Document:

exv10w5

REPAYMENT OF NOTE OBLIGATIONS

AND RELEASE OF SECURITY INTEREST

THIS REPAYMENT AND RELEASE AGREEMENT (the “Agreement”) is made and entered into effective the
latest signature date set forth below by and among Jonathan S. Miner and Pamela J. Miner
(collectively, the “Holders”), Digitiliti, Inc., a Delaware corporation (“Digitiliti Delaware”),
and Digitiliti, Inc., a Minnesota corporation (“Digitiliti Minnesota”).

WHEREAS, in 2005 Digitiliti Minnesota issued to Holder Jonathan S. Miner a Promissory Note in
the original principal amount of $250,000 (the “Digitiliti North Star Note”), the purpose of which
was to reimburse and pay to said Jonathan S. Miner certain sums he had borrowed from North Star
Bank and subsequently advanced to Digitiliti Minnesota; and

WHEREAS, on or about 2005 Holder Pamela J. Miner lent to Digitiliti Minnesota the sum of
$50,000, which loan has not been memorialized or reduced to a note or similar instrument (the
“Pamela J. Miner Loan”); and

WHEREAS, Digitiliti Delaware issued to Holders a 12% Convertible Secured Note dated November
20, 2008 in the original principal amount of $250,000 (the “Convertible Note”); and

WHEREAS, pursuant to a Security Agreement effective December 3, 2008 (the “Security
Agreement”) between Digitiliti Delaware and Digitiliti Minnesota (collectively, “Digitiliti”), as
debtors, and Holders, as secured parties, Holders were granted a security interest in various
collateral as defined in the Security Agreement (the “Collateral”) relating to Digitiliti’s
business as security for repayment of the Digitiliti North Star Note and the Convertible Note; and

WHEREAS, a UCC Financing Statement (the “UCC Financing Statement”) was filed with the State of
Minnesota on December 18, 2008 as file number 200814262422 in connection with Holders’ security
interest in the Collateral; and

WHEREAS, the Digitiliti North Star Note, the Pamela J. Miner Note and the Convertible Note
(collectively, the “Miner Notes”) have all matured and are due and payable in full at this time;
and

WHEREAS, as of February 28, 2011, the total aggregate principal due on the Miner Notes is
$531,540.00, and the total aggregate accrued and unpaid interest through said date is
$_________; and

WHEREAS, the parties desire to take the actions described below in order to repay the Miner
Notes in full and to terminate and release the Holders’ security interests in the Collateral
resulting from the Security Agreement and the UCC Financing Statement.

 

1

 

NOW, THEREFORE, for good and valuable consideration, including the recitals set forth above,
the receipt and sufficiency of which are herewith acknowledged, the parties agree as follows:

	1.	 	Repayment of the Miner Notes. The Holders and Digitiliti agree that the Miner Notes
shall be repaid in full as to all amounts owed by Digitiliti under the Miner Notes, and the
Miner Notes shall thereafter be cancelled, upon completion of the following:

	 	a.	 	Digitiliti shall immediately pay to Holders the sum of $184,413.65 by wire
transfer.

	 	b.	 	Digitiliti shall immediately pay to North Star Bank the sum of $247,126.35 in
full satisfaction and settlement of the existing note between Holders and North Star
Bank in the original principal sum of $250,000. Digitiliti shall provide Holders with
written evidence that such note has been satisfied and paid in full and shall hold the
Holders harmless from any claims based upon the same.

	 	c.	 	The sum of $100,000, representing a portion of the principal balance due under
the Miner Notes, shall be rolled into a secured promissory note from Digitiliti
Delaware, as lender, to Holders, as holders and secured parties, as part of an existing
secured convertible debt offering of Digitiliti Delaware. The secured promissory note
shall be in the original principal amount of $110,000. The Holders’ participation in
such offering shall be consistent with and no less favorable than the notes, security
interests, warrants and other agreements given to the other participants in said
offering.

	 	d.	 	Digitiliti Delaware shall issue and deliver to Holders, in whatever
denominations and names as Holders may indicate in writing, certain shares of common
stock of Digitiliti Delaware, which shall be fully paid and non-assessable upon
issuance. Said shares shall represent payment for accrued interest under the Miner
Notes at the rate of $0.15 per share. The shares issued with respect to such accrued
interest shall not include a “restricted legend” to the extent the underlying note or
notes contain applicable conversion terms. To the extent any underlying note does not
contain conversion terms, the shares issued in connection with such note may have to be
held by Holders for six months (as a non-affiliate) before said Holders can register
the shares as free trading shares.

	 	e.	 	Digitiliti Delaware shall issue to Holders a warrant (the “Signing Warrant”) to
purchase up to 200,000 shares of Digitiliti Delaware’s common stock. The Signing
Warrant shall have a five year term, $0.20 per share exercise price and include a
cashless exercise provision and a put right in the event of an acquisition of
Digitiliti Delaware valued at the Black Scholes Value of the unexercised portion of the
Warrant obtained from the “OV” function on Bloomberg determined as of the day prior to
the announcement of the transaction. The Signing Warrant shall include antidilution
provisions for stock splits, stock dividends and recapitalizations. The Signing
Warrant is given in connection with certain claims made by Holders that they should
have been paid options or warrants to purchase shares of common stock of Digitiliti
Delaware in connection with previous guaranties and loans, in addition to the Miner
Notes, made by Holders on behalf of Digitiliti Delaware.

 

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	 	f.	 	Holders are the holders of (i) an existing warrant to purchase 100,000 shares
of common stock of Digitiliti Delaware at $0.50 per share exercisable over a five year
term commencing October 16, 2008 and (ii) an existing warrant to purchase 250,000
shares of common stock of Digitiliti Delaware at $0.35 per share exercisable over a
five year term commencing November 20, 2008 (collective, the “Existing Warrants”). The
Existing Warrants shall be modified to reduce the exercise or strike price to $0.15 per
share and to extend the term thereof to provide for exercise up to five years
commencing as of the date hereof.

	2.	 	Termination and Release of Security Interest. Upon completion of the conditions set
forth in section 1 above, the Holders agree to terminate and release any security interests,
rights, titles and interests they may have under the Security Agreement and the UCC-1
Financing Statement by signing the attached “Termination and Release of Security Interest,”
which is attached as Exhibit A hereto.

	3.	 	Execution. This Agreement may be executed in one or more separate counterparts, each
of which when signed shall for all purposes be deemed to be an original and all of which when
taken together shall constitute a valid and binding agreement. For purposes of this
Agreement, facsimile or electronically transmitted signatures shall be deemed acceptable to
and binding upon the parties and shall constitute delivery.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as the latest
signature date set forth below.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	HOLDERS:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 

	, 2011
	 	 	 	 

 
	 	 
	 

	 	 

	 	 
	 	 	 	 

Jonathan S. Miner
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 

	, 2011
	 	 	 	 

	 	 
	 

	 	 

	 	 
	 	 	 	 

Pamela J. Miner
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	DIGITILITI, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 

	, 2011
	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	By: Ehssan Taghizadeh	 	 
	 

	 	 	 	 	 	 	 	Its: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	DIGITILITI, INC., a Minnesota corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 

	, 2011
	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	By: Ehssan Taghizadeh	 	 
	 

	 	 	 	 	 	 	 	Its: Chief Executive Officer	 	 

 

3exv4w1

Exhibit 4.1

AMENDMENT NO. 1

TO

REGISTRATION RIGHTS AGREEMENT

     This Amendment No. 1 to Registration Rights Agreement (this “Amendment”), dated as of
May 18, 2011, by and among MoneyGram International, Inc., a Delaware corporation (the
“Company”), the investors listed under the heading “THL Investors” on the signature pages
hereto (the “THL Investors”) and the investors listed under the heading “GS Investors” on
the signature pages hereto (the “GS Investors” and, together with the THL Investors, the
“Investors”). The Company and the Investors are sometimes referred to herein collectively
as the “Parties.”

WITNESSETH:

     WHEREAS, the Parties are parties to a Registration Rights Agreement (the “Original
Agreement”), dated as of March 25, 2008;

     WHEREAS, on March 7, 2011 the Parties entered into a Recapitalization Agreement, as amended by
Amendment No. 1 to Recapitalization Agreement, dated May 4, 2011 (the “Recapitalization
Agreement”);

     WHEREAS, the date of this Amendment is the same as the Closing Date (as such term is defined
in the Recapitalization Agreement);

     WHEREAS, the Parties agreed, pursuant to Section 5.4(i) of the Recapitalization Agreement
(“Section 5.4(i)”), to the amendment, effective as of, and subject to, the Closing (as such term is
defined in the Recapitalization Agreement), of certain terms contained in the Original Agreement
and this Amendment confirms such agreement set forth in Section 5.4(i); and

     WHEREAS, the Parties desire to amend the Original Agreement, as set forth herein, to give
effect to Section 5.4(i).

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and
agreements contained herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, intending to be legally bound, the Parties agree as follows:

     1. Definitions. Capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Original Agreement.

     2. Amendments. Effective as of, and subject to, the Closing (as such term is defined
in the Recapitalization Agreement):

 

 

          (a) The proviso in the first sentence of Section 2.1(a) of the Original Agreement is hereby
amended and restated in its entirety as follows:

“; provided, however, that in respect of four out of the six Demand
Registrations to which the Holders are entitled under this Agreement, a Demand
Notice may only be made if the amount of Registrable Securities requested to be
registered by the Holders’ Representative is reasonably expected to generate
aggregate gross proceeds (prior to deducting underwriting discounts and commissions
and offering expenses) of at least $50 million.”

          (b) Section 2.1(d) of the Original Agreement is hereby amended and restated in its entirety as
follows:

“The Holders collectively shall be entitled to request no more than six Demand
Registrations on the Company, and in no event shall the Company be required to
effect more than one Demand Registration in any nine month period.”

          (c) The defined term “Registrable Securities” in the Original Agreement is hereby amended and
restated in its entirety as follows:

““Registrable Securities” means (i) all shares of Common Stock acquired by any
Investor and its Affiliates on, and from and after, the date of this Agreement,
including, without limitation, Common Stock issued in connection with the
Recapitalization Agreement, dated as of March 7, 2011, among the Company and the
other parties thereto, as amended from time to time (the “Recapitalization
Agreement”), (ii) Series D Preferred Shares issued upon conversion of Series B
Preferred Shares or in connection with the Recapitalization Agreement, (iii) shares
of Common Stock issued upon conversion of Series B Preferred Shares or Series D
Preferred Shares including, without limitation, upon conversion of the Series D
Preferred Shares issued in connection with the Recapitalization Agreement, and (iv)
any securities issued directly or indirectly with respect to such shares described
in clauses (i), (ii), or (iii) because of stock splits, stock dividends,
reclassifications, recapitalizations, mergers, consolidations, or similar events.
As to any particular Registrable Securities, once issued such securities shall
cease to be Registrable Securities when (i) a Registration Statement with respect
to the sale of such securities shall have become effective under the Securities Act
and such securities shall have been disposed of in accordance with such
Registration Statement or (ii) such securities shall have been sold to the public
pursuant to Rule 144 (or any successor provision) under the Securities Act.”

2

 

     3. No Other Amendments. Except as amended hereby, the Original Agreement remains in
full force and effect.

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

     5. Governing Law; Jurisdiction. THIS AMENDMENT SHALL BE GOVERNED IN ALL RESPECTS BY
THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO (A) CONSENTS TO SUBMIT ITSELF TO THE
PERSONAL JURISDICTION OF ANY FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN IN THE CITY
OF NEW YORK, NEW YORK IN THE EVENT ANY DISPUTE ARISES OUT OF THIS AMENDMENT, (B) AGREES THAT IT
WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE
FROM ANY SUCH COURT AND (C) AGREES THAT IT WILL NOT BRING ANY ACTION RELATING TO THIS AMENDMENT IN
ANY COURT OTHER THAN A FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN IN THE CITY OF
NEW YORK, NEW YORK.

[Signature Page Follows]

3

 

     IN WITNESS WHEREOF, the Parties have executed this Amendment as of the day and year first
above written.

	 	 	 	 	 
	 	COMPANY:

MONEYGRAM INTERNATIONAL, INC.

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

Financial Officer 	 
	 

[signature page to Amendment No. 1 to the Registration Rights Agreement]

 

	 	 	 	 	 
	 	THL INVESTORS:

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

 	 
	 	By:  	THL EQUITY ADVISORS VI, LLC,

its general partner

 	 
	 	By:  	THOMAS H. LEE PARTNERS, L.P.,

its sole member

 	 
	 	By:  	THOMAS H. LEE ADVISORS, LLC,

its general partner
 	 
	 	 	 	 	 
	 	By:  	                                      /s/ Thomas M. Hagerty
 	 
	 	 	Name:  	Thomas M. Hagerty 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 	 	 
	 	THOMAS H. LEE PARALLEL FUND VI, L.P.

 	 
	 	By:  	THL EQUITY ADVISORS VI, LLC

its general partner

 	 
	 	By:  	THOMAS H. LEE PARTNERS, L.P.,

its sole member

 	 
	 	By:  	THOMAS H. LEE ADVISORS, LLC,

its general partner

 	 
	 	By:  	/s/ Thomas M. Hagerty
 	 
	 	 	Name:  	Thomas M. Hagerty 	 
	 	 	Title:  	Managing Director 	 
	 

[signature page to Amendment No. 1 to the Registration Rights Agreement]

 

 

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

 	 
	 	By:  	THL EQUITY ADVISORS VI, LLC

its general partner

 	 
	 	By:  	THOMAS H. LEE PARTNERS, L.P.,

its sole member

 	 
	 	By:  	THOMAS H. LEE ADVISORS, LLC,

its general partner

 	 
	 	By:  	/s/ Thomas M. Hagerty
 	 
	 	 	Name:  	Thomas M. Hagerty 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 	 	 
	 	GREAT WEST INVESTORS L.P.

 	 
	 	By:  	THOMAS H. LEE ADVISORS, LLC

its attorney-in-fact

 	 
	 	By:  	/s/ Thomas M. Hagerty
 	 
	 	 	Name:  	Thomas M. Hagerty 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 	 	 
	 	PUTNAM INVESTMENTS EMPLOYEES’ SECURITIES COMPANY III LLC

 	 
	 	By:  	PUTNAM INVESTMENTS HOLDINGS LLC

its managing member

 	 
	 	By:  	PUTNAM INVESTMENTS, LLC

its managing member

 	 
	 	By:  	THOMAS H. LEE ADVISORS, LLC

its attorney-in-fact

 	 
	 	By:  	/s/ Thomas M. Hagerty
 	 
	 	 	Name:  	Thomas M. Hagerty 	 
	 	 	Title:  	Managing Director 	 
	 

[signature page to Amendment No. 1 to the Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	THL COINVESTMENT PARTNERS, L.P.

 	 
	 	By:  	THOMAS H. LEE PARTNERS, L.P.

its general partner

 	 
	 	By:  	THOMAS H. LEE ADVISORS, LLC

its general partner

 	 
	 	By:  	/s/ Thomas M. Hagerty
 	 
	 	 	Name:  	Thomas M. Hagerty 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 	 	 
	 	THL OPERATING PARTNERS, L.P.

 	 
	 	By:  	THOMAS H. LEE PARTNERS, L.P.

its general partner

 	 
	 	By:  	THOMAS H. LEE ADVISORS, LLC

its general partner

 	 
	 	By:  	/s/ Thomas M. Hagerty
 	 
	 	 	Name:  	Thomas M. Hagerty 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 	 	 
	 	THL EQUITY FUND VI INVESTORS (MONEYGRAM), LLC

 	 
	 	By:  	THL EQUITY ADVISORS VI, LLC,

its general partner

 	 
	 	By:  	THOMAS H. LEE PARTNERS, L.P.,

its sole member

 	 
	 	By:  	THOMAS H. LEE ADVISORS, LLC,

its general partner

 	 
	 	By:  	/s/ Thomas M. Hagerty
 	 
	 	 	Name:  	Thomas M. Hagerty 	 
	 	 	Title:  	Managing Director 	 
	 

[signature page to Amendment No. 1 to the Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	SPCP GROUP, LLC

 	 
	 	By:  	Silver Point Capital, L.P.

Its Investment Manager

 	 
	 	By:  	/s/ Frederick H. Fogel
 	 
	 	 	Name:  	Frederick H. Fogel 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[signature page to Amendment No. 1 to the Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	GS INVESTORS:

THE GOLDMAN SACHS GROUP, INC.

 	 
	 	By:  	/s/ John E. Bowman
 	 
	 	 	Name:  	John E. Bowman 	 
	 	 	Title:  	Attorney in Fact 	 
	 
	 	GS CAPITAL PARTNERS VI FUND, L.P.

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

its General Partner

 	 
	 	By:  	/s/ John E. Bowman
 	 
	 	 	Name:  	John E. Bowman 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI OFFSHORE FUND, L.P.

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

its General Partner

 	 
	 	By:  	/s/ John E. Bowman
 	 
	 	 	Name:  	John E. Bowman 	 
	 	 	Title:  	Vice President 	 
	 
	 	GS CAPITAL PARTNERS VI GmbH & Co. KG

 	 
	 	By:  	GS Advisors VI, L.L.C., 
its Managing Limited Partner

 	 
	 	By:  	/s/ John E. Bowman
 	 
	 	 	Name:  	John E. Bowman 	 
	 	 	Title:  	Vice President 	 
	 

[signature page to Amendment No. 1 to the Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI PARALLEL, L.P.

 	 
	 	By:  	GS Advisors VI, L.L.C., 
its General Partner

 	 
	 	By:  	/s/ John E. Bowman
 	 
	 	 	Name:  	John E. Bowman 	 
	 	 	Title:  	Vice President 	 
	 
	 	GSMP V ONSHORE US, LTD.

 	 
	 	By:  	/s/ John E. Bowman
 	 
	 	 	Name:  	John E. Bowman 	 
	 	 	Title:  	Vice President 	 
	 
	 	GSMP V OFFSHORE US, LTD.

 	 
	 	By:  	/s/ John E. Bowman
 	 
	 	 	Name:  	John E. Bowman 	 
	 	 	Title:  	Vice President 	 
	 
	 	GSMP V INSTITUTIONAL US, LTD.

 	 
	 	By:  	/s/ John E. Bowman
 	 
	 	 	Name:  	John E. Bowman 	 
	 	 	Title:  	Vice President 	 
	 

[signature page to Amendment No. 1 to the Registration Rights Agreement]

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