2(d)(iii)
	State 
	 	3.3(b)

 

 

	 	 	 
	 	 	Location of
	Term	 	Definition
	subsidiary 
	 	6.9(a)
	Superior Proposal 
	 	4.9(f)(ii)
	Taxes 
	 	2.2(f)(ii)
	Tax Return 
	 	2.2(f)(ii)
	Temporary Security Unit 
	 	1.3(a)(ii)
	Termination Fee 
	 	5.2
	Third Party Licenses 
	 	2.2(n)(ii)
	THL 
	 	Preamble
	THL VI 
	 	4.1(a)
	Total Loss 
	 	1.1(c)
	Transaction Documents 
	 	Recitals
	transfer 
	 	4.5(d)
	Unaffiliated Shareholders 
	 	4.1(h)(v)

 

 

          PURCHASE AGREEMENT, dated as of February 8, 2008 (this “Agreement”), among MoneyGram
International, Inc., a Delaware corporation (the “Company”), and the parties set forth on
Schedule A attached hereto under the heading THL (collectively, “THL”), the parties set
forth on Schedule A attached hereto under the heading Goldman Sachs Capital Partners
(collectively, “GSCP”), and the parties set forth on Schedule A attached hereto under the
heading Goldman Sachs Mezzanine Partners (collectively, “GSMP,” and together with GSCP, “GS,” and
GS together with THL, the “Investors”).

RECITALS:

          A. The Investment. The Company intends to sell to the Investors, and each of the
Investors intends to purchase from the Company, as an investment in the Company, the securities as
described herein (the “Investment”). The securities to be purchased are Series C Participating
Preferred Stock of the Company (the “Series C Preferred Stock” or “Series C Preferred Shares”),
Series D Participating Convertible Preferred Stock of the Company (the “Series D Preferred Stock”
or the “Series D Preferred Shares”) and common stock of the Company (together with all rights
associated with such common stock, the “Common Stock”) and are to be purchased at the Closing Date,
as defined below, subject to the terms and conditions set forth herein, and with respect to THL,
are to be exchanged for shares of Series B Participating Convertible Preferred Stock of the Company
(the “Series B Preferred Stock” or the “Series B Preferred Shares”), and with respect to GS, are to
be exchanged for shares of Series B-1 Participating Convertible Preferred Stock of the Company (the
“Series B-1 Preferred Stock” or the “Series B-1 Preferred Shares”), in each case, at the Exchange
Date, as defined below, subject to the terms and conditions set forth herein (the Series B
Preferred Stock, the Series B-1 Preferred Stock, the Series C Preferred Stock and the Series D
Preferred Stock are referred to collectively herein as the “Preferred Stock” or “Preferred
Shares”). The Series B Preferred Stock, the Series B-1 Preferred Stock, the Series C Preferred
Stock and the Series D Preferred Stock will have the designations, relative rights, preferences and
limitations set forth in the certificates of designations substantially in the form attached as
Exhibit 1, Exhibit 2, Exhibit 3 and Exhibit 4, respectively (the
“Certificates of Designations”).

          B. The Securities. The term “Securities” refers collectively to (1) the Preferred
Stock purchased under this Agreement, (2) the Common Stock purchased under this Agreement, (3) any
securities into which any of the foregoing shares are converted, exchanged or exercised in
accordance with the terms thereof and of this Agreement and (4) any securities into which any of
the securities referred to in clause (3) are converted, exchanged or exercised in accordance with
the terms thereof.

          C. Transaction Documents. The term “Transaction Documents” refers collectively to
this Agreement, the Certificates of Designations and the Registration Rights Agreement in the form
contained in Exhibits 1, 2, 3, 4 and 5,
respectively.

          NOW, THEREFORE, in consideration of the premises, and of the representations, warranties,
covenants and agreements set forth herein, the parties agree as follows:

1

 

ARTICLE I

Purchase; Closings

          1.1 Purchase.

          (a) On the terms and subject to the conditions set forth herein, including the adjustment
provisions of Section 1.1(c), each of the Investors will purchase from the Company, and
the Company will sell to each of the respective Investors, at the Closing (as defined below) the
number of Series C Preferred Shares set forth across from such Investor’s name on Schedule
A, representing a total Liquidation Preference (as defined in the Series C Certificate) of
the amount set forth across from such Investor’s name on Schedule A, the number of shares
of Series D Preferred Stock set forth across from such Investor’s name on Schedule A, and
the number of shares of Common Stock set forth across from such Investor’s name on Schedule
A, for a total purchase price with respect to such Investor of the amount set forth across
from such Investor’s name on Schedule A and a total purchase price (the “Purchase Price”)
with respect to all Investors of $710,000,000 (the “Purchase”). Notwithstanding anything to the
contrary herein, the THL Investors may, in their sole discretion, reallocate among the respective
THL Investors the total THL Purchase Price and corresponding amounts set forth on Schedule
A, the GS Investors may, in their sole discretion, reallocate among the respective GS
Investors the total GS Purchase Price and corresponding amounts set forth on Schedule A,
and all references to Schedule A herein shall be references to Schedule A as
revised to reflect such reallocations.

          (b) [Intentionally omitted.]

          (c) In the event the Total Loss (as defined below) as of the Closing is less than
$1,635,000,000 and the condition set forth in Section 1.2(c)(vii) is satisfied (after
giving effect to any adjustment to the Schedule A Purchase Amount (as defined below) permitted by
and made pursuant to this Section 1.1(c)), then the Purchase Price amounts set forth
across from each Investor’s name on Schedule A (with respect to each Investor, the
“Schedule A Purchase Amount”) may at the Company’s option be reduced, in accordance with the
procedures set forth on Schedule A (or, if so directed by the Investors, another
allocation among the Investors), by twenty-five percent (25%) of the amount by which the Total
Loss is less then $1,635,000,000 (such excess, the “Proceeds Excess”), and the Company may, at
its option reduce the respective Schedule A Purchase Amounts, in accordance with the
procedures set forth on Schedule A (or, if so directed by the Investors, another
allocation among the Investors), by another twenty-five percent (25%) (or part thereof), up to
fifty percent (50%) of the Proceeds Excess. In the event the Total Loss, as of the Closing, is
at least $1,635,000,000 but less than $1,700,000,000, then the Schedule A Purchase Amounts shall
be increased, in accordance with the procedures set forth on Schedule A (or, if so
directed by the Investors, another allocation among the Investors), by the amount by which the
Total Loss is greater than $1,635,000,000 (and less than $1,700,000,000). For the avoidance of
doubt, the aggregate amount the Investors shall be required to pay at the Closing shall only
increase from $710,000,000 if the Total Loss exceeds $1,635,000,000, and the maximum
aggregate amount that the Investors shall be required to pay at the Closing pursuant to this
Agreement shall be $775,000,000. In the event the Purchase Price amounts of the respective

2

 

Investors are adjusted pursuant to this Section 1.1(c), the number of Series C Preferred
Shares issued at the Closing to the respective Investors shall be correspondingly adjusted such
that the aggregate Liquidation Preference of all of the Series C Preferred Shares issued at the
Closing shall be adjusted by an amount equal to the aggregate reduction or increase, as
applicable, in the Purchase Price. In the event there is a Proceeds Excess and the Company opts
to reduce the Investors’ Schedule A Purchase Amounts, the principal amount of Second Lien Notes
(as defined below) shall be reduced by an amount equal to the difference between the Proceeds
Excess and the amount by which the aggregate Purchase Price is reduced pursuant to this
Section 1.1(c). “Total Loss” shall mean the sum of:

          (i) the aggregate realized loss (net of gains, if any) on the sale of securities by the
Company from its securities portfolio from January 1, 2008 through the opening of business
on the date hereof, which the parties agree is $383,900,000;

          (ii) the aggregate loss (net of gains, if any) that will be realized on the sale of
securities listed on Schedule B hereto (including any termination payments on
derivative financial instruments listed on Schedule B which shall be sold or unwound) with
respect to which the Company shall have accepted bids to sell such securities on or before
the third Business Day prior to the Closing (such third Business Day prior to the Closing,
the “Satisfaction Date”);

          (iii) with respect to the securities set forth on Schedule C, (x) if any of the
securities set forth on Schedule C-1 or C-2, as applicable, have not been
sold or abandoned as of the Satisfaction Date, the unrealized loss or unrealized gain on the
securities listed on Schedule C-1 or C-2, as applicable, hereto, assuming
the value proposed to be assigned to such securities by the Investors as set forth on
Schedule C is the value of such securities or (y) if all of the securities set forth
on either Schedule C-1 or C-2, as applicable, have been sold or abandoned
prior to or on the Satisfaction Date, the aggregate loss (net of gains, if any) realized on
the sale or abandonment of such securities; provided, however, that with respect to the
securities set forth on either Schedule C-1 or C-2, no such securities set
forth on either Schedule C-1 or C-2, as the case may be, shall be sold or
abandoned prior to the Satisfaction Date unless all such securities set forth on such
Schedule C-1 or C-2, as applicable, are so sold or abandoned; and

          (iv) with respect to the Company’s and the Company Subsidiaries’ derivative financial
instruments (other than those set forth on Schedule B), (x) if any of the securities
set forth on Schedule C-1 have not been sold or abandoned, none of the Company’s and the
Company Subsidiaries’ derivative financial instruments (other than those set forth on
Schedule B) may be sold, assigned or unwound, and the parties agree the loss shall
be $51,900,000 or (y) if all, but not less than all, of such the securities set forth on
Schedule C-1 have been sold or abandoned, (A) if all, but not less than all, of such
derivative financial instruments have been sold, assigned or unwound prior to or on the
Satisfaction Date, the aggregate loss (net of gains, if any) realized on the sale,
assignment or unwind of such instruments, and (B) otherwise, a loss based on the current
market value of such derivative financial instruments, calculated using the present
values of the cash flows associated with such instruments, as of the Satisfaction Date
reasonably

3

 

agreed to by the Company and the Investors (it being understood that the Company
and the Investors agree that the market value of the derivative financial instruments (other
than those set forth on Schedule B), is ($51,900,000) as of January 31, 2008 and agree on
the methodology used to calculate such value).

For securities listed on Schedule B, or as applicable, Schedule C, sold, the loss
with respect to such securities shall be equal to the net cash proceeds received upon the sale of
such securities less the sum of (x) the book value of the respective securities as set forth on
Schedule B, or as applicable, Schedule C, and (y) any accrued interest on such
securities as of the date such securities are sold. For the Company’s and the Company
Subsidiaries’ derivative financial instruments, the loss with respect to such instruments, if sold
and/or unwound, shall be equal to the total net cash termination payment (net of any such payments
received by the Company, if any) delivered in connection with the, sale and/or unwind of such
derivatives. As promptly as practicable, and in any event, on or prior to the Satisfaction Date,
the Company shall provide on a CUSIP by CUSIP basis, book value, par value, accrued interest and
proceeds received or expected to be received from the sale for each of the securities with respect
to which the Company and the Company Subsidiaries shall have sold (with respect to the securities
referenced in Sections 1.1(c)(iii) and (iv)) or accepted bids to sell (with respect
to the securities referenced in Section 1.1(c)(ii)) such securities on or prior to the
Satisfaction Date.

          1.2 Closing.

          (a) The closing of the transactions contemplated by this Agreement (the “Closing”), will
take place at the offices of Wachtell, Lipton, Rosen & Katz, located at 51 West 52nd Street, New
York, New York, commencing at 10 a.m. local time, on the later to occur of (i) the Business Day
following the date on which the conditions set forth in Section 1.2(c) (other than those
conditions that by their nature are to be satisfied at the Closing, but subject to fulfillment of
those conditions) are satisfied or waived (by the party entitled to waive such conditions) or
(ii) a date specified by the Company (on at least one Business Day’s written notice) on which the
conditions set forth in Section 1.2(c) (other than those conditions that by their nature
are to be satisfied at the Closing, but subject to fulfillment of those conditions) are satisfied
or waived (by the party entitled to waive such conditions) that is no later than 10:00 a.m. CST
on March 13, 2008 (or if no date is specified, then at 10:00 a.m. CST on March 13, 2008), or at
such other time as mutually agreed by the parties. The date of the Closing is referred to as
the “Closing Date.”

          (b) At the Closing,

          (i) each Investor shall deliver by wire transfer of immediately available
United States funds to the Company the Purchase Price of the Securities in the
amount set forth across from such Investor’s name on Schedule A (adjusted,
if and as required by Section 1.1(c));

          (ii) the Company shall deliver to the Investors certificates representing the
number of Series C Preferred Shares set forth across from such Investor’s name
on Schedule A, representing a total initial Liquidation Preference (as
defined in the Certificate of Designations for the Series C Preferred Stock (the
“Series C

4

 

Certificate”)) of the amount set forth across from such Investor’s name on
Schedule A (adjusted, if and as required by Section 1.1(c)), the
number of shares of Series D Preferred Stock set forth across from such Investor’s
name on Schedule A, and the number of shares of Common Stock set forth
across from such Investor’s name on Schedule A;

          (iii) the Company and each of the respective Investors shall execute the
Registration Rights Agreement in the form of Exhibit 5 attached hereto and,
if applicable, the Escrow Agreement;

          (iv) the Company shall deliver to each of the Investors certified copies of
Certificates of Designations for the Preferred Stock, in the form attached as
Exhibits 1, 2,  3, and 4 hereto as filed with the
Secretary of State of the State of Delaware;

          (v) the Company shall deliver to each of Thomas H. Lee Equity Fund VI, L.P.,
Thomas H. Lee Parallel Fund VI, L.P., Thomas H. Lee Parallel (DT) Fund VI, L.P., GS
Capital Partners VI Parallel, L.P. and GS Mezzanine Partners V Institutional, L.P. a
Management Rights Letter, in the form attached as Exhibit 7 hereto; and

          (vi) the Investors shall deliver to the Company the proxy in the form attached
as Exhibit 8 hereto.

          (c) Closing Conditions. Subject to the final sentence of Section 1.2(d), the
respective obligation of each of the respective Investors and the Company to consummate the
Closing is subject to the fulfillment or written waiver by all of the Investors and the Company
prior to the Closing of the following conditions:

          (i) expiration or termination of any applicable waiting period under the Hart
Scott Rodino Antitrust Improvements Act of 1976, as amended, and the rules and
regulations promulgated thereunder (the “HSR Act”) and any applicable waiting
period under the German Act Against Restraints of Competition (Gesetz gegen
Wettbewerbsbeschrankungen) (the “German Antitrust Act”), in each case, required to
consummate the Investment and the Closing and for the Investors to own, and fully
vote and convert into Common Stock, all of the Securities;

          (ii) no provision of any applicable Law or regulation and no judgment,
injunction, order or decree shall prohibit the Closing or the consummation of any
of the transactions contemplated by the Transaction Documents or shall prohibit or
restrict any Investor or its Affiliates from owning, or fully voting and
converting, the Securities to be acquired by such Investor pursuant to the terms of
such respective Securities, and no lawsuit shall have been commenced by a
Governmental Entity seeking to effect any of the foregoing;

          (iii) the Company shall have (A) on the Satisfaction Date, accepted bids to
sell the securities held in its investment portfolio listed on Schedule B
hereto

5

 

that if consummated would result in the Company incurring a Total Loss of
not more than $1,700,000,000, (B) incurred a Total Loss of not more than
$1,700,000,000, and (C) on or prior to the Closing, received or receive, as the
case may be, full proceeds from such sales in accordance with the bids accepted on
the Satisfaction Date;

          (iv) the Company shall have (A) amended its existing Amended and Restated
Credit Agreement, dated as of June 29, 2005, in accordance with the terms set forth
on Schedule D attached hereto, such other material alterations or
additional material terms as are acceptable to both the Company and the Investors
(each acting in their sole discretion), and such other non-material terms and
conditions as are acceptable to the Company (acting reasonably); (B) received an
additional $200,000,000 of term loans (less any original issue discount otherwise
permitted under this Agreement) under its existing Amended and Restated Credit
Agreement following such amendment described in clause (A) above; (C) never
borrowed any funds under, and shall have terminated, its existing 364-Day Credit
Agreement, dated as of November 15, 2007, as amended (together with the credit
facility referenced in clause (A), the “Existing Credit Facilities”); (D) (i)
entered into and not amended the Note Purchase Agreement, dated as of the date
hereof (the “Note Purchase Agreement”) with the purchasers set forth therein,
relating to the sale to such purchasers of up to $500,000,000 principal amount of
Senior Secured Second Lien Notes (the “Second Lien Notes”) pursuant to the
indenture referred to in the Note Purchase Agreement (the “Indenture”) and (ii)
entered into and not amended the Indenture; and (E) received $500,000,000 in
proceeds (net of any closing payment referred to in the Note Purchase Agreement)
from the issuance of the Second Lien Notes pursuant to the Indenture; provided,
however, the amount of Second Lien Notes issued pursuant to the Note Purchase
Agreement may be reduced in accordance with Section 1.1(c); provided,
further that the parties acknowledge that each of the terms set forth on
Schedule D are material;

          (v) Except as Previously Disclosed, since September 30, 2007, no change or
event shall have occurred and no circumstances shall exist which have had, or would
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Company.  With respect to matters which have been Previously
Disclosed, in determining whether this condition is satisfied, any circumstance,
event or condition occurring after the date hereof shall be taken into account,
including any deterioration, worsening or adverse consequence of such Previously
Disclosed matters occurring after the date hereof;

          (vi) neither the Company nor MoneyGram Payment Systems, Inc., a wholly owned
subsidiary of the Company (“MPSI”), shall have received written or oral notice from
any State to the effect that such State has determined that the Company or MPSI can
no longer conduct its money transfer or payment systems businesses in such State or
has revoked, or intends to revoke, the Company’s or
MPSI’s license to

6

 

conduct such businesses in such State, or imposed, or
intends to impose, one or more conditions on the Company’s or MPSI’s license to
conduct such businesses in such State (which conditions are materially adverse to
the Company or MPSI and are not generally applicable to other persons conducting
money transfer or payments systems businesses in such State);

          (vii) after giving effect to the transactions and the payment of expenses
payable by the Company in connection with the transactions contemplated hereby,
including, without limitation, the expenses incurred in connection with the
transactions contemplated by clause (iv) of this Section 1.2(c) , the
expenses contemplated by Section 5.3 hereof and the Exclusivity Agreement
(as defined below), and the fees and expenses of the Company’s advisors, on a pro
forma basis, the Company shall have at least $150,000,000 in Unrestricted Assets
(as defined on Schedule E) and $100,000,000 undrawn borrowing availability
under the Company’s revolving credit facility (which availability for the purposes
of this Section 1.2(c)(vii) shall take into account all letters of credit
outstanding either through the Existing Credit Facilities or otherwise);

          (viii) (A) on or prior to the Satisfaction Date, the Company (x) shall have
received from Deloitte & Touche LLP an unqualified opinion regarding the
consolidated financial statements of the Company and its subsidiaries as of and for
the year ended December 31, 2007, prepared in accordance with GAAP (which opinion
shall not contain any going concern modification or qualification or other
explanatory paragraph) (such an opinion referred to herein as a “Satisfactory Audit
Opinion”) and (y) shall have filed its Annual Report on Form 10-K in compliance
with all applicable rules promulgated under the Securities Exchange Act of 1934
(the “Exchange Act”) or, (B) if the conditions set forth in clause (A) of this
sentence have not been satisfied on or prior to the Satisfaction Date, then:

               (1) the Investors shall have received, (v) at least two (2) business days
prior to the Satisfaction Date, a draft of the Company’s Annual Report on Form 10-K
delivered by the Company in a substantially complete form, (w) at least two (2)
business days prior to the Satisfaction Date, a draft opinion delivered by Deloitte
& Touche LLP to the Company regarding the consolidated financial statements of the
Company and its subsidiaries as of and for the year ended December 31, 2007,
prepared in accordance with GAAP (which draft opinion shall be unqualified, except
that it may contain a going concern qualification referring solely to the Company’s
need to raise additional capital to address the reduced valuation of the Company’s
investment portfolio and shall not contain any other going concern modification or
similar qualification or other explanatory paragraph) (such a draft opinion
referred to herein as a “Draft Audit Opinion”), (x) verbal confirmation (on both
the date the draft opinion referred to in clause (v) is delivered and on the
Satisfaction Date) from Deloitte & Touche LLP to the effect that the Draft Audit
Opinion is in a final form that could be delivered to the Company as of the
Satisfaction Date, and if the Draft Audit Opinion contains a Going Concern
qualification, verbal confirmation from
Deloitte & Touche LLP that the sale of portfolio securities and the receipt of
the funds from the transactions contemplated by the Transaction Documents will

7

 

result in a Satisfactory Audit Opinion, with an assumption that the amount of the
Total Loss does not exceed $1,700,000,000 (provided, however, that on the
Satisfaction Date such assumption shall take into account any actual securities
sold and the bids received on the securities to be sold), (y) on both the date the
draft opinion referred to in clause (v) is delivered and on the Satisfaction Date,
a written description delivered by Deloitte & Touche LLP to the Company as of these
dates of all remaining audit procedures that need to be completed for Deloitte &
Touche LLP to issue a Satisfactory Audit Opinion, which procedures relate solely to
confirming the receipt of funds from the sale of portfolio securities and the
receipt of the funds from the transactions contemplated by the Transaction
Documents, and (z) at least two (2) business days prior to the Satisfaction Date, a
written description from the Company, based on discussions with Deloitte & Touche
LLP, of all steps the Company and Deloitte & Touche LLP will take in order for the
Company to obtain from Deloitte & Touche LLP a Satisfactory Audit Opinion on or
prior to the Outside Receipt Date; and

               (2) each of THL, GSMP and GSCP shall have determined (and shall have notified
the Company not later than the Satisfaction Date that it has determined) in its
sole judgment and discretion that the Company will obtain from Deloitte & Touche
LLP, a Satisfactory Audit Opinion on or prior to March 14, 2008 (the “Outside
Receipt Date”), and will file its Annual Report on Form 10-K in compliance with all
applicable rules promulgated under the Exchange Act on or prior to the Outside
Receipt Date; it being understood that in making the determination, the Investors
shall be entitled to consider the foregoing information delivered under clause
(B)(1) above, as well as any other factors as they deem relevant, including without
limitation any and all information obtained through the Company’s full compliance
with Section 3.2;

     (ix) each of THL, GSMP and GSCP shall have had a full and complete opportunity
to review the Company’s books and records, internal controls and procedures, and to
interview current and former Company personnel as determined to be necessary by
each of THL, GSMP and GSCP, and each shall have determined (and shall have notified
the Company not later than the Satisfaction Date that this condition has been
satisfied) that the Company’s books and records, internal controls and procedures,
as well as the Company’s prior disclosures, are acceptable to each of THL, GSMP and
GSCP in its sole judgment and discretion; and it is understood and agreed that such
determination by THL, GSMP and GSCP shall be based on, among other things, but not
limited to, the subjective view of each of THL, GSMP and GSCP of the Company’s
potential exposure, if any, to claims and investigations related to the Company’s
books and records, internal controls and procedures, and prior disclosures;

     (x) neither Deloitte & Touche LLP nor any other accounting firm shall have
issued to the Company any opinion regarding the consolidated financial
statements of the Company and its subsidiaries as of and for the year ended
December 31, 2007 which is not a Satisfactory Audit Opinion;

8

 

          (xi) there shall not have been a restatement (nor shall any restatement be
under consideration by the Company, its external auditors or, to the knowledge of
the Company, the SEC) of any prior period financial statements of the Company;

          (xii) the Company shall have resolved to the satisfaction of the SEC
(including having taken any and all corrective action requested by the Staff of the
SEC, if any) all comments received by the Company from the SEC on the SEC
Documents;

          (xiii) the Company shall not have incurred (or become obligated to incur) fees
of more than $7,000,000 relating to the transactions described in Section
1.2(c)(iv) (other than clauses (D) and (E)) of this Agreement plus annual
administrative agency fees in an amount not exceeding $150,000 per annum payable
quarterly;

          (xiv) the Applicable Margin (as defined in Schedule D) on the Term B Loans (as
defined in Schedule D) shall not have been increased by more than 1.25% per annum
(all of which may take the form of original issue discount over a four-year life to
maturity (i.e. 5% or $10,000,000)); provided that any increase shall
have been necessary in the reasonable discretion of the Lead Arranger (as defined
in Schedule D) to place the Term B Loans and the Lead Arranger shall first consider
(in consultation with the Company and the Investors) using increases in the margin
prior to imposing original issue discount;

          (xv) the Pre-Closing Certificate (as defined in Section 1.2(d)) shall
have been delivered by both the Company and the Investors on the Satisfaction Date;
and

          (xvi) the Investors shall have received a certificate signed on behalf of the
Company by an executive officer of Company confirming that the Pre-Closing
Certificate was true and accurate when delivered and that each of the conditions
set forth in Sections 1.2(c)(iii) and (iv) have been satisfied, or
as applicable, will be satisfied simultaneously with, and are satisfied as of the
Closing Date.

          (d) Pre-Closing Certificate. On the Satisfaction Date, the Company shall deliver to
each of the Investors a certificate (the “Pre-Closing Certificate”) signed on behalf of the
Company by an executive officer of the Company confirming that each of the conditions set forth
in Sections 1.2(c)(i), (ii), (iii)(A), (iv)(A), (iv)(C),
(iv)(D), and (v) through (xiv) have been satisfied and are satisfied as
of the Satisfaction Date. Provided that each Investor, in its good faith determination, agrees
with the Company’s statements in the Pre-Closing Certificate, each Investor shall acknowledge the
Pre-Closing Certificate. After each Investor has acknowledged the Pre-Closing Certificate,
provided that the Pre-Closing
Certificate was true and accurate when delivered and that the conditions in Sections
1.2(c)(iii) and (iv) are satisfied as of the Closing Date, the Company and each of
the Investors shall be required to effect the Closing on the Closing Date.

9

 

          1.3 Exchange of Temporary Security Units.

               (a) Temporary Security Units. Each share of Series C Preferred Stock issued to an
Investor on the Closing Date shall have associated with it:

     (i) a number of shares of Common Stock (including any fractional interests) equal to
(x) (A) the total number of shares of Common Stock issued to the Investors at the Closing
divided by (B) the total number of shares of Series C Preferred issued to the Investors at
the Closing, and (y) any non-cash dividends or distributions on such Common Stock; and

     (ii) a number of shares of Series D Preferred Stock (or the shares of Common Stock
received on conversion thereof pursuant to the Certificate of Designations for the Series D
Preferred Stock (the “Series D Certificate”)) (including any fractional interests) equal to
(x) (A) the total number of shares of Series D Preferred Stock issued to the Investors at
the Closing divided by (B) the total number of shares of Series C Preferred Stock issued to
the Investors at the Closing, and (y) any non-cash dividends or distributions on such Series
D Preferred Stock;

     where a single share of Series C Preferred Stock, along with (i) and (ii), shall be referred
to collectively as a “Temporary Security Unit.”

               (b) Escrow. If and to the extent an Investor desires to transfer Temporary Security
Units in accordance with Section 4.5(a) prior to the earlier of receipt of Shareholder
Approval and the Outside Date (or, if applicable, pursuant to Section 3.1(c), the
Extended Date), and following such transfer the transferred Temporary Security Units will not be
held in the name or custody of such transferring Investor or an entity created by such
transferring Investor over which such Investor or its Affiliates maintain voting and dispositive
control, the Company, such Investor, and an escrow agent reasonably acceptable to both parties
(the “Escrow Agent”) will enter into an escrow agreement (the “Escrow Agreement”) reasonably
satisfactory to all parties designed to eliminate risk that the certificates representing
components of any Temporary Security Unit may be held or possessed by different entities.

               (c) Receipt of Series B Preferred Shares.

     (i) On the later of the day on which Shareholder Approval is received and the day on
which the Regulatory Approvals have been obtained in all of the States (such later day, the
“Exchange Date”), each Temporary Security Unit shall be manditorily exchanged (the
“Exchange”) for a number of shares of Series B Preferred Stock of the Company or, in the
case of GS, of Series B-1 Preferred Stock of the Company, as applicable, that is equal to
(A) the sum of (1) the Liquidation Preference (as defined in the Series C Certificate) with
respect to all Series C Preferred Stock included in such
Temporary Security Unit, (2) the unpaid Accumulated Dividend Amount (as defined in the
Series C Certificate) with respect to all Series C Preferred Stock included in such
Temporary Security Unit and (3) the value of any dividends or distributions declared with
respect to such Temporary Security Unit not already included in clause (2) above, divided by
(B) the initial Liquidation Preference of a single share of Series B Preferred Stock (as

10

 

defined in and determined pursuant to the Certificate of Designations for the Series B
Preferred Stock (the “Series B Certificate”)) or, as applicable, the initial Liquidation
Preference of a single share of Series B-1 Preferred Stock (as defined in and determined
pursuant to the Certificate of Designations for the Series B-1 Preferred Stock (the “Series
B-1 Certificate”)). The Exchange shall be effected at 12:00 p.m. EST on the Exchange Date.

     (ii) Notwithstanding anything contained in Section 1.3(c)(i), the Investors
may, in their sole discretion, elect to effect the Exchange at any time after the later of
the day on which Shareholder Approval is received and the day on which the 85% Requisite
Regulatory Approvals have been obtained, and in the event of such election, such date shall
be deemed to be the Exchange Date. In the event the 85% Requisite Regulatory Approvals are
obtained after the day on which Shareholder Approval is received (the “85% Condition”) and
the Investors do not elect to effect the Exchange, the Applicable Percentage (as defined in
the Series C Certificate) from and after the later of the day on which the last of the 85%
Requisite Regulatory Approvals have been obtained and the day on which Shareholder Approval
is received shall be sixteen percent (16%) in accordance with the terms of the Series C
Preferred Stock. In the event the 95% Requisite Regulatory Approvals are obtained after the
day on which Shareholder Approval is received (the “95% Condition”) and the Investors do not
elect to effect the Exchange, the Applicable Percentage (as defined in the Series C
Certificate) from and after the later of the day on which the last of the 95% Requisite
Regulatory Approvals have been obtained and the day on which Shareholder Approval is
received shall be thirteen percent (13%) in accordance with the terms of the Series C
Preferred Stock. “85% Requisite Regulatory Approvals” means receipt of Regulatory Approvals
from regulators in states representing not less than 85% of the total Money Transfer Volume
in the United States, including in any event approvals of the applicable regulators in the
States set forth on Schedule 1.3(c) (and such approval shall be deemed to have been
obtained in each state in which no such Regulatory Approval is required). “95% Requisite
Regulatory Approvals” shall have the same definition as 85% Requisite Regulatory Approvals
except that the reference to “85%” shall be a reference to “95%.” “Money Transfer Volume”
means the fees and commissions earned by the Company from all of the “send” and Express
Payment payment transactions, during the calendar year 2007, processed by the Company,
originating in the United States.

           (d) Exchange of Certificates.

     (i) On the Exchange Date, each holder of a Temporary Security Unit shall (or, as
applicable, shall cause the Escrow Agent to) surrender the certificate or certificates
representing the individual components of such Temporary Security Unit at the office of the
Company (or any transfer agent of the Company previously designated by the Company to the
holders of Series C Preferred Stock for this purpose). Unless the shares
of Series B Preferred Stock or Series B-1 Preferred Stock, as applicable, issuable upon
exchange are to be issued in the same name as the name in which all of the Securities that
are components of such Temporary Security Unit are registered, each Temporary Security Unit
surrendered for exchange shall be accompanied by instruments of transfer, in form reasonably
satisfactory to the Company, duly executed by the holder thereof or

11

 

such holder’s duly
authorized attorney and in an amount sufficient to pay any transfer or similar tax in
accordance with Section 1.3(d)(ii) (or evidence reasonably satisfactory to the
Company that such tax has been or will be timely paid). As promptly as practicable (and in
any event within two (2) Business Days) after the surrender by the applicable Investors or,
as applicable, the Escrow Agent of the certificates representing the individual components
of the Temporary Security Units to be exchanged, as aforesaid, the Company shall issue and
shall deliver to the holder of record of such certificate, or, on the holder’s written
order, to the holder’s transferee, a certificate or certificates for the number of shares
(including fractional interests) of Series B Preferred Stock or Series B-1 Preferred Stock,
as applicable, issuable upon the exchange of such Temporary Security Units as provided in
Section 1.3(d)(iii).

     (ii) Issuances of certificates for shares of Series B Preferred Stock or Series B-1
Preferred Stock, as applicable, upon exchange of the Temporary Security Units shall be made
without charge to any holder of any Temporary Security Units for any issue or transfer tax
(other than taxes in respect of any transfer occurring contemporaneously therewith) or other
incidental expense in respect of the issuance of such certificates, all of which taxes and
expenses shall be paid by the Company; provided, however, that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved in the
issuance or delivery of shares of Series B Preferred Stock or Series B-1 Preferred Stock, as
applicable, in a name other than that of the holder of the Temporary Security Unit to be
exchanged, and no such issuance or delivery shall be made unless and until the person
requesting such issuance or delivery has paid to the Company the amount of any such tax or
has established, to the reasonable satisfaction of the Company, that such tax has been, or
will timely be, paid.

     (iii) In connection with the exchange of the Temporary Security Units, no cash
adjustments in respect of fractional interests of shares of Series B Preferred Stock or
Series B-1 Preferred Stock, as applicable, shall be paid, but in lieu thereof, fractions of shares of Series B Preferred Stock or Series B-1 Preferred Stock, as applicable, shall be
issued.

ARTICLE II

Representations and Warranties

          2.1 Disclosure. (a) On or prior to the date hereof, the Company delivered to the
Investors a schedule (the “Company Disclosure
Schedule”) setting forth, among other things, items the disclosure of which is necessary or
appropriate either in response to an express disclosure requirement contained in a provision
hereof or as an exception to one or more of the Company’s representations or warranties contained
in Section 2.2.

          (b) “Material Adverse Effect” means, (x) with respect to the Company, any circumstance,
event, change, development or effect that, individually or in the aggregate: (1) is material and
adverse to the financial position, results of operations, business, assets or

12

 

liabilities of the
Company and the Company Subsidiaries taken as a whole or (2) would materially impair the ability
of the Company to perform its obligations under this Agreement or otherwise materially threaten
or materially impede the consummation of the Purchase and the other transactions contemplated by
this Agreement; provided, however, that Material Adverse Effect, under clause (1) shall be deemed
not to include the impact of (A) changes in general economic, financial market, credit market,
regulatory or political conditions (whether resulting from acts of war or terrorism, an
escalation of hostilities or otherwise) generally affecting the U.S. economy, foreign economies
or the industries in which the Company or the Company Subsidiaries operate, (B) changes in
generally accepted accounting principles, (C) changes in laws of general applicability or
interpretations thereof by any United States or foreign governmental or regulatory agency,
commission, court, body, entity or authority (each a “Governmental Entity,” and together
“Governmental Entities”), (D) any change in the Company’s stock price or trading volume, in and
of itself, or any failure, in and of itself, by the Company to meet revenue or earnings guidance
published or otherwise provided to the Investor (provided that any fact, condition, circumstance,
event, change, development or effect underlying any such failure or change, other than any of the
foregoing that is otherwise excluded pursuant to clauses (A) through (H) hereof, may be taken
into account in determining whether a Material Adverse Effect has occurred or would reasonably be
expected to occur), (E) losses resulting from any change in the valuations of the Company’s
portfolio of securities or sales of such securities, (F) actions or omissions of either party
taken as required by this Agreement or with the prior written consent of the other party in
contemplation of the transactions contemplated hereby, (G) public announcement, in and of itself,
by a third party not affiliated with the Company of any proposal to acquire the outstanding
securities or all or substantially all of the assets of the Company and (H) the public
announcement of this Agreement and the transactions contemplated hereby (provided that this
clause (H) shall not apply with respect to Sections 1.2(c)(v), 2.2(d),
2.2(h) and 2.2(k)); provided further, however, that Material Adverse Effect shall
be deemed not to include the impact of the foregoing clauses (A), (B) and (C), in each case only
insofar and to the extent that such circumstances, events, changes, developments or effects
described in such clauses do not have a disproportionate effect on the Company and the Company
Subsidiaries (exclusive of its payments systems business) relative to other participants in the
industry, and (y) with respect to the Investors, any circumstance, event, change, development or
effect that, individually or in the aggregate, would materially impair the ability of the
Investors to perform their respective obligations under this Agreement or otherwise materially
threaten or materially impede the consummation of the Purchase and the other transactions
contemplated by this Agreement.

          (c) “Previously Disclosed” means information (i) set forth in the Company Disclosure
Schedule corresponding to the provision of this Agreement to which such
information relates (provided that any disclosure with respect to a particular paragraph or
section of the Agreement or the Company Disclosure Schedule shall be deemed to be disclosed for
other paragraphs and sections of the Agreement or the Company Disclosure Schedule to the extent
that the relevance of such disclosure would be reasonably apparent to a reader of such
disclosure) or (ii) otherwise disclosed on a SEC Document filed or furnished, and publicly
available on the EDGAR system of the Securities and Exchange Commission (the “SEC”), prior to the
date of this Agreement (excluding any risk factor disclosures contained in such documents and any
disclosure of risks included in any “forward-looking

13

 

statements” disclaimer or other statements
that are similarly non-specific, predictive or forward-looking in nature) (“Filed SEC
Documents”).

          2.2 Representations and Warranties of the Company. Except as Previously Disclosed,
the Company represents and warrants to each of the Investors that:

          (a) Organization and Authority. The Company is duly organized and validly existing
under the Laws of its jurisdiction of organization and has all requisite corporate, company or
partnership power and authority to carry on its business as presently conducted. The Company is
duly qualified or licensed to do business and is in good standing (where such concept is
recognized under applicable Law) in each jurisdiction where the nature of its business or the
ownership, leasing or operation of its properties makes such qualification or licensing
necessary, other than where the failure to be so qualified, licensed or in good standing would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
The Company has made available to the Investors prior to the execution of this Agreement a true
and complete copy of the Amended and Restated Certificate of Incorporation of the Company (the
“Certificate of Incorporation”) and the bylaws of the Company (the “Bylaws”), in each case as in
effect on the date of this Agreement.

          (b) Company Subsidiaries.

     (i) The Company has Previously Disclosed a complete and correct list of all of its
subsidiaries, and all shares of the outstanding capital stock of each of which are owned
directly or indirectly by the Company. The subsidiaries of the Company are referred to
herein individually as a “Company Subsidiary” and collectively as the “Company
Subsidiaries.” All of such shares so owned by the Company (or its subsidiaries) are fully
paid and nonassessable and are owned by it free and clear of any lien, claim, charge,
option, encumbrance or agreement with respect thereto, except for Permitted Liens. Other
than the Previously Disclosed Company Subsidiaries or as otherwise Previously Disclosed, the
Company does not own beneficially (the concept of “beneficial ownership” having the meaning
assigned thereto in Section 13(d) of the Exchange Act, and the rules and regulations
thereunder), directly or indirectly, more than 5% of any class of equity securities or
similar interests of any corporation or other entity, and is not, directly or indirectly, a
partner in any partnership or party to any joint venture.

     (ii) Each Company Subsidiary is duly organized and validly existing under the Laws of
its jurisdiction of organization and has all requisite corporate, company or partnership
power and authority to carry on its business as presently conducted. Each Company
Subsidiary is duly qualified or licensed to do business and is in good standing (where such
concept is recognized under applicable Law) in each jurisdiction where the nature of its
business or the ownership, leasing or operation of its properties makes such qualification
or licensing necessary, other than where the failure to be so qualified, licensed or in good
standing would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

14

 

     (iii) “Permitted Liens” means (A) liens for Taxes, assessments and governmental charges
or levies not yet due and payable or that are being contested in good faith and by
appropriate proceedings and for which, to the extent applicable, reserves have been
established on the Company’s financial statements in accordance with GAAP; (B) mechanics’,
carriers’, workmen’s, repairmen’s, materialmen’s, landlords’ and other statutory liens, or
other liens or security interests that secure a liquidated amount that are being contested
in good faith and by appropriate proceedings (except in the case of landlord’s liens); (C)
leases, subleases and licenses and other agreements pursuant to which the Company or a
Company Subsidiary is a lessor, sublessor or licensor; or grants rights to use or occupy
property or assets of the Company or a Company Subsidiary; (D) pledges or deposits to secure
obligations under workers’ compensation Laws or similar legislation or to secure public or
statutory obligations; (E) pledges and deposits to secure the performance of bids, trade
contracts, leases, surety and appeal bonds, performance bonds and other obligations of a
similar nature, in each case in the ordinary course of business; (F) easements,
encroachments, declarations, covenants, conditions, reservations, limitations and rights of
way (unrecorded and of record) and other similar restrictions or encumbrances of record,
zoning, building and other similar ordinances, regulations, variances and restrictions, and
all defects or irregularities in title; and (G) as to leased real estate, all liens and
encumbrances and other liens of whatsoever nature created or incurred by any owner,
landlord, sublandlord or other person in title, which, in each case set forth in clauses (C)
through (G) above, have not had and that would not, individually, or in the aggregate,
reasonably be expected to have a material adverse effect on the use or benefit to the
Company or any of the Company Subsidiaries of the assets or property owned, leased, used or
held for use by the Company or any of the Company Subsidiaries to which they specifically
relate.

          (c) Capitalization. The authorized capital stock of the Company consists of (i)
7,000,000 shares of preferred stock, 2,000,000 shares of which have been designated as “Series A
Junior Participating Preferred Stock,” and of which no shares were outstanding as of the time of
execution of this Agreement, and (ii) 250,000,000 shares of Common Stock, of which 82,649,089
shares were outstanding as of the date of this Agreement. There are outstanding options (each, a
“Company Stock Option”) to purchase an aggregate of not more than 4,071,039 shares of Common
Stock, all of which options are outstanding under the Benefit Plans. All of the outstanding shares of capital stock of the Company have been duly and validly authorized and issued and are
fully paid and nonassessable. The shares of Common Stock and Preferred Stock to be issued at the
Closing in accordance with the terms of this Agreement or in respect of or upon conversion or
exchange of such Preferred Stock (or upon the conversion of Preferred Stock received upon
conversion or exchange of Preferred Stock to be issued at the Closing) in accordance with the
terms of this Agreement and the respective Certificate of Designations, upon such issuance,
exchange or conversion, as the case may be, will be duly and validly authorized and issued and
fully paid and nonassessable and not trigger any pre-emptive or similar rights of any other
person. Except (A) as described above or Previously Disclosed, (B) for the rights granted
pursuant to the Transaction Documents, or (C) under or pursuant to the Previously Disclosed
Benefit Plans, there are no outstanding subscriptions, contracts, conversion privileges, options,
warrants, calls, preemptive rights or other rights obligating the Company or any Company
Subsidiary to issue, sell or otherwise dispose of, or to purchase, redeem or otherwise acquire,
any shares of capital

15

 

stock of the Company or any Company Subsidiary. The Company has Previously
Disclosed all shares of Company capital stock that have been purchased, redeemed or otherwise
acquired, directly or indirectly, by the Company or any Company Subsidiary since December 31,
2006 and all dividends or other distributions that have been declared, set aside, made or paid to
stockholders of the Company since that date.

               (d) Authorization; No Default.

     (i) The Company has the power and authority to enter into the Transaction Documents and
to carry out its obligations hereunder and thereunder. The execution, delivery and
performance of the Transaction Documents by the Company and the consummation of the
transactions contemplated hereby and thereby have been duly authorized by the board of
directors of the Company (the “Board of Directors”). The Transaction Documents are valid
and binding obligations of the Company enforceable against the Company in accordance with
their respective terms. Except for the Shareholder Approval, no stockholder vote of the
Company is required to authorize, approve or consummate any of the transactions contemplated
hereby.

     (ii) Neither the execution, delivery and performance by the Company of the Transaction
Documents and any documents ancillary thereto, nor the consummation of the transactions
contemplated hereby and thereby, nor compliance by the Company with any of the provisions
thereof, will (A) violate, conflict with, or result in a breach of any provision of, or
constitute a default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration of, or result in the
creation of any lien, security interest, charge or encumbrance upon any of the properties or
assets of the Company or any Company Subsidiary under, any of the material terms, conditions
or provisions of (1) its certificate of incorporation or bylaws or substantially equivalent
governing documents or (2) any note, bond, mortgage, indenture, deed of trust, license,
lease, agreement or other instrument or obligation (each, a “Contract”) to which the Company
or any Company Subsidiary is a party or by which it may be bound, or to which the Company or
any Company Subsidiary or any of the properties or assets of the Company or any Company
Subsidiary may be subject, or (B) subject to compliance with the statutes and regulations
and votes referred to in the next paragraph, violate any statute, rule or regulation or any
judgment, ruling, order, writ, injunction or decree applicable to the Company or any Company
Subsidiary or any of
their respective properties or assets; except, in the case of clauses (A)(2) and (B),
as would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Company.

     (iii) Other than (A) the stockholder vote that will be necessary under the Section
312.00 “Shareholder Approval Policy” of the New York Stock Exchange Listed Company Manual so
that the Series C Preferred Stock, the Series D Preferred Stock and the Common Stock issued
to the Investors at the Closing Date shall become exchangeable for Series B Preferred Stock
or Series B-1 Preferred Stock, as applicable, pursuant to the terms of this Agreement and
the terms of the Series C Certificate (the “Shareholder Approval”), (B) the filing of the
Certificates of Designations with the

16

 

Delaware Secretary of State, (C) in connection or in
compliance with the HSR Act, (D) in connection or in compliance with the German Antitrust
Act and (E) such other consents, approvals, orders, authorizations, registrations,
declarations, filings and notices the failure of which to be obtained or made would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect
on the Company, no notice to, filing with, exemption or review by, or authorization, consent
or approval of, any Governmental Entity or any other person (nor expiration nor termination
of any statutory waiting periods) is necessary prior to the consummation by the Company of
the transactions contemplated by the Transaction Documents.

               (e) SEC Documents.

     (i) The Company has filed all reports, schedules, forms, statements and other documents
with the SEC required to be filed by the Company or furnished by the Company since December
31, 2005 (including any items incorporated by reference or attached as Exhibits thereto)
(the “SEC Documents”). No Company Subsidiary is required to make any filings of SEC
Documents. As of their respective dates of filing, the SEC Documents complied as to form in
all material respects with the requirements of the Securities Act of 1933, as amended (the
“Securities Act”), or the Exchange Act, as the case may be, and the rules and regulations of
the SEC promulgated thereunder applicable thereto, and none of the SEC Documents contained
any untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. Except as Previously Disclosed,
there are no outstanding comments from the SEC with respect to any SEC Document. The
audited consolidated financial statements and the unaudited quarterly financial statements
(including, in each case, the notes thereto) of the Company included in the SEC Documents
when filed complied as to form in all material respects with the published rules and
regulations of the SEC with respect thereto, have been prepared in all material respects in
accordance with United States generally accepted accounting principles (“GAAP”) (except, in
the case of unaudited quarterly statements, as permitted by Form 10-Q of the SEC or other
rules and regulations of the SEC) applied on a consistent basis during the periods involved
(except as may be indicated in the notes thereto) and fairly present in all material
respects the consolidated financial position of the Company and its consolidated
Subsidiaries as of the dates thereof and the consolidated results of their operations and
cash flows for the periods then ended (subject, in the case of unaudited quarterly
statements, to normal year-end adjustments). Except as specifically reflected or
reserved against in the audited consolidated balance sheet of the Company as at September
30, 2007 included in the Filed SEC Documents, neither the Company nor any of the Company
Subsidiaries have any liabilities or obligations (whether absolute, accrued, contingent,
fixed or otherwise) of any nature that would be required under GAAP, as in effect on the
date of this Agreement, to be reflected on a consolidated balance sheet of the Company
(including the notes thereto), except liabilities and obligations that (A) were incurred in
the ordinary course of business consistent with past practice since September 30, 2007 or
(B) have not had and would not, individually or in the aggregate, reasonably be expected to
have, a Material Adverse Effect.

17

 

     (ii) The Company (A) has implemented and maintains disclosure controls and procedures
(as defined in Rule 13a-15(e) of the Exchange Act) to ensure that material information
relating to the Company, including its consolidated subsidiaries, is made known to the chief
executive officer and the chief financial officer of the Company by others within those
entities, and (B) has disclosed, based on its most recent evaluation prior to the date
hereof, to the Company’s outside auditors and the audit committee of the Board of Directors
(1) any significant deficiencies and material weaknesses in the design or operation of
internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange
Act) that are reasonably likely to adversely affect the Company’s ability to record,
process, summarize and report financial information and (2) any fraud, whether or not
material, that involves management or other employees who have a significant role in the
Company’s internal controls over financial reporting. As of the date of this Agreement, the
Company has no knowledge of any reason that its outside auditors and its chief executive
officer and chief financial officer will not be able to give the certifications and
attestations required pursuant to the rules and regulations adopted pursuant to Section 404
of the Sarbanes-Oxley Act of 2002, without qualification, when next due. Since December 31,
2005, (x) neither the Company nor any Company Subsidiary nor, to the knowledge of the
Company, any director, officer, employee, auditor, accountant or representative of the
Company or any Company Subsidiary, has received or otherwise had or obtained knowledge of
any material complaint, allegation, assertion or claim, whether written or oral, regarding
the accounting or auditing practices, procedures, methodologies or methods of the Company or
any Company Subsidiary or their respective internal accounting controls, including any
material complaint, allegation, assertion or claim that the Company or any Company
Subsidiary has engaged in questionable accounting or auditing practices, and (y) no attorney
representing the Company or any Company Subsidiary, whether or not employed by the Company
or any such subsidiary, has reported evidence of a material violation of securities laws,
breach of fiduciary duty or similar violation by the Company or any of its officers,
directors, employees or agents to the Board of Directors or any committee thereof or to any
director or officer of the Company.

               (f) Taxes.

     (i) Except as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect, (A) the Company and each of the Company Subsidiaries have
prepared and timely filed (taking into account any extension of time
within which to file) all Tax Returns required to be filed by any of them and all such
filed Tax Returns are complete and accurate, (B) the Company and each of the Company
Subsidiaries have paid all Taxes that are required to be paid by any of them, (C) as of the
date of this Agreement, there are no audits, examinations, investigations, actions, suits,
claims or other proceedings in respect of Taxes pending or threatened in writing nor has any
deficiency for any Tax been assessed by any Governmental Entity in writing against the
Company or any of the Company Subsidiaries, and (D) all Taxes required to be withheld by the
Company and the Company Subsidiaries have been withheld and paid over to the appropriate Tax
authority (except, in the case of this clause (D) or clause (A) or (B) above, with respect
to matters contested in good faith and for which adequate reserves have been established on
the Company’s financial statements in accordance with

18

 

GAAP). The Company has not been a
“controlled corporation” or a “distributing corporation” in any distribution occurring
during the two-year period ending on the date of this Agreement that was intended to be
governed by Section 355 of the Internal Revenue Code of 1986, as amended (the “Code”).
Neither the Company nor any Company Subsidiary has entered into any “listed transaction” as
defined under Section 1.6011-4(b)(2) of the Treasury Regulations promulgated under the Code.

     (ii) As used in this Agreement, (A) “Taxes” means any and all domestic or foreign,
federal, state, local or other taxes of any kind (together with any and all interest,
penalties, additions to tax and additional amounts imposed with respect thereto) imposed by
any Governmental Entity, including taxes on or with respect to income, franchises, windfall
or other profits, gross receipts, property, sales, use, capital stock, payroll, employment,
unemployment, social security, workers’ compensation or net worth, and taxes in the nature
of excise, withholding, ad valorem or value added, and including any liability in respect of
any items described above as a transferee or successor, pursuant to Section 1.1502-6 of the
Treasury Regulations (or any similar provision of state, local or foreign Law), or as an
indemnitor, guarantor, surety or in a similar capacity under any contract, arrangement,
agreement, understanding or commitment (whether oral or written) and (B) “Tax Return” means
any return, report or similar filing (including the attached schedules) filed or required to
be filed with respect to Taxes (and any amendments thereto), including any information
return, claim for refund or declaration of estimated Taxes.

          (g) Ordinary Course. Except as Previously Disclosed, since September 30, 2007, the
Company and each of the Company Subsidiary has conducted its respective businesses in all
material respects in the ordinary course of business, consistent with prior practice (and,
without limiting the generality of the foregoing, none of the Company nor any Company Subsidiary
has taken any action referred to in clauses (a) and (b) of Section 3.3 hereof, assuming
said Section had been in effect at all times since September 30, 2007).

          (h) Commitments and Contracts.

     (i) Except for the Benefit Plans, the Contracts filed as exhibits or incorporated by
reference in or to the SEC Documents, and the Contracts Previously Disclosed, neither
the Company nor any Company Subsidiary is a party to or bound by any Contract that: (A)
is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K
promulgated under the Securities Act) to be performed in full or in part after the date of
this Agreement; (B) creates any material partnership, limited liability company agreement,
joint venture or similar agreement entered into with any third party; (C) is a voting
agreement or registration rights agreement; (D) relates to any indebtedness, or interest
rate or currency hedging agreements, having an outstanding principal or notional amount in
excess of $50,000,000, or any guarantees thereof, or the sale, securitization or servicing
of loans or loan portfolios, in each case in connection with which the aggregate actual or
contingent obligations of the Company and the Company Subsidiaries under such contract are
greater than $50,000,000; (E) relates to the acquisition or disposition of any material
assets other than in the ordinary course of business consistent with past practice, where
such contract contains

19

 

continuing material obligations or contains continuing indemnity
obligations of the Company or any of the Company Subsidiaries; or (F) is a commitment or
agreement to enter into any of the foregoing. Except as set forth on
Section 2.1(h)(i) of the Company Disclosure Schedule, neither the Company nor any
Company Subsidiary is a party to or bound by any Contract (X) that contains provisions that
purport to limit the ability of the Company or any of the Company Subsidiaries, or any
Affiliate, stockholder or director of the Company in their capacities as such, to compete in
any line of business or with any person or which involve any restriction of the geographical
area in which, or method by which or with whom, the Company or any of the Company
Subsidiaries may carry on any business or (Y) is a commitment or agreement to enter into any
such Contract.

     (ii) The Contracts set forth in this Section 2.2(h) (together with any and all
amendments, disclosure schedules and side letters thereto) are collectively referred to
herein as the “Disclosed Contracts.” Except as has not had and would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) neither the
Company nor any Subsidiary of the Company is in breach, default or violation of the terms of
any Disclosed Contract, no event has occurred that with the lapse of time or the giving of
notice or both would constitute a default thereunder by the Company or any of the Company
Subsidiaries, and the Company has no knowledge of (and has not received notice of) any
breach, default or violation (or any condition which with the passage of time or the giving
of notice, or both, would cause such a breach, default or violation) by any party under any
Disclosed Contract; and (B) each Disclosed Contract is a valid and binding obligation of the
Company (or the Subsidiaries of the Company party thereto), is in full force and effect and
is enforceable against the Company and the Company Subsidiaries and, to the knowledge of the
Company, the other parties thereto in accordance with its terms, except that (1) such
enforcement may be subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other similar Laws, now or hereafter in effect, relating to creditors’ rights generally
and (2) equitable remedies of specific performance and injunctive and other forms of
equitable relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought.

          (i) Litigation and Other Proceedings. There is no claim, suit, action,
investigation or proceeding pending
or, to the knowledge of the Company, threatened, against the Company or any Company
Subsidiary that, individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect, nor is the Company or any Company Subsidiary subject to any order,
judgment or decree that, individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect.

          (j) Insurance. The Company and each Company Subsidiary are presently insured, and
during each of the past five calendar years (or during such lesser period of time as the Company
has owned such Company Subsidiary) has been insured, for reasonable amounts with financially
sound and reputable insurance companies against such risks as companies engaged in a similar
business would, in accordance with good business practice, customarily be insured.

20

 

          (k) Compliance with Laws.

     (i) The Company and each Company Subsidiary have all permits, licenses, authorizations,
orders and approvals of, and have made all filings, applications and registrations with,
Governmental Entities (collectively, the “Permits”) that are required in order to permit
them to own or lease their properties and assets and to carry on their business as presently
conducted and that are material to the business of the Company and the Company Subsidiaries,
taken as a whole; and all such Permits are in full force and effect and, to the knowledge of
the Company, no suspension or cancellation of any of them is threatened, and all such
filings, applications and registrations are current. Except as would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect on the Company,
(i) the conduct by the Company and each Company Subsidiary of their business and the
condition and use of their properties does not violate or Infringe any applicable domestic
(federal, state or local) or foreign Law, statute, ordinance, license or regulation, (ii)
neither the Company nor any Company Subsidiary is in default under any order, license,
regulation, demand, writ, injunction or decree of any Governmental Entity, and (iii) the
Company and the Company Subsidiaries currently are complying with all, and, to the knowledge
of the Company, none of them is under investigation with respect to or has been threatened
to be charged with or given notice of any material violation of any, applicable federal,
state, local and foreign Law, statute, regulation, rule, license, judgment, injunction or
decree.

     (ii) Without limiting the generality of the foregoing, the Company and each of its
Subsidiaries have acted in conformity with all applicable Laws and regulations pertaining to
export controls, economic sanctions, national security controls, and similar regulations of
international commerce, including, but not limited to, the U.S. Export Administration
Regulations, 15 C.F.R. pt. 730 et seq., the U.S. antiboycott rules, 15 C.F.R. pt. 760 et
seq. and 26 U.S.C. § 908 & 999, the Office of Foreign Assets Control regulations, 31 C.F.R.
pt. 500 et seq., U.S. anti-money laundering Laws (e.g., 18 U.S.C. §§ 1956-57, 18 U.S.C. §
1960 and 31 U.S.C. §§ 5311-32), and all non-U.S. counterparts or equivalents of the
foregoing, except as, individually or in the aggregate, would not reasonably expected to
have a Material Adverse Effect on the Company. Also, without limiting the generality of the
foregoing, the Company, each of its Subsidiaries, and each of the Company’s and its
Subsidiaries’ employees and agents have acted in conformity with all applicable Laws
and regulations pertaining to corrupt, illegal or unauthorized payments, including, but
not limited to, the U.S. Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§
78dd-1, et seq., except as, individually or in the aggregate, would not reasonably expected
to have a Material Adverse Effect on the Company.

          (l) Benefit Plans.

     (i) The Company has Previously Disclosed or has previously filed as an exhibit to the
SEC Document or made available to the Investor or its representative each of the following
to which the Company or any Company Subsidiary is a party or subject: any plan, contract or
understanding providing for any bonus, pension, option, deferred compensation, retirement
payment, profit sharing welfare, severance, change in control, or fringe benefits or other
compensation with respect to any present or former officer, director, employee or consultant
of the Company or any Company Subsidiary (each, other than a Multiemployer Plan, a “Benefit
Plan”), in each case, requiring aggregate

21

 

annual payments or contributions by the Company
and any of the Company Subsidiaries in an aggregate amount in excess of $1,000,000 or which
has aggregate unfunded liabilities in an amount in excess of $1,000,000 individually
provided that the aggregate unfunded liabilities of the Benefit Plans not Previously
Disclosed or filed as an SEC Document do not exceed $3,000,000. Section 2.2(l) of
the Company Disclosure Schedule sets forth a complete list of the Benefit Plans.

     (ii) Except as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect, (A) with respect to each Benefit Plan, the Company and the
Company Subsidiaries have complied, and are now in compliance with, all provisions of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Code and all Laws
and regulations applicable to such Benefit Plans and each Benefit Plan that is intended to
be qualified under Section 401(a) of the Code has received a favorable determination letter
from the IRS to the effect that such Benefit Plan is so qualified and exempt from federal
income taxes under Sections 401(a) and 501(a) of the Code, and such determination letter has
not been revoked and nothing has occurred, whether by action or failure to act, that could
reasonably be expected to cause the loss of such qualification; (B) each Benefit Plan has
been administered in accordance with its terms including all requirements to make
contributions; (C) there is not now, nor do any circumstances exist that are likely to give
rise to any requirement for the posting of security with respect to a Benefit Plan or the
imposition of any material liability or material lien on the assets of the Company or any
Company Subsidiary under ERISA or the Code in respect of any Benefit Plan, and no liability
(other than for premiums to the Pension Benefit Guaranty Corporation) under Title IV of
ERISA or under Sections 412 or 4971 of the Code has been or is reasonably expected to be
incurred by the Company or any Company Subsidiary; (D) there are no pending or, to the
Company’s knowledge, threatened claims (other than claims for benefits in the ordinary
course), lawsuits or arbitrations which have been asserted or instituted against the Benefit
Plans or the assets of any of the trusts under any of the Benefit Plans; (E) to the
Company’s knowledge, there are no pending or threatened claims against any fiduciary of any
of the Benefit Plans with respect to their duties to the Benefit Plans; (F) to the Company’s
knowledge, no set of circumstances exists which may reasonably give rise to a claim or
lawsuit,
against the Benefit Plans, any fiduciaries thereof with respect to their duties to the
Benefit Plans or the assets of any of the trusts under any of the Benefit Plans; and (G) the
Company and each Company Subsidiary have reserved the right to amend, terminate or modify at
any time all plans or arrangements providing for retiree health or life insurance coverage,
and there have been no communications to employees or former employees which could
reasonably be interpreted to promise or guarantee such employees or former employees any
retiree health or life insurance or other retiree death benefits on a permanent basis, other
than those retirement benefits provided for under the Company’s collective bargaining
agreements.

     (iii) None of the Company, any of the Subsidiaries or any other person or entity under
common control with the Company within the meaning of Section 414(b), (c), (m) or (o) of the
Code participates in, or is required to contribute to, any “multiemployer plan” (within the
meaning of Section 3(37) of ERISA) (a “Multiemployer Plan”).

22

 

     (iv) Except as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect, each individual who performs services for the Company or any
Company Subsidiary (other than through a contract with an entity other than the Company or
any Company Subsidiary) and who is not treated as an employee of the Company or any Company
Subsidiary has been properly characterized as not being an employee for such purposes.

     (v) Neither the execution and delivery of this Agreement nor the consummation of the
transactions contemplated hereby (alone or in conjunction with any termination of employment
or other event) will (A) result in any material payment (including, without limitation,
severance or “excess parachute payments” (within the meaning of Section 280G of the Code),
or forgiveness of indebtedness) or other material obligation becoming due to any current or
former employee, officer or director of the Company or any Company Subsidiary under any
Benefit Plan or otherwise, (B) limit or restrict the right of the Company or any Company
Subsidiary to merge, amend or terminate any of the Benefit Plans, or (C) materially increase
or accelerate or require the funding of any benefits otherwise payable under any Benefit
Plan.

     (vi) Except as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect, (A) no work stoppage involving the Company or any Company
Subsidiary is pending or, to the knowledge of the Company, threatened; (B) neither the
Company nor any Company Subsidiary is involved in, or threatened with or affected by, any
labor dispute, arbitration, lawsuit or administrative proceeding that could affect the
business of the Company or such Company Subsidiary; and (C) employees of the Company and the
Company Subsidiaries are not represented by any labor union nor are any collective
bargaining agreements otherwise in effect with respect to such employees.

     (vii) Except as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect, with respect to each Benefit Plan that is maintained
substantially for employees who are situated outside the United States (the “Foreign
Plans”), (i) each Foreign Plan required to be registered has been registered and
has been maintained in good standing with applicable regulatory authorities; and (ii)
all Foreign Plans that are required to be funded are funded in accordance with applicable
Laws, and with respect to all other Foreign Plans, adequate reserves therefor have been
established on the accounting statements of the applicable Company or Company Subsidiary.

          (m) Environmental Liability. Except for those matters that would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) each of the
Company and the Company Subsidiaries is in compliance with all applicable Environmental Laws, and
neither the Company nor any Company Subsidiary has received any written communication alleging
that the Company is in violation of, or has any liability under, any Environmental Law, (ii) each
of the Company and the Company Subsidiaries validly possesses and is in compliance with all
Permits required under Environmental Laws to conduct its business as presently conducted, and all
such Permits are valid and in good standing, (iii) there are no Environmental Claims pending or,
to the knowledge of the

23

 

Company, threatened against the Company or any of the Company
Subsidiaries and (iv) none of the Company or any of the Company Subsidiaries has Released any
Hazardous Materials in a manner that would reasonably be expected to result in an Environmental
Claim against the Company or any of the Company Subsidiaries. As used in this Agreement, (1) the
term “Environmental Claims” means any administrative or judicial actions, suits, orders, claims,
proceedings or written notices of noncompliance by or from any person alleging liability arising
out of the Release of Hazardous Materials or the failure to comply with Environmental Law; (2)
the term “Environmental Law” means any Law relating to pollution, the environment or natural
resources; (3) the term “Hazardous Materials” means (x) petroleum and petroleum by-products,
asbestos that is friable, radioactive materials, medical or infectious wastes or polychlorinated
biphenyls and (y) any other material, substance or waste that is prohibited, limited or regulated
by Environmental Law because of its hazardous, toxic or deleterious properties or
characteristics; and (4) the term “Release” means any release, spill, emission, leaking, pumping,
emitting, discharging, injecting, escaping, leaching, dumping, disposing or migrating into or
through the environment in derogation of Environmental Law.

          (n) Intellectual Property.

     (i) As used in this Agreement, “Intellectual Property” means the following and all
rights pertaining thereto: (A) patents, patent applications, provisional patent
applications and statutory invention registrations (including all utility models and other
patent rights under the Laws of all countries), (B) trademarks, service marks, trade dress,
logos, trade names, service names, corporate names, domain names and other brand
identifiers, registrations and applications for registration thereof, (C) copyrights,
proprietary designs, computer software, mask works, databases, and registrations and
applications for registration thereof, (D) confidential and proprietary information, trade
secrets, know-how and show-how, and (E) all similar rights, however denominated, throughout
the world.

     (ii) Except as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect, (A) the Company and the Company Subsidiaries own,
free of all encumbrances except Permitted Liens, or have the valid right to use all the
Intellectual Property used in the conduct of the business of the Company and the Company
Subsidiaries and (B) the conduct of the business of the Company and the Company Subsidiaries
as currently conducted does not infringe upon, misappropriate or violate (“Infringe”) any
Intellectual Property rights of any third party. Except as would not reasonably be expected
to have a Material Adverse Effect, no claim or demand has been given in writing to the
Company or any Company Subsidiary to the effect that the conduct of the business of the
Company or such Company Subsidiary Infringes upon the Intellectual Property rights of any
third party. Except as would not reasonably be expected to have a Material Adverse Effect,
the Company and the Company Subsidiaries use the Intellectual Property of third parties only
pursuant to valid, effective written license agreements (collectively, the “Third Party
Licenses”). Except as would not reasonably be expected to have a Material Adverse Effect,
to the knowledge of the Company, no third parties are infringing the Intellectual Property
rights of the Company.

24

 

     (iii) All registered trademarks and registered service marks, trademark and service
mark applications and, to the knowledge of the Company, all patents and patent applications,
currently owned by the Company and the Company Subsidiaries that are material to the
business of the Company and the Company Subsidiaries, taken as a whole, as currently
conducted (the “Company Intellectual Property”) have been duly registered or application
filed with the U.S. Patent and Trademark Office or applicable foreign governmental
authority. Except as would not reasonably be expected to have a Material Adverse Effect,
(A) none of the Company Intellectual Property has been adjudged to be invalid or
unenforceable in whole or in part and (B) there are no actual or, to the knowledge of the
Company, threatened opposition proceedings, cancellation proceedings, interference
proceedings or other similar action challenging the validity, existence or ownership of any
Company Intellectual Property.

          (o) Anti-takeover Provisions Not Applicable. The provisions of Section 203 of the
Delaware General Corporation Law as they relate to the Company do not and will not apply to the
Investors’ acquisition of Securities pursuant to the Transaction Documents or to any of the
transactions contemplated hereby or thereby. The acquisition of Securities by the Investors
pursuant to the Transaction Documents and the transactions contemplated hereby or thereby,
including, without limitation, the exchange of the Temporary Security Units, the dividends
required or contemplated by the respective Certificates of Designations of the respective series
of Preferred Stock and the redemptions required or contemplated by the respective Certificates of
Designations of the respective series of Preferred Stock, have been approved by the Continuing
Directors (as defined in Article IX of the Certificate of Incorporation). The Board of Directors
has adopted the Rights Plan Amendment in the form set forth in Exhibit 6 hereto and the
same has been duly executed and delivered by the parties thereto.

          (p) Board Approvals. The transactions contemplated by the Transaction Documents,
including without limitation the issuance of the Preferred Stock and the compliance with the
terms thereof and the compliance with the terms of this Agreement, have been approved unanimously
by the Board of Directors. The Board of Directors has unanimously (i) adopted, approved and
declared advisable all of
the transactions contemplated by the Transaction Documents and the Shareholder Approval,
(ii) directed that the Shareholder Approval be submitted to the stockholders of the Company for
their approval and adoption and (iii) recommended that the stockholders of the Company adopt and
grant the Shareholder Approval.

          (q) Brokers and Finders. Neither the Company nor any Company Subsidiary nor any of
their respective officers, directors or employees has incurred any liability for any financial
advisory fees, brokerage fees, commissions or finder’s fees in connection with the Transaction
Documents or the transactions contemplated hereby and thereby, other than JPMorgan Chase & Co.,
the fees and expenses of which will be paid by the Company. The Company has provided the
Investors a copy of the documentation pursuant to which JPMorgan Chase & Co. may receive a fee in
connection with the Transaction Documents or the transactions contemplated hereby and thereby.

25

 

          (r) Exemption from Registration. Assuming the accuracy of the representations and
warranties made by the Investors in Section 2.3(c) of this Agreement, the offer and
issuance by the Company of the Securities is exempt from registration under the Securities Act.

          (s) Opinions of Financial Advisors. The Board of Directors of the Company has
received the opinion of JPMorgan Chase & Co., dated the date of this Agreement, and the opinion
of Duff & Phelps, LLC, each to the effect that, as of such date, and subject to the various
assumptions and qualifications set forth therein, the consideration to be received by the Company
pursuant to this Agreement is fair from a financial point of view to the Company (the “Fairness
Opinions”). Correct and complete copies of the Fairness Opinions have been delivered to the
Investors. The Company has been authorized by JPMorgan Chase & Co. and by Duff & Phelps, LLC to
permit the inclusion of their respective Fairness Opinions and references thereto in the proxy
statement materials to be sent in connection with obtaining Shareholder Approval.

          (t) No Other Representations or Warranties. Except for the representations and
warranties contained in this Section 2.2, each of the Investors severally and not jointly
acknowledge that neither the Company nor any person on behalf of the Company makes any other
express or implied representation or warranty with respect to the Company or the Company
Subsidiaries, or with respect to any other information provided to the Investor in connection
with the transactions contemplated by this Agreements.

          2.3 Representations and Warranties of the Investors. Each of THL (jointly and
severally among the THL Investors), GSMP (jointly and severally among the GSMP Investors), and GSCP
(jointly and severally among the GSCP Investors) severally but not jointly, hereby represents and
warrants to the Company that:

          (a) Organization and Authority. Such Investor is a partnership, limited liability
company or corporation, as applicable, duly organized and validly existing under the Laws of its
jurisdiction of organization and has all requisite partnership, company or corporate, as
applicable, power and authority to carry on its business as presently conducted. Such Investor
is duly qualified or licensed to do business and is in good standing (where such concept is
recognized under applicable Law) in each jurisdiction where the nature of its business or the
ownership, leasing or operation of its properties makes such qualification or licensing
necessary, other than where the failure to be so qualified, licensed or in good standing would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect
on such Investor.

          (b) Authorization.

     (i) Such Investor has the partnership, company or corporate, as applicable, power and
authority to enter into the Transaction Documents and to carry out its obligations hereunder
and thereunder. The execution, delivery and performance of the Transaction Documents by
such Investor and the consummation of the transactions contemplated hereby and thereby have
been duly authorized by such Investor and no further approval or authorization by such
Investor is required. The Transaction Documents are valid and binding obligations of such
Investor enforceable against such Investor in accordance with their respective terms.

26

 

     (ii) Neither the execution, delivery and performance by such Investor of the
Transaction Documents, nor the consummation of the transactions contemplated hereby and
thereby, nor compliance by such Investor with any of the provisions thereof, will (A)
violate, conflict with, or result in a breach of any provision of, or constitute a default
(or an event which, with notice or lapse of time or both, would constitute a default) under,
or result in the termination of, or accelerate the performance required by, or result in a
right of termination or acceleration of, or result in the creation of, any lien, security
interest, charge or encumbrance upon any of the properties or assets of such Investor under
any of the material terms, conditions or provisions of (1) its certificate of limited
partnership, partnership agreement, limited liability company agreement, certificate of
incorporation or bylaws, as applicable, or (2) any material note, bond, mortgage, indenture,
deed of trust, license, lease, agreement or other instrument or obligation to which such
Investor is a party or by which it may be bound, or to which such Investor or any of the
properties or assets of such Investor may be subject, or (B) subject to compliance with the
statutes and regulations referred to in the next paragraph, materially violate any statute,
rule or regulation or, to the knowledge of any Investor, any judgment, ruling, order, writ,
injunction or decree applicable to such Investor or any of its properties or assets, except
in the case of clauses (A)(2) and (B) for such violations, conflicts and breaches as would
not reasonably be expected to have a Material Adverse Effect on such Investor.

     (iii) Other than (A) in connection or in compliance with the HSR Act, (B) in connection
or in compliance with the German Antitrust Act, (C) Regulatory Approvals, and (D) such other
consents, approvals, orders, authorizations, registrations, declarations, filings and
notices the failure of which to be obtained or made would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect on such
Investor, no notice to, filing with, exemption or review by, or authorization, consent
or approval of, any Governmental Entity or any other person (nor expiration nor termination
of any statutory waiting periods) is necessary for the consummation by such Investor of the
transactions contemplated by the Transaction Documents.

          (c) Purchase for Investment. Such Investor acknowledges that the Securities have
not been registered under the Securities Act and the rules and regulations thereunder or under
any state securities Laws and that there is no public or other market for the Preferred Shares.
Such Investor (i) is acquiring the Securities for its own account pursuant to an exemption from
registration under the Securities Act solely for investment and not with a view to distribution
in violation of the securities Laws, (ii) will not sell or otherwise dispose of any of the
Securities, except in compliance with the registration requirements or exemption provisions of
the Securities Act and any other applicable securities Laws, (iii) has such knowledge and
experience in financial and business matters and in investments of this type that it is capable
of evaluating the merits and risks of its investment in the Securities and of making an informed
investment decision and (iv) is an Accredited Investor (as that term is defined by Rule 501 of
the Securities Act).

27

 

          (d) Financial Capability. Such Investor has available funds to make the Purchase on
the terms and conditions contemplated by this Agreement.

          (e) Brokers and Finders. Neither such Investor nor its Affiliates nor any of their
respective officers, directors or employees has incurred any liability for any financial advisory
fees, brokerage fees, commissions or finder’s fees in connection with the Transaction Documents
or the transactions contemplated hereby and thereby.

          (f) No Exclusivity. Neither any Investor nor any of its Affiliates is a beneficiary
of or is subject to any exclusivity or similar arrangement or agreement with respect to any debt
or equity related to any potential investment in the Company.

          (g) No Other Representations or Warranties. Except for the representations and
warranties contained in this Section 2.3, the Company acknowledges that neither the
Investors nor any other person on behalf of the Investors makes any other express or implied
representation or warranty with respect to any Investor or with respect to any other information
provided to the Company in connection with the transactions contemplated by this Agreement.

ARTICLE III

Covenants

          3.1 Filings; Other Actions. (a)  Each of the Investors and the Company will
cooperate and consult with the others and use best efforts to prepare and file all necessary
documentation, to effect all necessary applications, notices, petitions, filings and other
documents, and to obtain all necessary permits, consents, orders, approvals, clearances and
authorizations of, or any exemption by, all Governmental Entities (and in the case of the
Company, also third parties) necessary or advisable to consummate the transactions contemplated
by this Agreement. In particular, each of the Investors and the Company will use their best
efforts to obtain, and will use their best efforts to help the others obtain, as promptly as
practicable, all approvals, authorizations, consents, clearances, expirations or terminations of
waiting periods or exemptions required from all necessary Governmental Entities for the
transactions contemplated by the Transaction Documents, including, but not limited to, filings
and notifications with respect to, and expiration or termination of any applicable waiting
period, under the HSR Act and any other applicable competition or merger control laws, and all
notices to, filings and registrations with, and approvals, authorizations, consents, clearances
or exemptions from, all Governmental Entities referred to on Section 3.3(b) of the
Company Disclosure Schedule. Notwithstanding the foregoing, (i) neither Goldman, Sachs & Co. nor
any of its Affiliates shall be required to use efforts to seek or obtain Regulatory Approvals and
(ii) the Company shall not be required to seek Regulatory Approvals from those States that
require Regulatory Approvals for a Person to hold 25% or more of the then outstanding securities
of the Company (but for the avoidance of doubt, shall be required to seek Regulatory Approvals
from those states that require Regulatory Approvals for a Person to hold less than 25% of the
outstanding securities of the Company) if any Temporary Securities Unit (other than as a whole)
shall have been transferred so that all

28

 

components of such Temporary Security Unit cease to be
beneficially owned by the same Person (and each Investor agrees to notify the Company if it
transfers any components of a Temporary Securities Unit in any manner that results in any
component of a Temporary Securities Unit being beneficially owned in such manner), or if any
Investor is in violation of its obligations under Section 1.3(b) hereof. Each of the
Investors and the Company will have the right to review in advance, and to the extent practicable
each will consult with the others, in each case subject to applicable Laws relating to the
exchange of information, with respect to all the information relating to the other parties, and
any of their respective subsidiaries, which appears in any filing made with, or written materials
submitted to, any third party or any Governmental Entity in connection with the transactions
contemplated by this Agreement (including any proxy materials in connection with the Shareholder
Approval). In exercising the foregoing right, each of the parties hereto agrees to act
reasonably and as promptly as practicable. Each party hereto agrees to keep the other parties
apprised of the status of matters relating to completion of the transactions contemplated hereby.
The Investors and the Company shall promptly furnish each other with copies of written
communications received by them or their subsidiaries from, or delivered by any of the foregoing
to, any Governmental Entity in respect of the transactions contemplated by this Agreement or by
the other Transaction Documents, other than any communications received
by an Investor from, or delivered by an Investor to, the Internal Revenue Service (the
“IRS”) (and other than in respect of information filed or otherwise submitted confidentially to
any such Governmental Entity and other than in respect of routine audits or ordinary course
communications which could not reasonably be expected to be material to the Company). Each party
shall execute and deliver both before and after the Closing such further certificates, agreements
and other documents and take such other actions as the other party may reasonably request to
consummate or implement such transactions or to evidence such events or matters. Notwithstanding
anything to the contrary in this Agreement, neither any Investor nor its Affiliates shall be
obligated to make (or offer to make) any divestiture of, or otherwise limit (or offer to limit)
Investor’s or its Affiliates’ freedom of action with respect to, Investor’s or its Affiliates’
assets or businesses presently owned or hereafter acquired.

          (b) The Investors and the Company shall not, and shall not permit any of their Subsidiaries
or Affiliates to, acquire or agree to acquire by merger or consolidation, or by purchasing a
substantial equity interest in or a substantial portion of the assets of, or by any other manner,
any business or any corporation, partnership, association or other business organization or
division thereof or otherwise acquire or agree to acquire any assets that would delay or make
materially more difficult the obtaining of any approvals, authorizations, consents, clearances,
expirations or terminations of waiting periods or exemptions approval or authorization required
under the HSR Act or the German Antitrust Act for the transactions contemplated by the
Transaction Documents. Notwithstanding anything herein to the contrary, Goldman, Sachs & Co. and
its affiliates may engage in any brokerage, investment advisory, financial advisory, anti-raid
advisory, merger advisory, financing, asset management, trading, market making, arbitrage and
other similar activities conducted in the ordinary course of their business.

          (c) The Company agrees to use its best efforts to obtain the Shareholder Approval. In
connection with the foregoing, the Company shall call and hold a meeting of its stockholders to
seek Shareholder Approval prior to the Outside Date, and file with the SEC a

29

 

proxy statement and
shall use its best efforts to solicit proxies in favor of Shareholder Approval, and shall use its
best efforts to respond to any comments of the SEC or its staff and to cause a definitive proxy
statement related to such shareholders’ meeting to be mailed to the Company’s shareholders. The
Board of Directors shall unanimously recommend Shareholder Approval and such unanimous
recommendation shall be included in each proxy statement filed with the SEC and disseminated to
Company shareholders in connection with such shareholder meeting (such recommendations, the
“Company Board Recommendation”), except that the Board of Directors may withdraw or modify such
recommendation, and cease exercising the efforts described above (but shall continue to be
required to call and hold the shareholder meeting or meetings for the purpose of obtaining
Shareholder Approval and to solicit proxies with respect to such meeting), if the Board of
Directors determines, in good faith, after consultation with outside legal counsel, that such
action is required for the Board of Directors to comply with its fiduciary duties to the
Company’s shareholders under applicable Law. The Company shall notify the Investors promptly of
the receipt of any comments from the SEC or its staff and of any request by the SEC or its staff
for amendments or supplements to such proxy statement or for additional information and will
supply the Investors with copies of all correspondence between the Company or any of its
representatives, on the one hand, and the SEC or its staff, on the other hand, with respect to
such proxy statement. If at any time
prior to such shareholders’ meeting there shall occur any event that is required to be set
forth in an amendment or supplement to the proxy statement, the Company shall as promptly as
practicable prepare and mail to its shareholders such an amendment or supplement. Each of the
Investors and the Company agree promptly to correct any information provided by it or on its
behalf for use in the proxy statement if and to the extent that such information shall have
become false or misleading in any material respect, and the Company shall as promptly as
practicable prepare and mail to its shareholders an amendment or supplement to correct such
information to the extent required by applicable laws and regulations. The Company shall provide
each of the Investors with drafts of each such proxy statement, or amendment or supplement
thereto, and consult with each of the Investors regarding the same, in each case, prior to filing
or mailing the same. Without limiting the generality of the foregoing, the Company’s obligations
pursuant to the first two sentences of this Section 3.1(c) shall not be affected by (i)
the commencement, public proposal, public disclosure or communication to the Company of any
Company Transaction Proposal (as defined below) or (ii) the withdrawal or modification by the
Board of Directors of the Company or any committee thereof of the Company Board Recommendation.
In the event that Shareholder Approval is not obtained at the first meeting of shareholders at
which Shareholder Approval is sought, at the written request of the Investors, the Company shall
call and convene a subsequent meeting of shareholders for the purpose of obtaining Shareholder
Approval (and the Board of Directors will unanimously recommend Shareholder Approval, except that
the Board of Directors may withdraw or modify such recommendation (but shall continue to be
required to call and hold the shareholder meeting for the purpose of obtaining Shareholder
Approval and to solicit proxies with respect to such meeting), if the Board of Directors
determines, in good faith, after consultation with outside legal counsel, that such action is
required for the Board of Directors to comply with its fiduciary duties to the Company’s
shareholders under applicable Law), which meeting may not be delayed by the Company, and all
covenants between the parties set forth in this Section 3.1 shall apply equally with
respect to any subsequent meeting of shareholders; provided, however, that the Company shall be
required to comply with the

30

 

obligations of this sentence only in the event that, at the time that
the Investors deliver such written notice to the Company, (x) each Temporary Security Unit
required to be subject to the Escrow Account shall remain subject to the Escrow Account and no
Investor shall have transferred any component of any Temporary Security Unit (other than transfer
of a Temporary Security Unit as a whole), (y) each holder of a Temporary Security Unit shall have
agreed in writing with the Company that the restrictions on transfer set forth in
Section 4.5(a) hereof and the restrictions set forth in Section 1.3(b) hereof
shall continue until the first business day following the shareholder meeting at which such
proposal shall be considered (the “Extended Date”), and (z), as applicable, the Escrow Agent and
each beneficial owner of Temporary Security Units subject to the Escrow Account shall have agreed
that the Escrow Agreement shall be extended, and each such Temporary Security Unit shall remain
subject to the Escrow Account, until the Extended Date. Unless otherwise required by Law, the
Company shall not call or convene a meeting of its stockholders prior to the meeting of
stockholders at which Shareholder Approval is sought.

          (d) Each party agrees, upon request, to furnish the other parties with all information
concerning itself, its subsidiaries, directors, officers and stockholders and such other matters
as may be reasonably necessary or advisable in connection with the proxy statement in connection
with any meeting of the Company’s stockholders, to be held no later
than the Outside Date (defined herein), at which meeting the Company intends to seek
Shareholder Approval, and any other statement, filing, notice or application made by or on behalf
of such other party or any of its subsidiaries to any Governmental Entity in connection with the
Purchase and the other transactions contemplated by the Transaction Documents.

     3.2 Access, Information and Confidentiality.

          (a) With respect to each respective Investor, (i) from the date hereof until the Closing
Date or the termination of this Agreement and (ii) if applicable, from the Closing Date until the
date when such Investor and its Affiliates cease to own in the aggregate Securities representing,
directly or indirectly, an initial Purchase Price under this Agreement (irrespective of the then
current value of such Securities) (“Initial Cost”) that is at least 10% of the aggregate Initial
Cost of the Securities acquired by such Investor and its Affiliates at the Closing, the Company
will ensure that upon reasonable notice, the Company and the Company Subsidiaries (1) will afford
to such Investor and such Investor’s representatives (including, without limitation, officers and
employees of such Investor, and counsel, accountants and other professionals retained by such
Investor) such access during normal business hours to its books, records (including, without
limitation, Tax Returns and appropriate work papers of independent auditors under normal
professional courtesy), properties, personnel, accountants and other professional retained by the
Company and to such other information as such Investor may reasonably request; (2) will furnish
such Investor with such financial and operating data and other information with respect to the
business and properties of the Company as the Company prepares and compiles for members of its
Board of Directors in the ordinary course and as such Investor may from time to time reasonably
request; and (3) permit such Investor to discuss the affairs, finances and accounts of the
Company, and to furnish advice with respect thereto, with the principal officers of the Company
within thirty days after the end of each fiscal quarter of the Company. All requests

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for access
and information shall be coordinated through senior corporate officers of the Company.

          (b) Each party to this Agreement will hold, and will cause its respective subsidiaries and
their directors, officers, employees, agents, consultants and advisors to hold, in strict
confidence, unless compelled to disclose by judicial or administrative process or, in the advice
of its counsel, by other requirement of Law or the applicable requirements of any regulatory
agency or relevant stock exchange, all non-public records, books, contracts, instruments,
computer data and other data and information (collectively, “Information”) concerning the other
party furnished to it by such other party or its representatives pursuant to this Agreement
(except to the extent that such information can be shown to have been (1) previously known by
such party on a non-confidential basis, (2) in the public domain through no fault of such party
or (3) later lawfully acquired from other sources by the party to which it was furnished), and
neither party shall release or disclose such Information to any other person, except its to
auditors, attorneys, financial advisors, and other consultants and advisors. Subject to the
foregoing, any party compelled to disclose Information pursuant to this Section 3.2(b)
shall (x) as promptly as practicable, provide the other parties with notice of such request to
disclose Information so that the parties may seek an appropriate protective order or other
appropriate remedy (and the other parties shall cooperate in connection
therewith), and (y) may furnish, that portion (and only that portion) of the Information
that, on the advice of its counsel, such party is legally compelled or is otherwise required to
disclose. In addition, all information furnished to the Investors and their respective
representatives and all analyses, compilations, data, studies or other documents prepared by any
Investor or its representatives containing or based in whole or in part on any such furnished
information or reflecting such Investor’s review of, or interest in, the Company shall be used
solely as set forth and permitted by the confidentiality agreement, dated as of November 28,
2007, between the Company and THL and the confidentiality agreement, dated as of December 11,
2007 (and the side letter thereto dated January 2, 2008) between the Company and GS (the
“Confidentiality Agreements”); provided, however, that each Investor may provide Information to
potential permitted transferees of Securities so long as the recipient enters into a
confidentiality agreement (as to which the Company is a third party beneficiary and may enforce
the agreement) with disclosure terms at least as restrictive as the disclosure terms in the
Confidentiality Agreements. Notwithstanding the foregoing, in connection with a
syndication to co-investors as permitted by Section 4.5, any Investor shall be permitted
to provide Information to a potential syndicate member subject to customary confidentiality
protections enforceable by the Company.

     3.3 Certain Additional Covenants of the Company.

          (a) Except as otherwise expressly permitted or required by the Transaction Documents,
permitted by Section 4.9 or as set forth on Section 3.3(a) of the Company
Disclosure Schedule, during the period from the date of this Agreement until the earlier of the
Closing Date and the termination of this Agreement pursuant to Section 5.1, the Company
shall conduct its business, and shall cause its subsidiaries to conduct their respective
businesses, in all material respects in the ordinary course, including, without limitation,
paying its obligations, including customer signing bonuses, capital expenditures, taxes and other
accounts payable, in the ordinary course of business consistent with past practice. Prior to the

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earlier of the Closing Date and the termination of this Agreement pursuant to
Section 5.1, except as expressly permitted or required by the Transaction Documents,
neither the Company nor any Company Subsidiary shall, without the prior approval of the Investors
(such approval not to be unreasonably withheld or delayed) take any action that (i) would require
a separate series vote of the holders of Series C Preferred Stock under Section 9 of Series C
Certificate if the Series C Preferred Stock was outstanding at such time, (ii) would trigger a
redemption right under Section 11 of the Series C Certificate if Series C Preferred Stock was
outstanding at such time (and, if applicable, holders of Series C Preferred Stock did not approve
a Trigger Event (as defined in the Series C Certificate), or (iii) would result in an adjustment
to be made under Section 7(c) of the Series B Certificate if Series B Preferred Stock was
outstanding at such time.

          (b) The Company shall not declare or pay any dividend or distribution on any securities of
the Company on or prior to the Closing. If, prior to the Closing, the Company shall take any
action that would require any adjustment to be made under Section 7(c) of the Series B
Certificate as if shares of Series B Preferred Stock were issued on the date of this Agreement,
the Company must make appropriate and equitable adjustments with respect to the Investors such
that the Investors will receive the benefit of such transaction as if (x) all of the
Securities to be acquired by the Investor had been outstanding as of the date of such action
and (y) Shareholder Approval and all required Regulatory Approvals had been obtained.
“Regulatory Approval” means confirmation by a State, reasonably satisfactory to the Company and
the Investors, that the Licensee and/or the Investors have complied with applicable prior notice
or prior approval procedures for change of control under such State’s laws or regulations
applicable to entities engaged in the money transfer or payment systems business or the parties
to be deemed to control such parties. “Licensee” means MoneyGram Payment Systems, Inc., a
wholly-owned subsidiary of the Company. “State” means any of the jurisdictions listed on
Section 3.3(b) of the Company Disclosure Schedule.

          (c) The Company shall use its reasonable best efforts to satisfy the closing conditions set
forth in Section 1.2(c) of this Agreement in a timely manner. Each of the Investors will
cooperate reasonably with the Company in the Company’s efforts to satisfy the conditions set
forth in Sections 1.2(c)(i), (ii) and (iv).

          (d) At THL’s written request, the Company shall convert CAG, Inc. into a limited liability
company that is treated as a disregarded entity for Tax purposes prior to the Closing.

          (e) The parties shall not treat any of the Series B Preferred Shares, the Series B-1
Preferred Shares, the Series C Preferred Shares or the Series D Preferred Stock as “preferred
stock” for purposes of Section 305 of the Code, unless required to do so by a change in
applicable Tax Laws (or the interpretation thereof) or a good faith resolution of a Tax contest.

          (f) Without the prior written consent of all of the Investors, neither the Company nor any
of the Company Subsidiaries shall directly or indirectly use any proceeds from the Investment,
the Existing Credit Facilities or the Second Lien Notes to acquire any obligations the interest
on which is exempt from taxes imposed by subtitle A of the Code.

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          (g) Without the prior written consent of all of the Investors, prior to the Closing, the
Company shall not and shall not permit the Company Subsidiaries to make investments in a manner
that is in contravention of the investment policy as set forth on Schedule F hereto (the
“Investment Policy”); provided that, notwithstanding the foregoing, any securities held or sold
by the Company set forth on Schedule B or Schedule C hereto shall not be
considered to be held or sold in contravention of the Investment Policy.

ARTICLE IV

Additional Agreements

     4.1 Governance Matters. (a) As of the Closing Date, the Investors, together with
their Affiliates, shall be entitled, in their capacity as holders of record of 9.9% of the
Company’s currently issued and outstanding Common Stock, to nominate and cause the Company to
appoint one individual to the Board of
Directors to serve as a director (a “Board Representative”), subject to satisfaction of all
legal and governance requirements regarding service as a director of the Company, which Board
Representative is reasonably acceptable to the Board of Directors, and which Board Representative
the Company will be required to recommend to its stockholders for election to the Board of
Directors at the Company’s stockholder meetings. If such director ceases to be a director prior
to the issuance of Series B Preferred Stock, but while the Investors and their respective
Affiliates, as a whole, own in the aggregate Securities representing, directly or indirectly, an
Initial Cost of not less than $75,000,000 (a “Qualifying Ownership Interest”), the Investors
shall be entitled, in such capacity, to nominate and cause the Company to appoint a replacement
for such director. At any time prior to the Exchange Date, if the Investors’ nomination and
appointment of two individuals to the Board of Directors would not result in a violation of
applicable rules and regulations promulgated by the New York Stock Exchange, the Investors shall
be entitled to nominate and appoint two individuals to the Board of Directors. As of the Closing
Date, the Investors, together with their Affiliates, shall also be entitled to appoint two
observers to the Board of Directors (the “Board Observers”), which Board Observers are reasonably
acceptable to the Board of Directors. The Board Observers shall be entitled to participate fully
in all meetings of the Board of Directors, but shall not have the authority to vote thereat. At
any time that the Investors, together with their Affiliates, have a right to nominate one or more
Board Representatives, Thomas H. Lee Equity Fund VI, L.P. (“THL VI”) shall have the right to
select the individual or individuals who the Investors will nominate to be at least one of such
Board Representatives so long as THL VI and its Affiliates beneficially own in the aggregate
Securities representing, directly or indirectly, an Initial Cost that is not less than 10% of the
aggregate Initial Cost of the Securities acquired by THL VI and its Affiliates at the Closing.

          (b) Upon issuance to the Investors of the Series B Preferred Stock, the Investors shall lose
their right to have the Board Observers attend meetings of the Board and shall instead be
entitled to nominate and cause the Company to appoint such additional Board Representatives to
the Board as shall, when aggregated with the Board Representative already designated by the
Investors at the Closing Date, provide the Investors with that number of directors as is
proportionate to Investors’ Common Stock ownership, calculated on a fully-

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converted basis
(assuming all shares of Series B-1 Preferred Stock were converted into Series B Preferred Stock
and all Series B Preferred Stock was converted into Common Stock), where the Board of Directors
may elect to (i) increase the size of the Board of Directors (subject to Section 4.1(f)),
(ii) fill any vacancies resulting from resignations, or (iii) a combination of (i) and (ii) to
accomplish such proportionate representation of Investor on the Board of Directors. These Board
Representatives shall satisfy all legal and governance requirements regarding service as a
director of the Company and shall be reasonably acceptable to the Board of Directors and the
Company shall be required to recommend to its stockholders the election of such Board
Representatives to the Board of Directors at the Company’s stockholder meetings. The Investors
shall also be entitled to nominate and cause the Company to appoint individuals to fill any
vacancies in such directorships at any time, up to a number of directors as is proportionate to
the Investors’ Common Stock ownership, calculated on a fully-converted basis (as described
above). In addition, the Company agrees that the Board Representatives shall be entitled to the
same rights, privileges and compensation as the other members of the Board of Directors in their
capacity as such, including with respect to insurance coverage and reimbursement for Board of
Directors participation and related expenses. The Company agrees
that the Board Observers shall be entitled to reimbursement for the Board Observers’
participation and related expenses. The Board Representatives shall be spread as even as
practicable among the classes of directors. From and after the Closing Date, the Company shall
use its best efforts to purchase and maintain, at its expense, insurance, from reputable carriers
and in an amount determined from, and from time to time after, the Closing Date in good faith by
the Board of Directors to be appropriate, on behalf of and covering the individuals who at any
time on or after the Closing Date are or become directors of the Company, against any and all
expense, liability or loss asserted against or incurred by such individual in such capacity or
arising out of such individual’s status as such, subject to customary exclusions.

          (c) Subject to the further provisions of this Section 4.1, the Company’s Governance
and Nominating Committee (or any other committee exercising a similar function) (the “Nominating
Committee”) shall recommend to the Board of Directors that such persons designated by the
Investors to be Board Representatives pursuant to Sections 4.1(a) and (b) (or any
successor designated by the Investors and reasonably acceptable to the Company) be included in
the slate of nominees recommended by the Board of Directors to stockholders for election as
directors at each annual meeting of stockholders of the Company at which such person’s term
expires. The Company shall use reasonable best efforts to have the Board Representatives elected
as directors of the Company and the Company shall solicit proxies for them to the same extent as
it does for any of its other nominees to the Board of Directors.

          (d) Subject to applicable Law and any rules and regulations promulgated by the New York
Stock Exchange, for so long as the Investors are entitled to appoint a Board Representative
pursuant to Section 4.1, the Investors shall also be entitled to representation
proportionate to Investors’ aggregate Common Stock ownership, calculated on a fully-converted
basis (as described above), on all committees of the Board of Directors, provided that
notwithstanding the foregoing, the Investors shall be entitled to have a minimum of one Board
Representative serving on each committee of the Board of Directors (except where a Board
Representative is in a conflict position, such Board Representative may not serve on a

35

 

special
committee of the Board of Directors, and where an Investor is in a conflict position, none of the
such Investor’s Board Representatives may serve on the relevant special committee of the Board of
Directors). If applicable Law or New York Stock Exchange rules and regulations prevent any Board
Representative from serving on a committee, the Investors shall be entitled to appoint a Board
Observer to such committee, so long as any such Board Observer meets any applicable independence
rules of the New York Stock Exchange.

          (e) At any time the Investors have a right to nominate and appoint one or more individuals
to the Board of Directors to serve as a director, if any Board Representative shall cease to
serve as a director for any reason, the Company and its Board of Directors will use its
reasonable best efforts to take all action required to fill the vacancy resulting therefrom with
a person designated by the Investors and reasonably acceptable to the Company, subject to
satisfaction of all legal and governance requirements regarding service as a director of the
Company.

          (f) Subject to the Certificate of Incorporation and Bylaws, (i) prior to the issuance of
Series B Preferred Stock, for so long as the Investors have the right to nominate directors under
this Section 4.1, the maximum size of the Board of Directors shall be capped at 13
directors and (ii) from and after the Exchange, the Company shall use its reasonable best efforts
to maintain a Board of Directors with at least 11 members.

          (g) If the Investors and their Affiliates at any time cease, as a whole, to beneficially own
in the aggregate a Qualifying Ownership Interest, the Investors will have no further rights under
Sections 4.1(a) through (f) and, if so requested by the Company, shall promptly
cause to resign, and take all other action reasonably necessary, or reasonably requested by the
Company, to cause the prompt removal of, the Board Representative.

          (h) Following the issuance of the Series B Preferred Stock and Series B-1 Preferred Stock to
Investors and so long as Unaffiliated Shareholders (as defined below) beneficially own at least
10% of the outstanding Common Stock, on a fully-diluted basis:

     (i) there shall be at least three (3) Independent Directors, where “Independent
Director” means a director who has been nominated or approved by the Continuing Directors
and satisfies all standards for independence promulgated by (A) the New York Stock Exchange,
(B) the Company’s Corporate Governance Guidelines, as amended November 15, 2007, as
available on the Company’s website, and (C) any other applicable Laws;

     (ii) the Company shall not engage in any Affiliated Transaction that is not approved by
the Independent Directors. In no event shall the Investors charge the Company any ongoing
monitoring or other similar fee. “Affiliated Transaction” means any transaction or series
of related transactions, directly or indirectly between the Company, any Company Subsidiary,
or another other controlled Affiliates of the Company or any Company Subsidiary on the one
hand, and any Investor or any Affiliate of an Investor or any Associated Person of any
Investor (except for, in the case of Affiliates and Associated Persons (as defined in the
Exchange Act), the Company or any Company Subsidiary), on the other hand, that have a fair
market value in excess of

36

 

$2,000,000; provided that none of the following shall constitute
an Affiliated Transaction:

     (A) acquisitions of securities, or payments, transactions, Board of Directors rights,
access rights, anti-dilution rights, registration rights and all other matters, contemplated
by this Agreement or the other Transaction Documents, including, without limitation, the
respective Certificates of Designations for the Preferred Shares (including the respective
dividends, and exercising and consummating the respective conversion or exchange rights and
redemption rights, contemplated by such Certificates of Designations);

     (B) customary compensation arrangements (whether in the form of cash or equity awards),
expense reimbursement, D&O insurance coverage, and indemnification arrangements (and related
advancement of expenses) in each case for Board of Directors designees and Board Observers,
or any use by such persons, for Company business
purposes, of aircraft, vehicles, property, equipment or other assets owned or provided
by the Company or Company Subsidiaries;

     (C) transactions and arrangements (i) after the Closing Date if the same is in the
ordinary course of the Company’s business and does not involve payments by the Company in
excess of $5,000,000 in the aggregate for any transaction or series of related transactions
and is on terms and conditions not less favorable to the Company in any material respect
than those available with non-Affiliates for comparable transactions or arrangements or (ii)
pursuant to agreements in effect as of the Closing Date;

     (D) acquisition of Common Stock or other securities pursuant to any stock split, stock
dividend, pro rata rights offering, or the like;

     (E) any amendment or termination of the Company’s Rights Agreement, or any redemption
of rights outstanding under the Rights Agreement; or

     (F) sale of investment securities in the ordinary course of the Company’s business.

     (iii) the members of the Board of Directors who are unaffiliated with the Investors and
were members of the Board of Directors prior to the Closing (or persons specifically
approved by such directors or their successors as successors for these purposes) (the
“Continuing Directors”) shall have the right to select the persons that will be nominated by
the Company as Independent Directors;

     (iv) upon a resolution of the committee of Independent Directors, the Company shall
exercise its right to redeem the Series B Preferred Stock and Series B-1 Preferred Stock at
any time that such right is exercisable in each case, pursuant to the respective
Certificates of Designations therefor; and

     (v) Holders of shares of Common Stock beneficially owned by persons not affiliated with
the Investors (“Unaffiliated Shareholders”) shall be third party beneficiaries to this
Section 4.1(h).

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          (i) The Company shall keep the Investors informed, on a current basis, of any events,
discussions, notices or changes with respect to any Tax (other than ordinary course
communications which could not reasonably be expected to be material to the Company), criminal or
regulatory investigation or action involving the Company or any of its Subsidiaries (other than
routine audits or ordinary course communications which could not reasonably be expected to be
material to the Company), and shall reasonably cooperate with the Investors, their members and
their respective Affiliates in an effort to avoid or mitigate any cost or regulatory consequences
to them that might arise from such investigation or action (including by reviewing written
submissions in advance, attending meetings with authorities and coordinating and providing
assistance in meeting with regulators).

     4.2 Legend. (a) Each of the Investors agrees that all certificates or other
instruments representing the Securities subject to this Agreement will bear a legend
substantially to the following effect:

     “THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING
THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. THE SECURITIES REPRESENTED BY THIS
INSTRUMENT ARE ALSO SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN THAT CERTAIN
PURCHASE AGREEMENT DATED AS OF FEBRUARY 8, 2008 AMONG THE ISSUER OF SUCH SECURITIES (THE
“COMPANY”) AND THE OTHER PARTY OR PARTIES NAMED THEREIN. A COPY OF THE PROVISIONS OF SUCH
AGREEMENT SETTING FORTH SUCH RESTRICTIONS ON TRANSFER IS ON FILE WITH THE SECRETARY OF THE
ISSUER.

          (b) Upon request of an Investor, upon receipt by the Company of an opinion of counsel
reasonably satisfactory to the Company to the effect that the first sentence of such legend is no
longer required under the Securities Act, the Company shall promptly cause the first sentence of
such legend to be removed from any certificate for any Securities so to be Transferred. Upon
request of an Investor, the remainder of the legend shall be removed upon the expiration of the
applicable transfer restrictions set forth in this Agreement. Each Investor acknowledges that
the Securities have not been registered under the Securities Act or under any state securities
Laws and agrees that it will not sell or otherwise dispose of any of the Securities, except in
compliance with the registration requirements or exemption provisions of the Securities Act and
any other applicable securities Laws.

     4.3 Reservation for Issuance. The Company will reserve that number of (x) shares of
Common Stock sufficient for issuance upon conversion of Series B Preferred Shares, Series B-1
Preferred Stock and Series D Preferred Stock owned at any time by the Investors (up to the number
of shares of Common Stock authorized in the Certificate of Incorporation), (y) Series B Preferred
Shares or Series B-1 Preferred Shares sufficient for issuance upon exchange of Temporary Security
Units or Series B-1 Preferred Shares owned at any time by the Investors

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without regard to any
limitation on such conversion, and (z) Series D Preferred Shares sufficient for issuance upon
exchange of Temporary Security Units or Series B-1 Preferred Shares owned at any time by the
Investors without regard to any limitation on such conversion. In the event that there shall not
be sufficient shares of Common Stock issued but not outstanding or authorized but unissued to
permit the exercise in full of the rights contained in this Agreement or in the Certificates of
Designations, (i) the Company shall use its best efforts to take all such action as may be
necessary to authorize additional shares of Common Stock for issuance upon exercise of such rights
and (ii) the Company shall, at an Investor’s request, exchange all or any portion of such
Investor’s Common Stock for non-voting securities of the Company with equivalent economic rights.

     4.4 Lost, Stolen or Destroyed Certificates. If from and after the Closing, any
certificate for shares of Preferred Stock or Common Stock shall be mutilated, lost, stolen or
destroyed, the Company shall issue, in
exchange and in substitution the mutilated certificate, or in lieu of and substitution for the
certificate lost, stolen or destroyed, a new certificate of like tenor and representing an
equivalent amount and kind of shares. If reasonably required by the Company in connection with
replacing a share certificate as aforesaid, the applicable record holder of such shares shall
furnish the Company with an indemnity on customary terms for such situations, reasonably sufficient
to protect the Company from any out-of-pocket loss which it may suffer from replacing such
certificate.

     4.5 Restrictions on Transfers.

          (a) Transfer of Temporary Security Units. Prior to the Outside Date, no Investor
shall be permitted to sell or otherwise transfer the Temporary Security Units, except, as
applicable, subject in any event to the provisions of Section 1.3(b), (x) to an
Affiliate, and/or with respect to THL, to any coinvestor who is an Affiliate of Thomas H. Lee
Partners, L.P., that agrees to become bound by the terms of this Agreement including the transfer
restrictions set forth in this Section 4.5(a) and the exchange obligations set forth in
Section 1.3, (y) pursuant to a merger or consolidation of the Company or (z) pursuant to
a syndication arrangement (A) under which such Investor syndicates Temporary Security Units
constituting no more than 50% of the Securities purchased at the Closing; (B) pursuant to which
such Investor retains voting and dispositive control over the transferred Temporary Security
Units and the transferred Temporary Security Units remain subject to the provisions of this
Agreement, including the transfer restrictions set forth in this Section 4.5(a) and the
exchange obligations set forth in Section 1.3; and (C) which shall be completed within
120 days from the Closing Date. Notwithstanding anything to the contrary herein, from and after
the Outside Date, if Shareholder Approval has not been obtained, the Investors shall be permitted
to sell Temporary Security Units or any component thereof except that the Investors will agree
not to sell Temporary Security Units or any component thereof to any person listed on
Schedule 4.5 hereto or any of such person’s Affiliates (unless such sale is pursuant to a
merger or consolidation of the Company). “Outside Date” shall mean the date that is six (6)
months from the date hereof.

          (b) Transfer of the Series B Preferred Stock and the Series B-1 Preferred Stock. No
Investors shall be permitted to sell or otherwise transfer the Series B Preferred Stock, the
Series B-1 Preferred Stock or the Common Stock or other securities issued upon

39

 

conversion thereof
prior to January 1, 2009, except (x) to an Affiliate, and/or with respect to THL, to any
coinvestor who is an Affiliate of Thomas H. Lee Partners, L.P., that agrees to become bound by
the terms of this Agreement including the transfer restrictions set forth in this Section
4.5(b) and the exchange obligations set forth in Section 1.3, (y) pursuant to a
merger or consolidation of the Company, or (z) pursuant to a syndication arrangement (A) under
which such Investor syndicates a number of shares of Series B Preferred Stock or Series B-1
Preferred Stock, as applicable constituting no more than 50% of the Securities purchased at the
Closing; (B) pursuant to which the Investors retain voting and dispositive control over the
transferred securities and the transferred securities remain subject to the provisions of this
Agreement, and (C) which shall be completed within 90 days from date on which Shareholder
Approval is obtained. After January 1, 2009, the Investors shall be permitted to sell all
Company securities except that each Investor will agree not to sell in a private sale any
Preferred Stock or Common Stock or other securities received in the Investment to any person
listed on Schedule 4.5 hereto or any such person’s affiliates (unless such sale is
pursuant to a merger or consolidation of the Company).

          (c) If any Investor desires to transfer in a private transaction any securities (including
Temporary Security Units) to any person, who, to the Investors’ knowledge, after giving effect to
such transfer, would beneficially own more than 9.9% or such other threshold as may be applicable
as a result of applicable state regulations concerning money transfers (the “Applicable
Threshold”) of the outstanding voting securities of the Company, such Investor shall notify the
Company prior to effecting such transfer, and the Company will cooperate with such Investor so
that such Investor may, as soon as practicable but in any event within two (2) business days of
such notification, to the extent the amount of securities to be transferred is in excess of the
Applicable Threshold and any applicable approvals have not yet been received, transfer non-voting
securities to such person (in lieu of voting securities) such that prior notice and/or approval
under the laws relating to money transmission or the sale of check of any State would not be
required to effect such transfer.

          (d) For purposes of this Section 4.5, “transfer” shall mean any sale, transfer,
pledge, assignment or other disposition. The Investors shall not transfer any Securities in
violation of Law.

     4.6 Withholding. The Company shall be entitled to deduct and withhold from amounts
payable to an Investor or any of its Affiliate funds in respect of the Securities such amounts as
it is required to deduct and withhold under applicable Law. To the extent that amounts are so
withheld by the Company, such withheld amounts shall be treated for all purposes as having been
paid to such Investor or any such Affiliate fund in respect of which such deduction and withholding
was made by the Company. Prior to an Investor or any of its Affiliate funds receiving any
Securities, the Investor shall, and shall cause such Affiliate fund to, deliver to the Company a
duly executed IRS Form W-9 or the appropriate IRS Form W-8, as applicable, and such other IRS forms
as may reasonably requested by the Company from time to time. Each Investor shall, and cause such
Affiliate fund to, update all such IRS Forms, as appropriate, from time to time.

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     4.7 Anti-Dilution Rights.

          (a) Sale of New Stock. From and after the Closing, so long as the Investors and
their Affiliates own (in the aggregate) a Qualifying Ownership Interest (before giving effect to
any issuances triggering this Section), (i) each of the respective Investors shall have the
right, or shall at any time and from time to time have the right to appoint an Affiliate of such
Investor that agrees in writing for the benefit of the Company to be bound by the terms of this
Agreement (any such Affiliate shall be included in the term “Investors” for purposes of this
Section) to exercise, the anti-dilution rights set forth in this Section (the Investors or such
Affiliate, an “Anti-Dilution Right Entity”); and (ii) if at any time after the Closing, the
Company at any time or from time to time makes any public or non-public offering of any equity
(including Common Stock,
preferred stock or restricted stock), or any securities, options or debt that are
convertible or exchangeable into equity or that include an equity component (such as an “equity”
kicker) (including any hybrid security) (any such security, a “New Security”) (other than (1)
pursuant to the granting or exercise of employee stock options or other stock incentives pursuant
to the Company’s stock incentive plans or the issuance of stock pursuant to the Company’s
employee stock purchase plan, in each case in the ordinary course of equity compensation awards,
or (2) issuances for the purposes of consideration to fund acquisition transactions), the
Anti-Dilution Right Entity shall be afforded the opportunity to acquire from the Company for the
same price (net of any underwriting discounts or sales commissions) and on the same terms (except
that, to the extent permitted by Law and the Certificate of Incorporation and Bylaws, the
Anti-Dilution Right Entity may elect to receive such securities in nonvoting form, convertible
into voting securities upon certain transfers to non-Affiliates or upon a widely dispersed
offering) as such securities are proposed to be offered to others, up to the amount of New
Securities in the aggregate required to enable the Investors and their controlled Affiliates to
maintain their aggregate proportionate Common Stock-equivalent interest in the Company. The
amount of New Securities that the Anti-Dilution Right Entity shall be entitled to purchase in the
aggregate shall be determined by multiplying (x) the total number of such offered shares of New
Securities by (y) a fraction, the numerator of which is the number of shares of Common Stock
beneficially owned by the Investors held at such time by the Investors (assuming, to the extent
it has not occurred, exchange of all Temporary Security Units for Series B Preferred Shares and
Series B-1 Preferred Stock and receipt of all Regulatory Approvals), and the denominator of which
is the number of shares of Common Stock then outstanding. If and to the extent the issuance of
New Securities to a Anti-Dilution Right Entity would cause such Anti-Dilution Right Entity to
hold more New Securities than applicable money transmitter or similar Laws allow such
Anti-Dilution Right Entity to hold, the Company shall reduce the number of New Securities
issuable to the Anti-Dilution Right Entity to the extent necessary to comply with applicable
money transmitter or similar Laws and shall instead issue such Anti-Dilution Right Entity the
number of Series D Preferred Stock or other applicable securities of the Company with equivalent
economic rights. Notwithstanding anything to the contrary in this Agreement, it is understood
and agreed that prior to the Exchange, the Investors need not be granted voting rights in excess
of 19.9% of the voting rights or rights to appoint directors or observers in excess of the rights
to appoint directors and observers contemplated by this Agreement, and that the inability to
grant any such right shall not prohibit an issuance of New Securities.

          (b) Notice. At any time at which the anti-dilution rights contemplated by this
Section 4.7 apply:

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     (i) In the event the Company proposes to offer New Securities in an underwritten public
offering or a private offering made to financial institutions for resale pursuant to Rule
144A, no later than five (5) business days after the initial filing of a registration
statement with respect to such underwritten offering or the commencement of such Rule 144A
offering, it shall give the Anti-Dilution Right Entity written notice of its intention
(including, in the case of a registered public offering and to the extent possible, a copy
of the prospectus included in the registration statement filed with respect to such
offering) describing, to the extent possible, the price (or range of prices), anticipated
amount of securities, timing and other terms of such offering. The Anti-Dilution Right
Entity shall
have five (5) business days from the date of receipt of such a notice to notify the
Company in writing that it intends to exercise such anti-dilution purchase rights and as to
the amount of New Securities the Anti-Dilution Right Entity desires to purchase, up to the
maximum amount calculated pursuant to Section 4.7(a). Such notice shall constitute a
non-binding indication of interest of the Anti-Dilution Right Entity to purchase the amount
of New Securities so specified at the price and other terms set forth in the Company’s
notice to it. The failure of the Anti-Dilution Right Entity to respond within such five (5)
business day period shall be deemed to be a waiver of the Anti-Dilution Right Entity’s
rights under this Section 4.7 only with respect to the offering described in the
applicable notice and a notice purporting to exercise anti-dilution rights for more than the
maximum amount contemplated by this Section 4.7 shall be deemed to be an election to
acquire the maximum amount.

     (ii) If the Company proposes to offer New Securities in a transaction that is not an
underwritten public offering or Rule 144A offering (a “Private Placement”), the Company
shall (A) give the Investors written notice of its intention, describing the anticipated
amount of securities, price and other terms upon which the Company proposes to offer the
same and (B) promptly provide the Investors with an updated notice reflecting any changes to
such anticipated amount of securities, price or other material terms. Each Investor shall
have ten (10) business days from the date of receipt of the last notice required by the
immediately preceding sentence to notify the Company in writing that it intends to exercise
such anti-dilution purchase rights and as to the amount of New Securities the Anti-Dilution
Right Entity desires to purchase, up to the maximum amount calculated pursuant to
Section 4.7(a). Such notice shall constitute a non-binding indication of interest of
the Anti-Dilution Right Entity to purchase the amount of New Securities so specified at the
price and other terms set forth in the Company’s notice to it; provided that the closing of
the Private Placement with respect to which such rights has been exercised takes place
within fifteen (15) calendar days after the giving of notice of such exercise by the
Anti-Dilution Right Entity. The failure of the Anti-Dilution Right Entity to respond within
such ten (10) business day period referred to in the second preceding sentence shall be
deemed to be a waiver of the Anti-Dilution Right Entity’s rights under this Section
4.7 only with respect to the offering described in the applicable notice and a notice
purporting to exercise anti-dilution rights for more than the maximum amount contemplated by
this Section 4.7 shall be deemed to be as election to acquire the maximum amount.

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          (c) Purchase Mechanism.

     (i) Private Placement. If the Anti-Dilution Right Entity exercises its
anti-dilution purchase rights provided in Section 4.7(b)(ii) above, the closing of
the purchase of the New Securities with respect to which such right has been exercised shall
be conditioned on the consummation of the sale of securities pursuant to the Private
Placement with respect to such right has been exercised and shall take place within ten (10)
business days after the closing of the Private Placement; provided, that such time period
shall be extended for a maximum of 95 days in order to comply with applicable Laws and
regulations; provided, further that the actual amount of securities to be sold to the
Anti-Dilution Right Entity pursuant to its exercise of anti-dilution rights hereunder shall
be
proportionally reduced if the aggregate amount of New Securities sold in the Private
Placement is reduced and, at the option of the Anti-Dilution Right Entity, shall be
increased if such aggregate amount of New Securities sold in the Private Placement is
increased. Each of the Company and the Anti-Dilution Right Entity agrees to use its
reasonable best efforts to secure any regulatory or stockholder approvals or other consents,
and to comply with any Law or regulation necessary in connection with the offer, sale and
purchase of, such New Securities.

     (ii) Underwritten Public Offering or Rule 144A Offering. If the Anti-Dilution
Right Entity exercises its anti-dilution purchase rights provided in Section 4.7(b)(i)
above, the Company shall offer the Anti-Dilution Right Entity the amount of New
Securities determined in accordance with Section 4.7(b)(i) (as adjusted to reflect
the actual size of such offering when priced) on the same terms as the New Securities are
offered to the underwriters. The Anti-Dilution Right Entity shall further enter into an
agreement to purchase the New Securities to be acquired contemporaneously with the execution
of any underwriting agreement or purchase agreement entered into between the Company and the
underwriters or initial purchasers of such underwritten public offering or Rule 144A
offering, and the failure to enter into such an agreement at or prior to such time shall
constitute a waiver of the anti-dilution rights in respect of such offering. Any offers and
sales pursuant to this Section 4.7 in the context of a registered public offering
shall be conditioned upon reasonably acceptable representations and warranties of the
Anti-Dilution Right Entity regarding its status as the type of offeree to whom a private
sale can be made concurrently with a registered public offering in compliance with
applicable securities laws.

          (d) Failure of Purchase. In the event the Anti-Dilution Right Entity fails to
exercise its anti-dilution purchase rights provided in this Section 4.7 within the
applicable period or, if so exercised, the Anti-Dilution Right Entity is unable to consummate
such purchase within the time period specified in Section 4.7(c) above because of its
failure to obtain any required regulatory or stockholder consent or approval or because of the
failure to purchase any or all of the New Securities contemplated to be purchase by the election
notice, the Company shall thereafter be entitled during the period of 120 days following the
conclusion of the applicable period to sell or enter into an agreement (pursuant to which the
sale of the New Securities covered thereby shall be consummated, if at all, within 30 days from
the date of said agreement) to sell the New Securities not elected to be purchased pursuant to
this Section 4.7 or which the Anti-Dilution Right Entity is unable to purchase because of
such failure to obtain any such consent or approval or otherwise fails to purchase, at a price
and upon terms no more favorable to the purchasers of such securities in the Private

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Placement,
the underwritten public offering or Rule 144A offering, as the case may be, than were specified
in the Company’s notice to the Anti-Dilution Right Entity. Notwithstanding the foregoing, if
such sale is subject to the receipt of any regulatory or stockholder approval or consent or the
expiration of any waiting period, the time period during which such sale may be consummated shall
be extended until the expiration of five (5) business days after all such approvals or consents
have been obtained or waiting periods expired, but in no event shall such time period exceed 180
days from the date of the applicable agreement with respect to such sale. In the event the
Company has not sold the New Securities or entered into an agreement to sell the New Securities
within said
120-day period (or sold and issued New Securities in accordance with the foregoing within
thirty (30) days from the date of said agreement (as such period may be extended in the manner
described above for a period not to exceed 180 days from the date of said agreement)), the
Company shall not thereafter offer, issue or sell such New Securities without first offering such
securities to the Anti-Dilution Right Entity in the manner provided above.

          (e) The Anti-Dilution Right Entity shall not have any rights to participate in the
negotiations of the proposed terms of any Private Placement, underwritten public offering, or
Rule 144A offering. Subject to any restrictions contained herein, the Anti-Dilution Right Entity
shall receive the same rights (including, without limitation, anti-dilution rights, rights
relating to closing conditions and indemnification rights, if any) as other purchasers in the
Private Placement.

          (f) The Company and the Investors shall cooperate in good faith to facilitate the exercise
of the Anti-Dilution Right Entity’s anti-dilution rights hereunder in a manner that does not
jeopardize the timing, marketing, pricing or execution of any offering of the Company’s
securities, including securing any required approvals or consents.

          (g) In the case of the offering of securities for a consideration in whole or in part other
than cash, including securities acquired in exchange therefor (other than securities by their
terms so exchangeable), the consideration other than cash shall be deemed to be the fair value
thereof as reasonably determined by the Board of Directors, provided, however, that such fair
value as determined by the Board of Directors shall not exceed the aggregate market price of the
securities being offered as of the date the Board of Directors authorizes the offering of such
securities.

     4.8 Indemnity. (a) The Company agrees to indemnify and hold harmless each Investor
and its Affiliates and each of their respective officers, directors, partners, employees and
agents, and each person who controls such Investor within the meaning of the Exchange Act and the
regulations thereunder (the “Indemnified Parties” and each, an “Indemnified Party”), to the
fullest extent lawful, from and against any and all actions, suits, claims, proceedings, costs,
losses, liabilities, damages, expenses (including reasonable and documented fees of counsel),
amounts paid in settlement and other costs (collectively, “Losses”) relating to the Company’s
authorization, execution, delivery or performance of this Agreement and any other Transaction
Document (other than any Losses attributable to the acts, errors or omissions on the part of the
Investor, but not including the transactions contemplated hereby).

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          (b) An Indemnified Party shall give written notice to the Company of any claim with respect
to which it seeks indemnification promptly after the discovery by such Indemnified Party of any
matters giving rise to a claim for indemnification; provided that the failure of any Indemnified
Party to give notice as provided herein shall not relieve the Company of its obligations under
this Section 4.8 unless and to the extent that the Company shall have been actually
prejudiced by the failure of such Indemnified Party to so notify such party. Such notice shall
describe in reasonable detail such claim. In case any such action, suit, claim or proceeding is
brought against an Indemnified Party, the Indemnified Party shall be entitled to hire, at its own
expense, separate counsel and participate in the defense thereof;
provided, however, that the Company shall be entitled to assume and conduct the defense,
unless the Company determines otherwise and following such determination the Indemnified Party
assumes responsibility for conducting the defense (in which case the Company shall be liable for
any legal fees and expenses of one law firm and other out-of-pocket expenses reasonably incurred
by the Indemnified Party in connection with assuming and conducting the defense). If the Company
assumes the defense of any claim, all Indemnified Parties shall thereafter deliver to the Company
copies of all notices and documents (including court papers) received by the Indemnified Party
relating to the claim, and any Indemnified Party shall cooperate in the defense or prosecution of
such claim. Such cooperation shall include the retention and (upon the Company’s request) the
provision to the Company of records and information that are reasonably relevant to such claim,
and making employees available on a mutually convenient basis to provide additional information
and explanation of any material provided hereunder. The Company shall not be liable for any
settlement of any action, suit, claim or proceeding effected without its written consent;
provided, however, that the Company shall not unreasonably withhold, delay or condition its
consent. The Company further agrees that it will not, without the Indemnified Party’s prior
written consent, settle or compromise any claim or consent to entry of any judgment in respect
thereof in any pending or threatened action, suit, claim or proceeding in respect of which
indemnification has been sought hereunder unless such settlement or compromise includes an
unconditional release of such Indemnified Party from all liability arising out of such action,
suit, claim or proceeding.

          (c) The obligations of the Company under this Section 4.8 shall survive the
transfer, redemption, exchange or conversion of the Securities issued pursuant to this Agreement,
or the closing or termination of this Agreement and any other Transaction Document. The
agreements contained in this Section 4.8 shall be in addition to any other rights of the
Indemnified Party against the Company or others, at common law or otherwise.

          (d) The amount the Company shall pay to the Indemnified Party with respect to a claim made
pursuant to this Section 4.8 shall be an amount equal to the Loss incurred by the
Indemnified Party on receipt of any indemnification hereunder with respect to such claim, after
giving effect to any Taxes payable by the Indemnified Party on receipt of any indemnification
hereunder with respect to such claim and any Tax benefit actually realized (including deductions)
by the Indemnified Party with respect to such claim for tax purposes; provided, however, that
unless required to do otherwise by Law, the Company, the Indemnified Parties and their respective
Affiliates shall treat any and all indemnification payments pursuant to this Section 4.8
as an adjustment to the Purchase Price for Tax purposes.

45

 

     4.9 Go-Shop Period. (a) Notwithstanding any other provision of this Agreement to
the contrary, during the period (the “Go-Shop Period”) beginning on the date of this Agreement
and continuing until 11:59 p.m. (EST) on the earlier of (x) the day prior to the Closing and (y)
March 7, 2008, the Company and the Company Subsidiaries and their respective officers, directors,
employees, consultants, agents, advisors, affiliates and other representatives
(“Representatives”) shall have the right to directly or indirectly: (i) initiate, solicit and
encourage Company Transaction Proposals (as hereinafter defined), including by way of providing
access to non-public information pursuant to one or more customary confidentiality agreements and
eliminating any existing standstill clause of which the Company is a beneficiary, or any other
burden or restriction that would
prohibit or inhibit any person actually or potentially interested in making an offer to the
Company from pursuing such offer; provided that the Company shall promptly provide to each of the
Investors any material non-public information concerning the Company or any Company Subsidiary
that is provided to any person given such access that was not previously provided to the
Investors; and (ii) enter into and maintain discussions or negotiations with respect to Company
Transaction Proposals or otherwise cooperate with or assist or participate in, or facilitate any
such inquiries, proposals, discussions or negotiations.

          (b) Notwithstanding any other provisions of this Agreement to the contrary, if, at any time
prior to the Closing, the Company receives a Company Transaction Proposal which the Board of
Directors of the Company concludes in good faith constitutes a Superior Proposal, the Board of
Directors of the Company may terminate this Agreement prior to the Closing to contemporaneously
enter into a definitive agreement implementing such Superior Proposal; provided, however, that
the Company shall not terminate this Agreement pursuant to the foregoing, and any purported
termination pursuant to the foregoing shall be void and of no force or effect, unless prior to or
concurrently with such termination the Company transmits the Termination Fee payable pursuant to
Section 5.2; and provided, further, that the Board of Directors may not terminate this
Agreement pursuant to the foregoing unless:

     (i) the Company shall have provided prior written notice to the Investors, at least
forty-eight (48) hours in advance (the “Notice Period”), of its intention to terminate this
Agreement to enter into a definitive agreement with respect to such Superior Proposal, which
notice shall (A) specify the material terms and conditions of any such Superior Proposal
(including the identity of the party making such Superior Proposal and reasonably complete
copies of all forms of agreements with respect to such Superior Proposal) and (B) provide a
brief summary of the reasons why such Company Transaction Proposal constitutes a Superior
Proposal, which such summary shall only be required to provide sufficient specificity
necessary to enable a reasonable person to understand why the proposal is a Superior
Proposal; and

     (ii) prior to terminating this Agreement to enter into a definitive agreement with
respect to such Superior Proposal, the Company shall, and shall cause its financial and
legal advisors to, during the Notice Period, negotiate with Investors in good faith (to the
extent the Investors also seek so to negotiate) to make such adjustments in the terms and
conditions of this Agreement and the Transaction Documents, and, after making any such
adjustments, this Agreement and the Transaction Documents do not result in a transaction

46

 

that is more favorable to the Company than any Company Transaction Proposal that is deemed
to constitute a Superior Proposal.

     In the event of any material revisions to the Superior Proposal, the Company shall be required
to promptly update the Investors as to such revisions.

               (c) On the Satisfaction Date (or the end of the Go-Shop Period if the Closing occurs within
three (3) business days of the end of the Go-Shop Period), the Company shall not, and shall cause
its Subsidiaries and Representatives not to, directly or indirectly (i) solicit, initiate, cause,
facilitate or knowingly encourage (including by way of furnishing information) any inquiries or
proposals that constitute, or may reasonably be expected to lead to, any
Company Transaction Proposal, (ii) participate in any discussions or negotiations with any
third party regarding any Company Transaction Proposal or (iii) enter into any agreement related
to any Company Transaction Proposal.

               (d) [Intentionally omitted.]

                (e) The Company agrees that any violations of the restrictions set forth in this
Section 4.9 by any Representative of the Company or any of its Subsidiaries, shall be
deemed to be a breach of this Section 4.9 by the Company.

                (f) As used in this Agreement, the terms:

     (i) “Company Transaction Proposal” means any inquiry, proposal or offer from any person
or group of persons other than Investors or their respective Affiliates (it being understood
that lending affiliates of GS shall not be considered Affiliates of GS for purposes of this
Section 4.9) relating to any direct or indirect acquisition or purchase of a
business that constitutes 15% or more of the net revenues, net income or assets of the
Company and the Company Subsidiaries, taken as a whole, or 15% or more of any class or
series of securities of the Company, any tender offer or exchange offer that if consummated
would result in any person or group of persons beneficially owning 15% or more of the voting
rights of any class or series of capital stock of the Company, or any merger,
reorganization, consolidation, share exchange, business combination, recapitalization,
liquidation, dissolution, equity infusion or similar transaction involving the Company (or
any Subsidiary or Subsidiaries of the Company whose business constitutes 15% or more of the
net revenues, net income or assets of the Company and its Subsidiaries, taken as a whole);
and

     (ii) “Superior Proposal” means a bona fide written Company Transaction Proposal that
the Board of Directors of the Company in good faith determines, would, if consummated,
result in a transaction that is more favorable to the Company and its existing stockholders
than the transactions contemplated hereby, which determination is made, (x) after receiving
the advice of a financial advisor (who shall be a nationally recognized investment banking
firm), (y) after taking into account the likelihood (and likely timing) of consummation of
such transaction on the terms set forth therein (as compared to the terms herein) and (z)
after taking into account all appropriate legal (with the advice of outside counsel),
financial (including the financing terms of any such

47

 

proposal), regulatory or other aspects
of such proposal and any other relevant factors permitted by applicable Law, including,
without limitation, the likelihood that the Superior Proposal will satisfy applicable
financial ratios and tests under the Company’s applicable commercial contracts and Laws
applicable to entities engaged in the money transfer or payment systems business.

               (g) Nothing contained in this Section 4.9 or elsewhere in this Agreement shall
prohibit the Board of Directors of the Company from (i) complying with its disclosure obligations
under U.S. federal or state Law with respect to a Company Transaction Proposal, including taking
and disclosing to its stockholders a position contemplated by Rule 14d-9 and 14e-2(a) promulgated
under the Exchange Act (or any other similar communication to
stockholders), or (ii) making any “stop, look and listen” communication or similar
communication of the type contemplated by Rule 14d-9(f) under the Exchange Act.

          4.10 Share Listing. The Company shall as promptly as practicable use its reasonable
best efforts to cause the shares of Common Stock issuable upon conversion of the Preferred Stock to
be approved for listing on the New York Stock Exchange, subject to official notice of issuance.

          4.11 Filing of Certificates of Designation. Prior to the Closing, the Company shall
file the Certificates of Designations of the Preferred Stock in the form attached as and
Exhibits 1, 2, 3 and 4 hereto with the Secretary of State
of the State of Delaware in accordance with all applicable provisions of Law and the Certificate of
Incorporation.

          4.12 Public Announcements. Subject to each party’s disclosure obligations imposed by
applicable Law, each of the parties hereto will cooperate with each other in the development and
distribution of all news releases and other public information disclosures with respect to this
Agreement and any of the transactions contemplated by this Agreement, and no party hereto will make
any such news release or public disclosure without first consulting with the other parties hereto
and receiving their consent (which shall not be unreasonably withheld or delayed) and each party
shall coordinate with the others with respect to any such news release or public disclosure.

          4.13 Right to Use Trademarks. The Company hereby grants to each Investor the right to
use the Company’s name and logo in such Investor’s marketing materials for the purpose of
indicating an ownership interest in the Company by the Investor; provided, however, that such
Investor shall include a trademark attribution notice giving notice of the Company’s ownership of
its trademarks in any such marketing materials in which the Company’s name and/or logo appear. The
Company reserves the right to require any Investor to cease using the Company’s name or logo in any
manner in which the Company, in its sole discretion, desires, and the Investor shall cease any such
action as soon as reasonably practicable upon the Company’s request.

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ARTICLE V

Termination

     5.1 Termination. This Agreement may be terminated at any time prior to the Closing:

     (a) by mutual written agreement of the parties;

     (b) by either the Company or any Investor, if the Closing has not occurred by the 10:00 a.m.
CST on March 13, 2008 (provided that the right to terminate this Agreement under this clause (b)
shall not be available to any party whose failure to fulfill any obligation
under this Agreement has been the primary cause of the failure of the Closing to occur on or
prior to such date);

     (c) by either the Company or any Investor, if any Governmental Entity shall have issued a
non-appealable final judgment, injunction, order or decree that shall prohibit the Closing or
shall prohibit or restrict an Investors or its Affiliates from owning, and exercising in full all
exchange, conversion and voting rights of the Securities contemplated to be exercisable by the
Investors (it being understood that failure to receive Regulatory Approval prior to the Closing,
and any regulatory requirement that GS hold a non-voting stock, shall be deemed not to be such a
judgment, injunction, order or decree) (provided that the right to terminate this Agreement under
this clause (c) shall not be available to any party whose failure to fulfill any obligation under
this Agreement has been the primary cause of such non-appealable final judgment, injunction,
order or decree);

     (d) by any Investor if the Board of Directors of the Company shall have approved or
recommended to the stockholders of the Company a Superior Proposal, or shall have resolved to
effect the foregoing; and

     (e) by the Company at any time prior to the Closing, in accordance with, and subject to the
terms and conditions of, Section 4.9(b).

     5.2 Termination Fee. In the event that (i) this Agreement is terminated (A) by the
Company pursuant to Section 5.1(e) or (B) by an Investor pursuant to Section 5.1(d)
or (ii) this Agreement is terminated for any reason (other than primarily as a result of the
Investors’ breach of their obligations under this Agreement which resulted in the failure to
satisfy conditions set forth in Section 1.3(c)) and the Company enters into a definitive
agreement with respect to, or consummates, a transaction contemplated by any Company Transaction
Proposal (other than a transaction entered into or consummated following a voluntary or involuntary
petition by the Company or any Company Subsidiary under the federal bankruptcy code) within nine
(9) months of the date this Agreement is terminated, then the Company shall pay the Termination Fee
to the accounts specified on Schedule G hereto, at or prior to the time of termination in
the case of a termination pursuant to Section 5.1(e), as promptly as possible (but in any
event within two (2) Business Days) following termination of this Agreement in the case of a
termination pursuant to Section 5.1(d), or on the earlier of entering into a definitive
agreement with respect to or consummating a Company Transaction Proposal. The “Termination Fee”
means the sum of (x)

49

 

$15,000,000 and (y) all fees and expenses of THL not previously paid or
reimbursed to THL to date pursuant to the terms of the Exclusivity Agreement between the Company
and Thomas H. Lee Partners, L.P., dated as of January 3, 2008 (the “Exclusivity Agreement”) and all
expenses of GS and THL not previously paid or reimbursed to GS or THL, as applicable, pursuant to
Section 5.3 hereof; provided, however, that in the event the Termination Fee is paid
because the Company enters into a definitive agreement with respect to, or consummates, a
transaction contemplated by any Company Transaction Proposal within nine (9) months of the date
this Agreement is terminated, the Termination Fee shall be increased by any and all amounts
refunded by the Investors to the Company pursuant to the several letter agreements among the
Investors and the Company dated as of the date hereof.

     5.3 Expenses. This Section 5.3 shall replace and supersede the fee and
expense provisions in the Exclusivity Agreement with respect to all fees and expenses not
reimbursed prior to the date hereof. On the date hereof, the Company shall reimburse the Investors
for all out-of-pocket expenses incurred by the Investors in connection with due diligence, the
negotiation and preparation of the Transaction Documents, the Note Purchase Agreement and the
Financing Documents (as defined in the Note Purchase Agreement) and undertaking of the transactions
contemplated by the Transaction Documents, the Note Purchase Agreement and the Financing Documents
(as defined in the Note Purchase Agreement) incurred prior to the date hereof in the amount of
$3,810,000. The Company shall reimburse the Investors for all out-of-pocket expenses incurred by
the Investors in connection with due diligence, the negotiation and preparation of the Transaction
Documents, the Note Purchase Agreement and the Financing Documents (as defined in the Note Purchase
Agreement) and undertaking of the transactions contemplated by the Transaction Documents, the Note
Purchase Agreement and the Financing Documents (as defined in the Note Purchase Agreement) incurred
from the date hereof through the earlier of the Closing Date or the date this Agreement is
terminated pursuant to Section 5.1, up to a maximum amount of $3,690,000 (exclusive of all
HSR Act, German Antitrust Act and other regulatory filing fees incurred by or on behalf of THL or
its Affiliates in connection with the transactions contemplated hereby, which the Company shall be
responsible for). Other than as set forth in the foregoing sentence, each of the parties will bear
and pay all costs and expenses incurred by it or on its behalf in connection with the transactions
contemplated under the Transaction Documents, the Note Purchase Agreement and the Financing
Documents (as defined in the Note Purchase Agreement) including fees and expenses of its own
financial or other consultants, investment bankers, accountants and counsel.

     5.4 Effects of Termination. In the event of any termination of this Agreement as
provided in Section 5.1, this Agreement (other than, Section 4.8, Section
5.2, Section 5.3, this Section 5.4 and Article VI, which shall remain
in full force and effect) shall forthwith become wholly void and of no further force and effect.
Termination pursuant to Section 5.1 shall not, under any circumstance, eliminate or
otherwise alter either party’s liability to the other party for such party’s breach of this
Agreement.

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ARTICLE VI

Miscellaneous

          6.1 Survival of Representations, Warranties, Agreements, Etc. Each of the
representations and warranties set forth in this Agreement (or any certificate delivered pursuant
hereto) shall survive the execution and delivery of this Agreement and the Closing but only for a
period of 12 months following the Closing Date and thereafter shall expire and have no further
force and effect (except with respect to claims made before the expiration of such period);
provided that the representations and warranties set forth in Sections 2.2(a), (b),
(c), (d) and (p), and corresponding representations and warranties in any
certificate, shall survive the execution and delivery of this Agreement and the Closing
indefinitely. Except as otherwise provided

herein, all covenants and agreements contained herein shall survive for the duration of any
statutes of limitations applicable thereto or until, by their respective terms, they are no longer
operative.

          6.2 Amendment. No amendment or waiver of any provision of this Agreement will be
effective with respect to any party unless made in writing and signed by an officer of a duly
authorized representative of such party.

          6.3 Waiver. The conditions to each party’s obligation to consummate the Purchase are
for the sole benefit of such party and may be waived by such party in whole or in part to the
extent permitted by applicable Law. No waiver will be effective unless it is in a writing signed
by a duly authorized officer of the waiving party that makes express reference to the provision or
provisions subject to such waiver.

          6.4 Counterparts and Facsimile. For the convenience of the parties hereto, this
Agreement may be executed in any number of separate counterparts, each such counterpart being
deemed to be an original instrument, and all such counterparts will together constitute the same
agreement. Executed signature pages to this Agreement may be delivered by facsimile and such
facsimiles will be deemed as sufficient as if actual signature pages had been delivered.

          6.5 Governing Law; Jurisdiction. This Agreement will be governed by and construed in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed
entirely within such State. The parties hereby irrevocably and unconditionally consent to submit
to the exclusive jurisdiction of the Delaware Chancery Court for any actions, suits or proceedings
arising out of or relating to this Agreement and the transactions contemplated hereby

          6.6 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

          6.7 Notices. Any notice, request, instruction or other document to be given
hereunder by any party to the other will be in writing and will be deemed to have been duly given
(a) on the date of delivery if delivered personally or by telecopy or facsimile, upon

51

 

confirmation
of receipt, (b) on the first business day following the date of dispatch if delivered by a
recognized next-day courier service, or (c) on the third business day following the date of mailing
if delivered by registered or certified mail, return receipt requested, postage prepaid. All
notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as
may be designated in writing by the party to receive such notice.

(a) If to THL:

c/o Thomas H. Lee Partners, L.P.

100 Federal Street, 35th Floor

Boston, Massachusetts 02110

Fax No.: (617) 227-3514

Attn: Thomas M. Hagerty

           Seth W. Lawry

            Scott L. Jaeckel

with a copy (which shall not constitute notice) to:

Weil, Gotshal & Manges LLP

100 Federal Street, 34th Floor

Boston, Massachusetts 02110

Fax No.: (617) 772-8333

Attn: James Westra, Esq.

          Malcolm Landau, Esq.

(b) If to GS:

c/o Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

Attention: Edward Pallesen

                  Bradley Gross

Fax: (212) 357-5505

with a copy (which shall not constitute notice) to:

Fried, Frank, Harris, Shriver & Jacobson LLP

One New York Plaza

New York, New York 10004

Attention: Robert Schwenkel, Esq.

                 David Shaw, Esq.

Fax: (212) 859-4000

(c) If to the Company:

MoneyGram International Inc.

1500 Utica Avenue South, MS 8020

Minneapolis, Minnesota 55416

Fax No.: (952) 591-3859

Attn: Teresa H. Johnson, Esq.

52

 

with a copy to:

Wachtell, Lipton, Rosen & Katz

51 West 52nd St.

New York, NY 10019

Fax No.: 212.403.2000

Attn: David M. Silk, Esq.

          6.8 Entire Agreement, Etc. (a) This Agreement (including the Schedules, Exhibits
and Disclosure Schedules hereto) constitutes the entire agreement, and supersede all other prior
agreements, understandings, representations and warranties, both written and oral, between the
parties, with respect to the subject matter hereof, and (b) no party may directly or indirectly
assign any or all of its rights or delegate any or all of its obligations under this Agreement
without the prior written consent of each other party to this Agreement (any attempted assignment
in contravention hereof being null and void), except following the Closing as set forth in Section
4.5 hereof.

     6.9 Definitions of “subsidiary,” “Affiliate,” “knowledge,” “person” and “Law”. (a)
When a reference is made in this Agreement to a subsidiary of a person, the term “subsidiary”
means those corporations and other entities of which such person owns or controls more than 50%
of the outstanding equity securities either directly or through an unbroken chain of entities as
to each of which more than 50% of the outstanding equity securities is owned directly or
indirectly by its parent; provided, however, that there shall not be included any such entity to
the extent that the equity securities of such entity were acquired in satisfaction of a debt
previously contracted in good faith or are owned or controlled in a bona fide fiduciary capacity.

          (b) The term “Affiliate” means, with respect to any person, any person directly or
indirectly controlling, controlled by or under common control with, such other person. For
purposes of this definition, “control” when used with respect to any person, means the
possession, directly or indirectly, of the power to cause the direction of management and/or
policies of such person, whether through the ownership of voting securities, by contract or
otherwise.

          (c) The term “knowledge” or any similar formulation of knowledge shall mean, (i) in the
case of the Company, the actual knowledge after due inquiry of an executive officer of the
Company (which, for the purposes of this definition shall include, without limitation, Philip
Milne, Teresa Johnson, David Parrin, Anthony Ryan, Jean Benson, Dan Collins and Thomas Haider)
(which due inquiry shall include reasonable inquiry of the direct reports to such executive
officer and appropriate senior executives of the Company Subsidiaries) and (ii) in the case of an
Investor, the actual knowledge after due inquiry of a managing director of the entity that
manages such Investor.

53

 

          (d) The term “person” or shall mean an individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act).

          (e) The term “Law” shall mean any federal, state, local or foreign law, statute, ordinance,
rule, regulation, judgment, code, order, injunction, arbitration award, agency requirement,
license or permit of any Governmental Entity.

          (f) The words “including,” “includes,” “included” and “include” are
deemed to be followed
by the words “without limitation.”

          6.10 Captions. The Article, Section and paragraph captions herein are for
convenience of reference only, do not constitute part of this Agreement and will not be deemed to
limit or otherwise affect any of the provisions hereof.

          6.11 Severability. If any provision of this Agreement or the application thereof to
any person (including, without limitation, the officers and directors of an Investor and the
Company) or circumstance is determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remaining provisions hereof, or the application of such provision to persons or
circumstances other than those as to which it has been held invalid or unenforceable, will remain
in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long
as the economic or legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any party. Upon such determination, the parties shall negotiate in
good faith in an effort to agree upon a suitable and equitable substitute provision to effect the
original intent of the parties.

          6.12 No Third Party Beneficiaries. Nothing contained in this Agreement, expressed or
implied, is intended to confer upon any person or entity other than the parties hereto or permitted
transferees of an Investor, any benefit right or remedies, except that the provisions of
Sections 4.1(h) and 4.8 shall inure to the benefit of the persons referred to in
that Section.

          6.13 Specific Performance. The transactions contemplated by this Agreement are
unique. Accordingly, the Company and each of the respective Investors, severally and not jointly,
acknowledge and agree that, in addition to all other remedies to which it may be entitled, each of
the parties hereto is entitled to seek a decree of specific performance, provided that such party
hereto is not in material default hereunder. The parties hereto agree that, if for any reason a
party shall have failed to perform its obligations under this Agreement, then the party seeking to
enforce this Agreement against such nonperforming party shall be entitled to specific performance
and injunctive and other equitable relief, and the parties further agree to waive any requirement
for the securing or posting of any bond in connection with the obtaining of any such injunctive or
other equitable relief. This provision is without prejudice to any other rights that any party may
have against another party for any failure to perform its obligations under this Agreement
including the right to seek damages for a material breach of any provision of this Agreement, and
all rights, powers and remedies available (at law or in equity) to a party in respect hereof by the
other party shall be cumulative and not alternative or exclusive, and the exercise or beginning of
the exercise of any thereof by a party shall not preclude the simultaneous or later exercise of any
other rights, powers or remedies by such party. Notwithstanding anything to the contrary, (i) in
no event shall any Investor’s aggregate liability

54

 

under this Agreement if the Closing does not
occur exceed an amount equal to the aggregate Purchase Price such Investor may be obligated to pay
pursuant to
Section 1.2 and (ii) in no event shall any Investor be liable for any consequential,
incidental, punitive or special damages, including loss of future revenue, income or profits,
diminution of value or loss of business opportunity (provided that the limitation in this sentence
shall not limit the Company’s rights to recover contract damages from an Investor (subject to the
limitations in clause (i) of this sentence) in connection with a failure by such Investor to close
on the Purchase in violation of this Agreement).

          6.14 Several, Not Joint, Liability. The obligations of THL under this Agreement or
any other Transaction Document are several and not joint with the obligations of GS, and THL shall
not be responsible in any way for the performance of the obligations of GS under this Agreement or
any other Transaction Document; provided, however, that notwithstanding anything to the contrary in
this Agreement, the obligations of THL shall be joint and several among the THL Investors. The
obligations of GS under this Agreement or any other Transaction Document are several and not joint
with the obligations of THL, and GS shall not be responsible in any way for the performance of the
obligations of THL under this Agreement or any other Transaction Document; provided, however, that
notwithstanding anything to the contrary in this Agreement, the obligations of GSMP shall be joint
and several among the GSMP Investors and the obligations of GSCP shall be joint and several among
the GSCP Investors. Nothing contained herein or in any other Transaction Document, and no action
taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Investors are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated by this Agreement or the other Transaction Documents. The
obligations of an Investor under this Agreement may only be enforced against, and any claims or
causes of action that may be based upon, arise out of or relate to such obligations may only be
made against, such Investor and its successors and assigns, and no past, present or future
Affiliate, director, officer, employee, incorporator, member, manager, partner, stockholder, agent,
attorney or representative of any Investor shall have any liability for any obligations of an
Investor under this Agreement or for any claim based on, in respect of, or by reason of, the
negotiation, execution or performance of this Agreement or the transactions contemplated hereby.

 [The rest of this page intentionally left blank.]

55

 

          IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
officers of the parties hereto as of the date first herein above written.

	 	 	 	 	 
	 	MONEYGRAM INTERNATIONAL, INC.

 	 
	 	By:  	/s/
Philip W. Milne	 
	 	 	Name:  	Philip W. Milne	 
	 	 	Title:  	Chief Executive Officer	 
	 

[Signature Page to Purchase Agreement ]

 

 

	 	 	 	 	 
	 	 	THOMAS H. LEE EQUITY FUND VI, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	THL EQUITY ADVISORS VI, LLC,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Seth Lawry
	 

	 	 	 	 
	 

	 	 	 	Name: Seth Lawry
	 

	 	 	 	Title: Managing Director

	 	 	 	 	 
	 	 	THOMAS H. LEE PARALLEL FUND VI, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	THL EQUITY ADVISORS VI, LLC
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Seth Lawry
	 

	 	 	 	 
	 

	 	 	 	Name: Seth Lawry
	 

	 	 	 	Title: Managing Director

	 	 	 	 	 
	 	 	THOMAS H. LEE PARALLEL (DT) FUND VI, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	THL EQUITY ADVISORS VI, LLC
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Seth Lawry
	 

	 	 	 	 
	 

	 	 	 	Name: Seth Lawry
	 

	 	 	 	Title: Managing Director

[Signature Page to Purchase Agreement ]

 

 

	 	 	 	 	 
	 	 	GS CAPITAL PARTNERS VI FUND, L.P.
	 

	 	By:
	 	GSCP VI Advisors, L.L.C.
	 

	 	 	 	     its General Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Bradley Gross
	 

	 	 	 	 
	 

	 	 	 	Name: Bradley Gross
	 

	 	 	 	Title: Managing Director and Vice
President

	 	 	 	 	 
	 	 	GS CAPITAL PARTNERS VI OFFSHORE FUND, L.P.
	 

	 	By:
	 	 GSCP VI Offshore Advisors, L.L.C.
	 

	 	 	 	     its General Partner
	 
	 

	 	By:	 	/s/ Bradley Gross
	 

	 	 	 	 
	 

	 	 	 	Name: Bradley Gross
	 

	 	 	 	Title: Managing Director and Vice
President

	 	 	 	 	 
	 	 	GS CAPITAL PARTNERS VI GmbH & Co. KG
	 

	 	By:
	 	 GS Advisors VI, L.L.C.
	 

	 	 	 	     its Managing Limited Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Bradley Gross
	 

	 	 	 	 
	 

	 	 	 	Name: Bradley Gross
	 

	 	 	 	Title: Managing Director and Vice
President

[Signature Page to Purchase Agreement ]

 

 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI PARALLEL, L.P.

By: GS Advisors VI, L.L.C.

          its General Partner

 	 
	 	By:  	
 /s/ Bradley Gross	 
	 	 	Name:  	Bradley Gross	 
	 	 	Title:  	Managing Director and Vice President	 
	 

	 	 	 	 	 
	 	GSMP V ONSHORE US, LTD.

 	 
	 	By:	 /s/ Bradley Gross	 
	 	Name:  	Bradley Gross	 
	 	Title:  	Managing Director and Vice President	 
	 

	 	 	 	 	 
	 	GSMP V OFFSHORE US, LTD.

 	 
	 	By:  	 /s/ Bradley Gross	 
	 	Name:  	Bradley Gross	 
	 	Title:  	Managing Director and Vice President	 
	 

	 	 	 	 	 
	 	GSMP V INSTITUTIONAL US, LTD.

 	 
	 	By:  	/s/
Bradley Gross	 
	 	Name:  	Bradley Gross	 
	 	Title:  	Managing Director and Vice President	 
	 

[Signature Page to Purchase Agreement ]

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