Document:

EX-10.3

 

Exhibit 10.3

[MoneyGram Letterhead]

March 17, 2008

Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

 

Ladies and Gentlemen:

          Reference is hereby made to that certain Equity Fee Arrangement Letter, by and between
Goldman, Sachs & Co. (“GS&Co”) and MoneyGram International, Inc., a Delaware corporation (the
“Company”), dated as of February 11, 2008, which the parties hereby amend and restate in full, as
more fully set forth below:

          Reference is hereby made to that certain Amended and Restated Purchase Agreement, dated as of
March 17, 2008, as may be amended, by and among, the Company and the Investors party thereto (the
“Purchase Agreement”), which amended and restated the purchase agreement dated as of February 11,
2008 (the “Original Purchase Agreement”). All terms not defined herein shall have the meaning
ascribed to them in the Purchase Agreement.

          In connection with the GS Investors entering into the Original Purchase Agreement and
undertaking the obligations therein, and in consideration of the services provided by GS&Co, an
affiliate of the GS Investors, with respect thereto, the Company paid to GS&Co on February 11, 2008
$7,500,000 (the “Arrangement Fee”).

          In consideration of the GS Investors entering into the Purchase Agreement, the parties hereby
agree that, notwithstanding anything to the contrary in the Prior Fee Letter or the Original
Purchase Agreement, in no event shall any of the Arrangement Fee be refunded to the Company.

          This letter agreement shall be deemed to be made in, and in all respects shall be interpreted,
construed and governed by and in accordance with the internal laws of, the State of Delaware. This
letter agreement may be executed in one or more counterparts, each of which together be deemed an
original, but all of which together shall constitute one and the same instrument.

**Remainder of this page intentionally left blank**

 

 

MONEYGRAM INTERNATIONAL, INC.

      

By:                                                             

Name:

Title:

 

 

Accepted and agreed as of

the date first written above:

GOLDMAN, SACHS & CO.

      

By:                                                             

Name:

Title:EX-10.4

 

Exhibit 10.4

March 17, 2008

THL Managers VI, LLC

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

100 Federal Street, 35th Floor

Boston, Massachusetts 02110

Fax No.: (617) 227-3514

Attn: Thomas M. Hagerty

MoneyGram Payment Systems Worldwide, Inc.

MoneyGram International Inc.

1500 Utica Avenue South, MS 8020

Minneapolis, Minnesota 55416

Fax No.: (952) 591-3859

Attn: Teresa H. Johnson, Esq.

GSMP/GSCP

c/o Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

Attention: Edward Pallesen

Amended and Restated Fee Letter

Ladies and Gentlemen:

     Reference is hereby made to that certain Contingent Fee Letter, by and between THL MANAGERS
VI, LLC (“THL Managers”), GSMP V ONSHORE US, LTD., an exempted company incorporated in the Cayman
Islands with limited liability (“GSMP V Onshore”), GSMP V OFFSHORE US, LTD., an exempted company
incorporated in the Cayman Islands with limited liability (“GSMP V Offshore”), and GSMP V
INSTITUTIONAL US, LTD., an exempted company incorporated in the Cayman Islands with limited
liability (“GSMP Institutional and, together with GSMP V Onshore and GSMP V Offshore, “GSMP”), GS
CAPITAL PARTNERS VI FUND, L.P., GS CAPITAL PARTNERS VI OFFSHORE FUND, L.P., GS CAPITAL PARTNERS VI
GmbH & Co. KG, and GS CAPITAL PARTNERS VI PARALLEL, L.P., and MONEYGRAM PAYMENT SYSTEMS WORLDWIDE,
INC., a Delaware corporation (the “Company”), dated as of February 11, 2008 (the “Original
Contingent Fee Letter”), which the parties hereby amend and restate in full, as more fully set
forth below:

     Reference is made to (a) that certain Amended and Restated Note Purchase Agreement (the “Note
Purchase Agreement”), dated as of March 17, 2008, by and between MONEYGRAM INTERNATIONAL, INC., a
Delaware corporation (“HoldCo”), the Company, GSMP and THL Credit Partners, L.P., which amended and
restated the Note Purchase Agreement as of February 11, 2008 (the “Original Note Purchase
Agreement”) dated and (b) that certain Amended and Restated Purchase Agreement (the “Equity
Purchase Agreement”), dated as of March 17, 2008, as may be amended, by and between Holdco, GSMP,
the parties set forth on Schedule A attached thereto under the heading THL (collectively, “THL”)
and the parties set forth on Schedule A attached hereto under the heading Goldman Sachs Capital
Partners (collectively, “GSCP” and, together with THL and GSMP, the “Investors”). Capitalized
terms used herein and not otherwise defined have the meanings given in the Note Purchase Agreement
or Equity Purchase Agreement, as applicable.

 

 

	 	1.	 	Fee. In connection with the execution of the Original Note Purchase Agreement,
the Company deposited into the escrow (the “Escrow”) established pursuant to that certain
escrow agreement (the “Original Escrow Agreement”), dated as of February 11, 2008, among
the Company, THL Managers VI, LLC (“THL Managers”), GSCP, GSMP and Fried, Frank Harris
Shriver & Jacobson, LLP as escrow agent, a deposit with respect to a contingent break-up
fee equal to $15,000,000, representing 3.00% of the maximum principal amount of the Notes
to be purchased by GSMP pursuant to the Original Note Purchase Agreement (such amount,
together with all investment earnings thereon, the “Fee”). On March 14, 2008 the Original
Escrow Agreement was amended and restated (the “Escrow Agreement”). Pursuant to the Escrow
Agreement, the Bank of New York, or any successor thereto, shall act as escrow agent (the
“Escrow Agent”) as of March 14, 2008.
	 
	 	2.	 	Payment of Fee. In consideration for amending the Note Purchase Agreement and
other consideration (the adequacy of which is hereby acknowledged by the other parties
hereto), the parties hereto hereby agree (i) that the Fee shall be disbursed and paid by
the Escrow Agent to GSMP on the date hereof and (ii) that, notwithstanding anything to the
contrary in the Original Contingent Fee Letter or the Original Note Purchase Agreement or
any other document or agreement, in no event shall all or any portion of the Fee be
refunded or otherwise repaid to the Company, and the Company shall have no interest therein
or claim thereto.
	 
	 	3.	 	Subsequent Transaction. If the Equity Purchase Agreement is terminated for any
reason and (x) the Company enters into a definitive agreement with respect to, or
consummates, any transaction contemplated by a Company Transaction Proposal (other than a
transaction entered into or consummated following any voluntary or involuntary petition by
Holdco, the Company or any subsidiary of the Company under the federal bankruptcy code (a
“Subsequent Transaction”) within nine (9) months of the date of termination of the Equity
Purchase Agreement and (y) GSMP provides or commits to provide second lien or subordinated
debt financing with respect to the Subsequent Transaction, then, the Fee shall be paid (or
retained by GSMP) as follows: (a) if such financing is consummated, GSMP shall pay (or
retain, as applicable) the Fee (net of any withholding tax paid by GSMP as a result of its
receipt of the Fee) (i) 80 percent to THL Managers and (ii) 20 percent to GSCP and GSMP,
pro rata among GSCP and GSMP, in accordance with the aggregate relative purchase price
committed to be paid by each of them pursuant to the Equity Purchase Agreement (such
allocation, the “80/20 Allocation”), in each case, as promptly as possible, but in any
event on the date of the consummation of such Subsequent Transaction and (b) if such
financing is not consummated, GSMP shall also pay (or retain, as applicable) the portion of
the Fee, if any, equal to any fees paid to and retained by GSMP in connection with such
financing (net of any withholding tax paid by GSMP as a result of its receipt of the Fee)
to THL, GSCP and GSMP in accordance with the 80/20 Allocation, which such amounts shall be
paid on the first date on which GSMP is not subject to any obligation to return or
otherwise disgorge such fees.
	 
	 	4.	 	Further Agreements. The parties agree to jointly and irrevocably instruct the
Escrow Agent, in accordance with the Escrow Agreement, to effect payment of the Fee on the
date hereof, by wire transfer in immediately available funds, in accordance with the terms
of Section 2 above. Any earnings on the funds deposited in Escrow will be paid to GSMP. To
effectuate the foregoing, the Company, THL, GSCP and GSMP have jointly and irrevocably
instructed the Escrow Agent as provided in the certificate attached hereto as Exhibit A.
	 
	 	5.	 	GOVERNING LAW; JURISDICTION. EACH OF THE PARTIES HERETO IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ANY SUIT OR PROCEEDING ARISING IN RESPECT TO THIS LETTER OR OUR
COMMITMENT WILL BE TRIED EXCLUSIVELY

2

 

	 	 	 	(SUBJECT TO THE PROVISO BELOW) IN THE U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK OR, IF THAT COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION, IN ANY STATE COURT LOCATED
IN THE CITY OF NEW YORK, AND YOU AGREE TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF, AND TO
VENUE IN, SUCH COURT. THIS LETTER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPALS OF CONFLICTS OF LAWS THAT WOULD
CAUSE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.
	 
	 	6.	 	WAIVER OF JURY TRIAL. ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION OR
PROCEEDING ARISING IN CONNECTION WITH OR AS A RESULT OF EITHER OUR COMMITMENT OR ANY MATTER
REFERRED TO IN THIS LETTER IS HEREBY WAIVED BY THE PARTIES HERETO.
	 
	 	7.	 	Counterparts. This letter may be executed in counterparts, each of which shall
be deemed to constitute an original but all of which shall constitute one and the same
instrument. Delivery of an executed signature page of this letter by facsimile, e-mail or
similar transmission shall be effective as delivery of a manually executed counterpart
hereof.

[SIGNATURE PAGES FOLLOW]

3

 

     If the foregoing terms and conditions are acceptable to you, please so indicate by signing
both of the enclosed copies of this letter where indicated and returning one to the undersigned,
whereupon this letter shall become a binding agreement between us.

	 	 	 	 	 
	 	Very truly yours,

MONEYGRAM PAYMENT SYSTEMS WORLDWIDE, INC.

 	 
	 	By:  	/s/ Philip W. Milne
 	 
	 	Name:  	Philip W. Milne 	 
	 	Title:  	Chairman, President and Chief Executive Officer 	 
	 

 

 

Goldman Sachs Mezzanine Partners 

	 	 	 	 	 
	 	GSMP V ONSHORE US, LTD.

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GSMP V OFFSHORE US, LTD.

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GSMP V INSTITUTIONAL US, LTD.

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

 

 

Goldman Sachs Capital Partners 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI FUND, L.P.

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

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI OFFSHORE FUND, L.P.

By: GSCP VI Offshore Advisors, L.L.C., its General Partner

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI GmbH & Co. KG

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

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI PARALLEL, L.P.

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

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

 

 

THL

	 	 	 	 	 
	 	THL MANAGERS VI, LLC

By: Thomas H. Lee Partners, L.P., its managing member

By: Thomas H. Lee Advisors, LLC, its general partner

 	 
	 	By:  	/s/ Scott Jaeckel
 	 
	 	Name:  	Scott Jaeckel 	 
	 	Title:  	Managing Director 	 
	 

 

 

Escrow Amount Release Certificate

     This certificate is being delivered pursuant to Section 4 of the Amended and Restated Escrow
Agreement, dated as of March 14, 2008 (the “Escrow Agreement”), by and between the Escrow Parties
and The Bank of New York, as escrow agent (“Escrow Agent”). Capitalized terms used but not defined
herein have the respective meanings specified in the Escrow Agreement. The Escrow Parties hereby
jointly certify to the Escrow Agent and direct the Escrow Agent through the undersigned officer as
follows:

     The Escrow Agent shall release the Escrow Amount (including any accrued interest) held in the
Escrow Account in accordance with the terms of the Escrow Agreement and the Amended and Restated
Contingent Fee Letter, dated as of March 17, 2008, by and between the Escrow Parties (the
“Contingent Fee Letter”), by wire transfer, as follows:

[Only one payment to be checked]

o To GSMP in accordance with Section 2 of the Contingent Fee Letter.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

Goldman Sachs Mezzanine Partners 

	 	 	 	 	 
	 	GSMP V ONSHORE US, LTD.

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GSMP V OFFSHORE US, LTD.

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GSMP V INSTITUTIONAL US, LTD.

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

 

 

Goldman Sachs Capital Partners 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI FUND, L.P.

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

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI OFFSHORE FUND, L.P.

By: GSCP VI Offshore Advisors, L.L.C., its General Partner

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI GmbH & Co. KG

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

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

	 	 	 	 	 
	 	GS CAPITAL PARTNERS VI PARALLEL, L.P.

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

 	 
	 	By:  	/s/ Oliver Thym
 	 
	 	Name:  	Oliver Thym 	 
	 	Title:  	Managing Director and Vice President 	 
	 

 

 

THL

	 	 	 	 	 
	 	THL MANAGERS VI, LLC

By: Thomas H. Lee Partners, L.P., its managing member

By: Thomas H. Lee Advisors, LLC, its general partner

 	 
	 	By:  	/s/ Scott Jaeckel
 	 
	 	Name:  	Scott Jaeckel 	 
	 	Title:  	Managing Director and Vice President

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