Document:

EX-10.5

 

Exhibit 10.5

 

 

AMENDED AND RESTATED NOTE PURCHASE AGREEMENT

among

MONEYGRAM PAYMENT SYSTEMS WORLDWIDE, INC.

MONEYGRAM INTERNATIONAL, INC.

And

GSMP V ONSHORE US, LTD.

GSMP V OFFSHORE US, LTD.

GSMP V INSTITUTIONAL US, LTD.

THL CREDIT PARTNERS, L.P.

Dated as of March 17, 2008

Relating to:

$500,000,000

13.25% Senior Secured Second Lien Notes Due 2018

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	SECTION 1. DEFINITIONS AND ACCOUNTING TERMS	 	 	2	 
	 
	 	 	 	 	 	 
	1.1.
	 	Definitions.	 	 	2	 
	1.2.
	 	Computation of Time Periods.	 	 	11	 
	1.3.
	 	Terms Generally.	 	 	11	 
	 
	 	 	 	 	 	 
	SECTION 2. AUTHORIZATION AND ISSUANCE OF NOTES	 	 	12	 
	 
	 	 	 	 	 	 
	2.1.
	 	Authorization of Issue.	 	 	12	 
	2.2.
	 	Sale and Purchase of the Notes.	 	 	12	 
	2.3.
	 	Closing.	 	 	12	 
	2.4.
	 	Effective Date Certificate.	 	 	13	 
	 
	 	 	 	 	 	 
	SECTION 3. CONDITIONS TO CLOSING	 	 	13	 
	 
	 	 	 	 	 	 
	3.1.
	 	No Violation; No Legal Constraints; Consents, Authorizations and Filings, Etc.	 	 	14	 
	3.2.
	 	Indebtedness.	 	 	14	 
	3.3.
	 	Material Adverse Change.	 	 	14	 
	3.4.
	 	Regulatory.	 	 	15	 
	3.5.
	 	Fees and Expenses.	 	 	15	 
	3.6.
	 	Holdco Audit/10-K/Absence of Restatement.	 	 	15	 
	3.7.
	 	Representations and Warranties.	 	 	16	 
	3.8.
	 	Performance; No Default.	 	 	16	 
	3.9.
	 	Equity Contribution.	 	 	16	 
	3.10.
	 	[Reserved].	 	 	17	 
	3.11.
	 	Compliance Certificates.	 	 	17	 
	3.12.
	 	Opinion of Counsel.	 	 	17	 
	3.13.
	 	Financial Information.	 	 	17	 
	3.14.
	 	Transaction Documents.	 	 	18	 
	3.15.
	 	Execution and Authentication of Indenture and Notes.	 	 	18	 
	3.16.
	 	Security Documents and Collateral.	 	 	18	 
	3.17.
	 	Bank Clearing Arrangements.	 	 	19	 
	3.18.
	 	Company Credit Facilities.	 	 	19	 
	3.19.
	 	New York Stock Exchange.	 	 	19	 
	3.20.
	 	Notice to Stockholders.	 	 	19	 
	3.21.
	 	Wal-Mart.	 	 	20	 
	3.22.
	 	Insurance.	 	 	20	 
	3.23.
	 	Financial Statements.	 	 	20	 
	3.24.
	 	Closing Certificate.	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES	 	 	20	 
	 
	 	 	 	 	 	 
	4.1.
	 	Disclosure.	 	 	21	 
	4.2.
	 	Organization and Authority.	 	 	21	 
	4.3.
	 	Holdco Subsidiaries.	 	 	21	 

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	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	4.4.
	 	Capitalization.	 	 	21	 
	4.5.
	 	Authorization; No Default.	 	 	22	 
	4.6.
	 	SEC Documents.	 	 	23	 
	4.7.
	 	Taxes.	 	 	24	 
	4.8.
	 	Ordinary Course.	 	 	24	 
	4.9.
	 	Commitments and Contracts.	 	 	24	 
	4.10.
	 	Litigation and Other Proceedings.	 	 	25	 
	4.11.
	 	Insurance.	 	 	25	 
	4.12.
	 	Compliance with Laws.	 	 	26	 
	4.13.
	 	Benefit Plans.	 	 	26	 
	4.14.
	 	Environmental Liability.	 	 	28	 
	4.15.
	 	Intellectual Property.	 	 	28	 
	4.16.
	 	Board Approvals.	 	 	29	 
	4.17.
	 	Brokers and Finders.	 	 	29	 
	4.18.
	 	Collateral.	 	 	29	 
	4.19.
	 	[Reserved].	 	 	29	 
	4.20.
	 	[Reserved].	 	 	29	 
	4.21.
	 	Disclosure.	 	 	29	 
	4.22.
	 	[Reserved].	 	 	30	 
	4.23.
	 	Properties.	 	 	30	 
	4.24.
	 	Solvency.	 	 	30	 
	4.25.
	 	No Registration Required.	 	 	30	 
	4.26.
	 	No Integration of Offerings or General Solicitation.	 	 	30	 
	4.27.
	 	Eligibility for Resale under Rule 144A.	 	 	31	 
	4.28.
	 	Margin Regulations.	 	 	31	 
	4.29.
	 	Investment Company Act.	 	 	31	 
	4.30.
	 	Opinions of Financial Advisors.	 	 	31	 
	4.31.
	 	CAG, Inc.	 	 	31	 
	4.32.
	 	Signing Date Representations and Warranties.	 	 	31	 
	 
	 	 	 	 	 	 
	SECTION 5. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF PURCHASERS	 	 	32	 
	 
	 	 	 	 	 	 
	5.1.
	 	Representation and Warranties.	 	 	32	 
	5.2.
	 	Notice of Transfers of the Notes.	 	 	33	 
	 
	 	 	 	 	 	 
	SECTION 6. PRE-CLOSING COVENANTS	 	 	33	 
	 
	 	 	 	 	 	 
	6.1.
	 	Access.	 	 	33	 
	6.2.
	 	Investment Policy.	 	 	34	 
	6.3.
	 	Ordinary Course.	 	 	34	 
	 
	 	 	 	 	 	 
	SECTION 7. POST-CLOSING AFFIRMATIVE COVENANTS	 	 	34	 
	 
	 	 	 	 	 	 
	7.1.
	 	Future Reports to Purchasers.	 	 	34	 
	7.2.
	 	Patriot Act and Anti-Money Laundering.	 	 	36	 
	7.3.
	 	U.S. Economic Sanctions.	 	 	37	 
	7.4.
	 	FCPA and Anti-Bribery Limitations.	 	 	37	 
	7.5.
	 	Export Control Limitations.	 	 	38	 
	7.6.
	 	Customs and Trade Remedy Laws.	 	 	38	 

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	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	7.7.
	 	Anti-Boycott Laws.	 	 	38	 
	7.8.
	 	Cross-Border Investment Restrictions.	 	 	39	 
	7.9.
	 	Information Related to Alternative Transactions.	 	 	39	 
	7.10.
	 	Board Observer Rights.	 	 	39	 
	7.11.
	 	Changes to Investment Policy.	 	 	40	 
	 
	 	 	 	 	 	 
	SECTION 8. PROVISIONS RELATING TO RESALES OF NOTES	 	 	40	 
	 
	 	 	 	 	 	 
	8.1.
	 	Private Offerings.	 	 	40	 
	8.2.
	 	Procedures and Management Cooperation in Private Offerings.	 	 	42	 
	8.3.
	 	No Integration.	 	 	43	 
	 
	 	 	 	 	 	 
	SECTION 9. EXPENSES AND INDEMNIFICATION	 	 	43	 
	 
	 	 	 	 	 	 
	9.1.
	 	Expenses.	 	 	43	 
	9.2.
	 	Indemnification.	 	 	43	 
	9.3.
	 	Waiver of Punitive Damages.	 	 	43	 
	9.4.
	 	Survival.	 	 	44	 
	9.5.
	 	Tax Treatment of Indemnification Payments.	 	 	44	 
	 
	 	 	 	 	 	 
	SECTION 10. MISCELLANEOUS	 	 	44	 
	 
	 	 	 	 	 	 
	10.1.
	 	Notices.	 	 	44	 
	10.2.
	 	Benefit of Agreement and Assignments.	 	 	44	 
	10.3.
	 	No Waiver; Remedies Cumulative.	 	 	45	 
	10.4.
	 	Amendments, Waivers and Consents.	 	 	45	 
	10.5.
	 	Counterparts.	 	 	46	 
	10.6.
	 	Reproduction.	 	 	46	 
	10.7.
	 	Headings.	 	 	46	 
	10.8.
	 	Survival of Covenants and Indemnities; Representations.	 	 	46	 
	10.9.
	 	Governing Law; Submission to Jurisdiction; Venue.	 	 	46	 
	10.10.
	 	Severability.	 	 	47	 
	10.11.
	 	Entirety.	 	 	47	 
	10.12.
	 	Construction.	 	 	47	 
	10.13.
	 	Incorporation.	 	 	47	 
	10.14.
	 	Confidentiality.	 	 	48	 
	10.15.
	 	Termination; Survival.	 	 	48	 
	10.16.
	 	Maximum Rate.	 	 	48	 
	10.17.
	 	Patriot Act.	 	 	49	 
	10.18.
	 	Currency.	 	 	49	 
	10.19.
	 	Further Assurances.	 	 	49	 
	10.20.
	 	Sole Discretion.	 	 	49	 

EXHIBITS:

	 	 	 
	Exhibit A

	 	Form of Indenture
	Exhibit B

	 	Form of Registration Rights Agreement
	Exhibit 2.4

	 	Form of Effective Date Certificate
	Exhibit 3.11(a)

	 	Form of Secretary’s Certificate

iii

 

	 	 	 
	Exhibit 3.11(b)

	 	Form of Officer’s Certificate
	Exhibit 3.11(c)

	 	Form of Solvency Certificate
	Exhibit 3.16(a)

	 	Form of Second Priority Security Agreement
	Exhibit 3.16(b)

	 	Form of Second Priority Pledge Agreement
	Exhibit 3.16(c)

	 	Form of Second Priority Patent Security Agreement
	Exhibit 3.16(d)

	 	Form of Second Priority Patent Security Agreement
	Exhibit 3.16(e)

	 	Form of Second Priority Trademark Security Agreement
	Exhibit 3.16(f)

	 	Form of Second Priority Trademark Security Agreement
	Exhibit 3.16(g)

	 	Form of Intercreditor Agreement
	Exhibit 4

	 	Financial information

SCHEDULES:

	 	 	 
	Schedule I

	 	Holdco Disclosure Schedules
	Schedule 2.2

	 	Information Relating to the Purchasers

iv

 

AMENDED AND RESTATED NOTE PURCHASE AGREEMENT

     AMENDED AND RESTATED NOTE PURCHASE AGREEMENT, dated as of March 17, 2008, among MoneyGram
Payment Systems Worldwide, Inc., a Delaware corporation (the “Company”), MoneyGram International,
Inc., a Delaware Corporation (“Holdco”), GSMP V Onshore US, Ltd., an exempted company incorporated
in the Cayman Islands with limited liability (“GSMP Onshore”), GSMP V Offshore US, Ltd., an
exempted company incorporated in the Cayman Islands with limited liability (“GSMP Offshore”) GSMP V
Institutional US, Ltd., an exempted company incorporated in the Cayman Islands with limited
liability (“GSMP Institutional” and together with GSMP Onshore and GSMP Offshore, the “Initial
Purchasers”) and THL Credit Partners, L.P., a Delaware limited partnership (the “THL Purchaser” and
together with the Initial Purchasers, the “Purchasers”).

RECITALS

     WHEREAS, the Company, Holdco and the Initial Purchasers entered into that certain note
purchase agreement, dated as of the Signing Date (the “Original Note Purchase Agreement”).

     WHEREAS, on March 8, 2008, Holdco acknowledged that certain of the closing conditions of that
certain Purchase Agreement, dated as of the Signing Date (as in effect on the Signing Date, the
"Original Equity Purchase Agreement”) related to capital of Holdco, including but not limited to
Section 1.2(c)(iii) and Section 1.2(c)(vii) of the Original Equity Purchase Agreement, had not been
satisfied and would not be satisfied.

     WHEREAS, certain of the closing conditions of the Original Note Purchase Agreement related to
capital of Holdco, including but not limited to Section 3.1(d), 3.9 and 3.13(b) of the Original
Note Purchase Agreement, have not been satisfied and will not be satisfied and accordingly, the
Initial Purchasers were not required to purchase the Notes under the terms of the Original Note
Purchase Agreement.

     WHEREAS, pursuant to Section 10.4 of the Original Note Purchase Agreement the parties hereto
desire to amend and restate the Original Note Purchase Agreement in its entirety as provided
herein.

     WHEREAS, pursuant to that certain Amended and Restated Purchase Agreement, dated as of the
Signing Date, as amended on March 17, 2008 (such agreement, together with all of the exhibits and
schedules thereto, in each case, as in effect on the Effective Date, the “Equity Purchase
Agreement”), between Holdco and the parties named as “Investors” therein (the “Equity Investors”),
Holdco has agreed, subject to the terms and conditions set forth therein, to issue and sell to the
Equity Investors, as applicable, on the Closing Date, for an aggregate cash purchase price as
determined in the Equity Purchase Agreement (the “Equity Contribution”), the Series D participating
convertible preferred stock of Holdco (the “Series D Preferred Stock”), Series B participating
convertible preferred stock of Holdco (the “Series B Preferred Stock”) and shares of Series B-1
participating convertible preferred stock of Holdco (“Series B-1 Preferred Stock”), each as set
forth in the Equity Purchase Agreement. The Equity Investors include investment funds affiliated
with Thomas H. Lee Partners L.P. (the “Lead Sponsor”) and investment funds affiliated with GS
Capital Partners VI, L.P. (“GSCP” and, together with the Lead Sponsor, the “Sponsors”) and also
include the Initial Purchasers.

     WHEREAS, the consummation of the Equity Contribution in accordance with the Equity Purchase
Agreement is subject to the consummation of certain concurrent transactions (such transactions,
together with the Equity Contribution, the “Transactions”), including:

1

 

(a) that the Company shall have amended and restated the existing $350 million
Amended and Restated Credit Agreement, dated as of June 29, 2005, of Holdco, as amended
through the Effective Date, in accordance with the form attached to the Equity Purchase
Agreement as Schedule D, to provide the Company with amended and restated senior credit
facilities consisting of $350 million (less any original issue discount otherwise
permitted under this Agreement) of term loans , of which $100 million has been
previously funded and $250 million (less any original issue discount otherwise
permitted under this Agreement) of which shall be new term loans to be funded on the
Closing Date contemplated hereby, and a $250 million revolving credit facility (of
which no more than $150 million will be drawn on the Closing Date) (collectively, the
“Company Credit Facilities”);

(b) that Holdco shall have received full proceeds from the sale of the securities
listed on Schedule B-1 to the Equity Purchase Agreement in the amounts set forth on
Schedule B-1 thereto; and

(c) that the Company shall have received the proceeds of the issuance of its 13.25%
senior secured second lien notes due 2018 (the “Notes”) issued pursuant to the
indenture substantially in the form attached hereto as Exhibit A (as amended,
supplemented, restated or otherwise modified from time to time in accordance with its
terms, the “Indenture”).

     WHEREAS, the proceeds from the purchase of the Notes will be used by the Company and its
Subsidiaries for investments in accordance with the provisions of the Indenture to supplement the
Company’s unrestricted assets, to repay existing indebtedness and to pay related transaction costs
and expenses.

     NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1.

DEFINITIONS AND ACCOUNTING TERMS

     1.1. Definitions.

     As used herein, defined terms which are defined in the Indenture shall have, except where
otherwise expressly set forth herein, the same respective meanings as such defined terms have in
the Indenture, and, in addition, the following terms shall have the meanings specified herein
unless the context otherwise requires (it being understood that defined terms shall include in the
singular number the plural and in the plural the singular):

     “Agreement” is defined in Section 10.4.

     “AML Laws” means any anti-money laundering law or regulation applicable to Holdco or any
Holdco Subsidiary.

     “Anti-boycott Laws” means the Export Administration Act and the Internal Revenue Code and any
other applicable law regarding boycotts issued by a foreign government and not endorsed by the
United States.

     “Bank Secrecy Act” means the Currency and Foreign Transactions Report Act, as amended.

2

 

     “Benefit Plan” has the meaning given to it in Section 4.13(a).

     “Board of Directors” has the meaning given to it in Section 4.5(a).

     “Board Observer” has the meaning given to it in Section 7.10.

     “Board Papers” is defined in Section 7.10.

     “Certificate of Designations” has the definition given to it in the Equity Purchase Agreement.

     “Closing” is defined in Section 2.3(a).

     “Closing Certificate” is defined in Section 3.24.

     “Closing Date” is defined in Section 2.3(a).

     “Code” means the Internal Revenue Code of 1986, as amended from time to time. Section
references to the Code are to the Code as in effect at the date of this Agreement, and any
subsequent provisions of the Code, amendatory thereof, supplemental thereto or substituted
therefor.

     “Collateral” means the collateral described in the Security Documents.

     “Collateral Agent” means the Trustee in its capacity as Collateral Agent under the Indenture
and under the Security Documents and any successor thereto in such capacity.

     “Company Credit Facilities” is defined in the recitals.

     “Contract” has the meaning given to it in Section 4.5(b).

     “Credit Documents” means the Company Credit Facilities and all agreements, guarantees,
collateral documents, certificates, instruments, and other documents made or delivered in
connection therewith.

     “D&T Deliverables” means the Satisfactory Audit Opinion and Deloitte & Touche LLP’s consent to
file the Satisfactory Audit Opinion in Holdco’s Annual Report on Form 10-K.

     “Default” has the meaning given to it in the Indenture.

     “DTC” means The Depository Trust Company.

     “DTC Agreement” means a letter of representations between the Company and DTC.

     “Effective Date” means March 17, 2008.

     “Effective Date Certificate” is defined in Section 2.4.

     “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.

     “Environmental Law” means any Law relating to pollution, the environment or natural resources.

3

 

     “Equity Contribution” is defined in the recitals.

     “Equity Documents” means the Equity Purchase Agreement and all agreements, certificates,
instruments, and other documents made or delivered in connection therewith.

     “Equity Interest” is defined in the Indenture.

     “Equity Investors” is defined in the recitals.

     “Equity Purchase Agreement” is defined in the recitals.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated thereunder. Section references to ERISA are to ERISA as in
effect at the date of this Agreement and any subsequent provisions of ERISA amendatory thereof,
supplemental thereto or substituted therefore.

     “ERISA Event” means (a) an event described in Section 4043 of ERISA and the regulations
thereunder with respect to any Benefit Plan, other than any event as to which the thirty day notice
period has been waived; or (b) the failure of any Benefit Plan to satisfy the minimum funding
standard required for any plan year or part thereof under Section 412 of the Code or Section 302 of
ERISA or a waiver of such standard or extension of any amortization period is sought or granted
under Section 412 of the Code or Section 303 or 304 of ERISA.

     “Event of Default” means “Event of Default”, as such term is defined in the Indenture.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended and the rules and
regulations thereunder.

     “Export Administration Act” means The Export Administration Act of 1979, as amended, and the
executive orders, rules and regulations pursuant to the President’s invocation of emergency powers
under the International Emergency Economic Powers Act.

     “Fairness Opinions” is defined in Section 4.30.

     “Fee Letter” means that certain Contingent Fee Letter dated as of the Signing Date by and
between the Sponsors, the Initial Purchasers, Holdco and the Company.

     “Final 10-K” means Holdco’s Annual Report on Form 10-K for the year ended December 31, 2007,
in a form identical to a form that shall have been provided to the Initial Purchasers not less than
one day prior to the Closing Date, which shall be in a form acceptable to the Initial Purchasers,
in compliance with all applicable rules promulgated under the Exchange Act, excluding any rules
related to filing deadlines, which such Final 10-K does not disclose or identify any material
weakness in the design or operation of internal controls which could adversely affect Holdco’s
ability to record, process, summarize and report financial data.

     “Financing Documents” means collectively, this Agreement, the Indenture, the Notes, the
Registration Rights Agreements, the Fee Letter, the Management Rights Agreement, the Security
Documents and the Intercreditor Agreement and all certificates, instruments, and other documents
made or delivered in connection herewith and therewith.

4

 

     “Foreign Plan” means any employee benefit plan, program, policy, arrangement or agreement
maintained or contributed to by the Company or any of its Subsidiaries with respect to employees
employed outside the United States.

     “GAAP” is defined in Section 4.6.

     “German Antitrust Act” means the German Act Against Restraints of Competition (Gesetz gegen
Wettbewerbsbeschrankungen).

     “Governmental Authority” means any nation, sovereign or government, any state, province,
territory or other political subdivision thereof, and any entity or authority exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government,
including a central bank or stock exchange.

     “Governmental Entity” means any United States or foreign governmental or regulatory agency,
commission, court, body, entity or authority.

     “GSCP” is defined in the recitals.

     “Guarantors” has the definition given to it in the Indenture.

     “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.

     “Holdco Disclosure Schedule” means a schedule attached hereto as Schedule I 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 Holdco’s or the Company’s representations or warranties contained in Section 4.

     “Holdco Intellectual Property” means all patents and patent applications currently owned by
Holdco and the Holdco Subsidiaries that are material to the business of Holdco and the Holdco
Subsidiaries, taken as a whole, as currently conducted.

     “Holdco Subsidiary” is defined in Section 4.3.

     “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the
rules and regulations promulgated thereunder.

     “Infringe” means, in relation to Intellectual Property, infringing upon, misappropriating or
violating the rights of any third party.

     “Indemnitee” has the meaning given to it in Section 9.2.

     “Indenture” has meaning given to it in the recitals.

     “Initial Equity Securities” is defined in the recitals.

     “Initial Purchasers” is defined in the preamble.

5

 

     “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.

     “Intercreditor Agreement” means that certain Intercreditor Agreement, to be dated as of the
Closing Date, among JPMorgan Chase Bank, N.A., as First Priority Collateral Agent, Collateral
Agent, the Company and the Guarantors, a form of which is attached hereto as Exhibit 3.16(g).

     “Investment Company Act” means the Investment Company Act of 1940 as from time to time in
effect and any successor act to all or a portion thereof.

     “Investment Policy” is defined in Section 6.2.

     “Investors” has the definition given to it in the Equity Purchase Agreement.

     “IRS” means the Internal Revenue Service of the United States of America.

     “Law” means any federal, state, local or foreign law, statute, ordinance, rule, regulation,
judgment, code, order, injunction, arbitration award, writ, decree, agency requirement, license or
permit of any Governmental Entity.

     “Lead Sponsor” is defined in the recitals.

     “Management Rights Agreement” means the management rights agreement dated as of the Closing
Date among Holdco, the Company and GS Mezzanine Partners V Institutional, L.P. (the indirect owner
of GSMP Institutional).

     “Material Adverse Effect” means: (1) for any purpose under this Agreement other than Section
7, any circumstance, event, change, development or effect that, (a) is material and adverse to the
financial position, results of operations, business, assets or liabilities of Holdco and the Holdco
Subsidiaries, taken as a whole, (b) would materially impair the ability of Holdco and the Holdco
Subsidiaries, taken as a whole, to perform their obligations under this Agreement or any of the
other Financing Documents, (c) would materially impair the rights and remedies of the Purchasers
under this Agreement or any of the other Financing Documents, taken as a whole, or (d) would
materially impair the ability of Holdco to perform its obligations under the Equity Purchase
Agreement or otherwise materially threaten or materially impede the consummation of the Purchase
(as defined in the Equity Purchase Agreement) and the other transactions contemplated by the Equity
Purchase Agreement; provided, however, that the impact of the following matters shall be
disregarded: (i) 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
Holdco or its Subsidiaries operate, (ii) changes in generally accepted accounting principles, (iii)
changes in laws of general applicability or interpretations thereof by any Governmental Authority,
(iv) any change in Holdco’s stock price or trading volume, in and of itself, or any failure, in and
of itself, by Holdco to meet revenue or earnings guidance published or otherwise provided to the
Purchaser (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

6

 

to clauses (i) through (viii) hereof, may be taken into account in determining whether a
Material Adverse Effect has occurred or would reasonably be expected to occur), (v) losses
resulting from any change in the valuations of Holdco’s portfolio of securities or sales of such
securities and any effect resulting from such changes or sales, (vi) actions or omissions of Holdco
or the Sponsors taken as required by the Equity Purchase Agreement or with the prior written
consent of the Purchaser, (vii) public announcement, in and of itself, by a third party not
affiliated with Holdco of any proposal to acquire the outstanding securities or all or
substantially all of the assets of Holdco and (viii) the public announcement of the Equity Purchase
Agreement and the transactions contemplated thereby (provided that this clause (viii) shall not
apply with respect to Sections 1.2(c)(v), 2.2(d), 2.2(h) and 2.2(k) of the Equity Purchase
Agreement); provided further, however, that Material Adverse Effect shall be deemed not to include
the impact of the foregoing clauses (i), (ii) and (iii), 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 Holdco and the Holdco Subsidiaries (exclusive of its
payments systems business) relative to other participants in the industry; and (2) for any purpose
under Section 7 of this Agreement, any circumstance, event, change, development or effect that, (a)
is material and adverse to the financial position, results of operations, business, assets or
liabilities of Holdco and the Holdco Subsidiaries, taken as a whole, (b) would materially impair
the ability of Holdco and the Holdco Subsidiaries, taken as a whole, to perform their obligations
under this Agreement or any of the other Financing Documents, or (c) would materially impair the
rights and remedies of the Purchasers under this Agreement or any of the other Financing Documents,
taken as a whole.

     “MSPI” means MoneyGram Payment Systems Inc., a wholly owned subsidiary of the Company.

     “Multiemployer Plan” is defined in Section 4.13(e).

     “Notes” is defined in the recitals.

     “OFAC” means the Office of Foreign Assets Control of the United States Treasury Department.

     “Officer’s Certificate” is defined in Section 3.11(b).

     “Original Equity Purchase Agreement” is defined in the recitals.

     “Originally Previously Disclosed” means information: (i) set forth in the Holdco Disclosure
Schedule (defined for purposes of this definition only as set forth in the Original Note Purchase
Agreement), dated as of the Signing Date, corresponding to the provision of the Original Note
Purchase Agreement to which such information relates (provided that any disclosure with respect to
a particular paragraph or section of this Agreement or the Holdco Disclosure Schedule shall be
deemed to be disclosed for other paragraphs and sections of the Original Note Purchase Agreement or
the Holdco 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,
prior to the Signing Date (excluding any risk factor disclosures contained in such documents and
any disclosure of risks included in any “forward-looking statements” disclaimer or other statements
that are similarly non-specific, predictive or forward-looking in nature).

     “Outside Receipt Date” is defined in Section 3.6 (c).

     “Patriot Act” is defined in Section 10.17.

     “Preferred Stock” means the Series B Preferred Stock, the Series B-1 Preferred Stock and the
Series D Preferred Stock.

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     “Previously Disclosed” means information: (i) set forth in the Holdco 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 this Agreement or the Holdco
Disclosure Schedule shall be deemed to be disclosed for other paragraphs and sections of this
Agreement or the Holdco 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, prior to the Effective Date (excluding any risk factor disclosures contained in such
documents and any disclosure of risks included in any “forward-looking statements” disclaimer or
other statements that are similarly non-specific, predictive or forward-looking in nature) (“Filed
SEC Documents”).

     “Private Offering” means any offer and/or sale by one or more of the Purchasers of some or all
of the Notes without registration under the Securities Act but in compliance with Rule 144A, Rule
144, Regulation S, Section 4(1) or any other applicable rule or provision under the Securities Act.

     “Purchase Price” is defined in Section 2.2(b).

     “Purchasers” is defined in the Preamble.

     “Qualified Institutional Buyer” means any Person that is a “qualified institutional buyer”
within the meaning of Rule 144A.

     “Registration Rights Agreement” means the Registration Rights Agreement among the Company,
Holdco and each Purchaser, to be dated as of the Closing Date, substantially in the form attached
hereto as Exhibit B, as amended, supplemented, restated or otherwise modified from time to time.

     “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor regulation to all or a portion thereof.

     “Regulation T” means Regulation T of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor regulation to all or a portion thereof.

     “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor regulation to all or a portion thereof.

     “Regulation X” means Regulation X of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor regulation to all or a portion thereof.

     “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.

     “Responsible Officer” means the chairman, the chief executive officer, the president, the
chief financial officer, the chief operating officer, the chief accounting officer or the
treasurer.

     “Rule 144” has the meaning given to it in the Indenture.

     “Rule 144A” has the meaning given to it in the Indenture.

     “Rule 502” means Rule 502 of Regulation D under the Securities Act as from time to time in
effect and any successor regulation to all or a portion thereof.

8

 

     “Satisfactory Audit Opinion” means either combined or separate unqualified reports on the
audit of Holdco, and its Subsidiaries, financial statements and internal controls over financial
reporting as of and for the year ended December 31, 2007 as illustrated within paragraphs 87 and 88
of the Public Company Accounting Oversight Board Bylaws and Rules, Auditing Standard No. 5, “An
Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial
Statements,” prepared in accordance with GAAP (neither the Deloitte & Touche LLP financial
statement opinion as of and for the year ended December 31, 2007 nor to the Notes to Consolidated
Financial Statements attached to the audited financial statements, nor Items 1 through 15 of the
Company’s December 31, 2007 Annual report on Form 10-K, shall include any reference to Holdco’s
ability to operate as a going concern).

     “SEC” means the United States Securities and Exchange Commission.

     “SEC Documents” is defined in Section 4.6(a).

     “Securities” has the meaning given to it in the Equity Purchase Agreement.

     “Security Documents” means: (i) that certain Second Priority Security Agreement, to be dated
as of the Closing Date, among the Company, the Guarantors and the Collateral Agent, a form of which
is attached hereto as Exhibit 3.16(a), (ii) that certain Second Priority Pledge Agreement, to be
dated as of the Closing Date, among the Company, the Guarantors and the Collateral Agent, a form of
which is attached hereto as Exhibit 3.16(b), (iii) that certain Second Priority Patent Security
Agreement, to be dated as of the Closing Date, among Holdco and the Collateral Agent, a form of
which is attached hereto as Exhibit 3.16(c), (iv) that certain Second Priority Patent Security
Agreement, to be dated as of the Closing Date, among MPSI and the Collateral Agent, a form of which
is attached hereto as Exhibit 3.16(d), (v) that certain Second Priority Trademark Security
Agreement, to be dated as of the Closing Date, among Holdco and the Collateral Agent, a form of
which is attached hereto as Exhibit 3.16(e), (vi) that certain Second Priority Trademark Security
Agreement, to be dated as of the Closing Date, among PropertyBridge, Inc., a Delaware corporation,
and the Collateral Agent, a form of which is attached hereto as Exhibit 3.16(f) and (vii)
collateral assignments and related agreements, as amended, supplemented, restated, renewed,
refunded, replaced, restructured, repaid, refinanced or otherwise modified from time to time,
creating the security interests in the Collateral as contemplated by the Indenture, which will be
identical to the agreements for the First Priority Liens Obligations, but on a second priority lien
basis.

     “Series B Preferred Stock” is defined in the recitals.

     “Series B-1 Preferred Stock” is defined in the recitals.

     “Series D Preferred Stock” is defined in the recitals.

     “Signing Date” means February 11, 2008.

     “Signing Date Certificate” is defined in Section 2.4.

     “Solvency Certificate” is defined in Section 3.11(c).

     “Solvent” means, with respect to any Person, that (a) the sum of such Person’s debt (including
contingent liabilities) does not exceed the present fair saleable value of such Person’s present
assets; (b) such Person’s capital is not unreasonably small in relation to its business as
contemplated; and (c) such Person has not incurred and does not intend to incur, or believe that it
will incur, debts including current obligations beyond its ability to pay such debts as they become
due (whether at maturity or otherwise). For purposes of this definition, the amount of any
contingent liability at any time shall be computed by

9

 

Holdco and the Company as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that such Person reasonably expects to become an
actual or matured liability (irrespective of whether such contingent liabilities meet the criteria
for accrual under GAAP).

     “Sponsors” is defined in the recitals.

     “State” means any of the jurisdictions listed on Section 3.3(b) of the Company Disclosure
Schedule (as defined in the Equity Purchase Agreement).

     “Subsequent Purchaser” means a purchaser of any Note who acquired such Note in a Private
Offering in accordance with Section 8.1.

     “Tax” or “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).

     “Tax Return” means any return, report or similar filing, (including 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.

     “Termination Date” is defined in Section 2.2(e).

     “Termination Development” means (i) any circumstance, event, change, development or effect
that, individually or in the aggregate, is adverse to the financial position, results of
operations, business, prospects, assets or liabilities of Holdco or its Subsidiaries as determined
in the sole discretion of the Initial Purchasers, (ii) any negative development related to Holdco’s
or its Subsidiaries’ agents, official check customers, clearing banks or regulators as determined
in the sole discretion of the Initial Purchasers, and (iii) the Initial Purchasers becoming aware
after the Effective Date of any matter in clauses (i) or (ii) above that occurred prior to the date
hereof. 

     “THL Purchaser” is defined in the preamble.

     “Total First Lien Indebtedness” means, as of any date of determination, funded Total
Indebtedness that in each case is secured by First Priority Liens on property or assets of Holdco
and its Subsidiaries.

     “Total Loss” has the meaning given to it in the Equity Purchase Agreement.

     “Transaction Documents” means the Credit Documents, the Equity Documents and the Financing
Documents.

     “Transactions” is defined in the recitals.

     “Trustee” means Deutche Bank Trust Company Americas.

10

 

     “Unrestricted Assets” has the meaning given to it in Schedule E to the Equity Purchase
Agreement.

     “U.S. Economic Sanction” means any economic sanction imposed by any rule, regulation or
statute of the United States, including without limitation, those administered by OFAC and any
other applicable laws imposing economic sanctions.

     “U.S. Foreign Corrupt Practices Act” is defined in Section 4.12(b)

     1.2.
Computation of Time Periods.

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

     1.3. Terms Generally.

     Unless the context otherwise requires:

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

     (2) “or” is not exclusive;

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

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

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

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

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

     (7) any definition of or reference to any agreement, instrument or other document herein shall
be construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein);

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

     (9) references to sections of or rules under the Securities Act and the Exchange Act will be
deemed to include substitute, replacement or successor sections or rules adopted by the SEC from
time to time.

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SECTION 2.

AUTHORIZATION AND ISSUANCE OF NOTES

     2.1. Authorization of Issue.

     On or prior to the Closing, the Company will authorize the issuance and sale of the Notes.
The Notes shall be substantially in the form specified in the Indenture.

     2.2. Sale and Purchase of the Notes.

     (a) Subject to the terms and conditions of this Agreement, on or prior to the Termination
Date, the Company will issue and sell to each of the Purchasers and each of the Purchasers will
purchase from the Company, at the Closing provided for in Section 2.3, the Notes in the principal
amounts and for the portion of the Purchase Price as set forth in Schedule 2.2 hereto.

     (b) The aggregate cash purchase price (the “Purchase Price”) for the Notes shall be equal to
the principal face amount of the Notes being so purchased.

     (c) The parties agree to report the sale and purchase of the Notes for all federal, state,
local and foreign Tax purposes in a manner consistent with the foregoing and agree to take no
position inconsistent with the foregoing, except as required by applicable law.

     (d) The obligations hereunder of the Purchasers to purchase and pay for the Notes are several
and not joint and no Purchaser will have any liability to any Person for the performance or
non-performance by any other Purchaser.

     (e) The obligation of the Purchasers to purchase the Notes and the obligation of the Company
to sell and issue the Notes in accordance with the terms of this Agreement shall terminate on the
date of the termination of the Equity Purchase Agreement in accordance with its terms (the
“Termination Date”).

     2.3. Closing.

     (a) Subject to satisfaction or waiver of the conditions set forth in Section 3 hereof, the
sale and purchase of the Notes shall occur 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, at a closing (the
“Closing”), but in any event the Closing shall be no later than March 25, 2008, or at such other
date or time as mutually agreed by the Company and the Initial Purchasers. The date and time of
the Closing is referred to herein as the “Closing Date”.

     (b) At the Closing, the Company will deliver to each Purchaser purchasing Notes, in such
denominations as such Purchaser may request (subject to the terms of the Indenture), representing
in the aggregate the full principal amount of Notes to be purchased by such Purchaser on the
Closing Date, each such Note dated the Closing Date and registered in such Purchaser’s name,
against payment by such Purchaser to the Company of the amount of the applicable portion of the
Purchase Price (as provided in Section 2.2), by wire transfer of immediately available funds to
such bank account or accounts as the Company may request in writing at least one Business Day prior
to the Closing Date.

     (c) If at the Closing the Company shall fail to deliver to the Purchasers the Notes as
provided in Section 2.3(b), or any of the conditions specified in Section 3 shall not have been
fulfilled to the Initial

12

 

Purchasers’ reasonable satisfaction or waived, then each Purchaser shall, at its election, be
relieved of all further obligations under this Agreement.

     2.4. Effective Date Certificate.

     On the Signing Date, Holdco delivered to the Initial Purchasers the certificate (the “Signing
Date Certificate”) as provided in Section 2.4 of the Original Note Purchase Agreement. On the
Effective Date, Holdco shall deliver to the Purchasers a certificate (the “Effective Date
Certificate”), substantially in the form of Exhibit 2.4 to this Agreement, from Holdco, signed by
the Chief Executive Officer and the Chief Financial Officer of Holdco, certifying: (i) that each of
the representations and warranties contained in Sections 4.1 through 4.17, 4.23 and 4.29 through
4.31 of this Agreement shall be true and correct in all material respects (unless qualified by
“material” or “Material Adverse Effect” or similar references to materiality, in which case such
representations and warranties must be true and correct in all respects) on or as of the Effective
Date as if made on and as of the Effective Date (unless expressly stated to relate to a specific
earlier date, in which case each of such representations and warranties shall be true and correct
in all material respects (unless qualified by “material” or “Material Adverse Effect” or similar
references to materiality, in which case the representation and warranties must be true and correct
in all respects) as of such earlier date), (ii) to the knowledge of the applicable officer: (x)
that none of the written factual information and written data (taken as a whole) furnished by or on
behalf of Holdco or any of the Holdco Subsidiaries or any of their respective authorized
representatives to the Purchasers on or before the Effective Date for purposes of or in connection
with this Agreement contained, when furnished, any untrue statement of any material fact or omitted
to state any material fact necessary to make such information and data (taken as a whole) not
materially misleading at such time in light of the circumstances under which such information or
data was furnished, it being understood and agreed that for purposes of such certificate, such
factual information and data shall not include projections (including financial estimates,
forecasts and/or any other forward-looking information) and information of a general economic or
general industry nature, and (y) that the projections (including financial estimates, forecasts and
other forward-looking information) contained in the information and data referred to in clause
(ii)(x) above were based on good faith estimates and assumptions believed by such Persons to be
reasonable at the time made, it being recognized by the Purchasers that such projections as to
future events are not to be viewed as facts and that actual results during the period or periods
covered by any such projections may differ from the projected results, (iii) that the financial
information, data and performance information listed on Exhibit 4 hereto furnished by or on
behalf of Holdco or the Company to the Purchasers on or before the Effective Date for purposes of
or in connection with this Agreement was true, complete and accurate as and when furnished to the
Purchasers, and (iv) all of the certifications set forth in the Signing Date Certificate are true
and correct in all respects.

     2.5 Fees.

     On the Signing Date, Holdco paid the fees set forth, and otherwise satisfied the other terms
and conditions set forth in, the Fee Letter. The effectiveness of this Agreement shall be subject
to the receipt by the Initial Purchasers of the Fee (as defined in that certain Amended and
Restated Fee Letter, dated the Effective Date).

SECTION 3.

CONDITIONS TO CLOSING

     Each Purchaser’s obligation to purchase and pay for the Notes to be purchased by it at the
Closing is subject to the reasonable satisfaction or waiver by the Initial Purchasers, prior to or
at the Closing Date, of each of the conditions specified below in this Section 3:

13

 

     3.1. No Violation; No Legal Constraints; Consents, Authorizations and Filings, Etc.

     (a) The expiration or termination of: (i) any applicable waiting period under the HSR Act and
(ii) any applicable waiting period under the German Antitrust Act in each case, required to
consummate the purchase from Holdco at the Closing, of the Securities as contemplated by the Equity
Purchase Agreement and for the Investors to own, and fully vote and convert into common stock, all
of the Securities;

     (b) 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;

     (c) each Purchaser’s purchase of the Notes shall be permitted by all applicable laws of each
jurisdiction to which it is subject; and

     (d) prior to the Closing, Holdco shall have received full proceeds from the sale of the
securities listed on Schedule B-1 to the Equity Purchase Agreement in the amounts set forth on
Schedule B-1 thereto.

     3.2. Indebtedness.

     On the Closing Date, the Company and Holdco shall have (i) (A) amended Holdco’s existing
Amended and Restated Credit Agreement, dated as of June 29, 2005, in accordance with the form of
Amended and Restated Credit Agreement attached to the Equity Purchase Agreement as Schedule D, (B)
received an additional $250 million 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; and
(ii) no Indebtedness (as determined on a consolidated basis in accordance with GAAP) shall remain
outstanding immediately after giving effect to the Transaction other than: (x) the loans under the
Company Credit Facilities and (y) the Notes and (z) indebtedness incurred in the ordinary course of
business not to exceed, individually or in the aggregate, $5 million. After giving effect to the
transactions contemplated hereby, there shall not exist (pro forma for such transactions and the
financing thereof) any Default or Event of Default under the Indenture or the Notes.

     3.3. Material Adverse Change.

     Except as Previously Disclosed, (A) 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 Holdco or the Company, and (B) each
of the Initial Purchasers in its respective sole judgment and discretion shall have determined that
since the Effective Date, no change or event shall have occurred and no circumstances shall exist
which constitute, or would reasonably be expected to constitute, individually or in the aggregate,
a Termination Development. With respect to matters which have been Previously Disclosed, in
determining whether this condition is satisfied, any circumstance, event or condition occurring
after the Effective Date shall be taken into account, including any deterioration, worsening or
adverse consequence of such Previously Disclosed matters occurring after the Effective Date.

14

 

     3.4. Regulatory.

     (A) None of Holdco, the Company or MPSI, shall have received written or oral notice from any
State to the effect that such State has determined that Holdco, 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, Holdco’s, the Company’s or MPSI’s license to conduct such businesses in such State, or
imposed, or intends to impose, conditions on, or material fines with respect to, Holdco’s, the
Company’s or MPSI’s license to conduct such businesses in such State (which conditions are adverse
to Holdco, the Company or MPSI and are not generally applicable to other persons conducting money
transfer or payments systems businesses in such State); (B) Holdco, the Company or MPSI shall have
received assurances, in a form acceptable to the Initial Purchasers, from each State from which the
Initial Purchasers determines is necessary, that such State will not (x) determine that Holdco, the
Company or MPSI may not conduct its money transfer or payment systems businesses in such State, (y)
revoke Holdco’s, the Company’s or MPSI’s license to conduct such businesses in such State, or (z)
impose conditions on, or material fines with respect to, Holdco’s, the Company’s or MPSI’s license
to conduct such businesses in such State (which conditions are adverse to Holdco, the Company or
MPSI and are not generally applicable to other persons conducting money transfer or payments
systems businesses in such State); (C) prior to and immediately following the Closing, Holdco and
each of its Subsidiaries shall have all licenses required under applicable money transmitter,
official check or similar Laws to conduct Holdco’s and its Subsidiaries’ business as presently
conducted; and (D) immediately following the Closing, Holdco and each of its Subsidiaries shall be
in compliance with all applicable money transmitter, official check or similar Laws applicable to
Holdco or its Subsidiaries, including, without limitation, all net worth, tangible net worth,
unrestricted assets and other financial ratios requirements applicable to Holdco or its
Subsidiaries.

     3.5. Fees and Expenses.

     (a) All the fees and expenses payable by Holdco and the Company to the Purchasers pursuant to
the Transaction Documents, including without limitation, the fees and expenses of each Purchaser
and counsel for the Purchasers for which invoices have been presented (including the fees of Fried,
Frank, Harris, Shriver & Jacobson LLP, counsel to the Initial Purchasers), shall have been paid in
full.

     3.6. Holdco Audit/10-K/Absence of Restatement.

     (a) (A) (i) Holdco’s receipt from Deloitte & Touche LLP of the D&T Deliverables, which shall
be delivered if the amounts set forth on Schedule F to the Equity Purchase Agreement shall have
been placed into an escrow account pursuant to an escrow agreement reasonably acceptable to the
Initial Purchasers, Holdco and Deloitte & Touche LLP with irrevocable instructions to be released
to Holdco on the Closing Date upon Holdco’s receipt of the D&T Deliverables, or (ii) if the amounts
set forth on Schedule F to the Equity Purchase Agreement shall not have been placed into an escrow
account with irrevocable instructions to be released to Holdco on the Closing Date upon Holdco’s
receipt of the D&T Deliverables, then Holdco and Deloitte & Touche LLP shall have committed to the
Initial Purchasers on the Closing Date that, after both Holdco and Deloitte & Touche LLP shall have
verified that the amounts set forth on Schedule F to the Equity Purchase Agreement have been
credited to the bank account set forth across from such amount on Schedule F to the Equity Purchase
Agreement, Holdco will receive from Deloitte & Touche, the D&T Deliverables and (B) Holdco’s
financial printer Bowne shall have notified the Initial Purchasers (on the Closing Date) that
Holdco has delivered the Final 10-K to Bowne with the irrevocable instruction that Bowne file the
Final 10-K on behalf of Holdco, and that Bowne is prepared to file and will file the Final 10-K
with the SEC, in each case, immediately upon notification from Holdco that the amounts set forth on
Schedule F to the Equity Purchase Agreement have been

15

 

successfully credited to the Holdco bank account set forth across from such amount on Schedule
F to the Equity Purchase Agreement;

     (b) each of the Initial Purchasers shall have had a full and complete opportunity to review
Holdco’s books and records, internal controls and procedures, and to interview current and former
Holdco personnel as determined to be necessary by each of the Initial Purchasers, and will have
determined that Holdco’s books and records, internal controls and procedures, as well as Holdco’s
prior disclosures, are acceptable to each Initial Purchaser in its respective sole judgment and
discretion; and it is understood and agreed that such determination by each of the Initial
Purchasers shall be based on, among other things, but not limited to, the subjective view of each
of the Initial Purchasers of Holdco’s potential exposure, if any, to claims and investigations
related in any to Holdco’s books and records, internal controls and procedures, and prior
disclosures;

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

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

     (e) Holdco 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 Holdco
from the SEC on the SEC Documents.

     3.7. Representations and Warranties.

     Each of the representations and warranties contained herein shall be true and correct in all
material respects (unless qualified by “material” or “Material Adverse Effect” or similar
references to materiality, in which case the representation and warranties must be true and correct
in all respects) on or as of the Closing Date (unless expressly stated to relate to a specific
earlier date, in which case each of such representations and warranties shall be true and correct
in all material respects (unless qualified by “material” or “Material Adverse Effect” or similar
references to materiality, in which case the representation and warranties must be true and correct
in all respects) as of such earlier date), in each case after giving pro forma effect to the
consummation on the Closing Date of the Transactions, the issuance of the Notes to be issued on the
Closing Date and the application of the proceeds thereof.

     3.8. Performance; No Default.

     The Company and Holdco shall have performed and complied in all material respects with all
agreements and covenants contained herein and therein required to be performed or complied with by
them prior to or at the Closing (or such compliance shall have been waived on terms and conditions
reasonably satisfactory to the Initial Purchasers) and, after giving effect to the Transactions,
the issuance of the Notes and the application of the proceeds thereof, no Default shall have
occurred and be continuing.

     3.9. Equity Contribution.

     At the Closing, the Equity Contribution shall have been made to Holdco in accordance with the
Equity Purchase Agreement, and Holdco shall have received the Equity Contribution. All conditions
precedent set forth in the Equity Documents shall have been satisfied or waived (with the prior
consent of

16

 

the Initial Purchasers if the Initial Purchasers reasonably determine such waiver is adverse
to the Initial Purchasers).

     3.10. [Reserved].

     3.11. Compliance Certificates.

     (a) Secretary’s Certificate. The Company and each Guarantor shall have delivered to the
Purchasers a Secretary’s Certificate, dated as of the Closing Date (the “Secretary’s Certificate”),
in the form of Exhibit 3.11(a) hereto, certifying, among other things, as to (i) the Company’s and
the Guarantors’ certificate or articles of incorporation or deed of incorporation (or, if an
unlimited liability company, limited liability company or limited partnership, certificate of
formation) and bylaws or articles of association (or, if an unlimited liability company or limited
liability company, unlimited or limited liability company agreement, or, if a limited partnership,
limited partnership agreement), (ii) the incumbency and signatures of certain officers of the
Company and the Guarantors and (iii) the corporate proceedings of the Company and the Guarantors
(including a Board consent in a form reasonably agreed to by the Initial Purchasers) relating to
the authorization, execution and delivery of the Notes, this Agreement and the other Financing
Documents to which the Company or any Guarantor is a party.

     (b) Officer’s Certificate. The Company shall have delivered to the Purchasers an Officer’s
Certificate, each dated as of the Closing Date (the “Officer’s Certificate”), in the form of
Exhibit 3.11(b) hereto, certifying, on and as of the Closing Date, as to (i) the representations
and warranties of the Company, (ii) the performance and compliance in all material respects with
all agreements and covenants contained herein, and (iii) no Default or Event of Default shall have
occurred and be continuing under the Indenture or the Notes.

     (c) Solvency Certificate and Solvency Opinion. On the Closing Date, the Company shall have
delivered to the Purchasers a certificate from the Chief Financial Officer of the Company, dated as
of the Closing Date (the “Solvency Certificate”), in the form of Exhibit 3.11(c), and (if and to
the extent delivered under the Company Credit Facilities) letters from a nationally recognized
appraisal firm or valuation consultant satisfactory to the Initial Purchasers, in each case
certifying or attesting, as applicable, that the Company on a consolidated basis with its
Subsidiaries immediately after giving effect to the consummation of the Transactions, the issuance
and sale of the Notes and after giving effect to the application of the proceeds of Notes, will be
Solvent.

     3.12. Opinion of Counsel.

     On the Closing Date, the Purchasers shall have received an opinion from Kirkland & Ellis LLP,
special New York counsel for the Company, or another counsel for the Company acceptable to the
Initial Purchasers, in form and substance reasonably satisfactory to the Initial Purchasers.

     3.13. Financial Information.

     (a) The Purchasers shall have received: (a) as soon as monthly and quarterly financial
statements are available to Holdco and its Subsidiaries, unaudited consolidated financial
statements for any interim period or periods of Holdco and its Subsidiaries ended after the date of
the most recent audited financial statements; and (b) customary pro forma consolidated financial
statements. The most recent financial statements will show on a pro forma basis on the Closing
Date: (i) funded Total Indebtedness of no more than $1,000 million plus indebtedness incurred in
the ordinary course of business not to exceed, individually or in the aggregate, $5 million; (ii)
Total First Lien Indebtedness of no more than $500 million; (iii) the Leverage Ratio (but excluding
for purposes of the calculation thereof

17

 

from the definition of Adjusted EBITDA (as defined in the Indenture) any gains or losses
associated with the sale of securities held in Holdco or any of its Subsidiaries investment
portfolio listed on Schedule B-1 to the Equity Purchase Agreement for Holdco and its Subsidiaries,
as at the Closing Date, after giving pro forma effect to the Transactions, for the last
twelve-month period ended February, 2008, is not greater than: 3.85:1.00 and (iv)(A) the
transaction volumes generated from the “Money Transfer” business segment shall be no less than
$3,170,700 for the month ended January, 2008 and $3,238,200 for the month ended February, 2008, and
(B) the net revenue generated from the “Money Transfer” and the “Express Payment” business segments
on a combined basis shall be no less than $35,063,244 for the month ended January, 2008 and no less
than $35,737,927 for the month ended February, 2008. For purposes of clause (iv)(A) and (iv)(B) of
this Section 3.13, the internal monthly financial statements for the months ended January, 2008 and
February, 2008 shall be prepared on the same basis in all material respects to the monthly budgets
for January, 2008 and February, 2008 and the historical monthly results previously provided to the
Purchasers and included on Exhibit 4 to this Agreement.

     (b) After giving effect to the Transactions and the payment of fees and expenses payable by
Holdco at the Closing in connection with the transactions contemplated by the Equity Purchase
Agreement and the transactions contemplated hereby, including, without limitation, the expenses
incurred in connection with the transactions contemplated by clause (iv) of Section 1.2(c) of the
Equity Purchase Agreement, the expenses contemplated by Section 5.3 of the Equity Purchase
Agreement and the Exclusivity Agreement (as defined in the Equity Purchase Agreement), the fees and
expenses of Holdco’s advisors, and the fees and expenses of each Purchaser and counsel for the
Purchasers, on a pro forma basis, Holdco shall have (x) at least $[150] million in Unrestricted
Assets and no more than $150 million will be drawn on the Closing Date, under Holdco’s revolving
credit facility (which availability, for the purposes of this Section 3.13(b) shall take into
account all letters of credit outstanding either through such facility or otherwise).

     3.14. Transaction Documents.

     On the Closing Date, the Purchasers shall have received true and correct copies of all
Transaction Documents (including without limitation, the Indenture, the Notes, the Registration
Rights Agreement, the other Financing Documents and (in respect of the Initial Purchasers only) the
Management Rights Agreement, all of which shall be in form and substance reasonably acceptable to
the Initial Purchasers) and such documents (i) shall have been duly authorized, executed and
delivered by parties thereto; and (ii) shall be valid and binding obligations of the parties
thereto, enforceable against each of them in accordance with its respective terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting
creditors’ rights generally and subject to general principles of equity. Without limiting the
generality of the preceding sentence, the Purchasers shall have received all such counterpart
originals or certified or other copies of this Agreement and the other Financing Documents required
to be delivered on the Closing Date.

     3.15. Execution and Authentication of Indenture and Notes.

     On the Closing Date, the Trustee shall have executed the Indenture and authenticated the Notes
to be purchased by the Purchasers pursuant to this Agreement.

     3.16. Security Documents and Collateral.

     The Collateral Agent shall have received all Security Documents and the Intercreditor
Agreement, substantially in the forms attached hereto as Exhibit 3.16(a) through Exhibit 3.16(g),
duly executed by all parties thereto and the provisions of the Security Documents shall create
legal, valid and continuing second-priority Liens (subject only to Permitted Liens) on all the
Collateral described therein

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in favor of the Collateral Agent, for the benefit of the Collateral Agent and the Purchasers
securing the Obligations (as defined in the Security Documents), enforceable against Holdco, the
Company and their respective Subsidiaries, as applicable, except as the enforceability thereof may
be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar
laws affecting creditors’ rights generally and subject to general principles of equity, which
Security Documents and Collateral shall be substantially similar to the Security Documents (as
defined in the Company Credit Facilities) and Collateral (as defined in the Company Credit
Facilities) provided to the Lenders (as defined in the Company Credit Facilities) under the Company
Credit Facilities and shall be in form and substance satisfactory to the Initial Purchasers in
their reasonable discretion.

     3.17. Bank Clearing Arrangements.

     The Company and Holdco shall have demonstrated to the reasonable satisfaction of the Initial
Purchasers that adequate bank clearing arrangements are in effect on the Closing Date.

     3.18. Company Credit Facilities.

     (a) Holdco shall not have incurred (or become obligated to incur) fees of more than $5,375,000
relating to the transactions described in Section 1.2(c)(iv) of the Equity Purchase Agreement
(other than clauses (D) and (E)) of the Equity Purchase Agreement plus annual administrative agency
fees in an amount not exceeding $150,000 per annum payable quarterly; and

     (b) the Applicable Margin (as defined in Schedule D to the Equity Purchase Agreement) on the
Term B Loans (as defined in Schedule D to the Equity Purchase Agreement) shall not have been
increased by more than 1.625% per annum (all of which may take the form of original issue discount
over a four-year life to maturity (i.e. 6.5% or $16,250,000)); provided that any increase shall
have been necessary in the reasonable discretion of the Lead Arranger (as defined in Schedule D to
the Equity Purchase Agreement) to place the Term B Loans and the Lead Arranger shall first consider
(in consultation with Holdco and the Investors) using increases in the margin prior to imposing
original issue discount.

     3.19. New York Stock Exchange.

     Holdco shall have received confirmation from the New York Stock Exchange, and such
confirmation shall not have been withdrawn, that the issuance of the Series B Preferred Shares and
the Series B-1 Preferred Shares and the transactions contemplated by the Transaction Documents are
in compliance with the New York Stock Exchange’s shareholder approval policy and that Holdco has
properly, and without condition, obtained an exception under Para. 312.05 of the New York Stock
Exchange Listed Company Manual to issue the Series B Preferred Shares and the Series B-1 Preferred
Shares without obtaining approval of the stockholders of Holdco.

     3.20. Notice to Stockholders.

     Holdco shall have properly provided notice to the stockholders of Holdco that Holdco will
issue the Series B Preferred Shares and the Series B-1 Preferred Shares without obtaining
stockholder approval as required by, and in compliance with, Para. 312.05 of the New York Stock
Exchange Listed Company Manual, and the ten (10) day notice period set forth in Para. 312.05 of the
New York Stock Exchange Listed Company Manual shall have passed after such notice has been properly
provided.

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     3.21. Wal-Mart.

     Wal-Mart Stores, Inc. shall have confirmed in writing to Holdco (A) that the Money Services
Agreement by and among MPSI and Wal-Mart Stores, Inc. (as amended through that certain Amendment 3
to Money Services Agreement dated as of the Signing Date but not amended by any subsequent
amendments other than, if necessary, to make effective the extension of the term of the Money
Services Agreement through January 31, 2013) will be in full force and effect after the
consummation of the transactions contemplated hereby (which shall include an effective extension of
the term of the Money Services Agreement through January 31, 2013) and (B) that the Original Equity
Purchase Agreement, the Equity Purchase Agreement and this Agreement and the transactions
contemplated thereby and hereby do not give Wal-Mart Stores, Inc. the right to terminate the Money
Services Agreement.

     3.22. Insurance.

     Holdco shall have purchased, at its expense (A) directors and officers liability insurance,
from reputable carriers to be agreed upon prior to Closing by Holdco and the Initial Purchasers and
in at least the amounts as set forth on Schedule 4.1(b) to the Equity Purchase Agreement (or in a
lesser amount agreed upon by the Initial Purchasers and Holdco) on behalf of and covering the
individuals who at any time on or after the Closing Date are or become directors of Holdco, against
expenses, liabilities or losses asserted against or incurred by such individual in such capacity or
arising out of such individual’s status as such, subject to customary exclusions and (B) a
fully-paid six-year “tail” insurance policy or policies with respect to directors’ and officers’
liability insurance (including excess A-side difference-in-conditions coverage and fiduciary
liability coverage) of an amount no less, and with terms and conditions no less favorable, than
those of the policies maintained by Holdco as of the Effective Date.

     3.23. Financial Statements.

     The Initial Purchasers shall have received at least three Business Days prior to the Closing
Date, Holdco’s consolidated unaudited interim financial statements as of and for the one-month
period ended January 31, 2008 and the one-month period ended February 29, 2008, including (i) the
unaudited balance sheet as January 31, 2008 and February 29, 2008 and (ii) related unaudited
consolidated statements of income, changes in stockholders’ equity, and detailed trial balances for
the period from January 1, 2008 to January 31, 2008 and for the period from February 1, 2008 to
February 29, 2008, in each case satisfactory in form and substance to the Initial Purchasers.

     3.24. Closing Certificate.

     On the Closing Date, the Company shall deliver to each of the Initial Purchasers a certificate
(the “Closing Certificate”) signed on behalf of the Company by an executive officer of the Company
confirming that each of the conditions set forth in this Section 3 has been satisfied.

SECTION 4.

REPRESENTATIONS AND WARRANTIES

     Except as Previously Disclosed (but only with respect to Sections 4.2 through and including
4.17), each of Holdco and the Company represents and warrants to the Purchasers on and as of the
Effective Date (after giving “pro forma” effect to the consummation on the Closing Date of the
Transactions, the issuance of the Notes to be issued on the Closing Date and the application of the
proceeds thereof) and on the Closing Date, except as set forth in this Section 4, that:

20

 

     4.1. Disclosure.

     On or prior to the Effective Date, Holdco delivered to the Purchasers the Holdco Disclosure
Schedules.

     4.2. Organization and Authority.

     Each of Holdco and 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. Each of Holdco and 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. Each of Holdco and the
Company has made available to the Purchasers prior to the execution of this Agreement, (i) a true
and complete copy of the Certificate of Incorporation of the Company and the bylaws of the Company,
in each case as in effect on the Effective Date and (ii) a complete copy of the Amended and
Restated Certificate of Incorporation of Holdco and the bylaws of Holdco, in each case as in effect
on the Effective Date.

     4.3. Holdco Subsidiaries.

     (a) Holdco 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 Holdco. The subsidiaries of Holdco are referred to herein individually as a “Holdco Subsidiary”
and collectively as the “Holdco Subsidiaries.” All of such shares so owned by Holdco (or its
subsidiaries) are fully paid and non assessable 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 as Previously Disclosed, none of Holdco or any Holdco Subsidiary beneficially owns (the
concept of “beneficial ownership” having the meaning assigned thereto in Section 13(d) of the
Exchange Act), directly or indirectly, more than 5% of any class of equity securities or similar
interests of any corporation or other entity, and none is, directly or indirectly, a partner in any
partnership or party to any joint venture.

     (b) Each Holdco 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 Holdco 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.

     4.4. Capitalization.

     The authorized capital stock of Holdco 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 the Equity Purchase
Agreement, and (ii) 250,000,000 shares of common Stock, of which 82,598,034 shares were outstanding
as of the date of the Equity Purchase Agreement. There are outstanding options 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 Holdco have been duly
and validly authorized and issued and

21

 

are fully paid and non assessable. The shares of Preferred Stock to be issued at the Closing
in accordance with the terms of the Equity Purchase Agreement or in respect of or upon conversion
of such Preferred Stock (or upon the conversion of Preferred Stock received upon conversion of
Preferred Stock to be issued at Closing) in accordance with the terms of the Equity Purchase
Agreement and the respective Certificate of Designations, upon such issuance or conversion, as the
case may be, will be duly and validly authorized and issued and fully paid and non assessable 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 Holdco or any Holdco Subsidiary to issue, sell or otherwise dispose of, or
to purchase, redeem or otherwise acquire, any shares of capital stock of Holdco or any Holdco
Subsidiary. Each of Holdco and any Holdco Subsidiary has Previously Disclosed all shares of Holdco
capital stock that have been purchased, redeemed or otherwise acquired, directly or indirectly, by
Holdco or any Holdco Subsidiary since December 31, 2006 and all dividends or other distributions
that have been declared, set aside, made or paid to stockholders of Holdco since that date.

     4.5. Authorization; No Default.

     (a) Each of Holdco and each Holdco Subsidiary has the power and authority to enter into the
Transaction Documents to which it is a party and to carry out its obligations hereunder and
thereunder. The execution, delivery and performance of the Transaction Documents by Holdco and
each Holdco Subsidiary and the consummation of the transactions contemplated hereby and thereby
have been duly authorized by the board of directors of each of Holdco and each Holdco Subsidiary
(the “Board of Directors”). The Transaction Documents to which Holdco and each Holdco Subsidiary
are a party are valid and binding obligations of Holdco and each Holdco Subsidiary enforceable
against Holdco and each Holdco Subsidiary in accordance with their respective terms. No stockholder
vote of Holdco or any Holdco Subsidiary is required to authorize, approve or consummate any of the
transactions contemplated hereby. The issuance of the Series B Preferred Shares and the Series B-1
Preferred Shares and the transactions contemplated by the Transaction Documents will be in
compliance with the New York Stock Exchange’s shareholder approval policy and the exception under
Para. 312.05 of the New York Stock Exchange Listed Company Manual.

     (b) Neither the execution, delivery and performance by Holdco and each Holdco Subsidiary of
the Transaction Documents to which it is a party and any documents ancillary thereto, nor the
consummation of the transactions contemplated hereby and thereby, nor compliance by Holdco and each
Holdco Subsidiary 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 Holdco or any Holdco 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 Holdco or any Holdco Subsidiary is a party or
by which it may be bound, or to which Holdco or any Holdco Subsidiary or any of the properties or
assets of Holdco or any Holdco Subsidiary may be subject (other than Liens created under the Credit
Documents), 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 Holdco or any Holdco 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.

22

 

     (c) Other than (A) the filing of the Certificates of Designations with the Delaware Secretary
of State, (B) the filings in connection or in compliance with the HSR Act, (C) the filings in
connection or in compliance with the German Antitrust Act, (D) any actions described in the
Security Documents necessary to perfect the security interest granted pursuant thereto, (E) the
passage of the applicable ten (10) day notice period in compliance with Para. 312.05 of the New
York Stock Exchange’s Listed Company Manual and (F) 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, 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 Holdco or any Holdco
Subsidiary of the transactions contemplated by the Transaction Documents to which it is a party.

     4.6. SEC Documents.

     (a) Except as Previously Disclosed, each of Holdco and the Company has filed all reports,
schedules, forms, statements and other documents with the SEC required to be filed by Holdco or the
Company or furnished by Holdco or the Company since December 31, 2005 (including any items
incorporated by reference or attached as Exhibits thereto) (the “SEC Documents”). No Holdco
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, 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. 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 Holdco 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
Holdco 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 Holdco as at September 30, 2007
included in the Filed SEC Documents, neither Holdco nor any Holdco Subsidiary has 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 Effective Date, to be reflected on a consolidated
balance sheet of Holdco (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.

     (b) Holdco (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 Holdco,
including its consolidated Subsidiaries, is made known to the chief executive officer and the chief
financial officer of Holdco by others within those entities, and (B) has disclosed, based on its
most recent evaluation prior to the Effective Date, to Holdco’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 Exchange Act, Rule
13a-15(f)) that are reasonably likely

23

 

to adversely affect Holdco and each Holdco Subsidiary’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 Holdco or each Holdco Subsidiary’s
internal controls over financial reporting. As of the date of this Agreement, Holdco 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 Holdco nor any Holdco
Subsidiary nor, to the knowledge of Holdco, any director, officer, employee, auditor, accountant or
representative of Holdco or any Holdco 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 Holdco or
any Holdco Subsidiary or their respective internal accounting controls, including any material
complaint, allegation, assertion or claim that Holdco or any Holdco Subsidiary has engaged in
questionable accounting or auditing practices, and (y) no attorney representing Holdco or any
Holdco Subsidiary, whether or not employed by Holdco or any such subsidiary, has reported evidence
of a material violation of securities laws, breach of fiduciary duty or similar violation by Holdco
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 Holdco or any Holdco Subsidiary.

     4.7. Taxes.

     Except as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (A) Holdco and each of Holdco’s 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) Holdco and
each of Holdco’s Subsidiaries have paid all Taxes that are required to be paid by any of them, (C)
as of the Effective Date, 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 Holdco or any of Holdco’s
Subsidiaries, and (D) all Taxes required to be withheld by Holdco and Holdco’s 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 Holdco’s financial statements in accordance with GAAP).
Holdco 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 Code. Neither Holdco nor any Holdco’s Subsidiary has entered into
any “listed transaction” as defined under Section 1.6011-4(b)(2) of the Treasury Regulations
promulgated under the Code.

     4.8. Ordinary Course.

     Except as Previously Disclosed since September 30, 2007, Holdco and each Holdco 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
Holdco nor any Holdco Subsidiary has taken any action referred to in clauses (a) and (b) of Section
3.3 of the Equity Purchase Agreement, assuming the said Section had been in effect at all times
since September 30, 2007).

     4.9. 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 Holdco nor any Holdco
Subsidiary is a party to or bound by any Contract that: (A) is a “material contract” (as such term
is

24

 

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 Effective Date; (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 Holdco and the Holdco 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 continuing material
obligations or contains continuing indemnity obligations of Holdco or any of the Holdco
Subsidiaries; or (F) is a commitment or agreement to enter into any of the foregoing. Except as
set forth on Section 4.9 of the Holdco Disclosure Schedule, neither Holdco nor any Holdco
Subsidiary is a party to or bound by any Contract (x) that contains provisions that purport to
limit the ability of Holdco or any of the Holdco Subsidiaries, or any Affiliate, stockholder or
director of Holdco or any Holdco Subsidiary 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, Holdco or any of the Holdco 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 4.9(ii) (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 Holdco nor any Holdco
Subsidiary 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 Holdco or any of the Holdco Subsidiaries, and Holdco 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 Holdco (or the Subsidiaries of Holdco party thereto), is in full force and effect and
is enforceable against Holdco and the Holdco Subsidiaries and, to the knowledge of Holdco, 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.

     4.10. Litigation and Other Proceedings.

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

     4.11. Insurance.

     Holdco and each Holdco Subsidiary are presently insured, and during each of the past five
calendar years (or during such lesser period of time as Holdco has owned such Holdco 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.

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     4.12. Compliance with Laws.

     (a) Holdco and each Holdco 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 Holdco and the Holdco Subsidiaries, taken as a whole; and all such Permits are
in full force and effect and, to the knowledge of Holdco, 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: (i) the conduct by Holdco and each Holdco 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 Holdco nor any
Holdco Subsidiary is in default under any order, license, regulation, demand, writ, injunction or
decree of any Governmental Entity, and (iii) Holdco currently is complying with all, and, to the
knowledge of the Holdco and the Holdco Subsidiaries, 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.

     (b) Without limiting the generality of the foregoing, Holdco and each of the Holdco
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, in each case, except as, individually or in the
aggregate, would not reasonably expected to have a Material Adverse Effect. Also, without limiting
the generality of the foregoing, the Company, each of its Subsidiaries, and each of Holdco’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., in each
case, except as, individually or in the aggregate, would not reasonably expected to have a Material
Adverse Effect.

     4.13. Benefit Plans.

     (a) Holdco has Previously Disclosed or has previously filed as an exhibit to an SEC Document
or made available to the Purchasers or its representative each of the following to which Holdco or
any Holdco 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 Holdco or any Holdco Subsidiary (each, other
than a Multiemployer Plan, a “Benefit Plan”), in each case, requiring aggregate annual payments or
contributions by Holdco and any Holdco Subsidiary 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 4.13 of the Holdco Disclosure Schedule sets
forth a complete list of the Benefit Plans.

     (b) 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, Holdco and any Holdco Subsidiary
have

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complied, and are now in compliance with 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 Holdco
or any Holdco 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 Holdco
or any Holdco Subsidiary; (D) there are no pending or, to Holdco’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 Holdco’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
Holdco’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; (G) Holdco and
each Holdco Subsidiary has 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 Holdco
and any Holdco Subsidiary’s collective bargaining agreement;

     (c) None of Holdco, or any Holdco Subsidiary or any other person or entity under common
control with Holdco 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”).

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

     (e) 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 Holdco or any Holdco Subsidiary under any Benefit Plan or otherwise, (B) limit or
restrict the right of Holdco or any Holdco 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.

     (f) Except as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (A) no work stoppage involving Holdco or any Holdco Subsidiary is pending
or, to the knowledge of Holdco threatened; (B) neither Holdco nor any Holdco Subsidiary is involved
in, or threatened with or affected by, any labor dispute, arbitration, lawsuit or administrative
proceeding that

27

 

could affect the business of Holdco or such Holdco Subsidiary; and (C) employees of Holdco and
Holdco’s Subsidiaries are not represented by any labor union nor are any collective bargaining
agreements otherwise in effect with respect to such employees.

     (g) Except as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, with respect to each Foreign Plan, (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 therefore have
been established on the accounting statements of Holdco or any Holdco Subsidiary.

     4.14. 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 Holdco and the Holdco Subsidiaries is in
compliance with all applicable Environmental Laws, and neither Holdco nor any Holdco Subsidiary has
received any written communication alleging that Holdco is in violation of, or has any liability
under, any Environmental Law, (ii) each of Holdco and the Holdco 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 Holdco, threatened against Holdco or any of
the Holdco Subsidiaries and (iv) none of Holdco or any of the Holdco Subsidiaries has Released any
Hazardous Materials in a manner that would reasonably be expected to result in an Environmental
Claim against Holdco or any of the Holdco Subsidiaries.

     4.15. Intellectual Property.

     (a) Except as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (A) Holdco and the Holdco 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 Holdco and the Holdco Subsidiaries and (B) the conduct of the business
of Holdco and the Holdco Subsidiaries as currently conducted does not 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 Holdco or any Holdco Subsidiary to
the effect that the conduct of the business of Holdco or such Holdco Subsidiary Infringes upon the
Intellectual Property rights of any third party. Except as would not reasonably be expected to
have a Material Adverse Effect, Holdco and the Holdco Subsidiaries use the Intellectual Property of
third parties only pursuant to valid, effective written license agreements. Except as would not
reasonably be expected to have a Material Adverse Effect, to the knowledge of Holdco and the
Company, no third parties are infringing the Intellectual Property rights of Holdco or the Company.

     (b) All registered trademarks and registered service marks, trademark and service mark
applications and, to the knowledge of Holdco, all Holdco Intellectual Property has 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 Holdco 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 Holdco or the
Company, threatened opposition proceedings, cancellation proceedings, interference proceedings or
other similar action challenging the validity, existence or ownership of any Holdco Intellectual
Property.

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     4.16. Board Approvals.

     The transactions contemplated by the Transaction Documents, including without limitation the
issuance of the Securities and the compliance with the terms thereof and the compliance with the
terms of the Equity Purchase Agreement, this Agreement and the other Financing Documents have been
approved unanimously by the board of directors of each of Holdco, the Company and the Guarantors,
as applicable. Each board of directors of Holdco and the Company have unanimously adopted,
approved and declared advisable all of the transactions contemplated by the Transaction Documents.
The Audit Committee of the Board of Directors has unanimously and expressly approved, and the Board
of Directors has unanimously concurred with, Holdco’s reliance on the exception under Para. 312.05
of the New York Stock Exchange Listed Company Manual to issue the Series B Preferred Shares and the
Series B-1 Preferred Shares.

     4.17. Brokers and Finders.

     Neither Holdco, the Company 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 Holdco.
Holdco has provided the Purchasers with 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.

     4.18. Collateral.

     As of the Closing Date, upon execution and delivery thereof by the parties thereto, the
Security Documents will be effective to create (to the extent described therein), in favor of and
for the ratable benefit of the applicable Holders of the Notes, a legal, valid and enforceable
security interest in the Collateral described therein, except as may be limited by applicable
domestic or foreign bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing. When the actions specified in each Security Document have been duly taken,
the security interests granted pursuant thereto shall constitute (to the extent described therein)
a perfected security interest (subject only to Permitted Liens) in all right, title and interest of
each pledgor party thereto in the Collateral described therein with respect to such pledgor if and
to the extent perfection can be achieved by taking such actions.

     4.19. [Reserved].

     4.20. [Reserved].

     4.21. Disclosure.

     (a) To the knowledge of the Company, none of the written factual information and written data
(taken as a whole) furnished by or on behalf of the Company or any of the Subsidiaries or any of
their respective authorized representatives to the Purchasers on or before the Closing Date for
purposes of or in connection with this Agreement contained, when furnished, any untrue statement of
any material fact or omitted to state any material fact necessary to make such information and data
(taken as a whole) not materially misleading at such time in light of the circumstances under which
such information or data was furnished, it being understood and agreed that for purposes of this
Section 4.21(a), such factual

29

 

information and data shall not include projections (including financial estimates, forecasts
and/or any other forward-looking information) and information of a general economic or general
industry nature.

     (b) The projections (including financial estimates, forecasts and other forward-looking
information) contained in the information and data referred to in clause (a) above were based on
good faith estimates and assumptions believed by such Persons to be reasonable at the time made, it
being recognized by the Purchasers that such projections as to future events are not to be viewed
as facts and that actual results during the period or periods covered by any such projections may
differ from the projected results.

     4.22. [Reserved].

     4.23. Properties.

     Holdco and each of its Subsidiaries have good and marketable title to or leasehold interests
in all properties that are necessary for the operation of their respective businesses as currently
conducted and as proposed to be conducted, free and clear of all Liens (other than any Permitted
Liens), except where the failure to have such good title has not or is not reasonably likely to
have a Material Adverse Effect.

     4.24. Solvency.

     As of the Closing Date, immediately after giving effect to the issuance and sale of the Notes
and the consummation of the Transactions, and after giving effect to the application of the
proceeds of Notes and the Company Credit Facilities, Holdco and the Company on a consolidated basis
with their Subsidiaries will be Solvent.

     4.25. No Registration Required.

     As of the Closing Date, subject to compliance by the Purchasers with the representations and
warranties set forth in this Section 4 and with the procedures set forth in Section 8 hereof, it is
not necessary in connection with the offer, sale and delivery of the Notes to the Purchasers in the
manner contemplated by this Agreement, the Indenture and the other Financing Documents, (i) to
register the Notes under the Securities Act or pursuant to any of the laws of the States or the
United States, or (ii) to qualify the Indenture under the TIA.

     4.26. No Integration of Offerings or General Solicitation.

     As of the Closing Date, none of Holdco, its Affiliates, or any person acting on any of their
behalf (other than the Purchasers, as to whom the Company makes no representation or warranty)
within the six-month period immediately prior to the Effective Date, directly or indirectly,
solicited any offer to buy or offered to sell, sold, or issued and will not, for six months
immediately following the Effective Date, directly or indirectly, solicit any offer to buy or offer
to sell, sell, or issue in the United States or to any United States citizen or resident, any
security which is or would be integrated with the sale of the Notes in a manner that would require
the Notes to be registered under the Securities Act.

     As of the Closing Date, none of Holdco, its Affiliates, or any person acting on any of their
behalf (other than the Purchasers, as to whom the Company makes no representation or warranty) has
engaged or will engage, in connection with the offering of the Notes, in any form of general
solicitation or general advertising within the meaning of Rule 502 under the Securities Act.

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     As of the Closing Date, with respect to those Notes sold in reliance upon Regulation S, (i)
none of Holdco, its respective Affiliates, or any person acting on any of their behalf (other than
the Purchasers, as to whom the Company makes no representation or warranty) has engaged or will
engage in any directed selling efforts within the meaning of Regulation S and (ii) each of the
Company and its Affiliates and any person acting on any of their behalf (other than the Purchasers,
as to whom the Company makes no representation or warranty) has complied and will comply with the
offering restrictions set forth in Regulation S.

     4.27. Eligibility for Resale under Rule 144A.

     As of the Closing Date, the Notes will be eligible for resale pursuant to Rule 144A and will
not be of the same class as securities listed on a national securities exchange registered under
Section 6 of the Exchange Act or quoted in a U.S. automated inter-dealer quotation system.

     4.28. Margin Regulations.

     As of the Closing Date, neither the issuance and sale of the Notes nor the use of the proceeds
thereof will violate the provisions of Regulation T, Regulation U or Regulation X.

     4.29. Investment Company Act.

     None of Holdco, the Company and the Guarantors is an “investment company” within the meaning
of, and subject to registration under, the Investment Company Act or controlled by such a company.

     4.30. Opinions of Financial Advisors.

     The Board of Directors of Holdco has received the opinions of JPMorgan Chase & Co., dated as
of the Signing Date, and March 10, 2008, which such March 10, 2008 opinion shall be updated as of
the Effective Date, and the opinions of Duff & Phelps, LLC, dated as of the Signing Date, and March
10, 2008, which such March 10, 2008 opinion shall be updated as of the Effective Date, each to the
effect that, as of such dates, and subject to the various assumptions and qualifications set forth
therein, the consideration to be received by the Company and Holdco pursuant to this Agreement is
fair from a financial point of view to the Company and Holdco (the “Fairness Opinions”). Correct
and complete copies of the Fairness Opinions have been delivered to the Purchasers.

     4.31. CAG, Inc.

     At the Lead Sponsor’s written request, Holdco has formed MoneyGram Investments, LLC, a
Delaware limited liability company and wholly-owned subsidiary of Holdco, and has merged CAG, Inc.
into MoneyGram Investments, LLC, which will be treated as a disregarded entity for Tax purposes.

     4.32. Signing Date Representations and Warranties.

     All of the representations and warranties set forth in the Original Note Purchase Agreement
were true and correct in all material respects (unless qualified by “material” or “Material Adverse
Effect” or similar references to materiality, in which case the representation and warranties must
be true and correct in all respects) as of the Signing Date; provided, that any such
representations and warranties that are subject to matters “Previously Disclosed” are limited to
matters Originally Previously Disclosed.

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SECTION 5.

REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF PURCHASERS

     5.1. Representation and Warranties.

     Each Purchaser, severally and not jointly, represents and warrants to the Company as of the
Effective Date as follows:

     (a) Purchase.

     (i) Such Purchaser is acquiring the Notes for its own account, for investment and not
with a view to any distribution thereof within the meaning of the Securities Act.

     (ii) Such Purchaser understands that the Notes have not been and, except as provided in
the Registration Rights Agreement with respect to the Notes, when issued, will not be
registered under the Securities Act or any state or other securities law, that the Notes
will be issued by the Company in transactions exempt from the registration requirements of
the Securities Act, that it must hold the Notes indefinitely and not offer or sell the Notes
except pursuant to an effective registration statement under the Securities Act or pursuant
to an applicable exemption from registration under the Securities Act and in compliance with
applicable state laws and in compliance with Section 8.

     (iii) Such Purchaser further understands that the exemption from registration afforded
by Rule 144 (the provisions of which are known to such Purchaser) promulgated under the
Securities Act depends on the satisfaction of various conditions, and that, if applicable,
Rule 144 may afford the basis for sales only in limited amounts.

     (iv) Such Purchaser is a Qualified Institutional Buyer or an “institutional accredited
investor” (within the meaning of Regulation D).

     (v) Except as otherwise disclosed by such Purchaser to the Company, such Purchaser did
not employ any broker or finder in connection with the transactions contemplated in this
Agreement and no fees or commissions are payable to the Purchasers except as otherwise
provided for in the Agreement.

     (vi) Such Purchaser has been furnished with or has had access to the information it has
requested from the Company and its Subsidiaries and has had an opportunity to discuss with
the management of the Company and its Subsidiaries the business and financial affairs of the
Company and its Subsidiaries, and has generally such knowledge and experience in business
and financial matters and with respect to investments in securities of privately held
companies so as to enable it to understand and evaluate the risks of such investment and
form an investment decision with respect thereto.

     (b) Due Organization; Power and Authority.

     Each Purchaser is an: exempted company with limited liability, corporation, limited liability
company or partnership, as the case may be, duly incorporated or formed, validly existing and in
good standing under the laws of its jurisdiction of incorporation or formation and is duly
qualified as a foreign corporation to transact business and is in good standing in each
jurisdiction in which such qualification is required, other than any failures to so qualify or to
be in good standing which has not or is not reasonably likely to have a Material Adverse Effect.

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     (c) Power; Authorization; Enforceability.

     The execution, delivery and performance of this Agreement and the other Financing Documents to
which such Purchaser is a party are within its corporate, limited liability company or limited
partnership, as the case may be, power and authority and have been duly authorized by all necessary
action of such Purchaser, and constitute legal, valid and binding agreements of such Purchaser
enforceable against it in accordance with their respective terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency, fraudulent conveyance or other similar laws
affecting creditors’ rights generally and subject to general principles of equity and except that
no representation or warranty made with respect to any matter related to indemnification and
contribution or exculpation contained herein.

     (d) No Actions or Proceedings.

     There are no legal or governmental actions, suits or proceedings pending or, to any
Purchaser’s knowledge, threatened against or affecting such Purchaser, or any of their respective
properties or assets which, if adversely determined, either individually or in the aggregate, would
reasonably be expected to materially and adversely affect the ability of such Purchaser to
consummate any of the transactions contemplated by the Financing Documents.

     (e) No Violation.

     Neither the execution, delivery or performance by any Purchaser of the Financing Documents to
which it is a party nor compliance with the terms and provisions thereof nor the consummation the
transactions contemplated hereby or thereby will (a) contravene any applicable provision of any
material Law, or (b) violate any provision of the certificate of incorporation, by-laws or other
organizational documents of any Purchaser or any contract to which such Purchaser is a party except
in each case as has not or is not reasonably likely to have a material adverse effect on such
Purchaser’s ability to consummate the transactions contemplated hereby and thereby and perform its
obligations hereunder or thereunder.

     5.2. Notice of Transfers of the Notes.

     The Initial Purchasers hereby covenant and agree to provide prompt written notice to the
Company upon consummation of any transaction pursuant to which the Initial Purchasers cease to
constitute the Required Holders.

SECTION 6.

PRE-CLOSING COVENANTS

     6.1. Access.

     From and after the Signing Date until the Closing Date, Holdco and the Company have, will, and
will cause their Subsidiaries to:

     (a) (i) provide the Purchasers, as soon as available, with (x) monthly and quarterly unaudited
consolidated financial statements of Holdco and its Subsidiaries, audited consolidated annual
financial statements of Holdco and its Subsidiaries and an annual budget of Holdco and its
Subsidiaries; and (y) updates and “flash reports” of the same type and in the same frequency of
delivery in all material respects as had been delivered to the Initial Purchasers by Holdco
immediately prior to the Signing Date; (ii) permit access to, and make available to the Initial
Purchasers’ representatives and their accounting and legal advisors for inspection and review, the
properties, books, records, accounts and documents of or

33

 

relating to Holdco and its Subsidiaries, and (b) make available at reasonable times and to a
reasonable extent officers and employees of Holdco and its Subsidiaries to discuss with the Initial
Purchasers and their accounting and legal advisors the business and affairs of Holdco and its
Subsidiaries. In addition, Holdco and its Subsidiaries shall provide the Purchasers with
substantially the same information as shall be provided to the lead arranger, the administrative
agent and/or the lenders in respect of the Company Credit Facilities. Subject to Section 10.14,
the Purchasers may share the foregoing information with their respective lenders and their
respective consultants and advisors (including rating agencies), so long as such lenders or other
parties have entered into a customary confidentiality agreement with the Purchasers.

     (b) subject to compliance with applicable laws and confidentiality obligations to third
parties, promptly provide true and correct copies of all documents, reports, financial data, and
such additional financial and other information with respect to Holdco, the Company and their
Subsidiaries as each Purchaser (and any parent company of a Purchaser that is a venture capital
operating company) may from time to time reasonably request.

     6.2. Investment Policy.

     Without the prior written consent of all of the Initial Purchasers, prior to the Closing,
Holdco shall not and shall not permit the Holdco Subsidiaries to (i) make investments in a manner
that is in contravention of the investment policy as set forth on Schedule H to the Equity Purchase
Agreement (the “Investment Policy”); provided that, notwithstanding the foregoing, any securities
held or sold by Holdco set forth on Schedule B-1 or Schedule C to the Equity Purchase Agreement
shall not be considered to be held or sold in contravention of the Investment Policy, or (ii) sell,
unwind, assign, abandon or otherwise transfer or dispose of any of the securities listed on
Schedule B-1 (other than those securities sold or otherwise transferred in accordance with Schedule
B-1 to the Equity Purchase Agreement through March 7, 2008) or Schedule C to the Equity Purchase
Agreement.

     6.3. Ordinary Course.

     Except as otherwise expressly permitted or required by the Transaction Documents, permitted by
Section 4.9 of the Equity Purchase Agreement or as set forth on Section 3.3(a) of the Company
Disclosure Schedule (as defined in the Equity Purchase Agreement), during the period from the
Signing Date until the earlier of the Closing Date and the Termination Date, Holdco has and shall
conduct its business, and has 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. Holdco shall not
declare or pay any dividend or distribution on any securities of Holdco on or prior to the Closing.

SECTION 7.

POST-CLOSING AFFIRMATIVE COVENANTS

     The Company covenants and agrees with each Purchaser that so long as such Purchaser holds any
Notes and until the principal amount of (and premium, if any, on) such Notes, and all interest, and
other obligations hereunder in respect thereof (other than indemnity obligations that have not yet
become due and payable), shall have been paid in full:

     7.1. Future Reports to Purchasers.

     The Company will deliver (x) to each Purchaser copies of all financial statements, reports
certificates and notices that are provided to the lead arranger, the administrative agent, or the
Lenders (as

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defined in the Company Credit Facilities) under the Company Credit Facilities concurrently
with the delivery thereof under the Company Credit Facilities and (y) to each Purchaser (unless
such Purchaser no longer holds any Notes) and any Holder that is an Affiliate of the Purchasers:

     (a) Financial Statements. As soon as available, but in any event not later than thirty (30)
days after the end of each of the first two months of each fiscal quarter of Holdco, a
company-prepared consolidated balance sheet of Holdco and its consolidated Subsidiaries, and the
Company and its consolidated Subsidiaries as at the end of such period and related company-prepared
statements of income in a form customarily prepared by management for each of Holdco and its
consolidated Subsidiaries and the Company and its consolidated Subsidiaries (such form having
previously been provided to the Initial Purchasers) for such monthly period, to fairly present in
all material respects the consolidated financial condition of Holdco and its consolidated
Subsidiaries and the Company and its consolidated Subsidiaries (subject to normal year-end
adjustments and the absence of footnotes) and to be prepared in reasonable detail, and such
financial statements, shall be accompanied by a compliance certificate executed by the Chief
Financial Officer or other senior executive officer setting forth in reasonable details the
calculations evidencing compliance with the Minimum Liquidity Ratio set forth in Section 4.27 of
the Indenture.

     (b) Adjusted EBITDA calculation. As soon as it is available, but in any event not later than
90 days after the end of each fiscal year, and within 45 days after the end of each of the first
three fiscal quarters of each fiscal year, a presentation of Adjusted EBITDA of Holdco and the
Holdco Subsidiaries and the Company and the Company Subsidiaries.

     (c) Budget. Within 60 days after the commencement of each fiscal year of each of Holdco and
its consolidated Subsidiaries (commencing with the fiscal year ending December 31, 2008), a budget
of Holdco and its consolidated Subsidiaries for such fiscal year in the form approved by the Board
of Directors of Holdco.

     (d) Auditors’ Reports. Promptly upon receipt thereof, copies of all final written reports
submitted to Holdco, the Company or to any of their Subsidiaries by independent certified public
accountants in connection with each annual, interim or special audit of the books of Holdco, the
Company or any of its Subsidiaries made by such accountants.

     (e) Other Information. Promptly, copies of all financial statements, proxy statements,
notices and reports that Holdco or any of its Subsidiaries will send to the holders of any publicly
issued debt or equity of Holdco or any of its Subsidiaries as a group and, with reasonable
promptness, such other non-confidential relevant information (financial or otherwise) as any
Purchaser may reasonably request in writing from time to time.

     (f) Inspection. Upon the reasonable request of the Required Holders, the Company will, and
will cause each of its Subsidiaries to, at the Company’s reasonable expense, permit any Holder to
visit and inspect any of the properties of the Company and any of its Subsidiaries, to inspect,
copy and take extracts from its and their financial and accounting records, and to discuss its and
their affairs, finances and accounts with its and their officers and independent public accountants
(provided that such Company may, if it so chooses, be present and participate in any such
discussion), in each case upon reasonable notice and at such reasonable times during normal
business hours and as often as may reasonably be requested.

     (g) Notices. The Company will promptly furnish to the Purchasers written notice of the
following (and in no event later than five (5) Business Days) after any Responsible Officer of the
Company becomes aware thereof:

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     (i) any breach or non-performance of, or any default under, any contract of Holdco or
any of its Subsidiaries, or any violation of, or non-compliance with, any Law, which has or
is reasonably likely to have, either individually or in the aggregate, a Material Adverse
Effect, including a description of such breach, non-performance, default, violation or
non-compliance and the steps, if any, such Person has taken, is taking or proposes to take
in respect thereof, or the filing or commencement of, or any written threat or notice of
intention of any person to file or commence, any action, suit or proceeding, whether at law
or in equity or by or before any Governmental Authority or in arbitration, against Holdco
any of its Subsidiaries which has or is reasonably likely to have, either individually or in
the aggregate, a Material Adverse Effect;

     (ii) the occurrence of any ERISA Event that, together with all other ERISA Events that
have occurred and are continuing, has or is reasonably likely to have a Material Adverse
Effect;

     (iii) (A) the receipt by the Company or any of its Subsidiaries of any written notice
of violation of or potential liability or similar notice under Environmental Law, (B)(x)
unpermitted releases, (y) the existence of any condition that could reasonably be expected
to result in violations of or liabilities under, any Environmental Law or (z) the
commencement of, or any material change to, any action, investigation, suit, proceeding,
audit, claim, demand, dispute alleging a violation of or liability under any Environmental
Law, that, for each of clauses (x), (y) and (z) above (and, in the case of clause (z), if
adversely determined), in the aggregate for each such clause, could reasonably be expected
to result in liabilities in excess of $10,000,000, and (C) the receipt by the Company or any
of its Subsidiaries of notification that any property of the Company or any of its
Subsidiaries is subject to any Lien in favor of any Governmental Authority securing, in
whole or in part, any liabilities from Environmental Matters;

     (iv) any labor controversy resulting in or threatening to result in any strike, work
stoppage, boycott, shutdown or other labor disruption against or involving Holdco or any of
its Subsidiaries if the same has or is reasonably likely to have, either individually or in
the aggregate, a Material Adverse Effect;

     (v) the creation, establishment or acquisition of any Subsidiary or the issuance by or
to Holdco or any of its Subsidiaries of any Equity Interest; and

     (vi) any other development that results in, or has or is reasonably likely to have a
Material Adverse Effect.

          Each notice delivered under this Section 7.1(g) shall be accompanied by a statement of a
Responsible Officer of the Company setting forth the details of the event or development requiring
such notice (including a description with particularity of any and all clauses or provisions of
this Agreement or any Financing Document that have been breached or violated) and any action taken
or proposed to be taken with respect thereto.

     7.2. Patriot Act and Anti-Money Laundering. 

     Holdco and its Subsidiaries:

     (a) will comply with the Patriot Act and all applicable regulations and executive orders
issued thereto and any other applicable AML Laws,

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     (b) will refrain from taking any action that would result in a violation by the Purchasers of
the Patriot Act and all applicable regulations and executive orders issued thereto or any other
applicable AML Laws, and

     (c) without limiting the generality of the foregoing, will:

     (i) establish and adhere to a program to ensure the filing of all required reports
under the AML Laws, and

     (ii) establish and adhere to a program and all other requirements to perform due
diligence as required by the Bank Secrecy Act,

in each case, except as could not reasonably be expected to have a Material Adverse Effect.

     7.3. U.S. Economic Sanctions.

     Holdco and its Subsidiaries:

     (a) will comply with any U.S. Economic Sanction imposed by any rule, regulation or statute of
the United States, including, without limitation, those administered by OFAC and any other
applicable laws imposing economic sanctions,

     (b) will refrain from taking any action that would result in a violation by the Purchasers of
U.S. Economic Sanctions, and

     (c) without limiting the generality of the foregoing, will not approve, facilitate, or fund,
directly or indirectly, any business activities with, or for the benefit of, a government,
national, resident or legal entity of any country with respect to which U.S. persons, as defined in
U.S. Economic Sanctions, are prohibited by U.S. Economic Sanctions from doing business, except to
the extent otherwise permitted by the relevant Governmental Authority,

in each case, except as could not reasonably be expected to have a Material Adverse Effect.

     7.4. FCPA and Anti-Bribery Limitations.

     Holdco and its Subsidiaries:

     (a) will comply with the U.S. Foreign Corrupt Practices Act and all other applicable
anti-bribery or anti-corruption laws,

     (b) will refrain from taking any action that would result in a violation by the Purchasers of
the U.S. Foreign Corrupt Practices Act or any other applicable anti-bribery or anti-corruption
laws, and

     (c) without limiting the generality of the foregoing, neither the Holdco nor any of its
Subsidiaries, will offer, promise to pay, or authorize the payment of any money, or will offer,
give, promise to give, or authorize the giving of anything of value, to any officer, employee or
any other person acting in an official capacity for any Governmental Entity, to any Governmental
Official or to any person under circumstances where such Affiliate knows or is aware of a high
probability that all or a portion of such money or thing of value will be offered, given or
promised, directly or indirectly, to any Government Official, for the purpose of:

37

 

     (i) influencing any act or decision of such Government Official in his official
capacity,

     (ii) inducing such Government Official to do or omit to do any act in violation of his
lawful duty,

     (iii) securing any improper advantage,

     (iv) inducing such Government Official to influence or affect any act or decision of
any Governmental Entity, or

     (v) in order to assist Holdco or any of its Subsidiaries in obtaining or retaining
business for or with, or directing business to any company or a Subsidiary thereof,

in each case, except as could not reasonably be expected to have a Material Adverse Effect.

     7.5. Export Control Limitations.

     Holdco and its Subsidiaries:

     (a) will comply with the export controls administered by the United States Department of
Commerce, the International Traffic in Arms Regulations administered by the United States
Department of State and any other laws imposing export controls, and

     (b) will refrain from taking any action that would result in a violation by the Purchasers of
the export controls imposed by the United States Department of Commerce, the International Traffic
in Arms Regulations administered by the United States Department of State or any other applicable
laws imposing export controls,

in each case, except as could not reasonably be expected to have a Material Adverse Effect.

     7.6. Customs and Trade Remedy Laws.

     Holdco and its Subsidiaries:

     (a) will comply with Title 19 of the United States Code and with any other applicable customs
and trade remedy law,

     (b) will refrain from taking any action that would result in a violation by the Purchasers of
Title 19 of the United States Code or any other applicable customs or trade remedies law, and

     (c) without limiting the generality of the foregoing, will pay all tariffs and penalties
lawfully imposed by the U.S. Customs and Border Protection Agency, U.S. Department of Commerce, or
any other government agency on the importation of goods and will not import or attempt to import
any goods prohibited by any applicable customs law,

in each case, except as could not reasonably be expected to have a Material Adverse Effect.

     7.7. Anti-Boycott Laws.

     Holdco and its Subsidiaries:

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     (a) will comply with the Export Administration Act and the Code and with any other applicable
Anti-boycott Laws,

     (b) will refrain from taking any action that would result in a violation by the Purchasers of
the Export Administration Act and the Code or any other applicable law regarding boycotts issued by
a foreign government and not endorsed by the United States, and

     (c) without limiting the generality of the foregoing, will not refuse or agree to refuse to do
business with Israel or any other nation or company subject to a boycott not endorsed by the United
States, agree to discriminate or discriminate against any person on the basis of race, religion,
sex, national origin, or nationality, nor implement letters of credit containing terms or
conditions prohibited by the Anti-boycott Laws,

in each case, except as could not reasonably be expected to have a Material Adverse Effect.

     7.8. Cross-Border Investment Restrictions.

     Holdco and its Subsidiaries will comply with any and all conditions imposed on Holdco and its
Subsidiaries by any Governmental Authority as a result of obtaining the approval of or licensing
from such Authority in order for the Transactions and this Agreement to have full legal effect
under all applicable laws, except as could not reasonably be expected to have a Material Adverse
Effect.

     7.9. Information Related to Alternative Transactions.

     Until the expiration of the Go-Shop Period (as defined in the Equity Purchase Agreement) and
prior to the Termination Date, Holdco and the Company shall provide promptly to the Purchasers any
bonafide bid which may replace or supplement the Transactions, subject to any ordinary or customary
confidentiality obligations.

     7.10. Board Observer Rights.

     So long as the Initial Purchasers constitute the Required Holders, Holdco agrees to insure
that the Initial Purchasers shall receive copies of all notices, reports, written presentations,
board papers, minutes of meetings of the board of directors (or comparable policy-making bodies)
and other written information distributed to members of the board of directors (or comparable
policy-making bodies) of Holdco or to the members of the executive or similar committee of the
board of Holdco (collectively, “Board Papers”) at the same time as such Board Papers are made
available to the board for purposes of regular board meetings or to the members of the executive or
similar committee of the board for purposes of such committee meetings. So long as the Initial
Purchasers constitute the Required Holders, the Initial Purchasers shall have the right to
designate a person to attend, and participate and furnish advice in, all meetings of the board of
directors (or comparable policy-making bodies) of Holdco and the executive or similar committee of
the board of Holdco in person or telephonically as a non-voting observer (the “Board Observer”),
and such person shall be entitled to participate in discussions and consult with, and make
proposals and furnish advice to, such board (or comparable policy-making bodies) and such committee
without voting, it being understood that the Initial Purchasers may from time to time change the
identity of such observer. The observer attending board or committee meetings shall be entitled to
reimbursement from Holdco for reasonable and documented travel and other out-of-pocket expenses
incurred in attending such board and committee meetings (plus VAT or the overseas equivalent).
Notwithstanding the foregoing, the Board Observer may be excluded from any such meeting (or portion
of such meeting) or may not receive all or a portion of Board Papers relating to any such meeting
where, in the good faith discretion of the board exercised on a case by case basis after
consideration of all

39

 

relevant factors, it would not be appropriate because of a conflict of interest for such Board
Observer (as a representative of the Initial Purchasers) to participate in such meeting (or portion
thereof) or to receive the Board Papers relating to any such meeting (or portion thereof).

     7.11. Changes to Investment Policy.

     So long as the Initial Purchasers constitute the Required Holders, the Initial Purchasers
agree to consider in good faith such changes to the Investment Policy relating to Holdco’s and the
Holdco Subsidiaries’ investment portfolio (and the related definitions of “Highly Rated
Investments” contained in the Indenture) as Holdco and the Lead Sponsor may reasonably request,
taking into account, without limitation, the objective of preservation of capital, risk mitigation
and liquidity, as well as the composition of and risks related to Holdco’s and its Subsidiaries’
liabilities (and, with due regard to the opinions of such third party experts the Initial
Purchasers may consult with regarding the same); provided that any decision by the Initial
Purchasers to accept any changes proposed by Holdco or the Lead Sponsor to the Investment Policy
shall be made in the sole discretion of the Initial Purchasers.

SECTION 8.

PROVISIONS RELATING TO RESALES OF NOTES

     8.1. Private Offerings.

     At any time after the Closing Date, the Notes may be sold, pledged or otherwise transferred in
Private Offerings (in addition to resales under a registration statement which are registered under
the Securities Act), provided that the following provisions shall apply:

     (a) Offers and Sales. Offers and sales of the Notes will be made only by the Purchasers or
Affiliates thereof who are qualified to do so in the jurisdictions in which such offers or sales
are made. To the extent an offer or sale is intended to be made in compliance with Rule 144A,
each such offer or sale shall only be made to persons who are Qualified Institutional Buyers and
only in accordance with Rule 144A under the Securities Act. To the extent an offer or sale is
intended to be made in accordance with Regulation S, the offer or sale shall be made to a “non-U.S.
Person” and otherwise in compliance with Regulation S. Offers and sales of the Notes may also be
made in accordance with any other applicable exemption under the Securities Act.

     (b) No General Solicitation. To the extent an offer or sale is intended to be made in
accordance with Rule 144A, no general solicitation or general advertising (within the meaning of
Rule 502(c)) will be used in the United States and to the extent an offering is intended to be made
in accordance with Regulation S, no directed selling efforts (as defined in Regulation S) will be
made outside the United States in connection with the offering of the Notes.

     (c) Purchases by Non-Bank Fiduciaries. In the case of a non-bank Subsequent Purchaser acting
as a fiduciary for one or more third parties, in connection with an offer and sale to such
purchaser pursuant to this Section 8.1, which is intended to be made in compliance with Rule 144A,
such third parties shall be a Qualified Institutional Buyer, or a non- U.S. person outside the
United States.

     (d) Restrictive Legend. Upon original issuance by the Company, and until such time as the
same is no longer required under the applicable requirements of the Securities Act, the Notes (and
all securities issued in exchange therefor or in substitution thereof) shall bear such legends as
are required under the Indenture and the Purchasers shall obtain such opinions or certificates
required by the legend thereof in any sale or pledge or other transfer of the Notes.

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     (e) Restrictions on Sale/Confidentiality. Each Subsequent Purchaser must agree to be bound,
and cause their transferees to be bound, by Sections 8, 10.2(c) and 10.14 of this Agreement as if
it was a Purchaser hereunder.

     (f) Subsequent Purchaser. Each Subsequent Purchaser who does not purchase in an offering
registered under the Securities Act shall be informed that the Notes have not been registered under
the Securities Act are being sold to them on an unregistered basis under Rule 144A or another
applicable exemption from registration and may only be sold in a registered offering pursuant to
Rule 144 or Regulation S, or pursuant to any other available exemption.

     (g) Rule 144A Information. The Company agrees that, in order to render the Notes eligible for
resale pursuant to Rule 144A under the Securities Act, while any of the Notes remain outstanding,
and to the extent constitute registrable securities under the Registration Rights Agreement, it
will make available, upon request, to any holder of Notes or prospective purchasers of Notes the
information specified in Rule 144A(d)(4), unless the Company or Holdco is subject to the filing
requirements of, and is in compliance with, Section 13 or 15(d) of the Securities Exchange Act of
1934.

     (h) Rule 144 Information. The Company agrees that, in order to render the Notes eligible for
resale pursuant to Rule 144 under the Securities Act, while any of the Notes remain outstanding, it
will make available “current public information” in a manner such that clause (c) of Rule 144 will
be satisfied; provided such obligation does not require Holdco to file its Form 10-K for the fiscal
year ended December 31, 2007 during any specific time frame and for so long as Holdco is subject to
the reporting requirements of Section 13 or 15(d) of the Exchange Act and is guarantor of the Notes
this covenant shall be deemed satisfied by Holdco making current public information available.

     (i) [Reserved].

     (j) European Economic Area. In relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a “Relevant Member State”), each Purchaser
represents and agrees that with effect from and including the date on which the Prospectus
Directive is implemented in that Relevant Member State (the “Relevant Implementation Date”) it has
not made and will not make an offer of Notes to the public in that Relevant Member State prior to
the publication of a prospectus in relation to the Notes which has been approved by the competent
authority in that Relevant Member State or, where appropriate, approved in another Relevant Member
State and notified to the competent authority in that Relevant Member State, all in accordance with
the Prospectus Directive, except that it may, with effect from and including the Relevant
Implementation Date, make an offer of Notes to the public in that Relevant Member State at any
time:

     (i) to legal entities which are authorized or regulated to operate in the financial
markets or, if not so authorized or regulated, whose corporate purpose is solely to invest
in securities;

     (ii) to any legal entity which has two or more of (A) an average of at least 250
employees during the last financial year; (B) a total balance sheet of more than €43,000,000
and (C) an annual net turnover of more than €50,000,000, as shown in its last annual or
consolidated accounts; and

     (iii) in any other circumstances which do not require the publication by the Company of
a prospectus pursuant to Article 3 of the Prospectus Directive.

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For the purposes of this provision, the expression an “offer of Notes to the public” in relation to
any Notes in any Relevant Member State means the communication in any form and by any means of
sufficient information on the terms of the offer and the Notes to be offered so as to enable an
investor to decide to purchase or subscribe the Notes, as the same may be varied in that Member
State by any measure implementing the Prospectus Directive in that Member State and the expression
“Prospectus Directive” means Directive 2003/71/EC and includes any relevant implementing measure in
each Relevant Member State.

     (k) Each Purchaser represents and agrees that:

     (i) it has only communicated or caused to be communicated and will only communicate or
cause to be communicated an invitation or inducement to engage in investment activity
(within the meaning of Section 21 of the Financial Services and Markets Act 2000 (as
amended) (the “FSMA”)) received by it in connection with the issue or sale of the Notes in
circumstances in which Section 21(1) of the FSMA does not apply to the Company;

     (ii) it has complied and will comply with all applicable provisions of the FSMA with
respect to anything done by it in relation to the Notes in, from or otherwise involving the
United Kingdom; and

     (iii) none of it and its Affiliates have entered nor will enter into any contractual
arrangement with respect to the distribution of the Notes except with the prior written
consent of the Company.

     8.2. Procedures and Management Cooperation in Private Offerings.

     The Company agrees that, at the request of the Purchasers, the Company will use commercially
reasonable efforts to cause the Notes to (i) be registered in book-entry form in the name of Cede &
Co., as nominee of DTC pursuant to a customary form DTC Agreement, and (ii) be eligible for the
National Association of Securities Dealers, Inc. PORTAL market. At the request of the Purchasers,
management of Holdco will in connection with a transfer of the Notes, use commercially reasonable
efforts to cooperate with the Holders in any effort by the Holders to sell the Notes, including
meeting with potential purchasers and providing due diligence information to potential purchasers;
provided that (1) such efforts shall not unreasonably interfere with the conduct of the business of
the Company and its Subsidiaries; (2) the Company and its Subsidiaries shall not be required to
provide any assistance at any time a Shelf Registration Statement (as defined in the Registration
Rights Agreement) is effective and not suspended; (3) the Company and its Subsidiaries shall not be
required to provide any assistance at any time any event or development which would permit them to
suspend a Shelf Registration Statement has occurred; (4) the Company and its Subsidiaries shall not
be obligated to provide assistance more often than once in each 12 month period or more than three
times during the term of the Notes; (5) the Company and its Subsidiaries shall not be required to
incur any expense or cost other than those associated with attending meetings in its offices and
producing diligence materials at such location; (6) so long as Holdco or the Company is subject to
or complying with the reporting requirements of Section 13(a) or 15(d) of the Exchange Act, any
private placement memorandum provided by the Company and Subsidiaries shall not be more extensive
than that customarily provided by such reporting companies in a private placement; (7) other than
as required by Law or as the Company may otherwise agree, the Company and its Subsidiaries shall
have no indemnity obligations to the Purchasers or potential purchasers; and (8) each potential
purchaser shall agree to be bound to confidentiality arrangements similar to those set for in
Section 10.14 of this Agreement.

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     8.3. No Integration.

     The Company will not, and will not permit its Affiliates to, make any offer or sale of
securities of any class if, as a result of the doctrine of “integration” referred to in Rule 502,
such offer or sale would render invalid, for the purpose of (i) the sale of the Notes by the
Company to the Purchasers or (ii) the resale of Notes, as the case may be, by the Purchasers to
Subsequent Purchasers or (iii) the resale of Notes by any such Subsequent Purchaser to others any
applicable exemption from the registration requirements of the Securities Act provided by Section
4(2) thereof or by Rule 144A thereunder or otherwise.

SECTION 9.

EXPENSES AND INDEMNIFICATION 

     9.1. Expenses.

     The Company will (whether or not the Closing occurs) reimburse the Purchasers for all
reasonable and documented out-of-pocket expenses (including reasonable and documented attorneys’
fees and disbursements of one firm of outside counsel and any local counsel, if necessary) incurred
by the Purchasers in connection with the transactions contemplated by this Agreement and the other
Financing Documents and in connection with any amendments, waivers or consents under or in respect
of this Agreement or the other Financing Documents (whether or not such amendment, waiver or
consent becomes effective), including the reasonable and documented out-of-pocket costs and
expenses incurred in enforcing, defending or declaring (or determining whether or how to enforce,
defend or declare) any rights or remedies under this Agreement or the other Financing Documents or
in responding to any subpoena or other legal process or informal investigative demand issued in
connection with this Agreement, or the other Financing Documents, including in connection with any
insolvency or bankruptcy of the Company or any of its Subsidiaries or in connection with any
work-out or restructuring of the transactions contemplated hereby, by the Financing Documents or by
the Notes.

     9.2. Indemnification.

     The Company will indemnify and hold harmless the Purchasers and each of their respective
Affiliates, partners, stockholders, members, officers, directors, agents, employees and controlling
persons (each. an “Indemnitee”) from and against any and all actual losses, claims, damages or
liabilities to any such Indemnitee in connection with or as a result of (i) the execution or
delivery of any Financing Document or the performance by the parties to the Financing Documents of
their respective obligations hereunder and thereunder or the consummation of the Transactions or
any other transactions contemplated hereby or thereby, (ii) the issuance of Notes or the use of the
proceeds therefrom, (iii) any liability with respect to Environmental Claims or (iv) any claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity will not, as to any Indemnitee, be available to the extent
that such losses, claims, damages or liabilities are determined by a court of competent
jurisdiction by final and non-appealable judgment to have resulted from the bad faith, gross
negligence or willful misconduct of such Indemnitee.

     9.3. Waiver of Punitive Damages.

     To the extent permitted by applicable law, none of the parties hereto shall assert, and each
hereby waives, any claim against the other parties (including their respective Affiliates,
partners, stockholders, members, officers, directors, agents, employees and controlling persons),
on any theory of liability for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out

43

 

of, in connection with, or as a result of, the Transactions, this Agreement, the other
Financing Documents, the Notes or the use of proceeds thereof.

     9.4. Survival.

     The obligations of the Company under this Section 9 will survive the payment or transfer of
any Note, the enforcement, amendment or waiver of any provision of this Agreement.

     9.5. Tax Treatment of Indemnification Payments.

     Any indemnification payment pursuant to this Agreement shall be treated for all Tax purposes
as an adjustment to the Purchase Price, except as otherwise required by applicable law.

SECTION 10.

MISCELLANEOUS

     10.1. Notices.

     Except as otherwise expressly provided herein, all notices and other communications shall have
been duly given and shall be effective (a) when delivered, (b) when transmitted via telecopy (or
other facsimile device) to the number set out below if the sender on the same day sends a
confirming copy of such notice by a recognized overnight delivery service (charges prepaid), (c)
the day following the day (except if not a Business Day then the next Business Day) on which the
same has been delivered prepaid to a reputable national overnight air courier service or (d) the
third Business Day following the day on which the same is sent by certified or registered mail,
postage prepaid; in each case to the respective parties at the address set forth below, or at such
other address as such party may specify by written notice to the other parties hereto:

     (i) if to an Initial Purchaser, to it at the address specified on Schedule 2.2;
with a copy to Fried, Frank, Harris, Shriver & Jacobson LLP, One New York Plaza, New York,
New York 10004, Attention: F. William Reindel, Esq., or at such other address as the Initial
Purchaser or its nominee shall have specified to the Company in writing;

     (ii) if to the THL Purchaser, to it at the address specified on Schedule 2.2;
or at such other address as the THL Purchaser or its nominee shall have specified to the
Company in writing;

     (iii) if to the Company or any Guarantor, to it at the address: 1550 Utica Avenue
South, Suite 100, Minneapolis MN 55416, Attention: General Counsel and Chief Financial
Officer; with a copy to: Kirkland & Ellis LLP, Citigroup Center, 153 East 53rd Street, New
York, NY 10022, Attention: Ashley Gregory, Esq or at such other address as the Company shall
have specified to the Purchasers in writing.

     10.2. Benefit of Agreement and Assignments.

     (a) Except as otherwise expressly provided herein, all covenants, agreements and other
provisions contained in this Agreement by or on behalf of any of the parties hereto shall bind,
inure to the benefit of and be enforceable by their respective successors and assigns (including,
without limitation, any subsequent holder of a Note); provided, however, (i) that the
Company may not assign and transfer any of its rights or obligations without the prior written
consent of the Required Purchasers; (ii) for purposes of clarity, any assignee of a Purchaser who
is not an affiliate of such Purchaser shall not be

44

 

entitled to the benefits of the covenants contained in Sections 6.1, 7, the last sentence of
Section 8.2, or 9 herein; and (iii) any assignee of a Purchaser who acquires Notes in an offering
registered under the Securities Act shall not be entitled to the benefit of the covenants in this
Agreement.

     (b) Nothing in this Agreement or in any other Financing Document, express or implied, shall
give to any Person other than the parties hereto or thereto and their permitted successors and
assigns any benefit or any legal or equitable right, remedy or claim under this Agreement.

     (c) Prior to the Closing, no Purchaser may assign its rights hereunder provided the Purchasers
may assign the rights to purchase all or any portion of the Notes allocated to such Purchaser
pursuant to Schedule 2.2 to any, direct or indirect, wholly-owned subsidiary of such
Purchaser or any Affiliate of such Purchaser, subject to such subsidiary or Affiliate, as the case
may be, making the representations and warranties set forth in Section 5, and each such Person
shall be entitled to the full benefit and be subject to the obligations of this Agreement as if
such Person were a Purchaser hereunder.

     (d) The parties hereto expressly acknowledge and agree that that upon execution of a
counterpart signature page hereto, each Purchaser to whom the rights hereunder have been assigned
shall become party to this Agreement for all purposes hereof.

     (e) Notwithstanding anything to the contrary contained herein, no Purchaser may assign any
right to purchase all or any portion of the Notes or any Notes to any direct competitor of the
Company and its Subsidiaries or Affiliate of such competitor.

     10.3. No Waiver; Remedies Cumulative.

     No failure or delay on the part of any party hereto or any Purchaser in exercising any right,
power or privilege hereunder or under the Notes and no course of dealing between the Company and
any other party or Purchaser shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or under the Notes preclude any other or
further exercise thereof or the exercise of any other right, power or privilege hereunder or
thereunder. The rights and remedies provided herein and in the Notes are cumulative and not
exclusive of any rights or remedies that the parties or Purchasers would otherwise have. No notice
to or demand on the Company in any case shall entitle the Company to any other or further notice or
demand in similar or other circumstances or constitute a waiver of the rights of the other parties
hereto or the Purchasers to any other or further action in any circumstances without notice or
demand.

     10.4. Amendments, Waivers and Consents.

     Subject to the second sentence of this Section 10.4, this Agreement may be amended, and the
observance of any term hereof may be waived (either retroactively or prospectively), with the
written consent of the Company, provided, however, that no such amendment or waiver may,
without the prior written consent of the holders of a majority in principal amount of the
outstanding Notes held by the Purchasers, as applicable, amend or waive the provisions of which the
Purchasers are beneficiaries. No amendment or waiver of this Agreement will extend to or affect
any obligation, covenant or agreement not expressly amended or waived or thereby impair any right
consequent thereon.

     As used herein, the term “Agreement” and references thereto means this Agreement as it
may from time to time be amended, restated, supplemented or modified.

45

 

     10.5. Counterparts.

     This Agreement may be executed in any number of counterparts, each of which when so executed
and delivered shall be an original, but all of which shall constitute one and the same instrument.
Each counterpart may consist of a number of copies hereof, each signed by less than all, but
together signed by all, of the parties hereto. For the purposes of the Closing, signatures
transmitted via telecopy (or other facsimile device) will be accepted as original signatures.

     10.6. Reproduction.

     This Agreement, the other Financing Documents and all documents relating hereto and thereto,
including, without limitation, (a) consents, waivers and modifications that may hereafter be
executed, (b) documents received by the Purchasers at the Closing (except the Notes themselves),
and (c) financial statements, certificates and other information previously or hereafter furnished
in connection herewith, may be reproduced by any photographic, photostatic, microfilm, microcard,
miniature photographic or other similar process and any original document so reproduced may be
destroyed. Each of the Purchasers and the Company agrees and stipulates that, to the extent
permitted by applicable law, any such reproduction shall be admissible in evidence as the original
itself in any judicial or administrative proceeding (whether or not the original is in existence
and whether or not such reproduction was made in the regular course of business) and any
enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in
evidence. This Section 10.6 shall not prohibit the Company, any other party hereto or any
Purchaser from contesting any such reproduction to the same extent that it could contest the
original or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

     10.7. Headings.

     The headings of the sections and subsections hereof are provided for convenience only and
shall not in any way affect the meaning or construction of any provision of this Agreement.

     10.8. Survival of Covenants and Indemnities; Representations.

     (a) All covenants and indemnities set forth herein shall survive the execution and delivery of
this Agreement, the issuance of the Notes and, except as otherwise expressly provided herein with
respect to covenants, the payment of principal of the Notes and any other obligations hereunder.

     (b) All representations and warranties made by Holdco and the Company herein shall survive the
execution and delivery of this Agreement, the issuance and transfer of all or any portion of the
Notes, and the payment of principal of the Notes and the issuance and delivery of the Notes, and
any other obligations hereunder, regardless of any investigation made at any time by or on behalf
of the Purchasers.

     10.9. Governing Law; Submission to Jurisdiction; Venue.

     (a) THIS AGREEMENT AND THE NOTES SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE
RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, EXCLUDING
CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF
A JURISDICTION OTHER THAN SUCH STATE.

     (b) If any action, proceeding or litigation shall be brought by any party hereto in order to
enforce any right or remedy under this Agreement or any of the Notes, such party hereby consents
and

46

 

will submit, and will cause each of its Subsidiaries to submit, to the jurisdiction of any
state or federal court of competent jurisdiction sitting within the area comprising the Southern
District of New York on the date of this Agreement. Each party hereto hereby irrevocably waives
any objection, including any objection to the laying of venue or based on the grounds of forum non
conveniens, which they may now or hereafter have to the bringing of any such action, proceeding or
litigation in such jurisdiction.

     (c) Each party hereto irrevocably consents to the service of process of any of the
aforementioned courts in any such action, proceeding or litigation by the mailing of copies thereof
by registered or certified mail, postage prepaid, to such party at its address set forth in Section
10.1, such service to become effective thirty (30) days after such mailing.

     (d) Nothing herein shall affect the right of any party hereto to serve process in any other
manner permitted by applicable law or to commence legal proceedings or otherwise proceed against
the other party in any other jurisdiction. If service of process is made on a designated agent it
should be made by either personal delivery or mailing a copy of summons and complaint to the agent
via registered or certified mail, return receipt requested.

     (e) THE COMPANY, EACH PURCHASER HEREBY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE NOTES.

     10.10. Severability.

     If any provision of this Agreement is determined to be illegal, invalid or unenforceable, such
provision shall be fully severable to the extent of such illegality, invalidity or unenforceability
and the remaining provisions shall remain in full force and effect and shall be construed without
giving effect to such illegal, invalid or unenforceable provision.

     10.11. Entirety.

     This Agreement together with the other Financing Documents represents the entire agreement of
the parties hereto and thereto with respect to the subject matter hereof and thereof, and
supersedes all prior agreements and understandings, oral or written, if any, relating to the
Financing Documents or the transactions contemplated herein or therein.

     10.12. Construction.

     Each covenant contained herein shall be construed (absent express provision to the contrary)
as being independent of each other covenant contained herein, so that compliance with any one
covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with
any other covenant. Where any provision herein refers to action to be taken by any Person, or
which such Person is prohibited from taking, such provision shall be applicable whether such action
is taken directly or indirectly by such Person, whether or not expressly specified in such
provision.

     10.13. Incorporation.

     All Exhibits and Schedules attached hereto or referred to herein are incorporated as part of
this Agreement as if fully set forth herein.

47

 

     10.14. Confidentiality.

     (a) Subject to the provisions of clause (b) of this Section 10.14, each Purchaser agrees that
it will not disclose without the prior consent of the Company (other than to its employees,
auditors, investors, partners, creditors, lenders, rating agencies, advisors or counsel, in each
case, to the extent such disclosure reasonably relates to the administration of the investment
represented by its Notes and such person has entered into a customary confidentiality agreement
obligating such person to keep such information confidential or is otherwise bound by an
appropriate confidentiality obligation) any nonpublic information which has been furnished to such
Purchaser in connection with its administration of the investment in the Notes or is now or in the
future furnished pursuant to this Agreement or any other Financing Document (including Section 8.1
hereof); provided that any Purchaser may disclose any such information (i) as has become
generally available to the public other than by virtue of a breach of this Section 10.14(a) by such
Purchaser or any other Person to whom such Purchaser has provided such information as permitted by
this Section 10.14(a), (ii) as may be required in any report, statement or testimony required to be
submitted to any Governmental Authority having jurisdiction over such Purchaser or to the SEC or
similar organizations (whether in the United States of America or elsewhere), (iii) as may be
required or appropriate in respect of any summons or subpoena or in connection with any litigation,
(iv) in order to comply with any applicable law and (v) to any prospective or actual Subsequent
Purchaser in connection with any contemplated transfer of any of the Notes by such Purchaser;
provided that any prospective Subsequent Purchaser expressly agrees in writing with or for
the benefit of the Company to be bound by the confidentiality provisions contained in this Section
10.14 or a substantially similar confidentiality obligation. Each Purchaser agrees that in the
event it intends to disclose confidential information in accordance with clauses (ii), (iii) or
(iv) above, it shall, to the extent reasonably practicable, provide the Company notice of such
requirement prior to making any disclosure so that the Company may seek an appropriate protective
order or confidential treatment of the information being disclosed.

     (b) For the purposes set forth in Section 10.14(a), the Company hereby acknowledges and agrees
that each Purchaser may share with any of its Affiliates, and such Affiliates may share with such
Purchaser any information related to the Company or any of its Subsidiaries (including, without
limitation, any nonpublic information regarding the creditworthiness of the Company and its
Subsidiaries); provided such Persons shall be subject to the provisions of this Section
10.14 to the same extent as such Purchaser.

     10.15. Termination; Survival.

     The obligations and representations of the parties hereto shall automatically terminate upon
the Termination Date; provided, however, that Sections 9, 10.2, 10.3, 10.4, 10.5, 10.6, 10.7, 10.9,
10.10, 10.11, 10.12, 10.13, 10.14, 10.15, 10.18, 10.19 shall survive and shall remain in full force
and effect notwithstanding the termination of this Agreement.

     10.16. Maximum Rate.

     In no event shall any interest or fee to be paid hereunder or under a Note exceed the maximum
rate permitted by applicable law. In the event any such interest rate or fee exceeds such maximum
rate, such rate shall be adjusted downward to the highest rate (expressed as a percentage “per
annum”) or fee that the parties could validly have agreed to by contract on the Effective Date
under applicable law.

48

 

     10.17. Patriot Act.

     The Purchasers hereby notify the Company that pursuant to the requirements of the USA PATRIOT
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”),
the Purchasers may be required to obtain, verify and record information that identifies the Company
and its Subsidiaries, including their respective names and addresses other information that will
allow the Purchasers to identify the Company and its Subsidiaries in accordance with the Patriot
Act.

     10.18. Currency.

     All dollar amounts referred to in this Agreement are in lawful money of the United States.

     10.19. Further Assurances.

     Each of the parties hereto shall, upon reasonable request of any other party hereto, do, make
and execute all such documents, act, matters and things as may be reasonably required in order to
give effect to the transactions contemplated hereby.

     10.20. Sole Discretion.

     Holdco and the Company agree that they shall not challenge or dispute any action or decision
taken by any of the Purchasers that, pursuant to the terms of this Agreement, any of the Purchasers
is entitled to take in its sole discretion.

[SIGNATURE PAGES FOLLOW]

49

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	 	 	MONEYGRAM PAYMENT SYSTEMS WORLDWIDE,
	 	 	INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Philip Milne
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:   Philip Milne	 	 
	 

	 	 	 	Title:     Chairman, President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MONEYGRAM INTERNATIONAL, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Philip Milne
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:   Philip Milne	 	 
	 

	 	 	 	Title:     Chairman, President and Chief Executive Officer	 	 

 

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	 	 	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	 	 

 

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	 	 	THL Credit Partners, L.P.,
	 
	 	 	 	 	 	 
	 	 	By: THL Credit Partners GP, L.P., its general partner,
	 
	 	 	 	 	 	 
	 	 	By: THL Credit Group GP, LLC, its general partner,
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sam Tillinghast
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Sam Tillinghast	 	 
	 

	 	 	 	Title: Vice Presidentexv4w1

 

Exhibit 4.1

CERTIFICATE OF DESIGNATIONS

OF

SERIES D NON-CUMULATIVE PERPETUAL PREFERRED STOCK

OF

U.S. BANCORP

Pursuant to Section 151 of the

General Corporation Law of the State of Delaware

     U.S. Bancorp, a corporation organized and existing under the General Corporation Law of the
State of Delaware (the “Corporation”), does hereby certify that:

     1. On March 10, 2008, the Credit and Finance Committee (the “Committee”) of the
Board of Directors of the Corporation (the “Board”), pursuant to authority conferred
upon the Committee by resolutions of the Board adopted at a meeting duly convened and held
on January 21, 2003, and by Section 141(c)(2) of the General Corporation Law of the State of
Delaware, duly adopted resolutions by unanimous written consent establishing the terms of
the Corporation’s Series D Non-Cumulative Perpetual Preferred Stock, $25,000 liquidation
preference per share (the “Series D Preferred Stock”), and authorized a
sub-committee of the Committee (the “Subcommittee”) to act on behalf of the
Committee in establishing the number of authorized shares and the dividend rate for the
Series D Preferred Stock.

     2. Thereafter, on March 10, 2008, the Subcommittee duly adopted the following
resolution by written consent:

     “RESOLVED, that the designations, and certain other preferences and
relative, participating, optional or other special rights, and the
qualifications, limitations or restrictions thereof, of the Series D
Preferred Stock, including those established by the Committee, and the
dividend rate established hereby, are as set forth in Exhibit A
hereto, which is incorporated herein by reference.”

     IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Corporation
by its Vice Chairman and Chief Financial Officer this 12th day of March, 2008.

	 	 	 	 	 
	 

	 	U.S. BANCORP	 	 
	 
	 	 	 	 
	 

	 	 

Name: Andrew Cecere
	 	 
	 

	 	Title: Vice Chairman and Chief Financial Officer	 	 

 

EXHIBIT A

EXHIBIT A

TO

CERTIFICATE OF DESIGNATIONS

OF

SERIES D NON-CUMULATIVE PERPETUAL PREFERRED STOCK

OF

U.S. BANCORP

     Section 1.       Designation. The designation of the series of preferred stock shall be Series D
Non-Cumulative Perpetual Preferred Stock (hereinafter referred to as the “Series D Preferred
Stock”). Each share of Series D Preferred Stock shall be identical in all respects to every other
share of Series D Preferred Stock. Series D Preferred Stock will rank equally with Parity Stock,
if any, and will rank senior to Junior Stock with respect to the payment of dividends and the
distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or
winding up of the affairs of the Corporation.

     Section 2.      Number of Shares. The number of authorized shares of Series D Preferred Stock
shall be 20,000. Such number may from time to time be increased (but not in excess of the total
number of authorized shares of preferred stock) or decreased (but not below the number of shares of
Series D Preferred Stock then outstanding) by further resolution duly adopted by the Board of
Directors of the Corporation, the Committee or any duly authorized committee of the Board of
Directors of the Corporation and by the filing of a certificate pursuant to the provisions of the
General Corporation Law of the State of Delaware stating that such increase or reduction, as the
case may be, has been so authorized. The Corporation shall have the authority to issue fractional
shares of Series D Preferred Stock.

     Section 3.      Definitions. As used herein with respect to Series D Preferred Stock:

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday or Friday on which banking
institutions are not authorized or obligated by law, regulation or executive order to close in New
York, New York.

     “Depositary Company” shall have the meaning set forth in Section 6(d) hereof.

     “Dividend Payment Date” shall have the meaning set forth in Section 4(a) hereof.

 

 

     “Dividend Period” shall have the meaning set forth in Section 4(a) hereof.

     “DTC” means The Depository Trust Company, together with its successors and assigns.

     “Junior Stock” means the Corporation’s common stock and any other class or series of stock of
the Corporation hereafter authorized over which Series D Preferred Stock has preference or priority
in the payment of dividends or in the distribution of assets on any liquidation, dissolution or
winding up of the Corporation.

     “Parity Stock” means any other class or series of stock of the Corporation that ranks on a
parity with Series D Preferred Stock in the payment of dividends and in the distribution of assets
on any liquidation, dissolution or winding up of the Corporation.

     “Preferred Director” shall have the meaning set forth in Section 7 hereof.

     “Series D Preferred Stock” shall have the meaning set forth in Section 1 hereof.

     Section 4.      Dividends.

          (a)      Rate. Holders of Series D Preferred Stock shall be entitled to receive, if, as and when
declared by the Board of Directors of the Corporation or any duly authorized committee of the Board
of Directors of the Corporation, but only out of assets legally available therefor, non-cumulative
cash dividends on the liquidation preference of $25,000 per share of Series D Preferred Stock, and
no more, payable quarterly in arrears on each January 15, April 15, July 15 and October 15;
provided, however, if any such day is not a Business Day, then payment of any dividend otherwise
payable on that date will be made on the next succeeding day that is a Business Day (without any
interest or other payment in respect of such delay) (each such day on which dividends are payable a
“Dividend Payment Date”). The period from and including the date of issuance of the Series D
Preferred Stock or any Dividend Payment Date to but excluding the next Dividend Payment Date is a
“Dividend Period.” Dividends on each share of Series D Preferred Stock will accrue on the
liquidation preference of $25,000 per share at a rate per annum equal to 7.875%. The record date
for payment of dividends on the Series D Preferred Stock shall be the last Business Day of the
calendar month immediately preceding the month during which the Dividend Payment Date falls. The
amount of dividends payable shall be computed on the basis of a 360-day year and the actual number
of days elapsed.

          (b)      Non-Cumulative Dividends. Dividends on shares of Series D Preferred Stock shall be
non-cumulative. To the extent that any dividends payable on the shares of Series D Preferred Stock
on any Dividend Payment Date are not declared and paid, in full or otherwise, on such Dividend
Payment Date, then such unpaid dividends shall not cumulate and shall cease to accrue and be
payable and the Corporation shall have no obligation to pay, and the holders of Series D Preferred
Stock shall have no right to receive, dividends accrued for such Dividend Period after the Dividend
Payment Date for such Dividend Period or interest with respect to such dividends, whether or not
dividends are declared for any subsequent Dividend Period

2

 

with respect to Series D Preferred Stock, Parity Stock, Junior Stock or any other class or
series of authorized preferred stock of the Corporation.

          (c)       Priority of Dividends. So long as any share of Series D Preferred Stock remains
outstanding, (i) no dividend shall be declared or paid or set aside for payment and no distribution
shall be declared or made or set aside for payment on any Junior Stock, other than a dividend
payable solely in Junior Stock, (ii) no shares of Junior Stock shall be repurchased, redeemed or
otherwise acquired for consideration by the Corporation, directly or indirectly (other than as a
result of a reclassification of Junior Stock for or into Junior Stock, or the exchange or
conversion of one share of Junior Stock for or into another share of Junior Stock, and other than
through the use of the proceeds of a substantially contemporaneous sale of other shares of Junior
Stock), nor shall any monies be paid to or made available for a sinking fund for the redemption of
any such securities by the Corporation and (iii) no shares of Parity Stock shall be repurchased,
redeemed or otherwise acquired for consideration by the Corporation otherwise than pursuant to pro
rata offers to purchase all, or a pro rata portion, of the Series D Preferred Stock and such Parity
Stock except by conversion into or exchange for Junior Stock, in each case unless full dividends on
all outstanding shares of Series D Preferred Stock for the then-current Dividend Period have been
paid in full or declared and a sum sufficient for the payment thereof set aside. When dividends
are not paid in full upon the shares of Series D Preferred Stock and any Parity Stock, all
dividends declared upon shares of Series D Preferred Stock and any Parity Stock shall be declared
on a proportional basis so that the amount of dividends declared per share will bear to each other
the same ratio that accrued dividends for the then-current Dividend Period per share on Series D
Preferred Stock, and accrued dividends, including any accumulations, on Parity Stock, bear to each
other. No interest will be payable in respect of any dividend payment on shares of Series D
Preferred Stock that may be in arrears. If the Board of Directors of the Corporation determines
not to pay any dividend or a full dividend on a Dividend Payment Date, the Corporation will
provide, or cause to be provided, written notice to the holders of the Series D Preferred Stock
prior to such date. Subject to the foregoing, and not otherwise, dividends (payable in cash, stock
or otherwise) as may be determined by the Board of Directors of the Corporation or any duly
authorized committee of the Board of Directors of the Corporation may be declared and paid on any
Junior Stock from time to time out of any assets legally available therefor, and the shares of
Series D Preferred Stock or Parity Stock shall not be entitled to participate in any such dividend.

     Section 5.      Liquidation Rights.

          (a)      Liquidation. In the event of any voluntary or involuntary liquidation, dissolution or
winding up of the affairs of the Corporation, holders of Series D Preferred Stock shall be
entitled, out of assets legally available therefor, before any distribution or payment out of the
assets of the Corporation may be made to or set aside for the holders of any Junior Stock and
subject to the rights of the holders of any class or series of securities ranking senior to or on
parity with Series D Preferred Stock upon liquidation and the rights of the Corporation’s
depositors and other creditors, to receive in full a liquidating distribution in the amount of the
liquidation preference of $25,000 per share, plus any authorized, declared and unpaid dividends,
without accumulation of any

3

 

undeclared dividends, to the date of liquidation. The holder of Series D Preferred Stock
shall not be entitled to any further payments in the event of any such voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Corporation other than what is
expressly provided for in this Section 5.

          (b)      Partial Payment. If the assets of the Corporation are not sufficient to pay in full the
liquidation preference plus any authorized, declared and unpaid dividends to all holders of Series
D Preferred Stock and all holders of any Parity Stock, the amounts paid to the holders of Series D
Preferred Stock and to the holders of all Parity Stock shall be pro rata in accordance with the
respective aggregate liquidation preferences plus any authorized, declared and unpaid dividends of
Series D Preferred Stock and all such Parity Stock.

          (c)      Residual Distributions. If the liquidation preference plus any authorized, declared and
unpaid dividends has been paid in full to all holders of Series D Preferred Stock and all holders
of any Parity Stock, the holders of Junior Stock shall be entitled to receive all remaining assets
of the Corporation according to their respective rights and preferences.

          (d)      Merger, Consolidation and Sale of Assets Not Liquidation. For purposes of this Section 5,
the sale, conveyance, exchange or transfer (for cash, shares of stock, securities or other
consideration) of all or substantially all of the property and assets of the Corporation shall not
be deemed a voluntary or involuntary dissolution, liquidation or winding up of the affairs of the
Corporation, nor shall the merger, consolidation or any other business combination transaction of
the Corporation into or with any other corporation or person or the merger, consolidation or any
other business combination transaction of any other corporation or person into or with the
Corporation be deemed to be a voluntary or involuntary dissolution, liquidation or winding up of
the affairs of the Corporation.

     Section 6.      Redemption.

          (a)      Optional Redemption. The Corporation, at the option of its Board of Directors or any duly
authorized committee of the Board of Directors of the Corporation, may redeem in whole or in part
the shares of Series D Preferred Stock at the time outstanding, at any time on or after the
Dividend Payment Date in April 2013, upon notice given as provided in Section 6(b) below.
The redemption price for shares of Series D Preferred Stock shall be $25,000 per share plus
dividends that have been declared but not paid.

          (b)      Notice of Redemption. Notice of every redemption of shares of Series D Preferred Stock
shall be mailed by first class mail, postage prepaid, addressed to the holders of record of such
shares to be redeemed at their respective last addresses appearing on the stock register of the
Corporation. Such mailing shall be at least 30 days and not more than 60 days before the date
fixed for redemption. Notwithstanding the foregoing, if the Series D Preferred Stock is held in
book-entry form through DTC, the Corporation may give such notice in any manner permitted by DTC.

4

 

Any notice mailed as provided in this Section 6(b) shall be conclusively presumed to have been
duly given, whether or not the holder receives such notice, but failure duly to give such notice by
mail, or any defect in such notice or in the mailing thereof, to any holder of shares of Series D
Preferred Stock designated for redemption shall not affect the validity of the proceedings for the
redemption of any other shares of Series D Preferred Stock. Each notice shall state (i) the
redemption date; (ii) the number of shares of Series D Preferred Stock to be redeemed and, if fewer
than all the shares held by such holder are to be redeemed, the number of such shares to be
redeemed by such holder; (iii) the redemption price; (iv) the place or places where the
certificates for such shares are to be surrendered for payment of the redemption price; and (v)
that dividends on the shares to be redeemed will cease to accrue on the redemption date.

          (c)      Partial Redemption. In case of any redemption of only part of the shares of Series D
Preferred Stock at the time outstanding, the shares of Series D Preferred Stock to be redeemed
shall be selected either pro rata from the holders of record of Series D Preferred Stock in
proportion to the number of Series D Preferred Stock held by such holders or by lot or in such
other manner as the Board of Directors of the Corporation or any duly authorized committee of the
Board of Directors of the Corporation may determine to be fair and equitable. Subject to the
provisions of this Section 6, the Board of Directors of the Corporation, the Committee or any duly
authorized committee of the Board of Directors shall have full power and authority to prescribe the
terms and conditions upon which shares of Series D Preferred Stock shall be redeemed from time to
time.

          (d)      Effectiveness of Redemption. If notice of redemption has been duly given and if on or
before the redemption date specified in the notice all funds necessary for the redemption have been
set aside by the Corporation, separate and apart from its other assets, in trust for the pro rata
benefit of the holders of the shares called for redemption, so as to be and continue to be
available therefor, or deposited by the Corporation with a bank or trust company selected by the
Board of Directors of the Corporation or any duly authorized committee of the Board of Directors
(the “Depositary Company”) in trust for the pro rata benefit of the holders of the shares called
for redemption, then, notwithstanding that any certificate for any share so called for redemption
has not been surrendered for cancellation, on and after the redemption date all shares so called
for redemption shall cease to be outstanding, all dividends with respect to such shares shall cease
to accrue after such redemption date, and all rights with respect to such shares shall forthwith on
such redemption date cease and terminate, except only the right of the holders thereof to receive
the amount payable on such redemption from such bank or trust company at any time after the
redemption date from the funds so deposited, without interest. The Corporation shall be entitled
to receive, from time to time, from the Depositary Company any interest accrued on such funds, and
the holders of any shares called for redemption shall have no claim to any such interest. Any
funds so deposited and unclaimed at the end of three years from the redemption date shall, to the
extent permitted by law, be released or repaid to the Corporation, and in the event of such
repayment to the Corporation, the holders of record of the shares so called for redemption shall be
deemed to be unsecured creditors of the Corporation for an amount equivalent to

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the amount deposited as stated above for the redemption of such shares and so repaid to the
Corporation, but shall in no event be entitled to any interest.

     Section 7.      Voting Rights. The holders of Series D Preferred Stock will have no voting rights
and will not be entitled to elect any directors, except as expressly provided by law and except
that:

          (a)      Supermajority Voting Rights—Amendments. Unless the vote or consent of the holders of a
greater number of shares shall then be required by law, the affirmative vote or consent of the
holders of at least 66-2/3% of all of the shares the Series D Preferred Stock at the time
outstanding, voting separately as a class, shall be required to authorize any amendment of the
Certificate of Incorporation or of any certificate amendatory thereof or supplemental thereto
(including any certificate of designations or any similar document relating to any series of
preferred stock) which will materially and adversely affect the powers, preferences, privileges or
rights of the Series D Preferred Stock, taken as a whole; provided, however, that any increase in
the amount of the authorized or issued Series D Preferred Stock or authorized preferred stock of
the Corporation or the creation and issuance, or an increase in the authorized or issued amount, of
other series of preferred stock ranking equally with and/or junior to the Series D Preferred Stock
with respect to the payment of dividends (whether such dividends are cumulative or non-cumulative)
and/or the distribution of assets upon liquidation, dissolution or winding up of the Corporation
will not be deemed to adversely affect the powers, preferences, privileges or rights of the Series
D Preferred Stock.

          (b)      Supermajority Voting Rights—Priority. Unless the vote or consent of the holders of a
greater number of shares shall then be required by law, the affirmative vote or consent of the
holders of at least 66-2/3% of all of the shares of the Series D Preferred Stock and all other
Parity Stock, at the time outstanding, voting as a single class without regard to series, shall be
required to issue, authorize or increase the authorized amount of, or to issue or authorize any
obligation or security convertible into or evidencing the right to purchase, any additional class
or series of stock ranking prior to the shares of the Series D Preferred Stock and all other Parity
Stock as to dividends or the distribution of assets upon liquidation, dissolution or winding up of
the Corporation;

          (c)      Special Voting Right.

                    (i)      Voting Right. If and whenever dividends on the Series D Preferred Stock or any
other class or series of preferred stock that ranks on parity with the Series D Preferred
Stock as to payment of dividends, and upon which voting rights equivalent to those granted
by this Section 7(c) have been conferred and are exercisable, have not been paid in an
aggregate amount equal, as to any class or series, to at least six quarterly Dividend
Periods (whether consecutive or not), the number of directors constituting the Board of
Directors of the Corporation shall be increased by two, and the holders of the Series D
Preferred Stock (together with holders of any other class of the Corporation’s authorized
preferred stock having equivalent voting rights, whether or not the holders of such
preferred stock would be entitled to vote for the election of

6

 

directors if such default in dividends did not exist), shall have the right, voting
separately as a single class without regard to series, to the exclusion of the holders of
common stock, to elect two directors of the Corporation to fill such newly created
directorships (and to fill any vacancies in the terms of such directorships), provided that
the election of such directors must not cause the Corporation to violate the corporate
governance requirements of the New York Stock Exchange (or other exchange on which the
Corporation’s securities may be listed) that listed companies must have a majority of
independent directors and further provided that the Board of Directors of the Corporation
shall at no time include more than two such directors. Each such director elected by the
holders of shares of Series D Preferred Stock and any other class or series of preferred
stock that ranks on parity with the Series D Preferred Stock as to payment of dividends is
a “Preferred Director”.

                    (ii)      Election. The election of the Preferred Directors will take place at any annual
meeting of stockholders or any special meeting of the holders of Series D Preferred Stock
and any other class or series of the Corporation’s stock that ranks on parity with Series D
Preferred Stock as to payment of dividends and for which dividends have not been paid,
called as provided herein. At any time after the special voting power has vested pursuant
to Section 7(c)(i) above, the secretary of the Corporation may, and upon the written
request of any holder of Series D Preferred Stock (addressed to the secretary at the
Corporation’s principal office) must (unless such request is received less than 90 days
before the date fixed for the next annual or special meeting of the stockholders, in which
event such election shall be held at such next annual or special meeting of stockholders),
call a special meeting of the holders of Series D Preferred Stock and any other class or
series of preferred stock that ranks on parity with Series D Preferred Stock as to payment
of dividends and for which dividends have not been paid for the election of the two
directors to be elected by them as provided in Section 7(c)(iii) below. The Preferred
Directors shall each be entitled to one vote per director on any matter.

                    (iii)      Notice for Special Meeting. Notice for a special meeting will be given in a
similar manner to that provided in the Corporation’s by-laws for a special meeting of the
stockholders. If the secretary of the Corporation does not call a special meeting within
20 days after receipt of any such request, then any holder of Series D Preferred Stock may
(at the Corporation’s expense) call such meeting, upon notice as provided in this Section
7(c)(iii), and for that purpose will have access to the stock register of the Corporation.
The Preferred Directors elected at any such special meeting will hold office until the next
annual meeting of the Corporation’s stockholders unless they have been previously
terminated or removed pursuant to Section 7(c)(iv). In case any vacancy in the office of
a Preferred Director occurs (other than prior to the initial election of the Preferred
Directors), the vacancy may be filled by the written consent of the Preferred Director
remaining in office, or if none remains in office, by the vote of the holders of the Series
D Preferred Stock (together with holders of any other class of the Corporation’s authorized
preferred stock having

7

 

equivalent voting rights, whether or not the holders of such preferred stock would be
entitled to vote for the election of directors if such default in dividends did not exist)
to serve until the next annual meeting of the stockholders.

                    (iv)       Termination; Removal. Whenever full dividends have been paid regularly on the
Series D Preferred Stock and any other class or series of preferred stock that ranks on
parity with Series D Preferred Stock as to payment of dividends, if any, for at least four
consecutive Dividend Periods, then the right of the holders of Series D Preferred Stock to
elect such additional two directors will cease (but subject always to the same provisions
for the vesting of the special voting rights in the case of any similar non-payment of
dividends in respect of future Dividend Periods). The terms of office of the Preferred
Directors will immediately terminate and the number of directors constituting the
Corporation’s board of directors will be reduced accordingly. Any Preferred Director may be
removed at any time without cause by the holders of record of a majority of the outstanding
shares of Series D Preferred Stock (together with holders of any other class of the
Corporation’s authorized preferred stock having equivalent voting rights, whether or not
the holders of such preferred stock would be entitled to vote for the election of directors
if such default in dividends did not exist) when they have the voting rights described in
this Section 7(c).

     Section 8.      Conversion. The holders of Series D Preferred Stock shall not have any rights to
convert such Series D Preferred Stock into shares of any other class of capital stock of the
Corporation.

     Section 9.      Rank. Notwithstanding anything set forth in the Certificate of Incorporation or
this Certificate of Designations to the contrary, the Board of Directors of the Corporation, the
Committee or any authorized committee of the Board of Directors of the Corporation, without the
vote of the holders of the Series D Preferred Stock, may authorize and issue additional shares of
Junior Stock, Parity Stock or, subject to the voting rights granted in Section 7(b), any class of
securities ranking senior to the Series D Preferred Stock as to dividends and the distribution of
assets upon any voluntary or involuntary liquidation, dissolution or winding up of the affairs of
the Corporation.

     Section 10.      Repurchase. Subject to the limitations imposed herein, the Corporation may
purchase and sell Series D Preferred Stock from time to time to such extent, in such manner, and
upon such terms as the Board of Directors of the Corporation or any duly authorized committee of
the Board of Directors of the Corporation may determine; provided, however, that the Corporation
shall not use any of its funds for any such purchase when there are reasonable grounds to believe
that the Corporation is, or by such purchase would be, rendered insolvent.

     Section 11.      Unissued or Reacquired Shares. Shares of Series D Preferred Stock not issued or
which have been issued and converted, redeemed or otherwise purchased or acquired by the
Corporation shall be restored to the status of authorized but unissued shares of preferred stock
without designation as to series.

8

 

     Section 12.      No Sinking Fund. Shares of Series D Preferred Stock are not subject to the
operation of a sinking fund.

9

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