SECOND PRIORITY PLEDGE AGREEMENT
Exhibit 10.7
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE
SECOND PRIORITY COLLATERAL AGENT PURSUANT TO THIS AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY
BY THE SECOND PRIORITY COLLATERAL AGENT HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE
INTERCREDITOR AGREEMENT DATED AS OF MARCH 25, 2008, AS THE SAME MAY BE AMENDED, SUPPLEMENTED,
MODIFIED OR REPLACED FROM TIME TO TIME (THE “INTERCREDITOR AGREEMENT”), AMONG JPMORGAN
CHASE BANK, N.A., AS FIRST PRIORITY REPRESENTATIVE, DEUTSCHE BANK TRUST COMPANY AMERICAS, A NEW
YORK BANKING CORPORATION, AS SECOND PRIORITY REPRESENTATIVE AND MONEYGRAM PAYMENT SYSTEMS
WORLDWIDE, INC. IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND
THIS AGREEMENT, THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.
SECOND PRIORITY PLEDGE AGREEMENT
This SECOND PRIORITY PLEDGE AGREEMENT (this “Agreement”), dated as of March 25, 2008,
is among MoneyGram International, Inc., a Delaware corporation (“Holdco”), MoneyGram
Payment Systems Worldwide, Inc., a Delaware corporation (the “Company”), MoneyGram Payment
Systems, Inc., a Delaware corporation (“Payment Systems”), FSMC, Inc., a Minnesota
corporation (“FSMC”), MoneyGram Investments, LLC (formerly CAG, Inc.), a Delaware limited
liability company (“Investments”), PropertyBridge, Inc., a Delaware corporation
(“PropertyBridge”), MoneyGram of New York LLC, a Delaware limited liability company
(“MGI NY”; Holdco, the Company, Payment Systems, FSMC, Investments, PropertyBridge, MGI NY
and each Person who becomes a party to this Agreement by execution of a joinder in the form of
Exhibit C hereto, are sometimes collectively referred to herein as “Pledgors” and
each, individually, as a “Pledgor”), and Deutsche Bank Trust Company Americas, a New York
banking corporation, as Collateral Agent for the benefit of the Second Priority Secured Parties
(the “Second Priority Collateral Agent”).
W I T N E S S E T H:
WHEREAS, the Company, the Guarantors listed on the signatures pages thereto and Deutsche Bank
Trust Company Americas, a New York banking corporation, as trustee and collateral agent, have
entered into that certain Indenture dated as of March 25, 2008 (the “Indenture”);
WHEREAS, pursuant to that certain Second Amended and Restated Note Purchase Agreement dated as
of March 24, 2008 by and among Holdco, the Company, 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”) and GSMP V Institutional US, Ltd., an exempted company incorporated in the Cayman
Islands with limited liability (“GSMP Institutional” and together with THL Credit Partners,
GSMP Onshore and GSMP Offshore, the “Purchasers”) (the same, as it may be amended,
restated, modified or supplemented and in effect from time to time, being herein referred to as the
“Note Purchase Agreement”), the Purchasers
have agreed to purchase Notes issued in accordance with the terms and conditions of the
Indenture;
WHEREAS, each of the Pledgors has benefited or will benefit directly and indirectly from the
proceeds of the issuance of Notes pursuant to the Indenture, and has granted a Note Guarantee
pursuant to the Indenture; and
WHEREAS, to induce the Purchasers to enter into the Note Purchase Agreement and purchase the
Notes, the Pledgors have agreed to pledge to the Second Priority Collateral Agent, for the benefit
of the Second Priority Collateral Agent and the Second Priority Secured Parties, the Pledged
Collateral (as defined below) on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
Section 1. Definitions. Capitalized terms used herein without definition and defined
in the Indenture are used herein as defined therein. In addition, as used herein:
“Event of Default” means an Event of Default (as defined in the Indenture).
“Excluded Shares” means any Capital Stock of any Foreign Subsidiary in excess
of 65% of such Capital Stock of such Foreign Subsidiary.
“First Priority Collateral Agent” means JPMorgan Chase Bank, N.A., and its
successors and/or assigns in its capacity as collateral agent for the Secured Parties (as
defined in the Credit Agreement).
“First Priority Obligations Payment Date” shall have the meaning ascribed
thereto in the Intercreditor Agreement.
“Foreign Issuer” means each of the Company’s material first-tier Foreign
Subsidiaries.
“Issuer” means the Company, each of the Company’s Material Domestic
Subsidiaries (as defined in the Credit Agreement) and each Foreign Issuer.
“Intercreditor Agreement” means that certain Intercreditor Agreement, dated as
of March 25, 2008, by and among ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ Bank, N.A., Deutsche Bank Trust Company
Americas, the Company and the other parties thereto, as amended, restated or otherwise
modified from time to time, or replaced in connection with any amendment, restatement,
modification, renewal or replacement of Credit Facilities.
“Obligations” means all unpaid principal of and accrued and unpaid interest on
the Notes, all accrued and unpaid fees and all expenses, reimbursements, indemnities and
other obligations of the Company to the Holders or to the Trustee, the Second Priority
Collateral Agent or any indemnified party arising under the Indenture and the Financing
Documents (as defined in the Note Purchase Agreement), including without limitation all
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obligations of the Guarantors under the Note Guarantees and all joinders and
supplements thereto.
“Pledged Collateral” shall have the meaning ascribed thereto in Section
2 below.
“Pledged Shares” shall have the meaning ascribed thereto in Section 2
below.
“Proceeds” means “proceeds”, as such term is defined in the UCC and, in any
event, includes, without limitation, (a) any and all proceeds of any insurance, indemnity,
warranty or guaranty payable with respect to any of the Pledged Collateral, (b) any and all
payments (in any form whatsoever) made or due and payable from time to time in connection
with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part
of the Pledged Collateral by any governmental body, authority, bureau or agency (or any
person acting under color of Governmental Authority), (c) all Stock Rights and (d) any and
all other amounts from time to time paid or payable under, in respect of or in connection
with any of the Pledged Collateral other than Excluded Assets (as defined in the Second
Priority Security Agreement).
“Representative” means any Person acting as agent, representative or trustee on
behalf of the Second Priority Collateral Agent from time to time, including, without
limitation, the First Priority Collateral Agent acting as agent and bailee on behalf of the
Second Priority Collateral Agent.
“Required Second Priority Secured Parties” means, prior to the date upon which
the Indenture has terminated by its terms and all of the Obligations have been paid in full,
the Required Holders (as defined in the Indenture).
“Second Priority Secured Parties” means, collectively, each Holder, the
Trustee, the Second Priority Collateral Agent, as Representative and all of their successors
and assigns.
“Second Priority Secured Obligations” means all Obligations.
“Second Priority Security Agreement” means that certain Second Priority
Security Agreement dated as of the date hereof among the Second Priority Collateral Agent,
Holdco and certain of its Subsidiaries, as from time to time amended, restated, amended and
restated, modified or supplemented.
“Significant Acquired Subsidiary” means any Subsidiary of Holdco that on the
date such Subsidiary is acquired, incorporated or formed (or in respect of a newly
incorporated or formed Subsidiary, that acquires assets as part of one or more related
transactions immediately thereafter) has total assets that exceed 10% of the consolidated
total assets of the Company and its Subsidiaries or has total revenues for the most recent
12 month period, if applicable, on a pro forma basis that exceed 10% of the total
consolidated revenues for the most recent 12 month period of the Company and its
Subsidiaries.
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“Stock Rights” means all dividends, instruments or other distributions and any
stocks, shares, warrants, options or other securities rights or any other right or property
which the Pledgors shall receive or shall become entitled to by way of dividend bonus,
redemption, exchange, purchase, substitution, conversion, consolidation, subdivision,
preference or otherwise to receive for any reason whatsoever with respect to, in
substitution for or in exchange for, any Pledged Shares.
“Termination Date” shall have the meaning ascribed thereto in Section
18 below.
“UCC” means the Uniform Commercial Code as in effect from time to time in the
State of New York; provided, that to the extent that the UCC is used to define any term
herein or in any Financing Document (as defined in the Note Purchase Agreement) and such
term is defined differently in different Articles or Divisions of the UCC, the definition of
such term contained in Article or Division 9 shall govern.
Section 2. Pledge.
(a) As collateral security for the prompt payment in full when due (whether at stated
maturity, by acceleration or otherwise) of the Second Priority Secured Obligations, as of
the Closing Date each Pledgor hereby grants, pledges, assigns, hypothecates, transfers,
delivers and grants to the Second Priority Collateral Agent, for the benefit of the Second
Priority Secured Parties, a Lien on and security interest in (i) to the extent the same do
not constitute Excluded Shares, all of the Capital Stock of the Issuers now owned or
hereafter acquired by such Pledgor (collectively, the “Pledged Shares”; when used
with respect to any one Pledgor, “Pledged Shares” means the Pledged Shares in which
such Pledgor has an interest), (ii) subject to Section 5, any Stock Rights, (iii)
the certificates, if any, representing all such Pledged Shares and Stock Rights and (iv) all
Proceeds of the collateral described in the preceding clauses (i), (ii) and (iii) (the
collateral described in clauses (i) through (iv) of this Section 2 being
collectively referred to as the “Pledged Collateral”). Notwithstanding the
foregoing, the Pledged Collateral shall not be deemed to include (a) any General Intangibles
or other rights arising under contracts, Instruments, licenses, license agreements or other
documents, to the extent (and only to the extent) that the grant of a security interest
would (i) be prohibited by an enforceable anti-assignment provision of such documents in
favor of a third party on such grant, unless and until any required consents shall have been
obtained, (ii) give any other party to such contract, Instrument, license, license agreement
or other document the right to terminate its obligations thereunder, or (iii) violate any
law, provided, however, that (1) any portion of any such General Intangible or other such
right pursuant to this clause (a) shall constitute Pledged Collateral at the time and to the
extent that the grant of a security interest therein does not result in any of the
consequences specified in subclauses (i) through (iii) above and (2) the limitation set
forth in this clause (a) above shall not affect, limit, restrict or impair the grant by a
Pledgor of a security interest pursuant to this Agreement in any such General Intangible or
other such right, to the extent that an otherwise applicable prohibition or restriction on
such grant is rendered ineffective by any applicable law, including the UCC; (b) any
property as to which the Second Priority Collateral Agent and the Company reasonably
determine (as specified in writing by such Persons) that the costs of obtaining a security
interest (or perfecting the same) outweighs
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the benefit to the Second Priority Secured Parties of the security afforded thereby;
(c) any other assets that require perfection exclusively through control agreements under
the applicable UCC; or (d) any direct Proceeds, substitutions or replacements of any of the
foregoing, but only to the extent such Proceeds, substitutions or replacements would
otherwise constitute any of the items described in clauses (a) through (c) above.
(b) All of the Pledged Shares now owned by each Pledgor which are presently represented
by certificates are listed on Exhibit A hereto, which certificates, with undated
stock or other transfer powers duly executed in blank by such Pledgor and irrevocable
proxies, have previously been or are simultaneously herewith being delivered to the Second
Priority Collateral Agent (or prior to the First Priority Obligations Payment Date, the
First Priority Collateral Agent acting as bailee on its behalf), for the benefit of the
Second Priority Secured Parties.
Section 3. Representations and Warranties of Pledgors. Each Pledgor represents and
warrants to, and covenants with, the Second Priority Collateral Agent, for the benefit of the
Second Priority Secured Parties, as follows:
(a) such Pledgor is the record and beneficial owner of, and has legal title to, the
Pledged Shares which are listed on Exhibit A, and such shares are free and clear of
all Liens whatsoever, except for Permitted Liens;
(b) such Pledgor has the power, authority and legal right to execute this Agreement and
to pledge the Pledged Shares and any additional Pledged Collateral to the Second Priority
Collateral Agent, for the benefit of the Second Priority Secured Parties;
(c) this Agreement has been duly authorized, executed and delivered by such Pledgor and
constitutes a legal, valid and binding obligation of such Pledgor enforceable in accordance
with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium, reorganization and other similar laws affecting the enforcement of
creditors’ rights generally or by general equitable principles;
(d) there are no outstanding options, warrants or other agreements with respect to the
Pledged Shares;
(e) the Pledged Shares have been duly and validly authorized and issued, and are or
will be fully paid and non-assessable. The Pledged Shares listed on Exhibit A
constitute the percentage of the issued and outstanding Capital Stock of such class of the
Issuers specified on Exhibit A;
(f) no consent, approval or authorization of or designation or filing with any
Governmental Authority on the part of such Pledgor is required in connection with or as a
condition to the pledge and security interest granted under this Agreement, or the exercise
by the Second Priority Collateral Agent of the voting and other rights provided for in this
Agreement except as may be required in connection with disposition of the Pledged Collateral
by laws affecting the offering and sale of securities generally;
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(g) the execution, delivery and performance of this Agreement by such Pledgor will not
violate any provision of (i) any applicable law, rule, regulation, order, judgment, writ,
award or decree binding on such Pledgor, (ii) the charter or by-laws or Memorandum of
Articles of Association of such Pledgor or any Issuer or of any securities issued by any
Issuer or (iii) any mortgage, indenture, lease, contract, or other agreement, instrument or
undertaking to which such Pledgor or any Issuer is a party or to which such Pledgor or its
assets is bound, and will not result in the creation or imposition of any Lien in any of the
assets of such Pledgor or any Issuer except to the extent otherwise permitted by this
Agreement or the Indenture and except with respect to clauses (i) or (iii), to the extent,
individually or in the aggregate, that such violation, conflict, breach, default or creation
or imposition of any Lien could not reasonably be expected to result in a Material Adverse
Effect;
(h) the pledge, assignment and delivery to the Second Priority Collateral Agent (or its
Representative) of the Pledged Shares pursuant to this Agreement and the filing of UCC
financing statements pursuant to the terms of the Second Priority Security Agreement create
a valid second priority Lien on and a perfected security interest in the Pledged Shares and
the Proceeds thereof, to the extent that such Pledged Shares may be perfected by filing a
financing statement under the UCC or by such pledge, assignment and delivery, in favor of
the Second Priority Collateral Agent, for the benefit of the Second Priority Secured
Parties, subject to no prior Lien other than the Lien created in favor of the First Priority
Collateral Agent. Such Pledgor covenants and agrees that it will defend the Second Priority
Collateral Agent’s right, title and security interest in and to the Pledged Shares and the
Proceeds thereof against the claims and demands of all persons whomsoever;
(i) with respect to any certificates delivered to the Second Priority Collateral Agent
(or prior to the First Priority Obligations Payment Date, the First Priority Collateral
Agent acting as bailee on its behalf) representing Pledged Collateral, either such
certificates are “Securities” as defined in Article 8 of the UCC as a result of actions by
the Issuer or otherwise, or, if such certificates are not Securities, such Pledgor has so
informed the Second Priority Collateral Agent so that the Second Priority Collateral Agent
may take steps to perfect its security interest therein as a General Intangible; and
(j) none of the Pledged Collateral owned by such Pledgor has been issued or transferred
in violation of the securities registration, securities disclosure or similar laws of any
jurisdiction to which such issuance or transfer may be subject, except to the extent,
individually or in the aggregate, that such issuance or transfer could not reasonably be
expected to result in a Material Adverse Effect.
Section 4. Covenants. If prior to the Termination Date, any Pledgor shall receive any
certificate representing Pledged Shares (including, without limitation, any certificate
representing a dividend or a distribution in kind in connection with any reclassification, increase
or reduction of capital, or issued in connection with any reorganization, merger or consolidation),
or any options or rights, whether as an addition to, in substitution for, or in exchange for any of
the Pledged Shares, or otherwise, such Pledgor agrees to accept the same as the Second Priority
Collateral Agent’s Representative and to hold the same in trust for the Second Priority Collateral
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Agent, and such Pledgor shall on the earlier of (A) 30 days after the date written notice
thereof has been given to the Pledgor by the Second Priority Collateral Agent but only with respect
to certificates representing Capital Stock of Significant Acquired Subsidiaries and (B) on or
before the later of (i) 30 days following such receipt or (ii) the first date required for delivery
of financial statements pursuant to Section 4.03(a)(i) or (ii) of the Indenture following such
receipt (or such longer period as to which the Second Priority Collateral Agent may agree), or, if
an Event of Default has occurred and is continuing, within 30 days following written notice thereof
given by the Second Priority Collateral Agent to such Pledgor, deliver the same forthwith to (prior
to the First Priority Obligations Payment Date) the First Priority Collateral Agent or the Second
Priority Collateral Agent, in the exact form received, with the endorsement of such Pledgor when
necessary and/or appropriate undated stock or other transfer powers duly executed in blank, to be
held (prior to the First Priority Obligations Payment Date) by the First Priority Collateral Agent
(acting as bailee on behalf of the Second Priority Collateral Agent) or the Second Priority
Collateral Agent, as applicable, for the benefit of the Second Priority Secured Parties, subject to
the terms hereof, as additional Pledged Collateral. Upon the creation or acquisition by any
Pledgor of any Capital Stock in any other Issuer or any additional Pledged Shares of any Issuer,
such Pledgor shall, on or before the later of (i) 30 days following such creation or acquisition or
(ii) the first date required for delivery of financial statements pursuant to Section 4.03(a)(i) or
(ii) of the Indenture following such creation or acquisition (or such longer period as to which the
Second Priority Collateral Agent may agree), execute and deliver to the Second Priority Collateral
Agent an Addendum in the form of Exhibit B hereto (an “Addendum”); provided, that
with respect to any Foreign Issuer whose Capital Stock is uncertificated, the applicable Pledgor
shall, to the extent not prohibited by applicable law, cause to be issued one or more stock
certificates representing 65% of the issued Capital Stock of such Foreign Issuer, together with
undated instruments of transfer duly executed by such Pledgor to be delivered (i) prior to the
First Priority Obligations Payment Date, to the First Priority Collateral Agent or (ii) on and
after the First Priority Obligations Payment Date, to the Second Priority Collateral Agent, within
such time period. (i) Prior to the First Priority Obligations Payment Date, the First Priority
Collateral Agent or (ii) on and after the First Priority Obligations Payment Date, the Second
Priority Collateral Agent, shall on behalf of the Second Priority Secured Parties, maintain
possession and custody of any certificates delivered to it representing the Pledged Shares and any
additional Pledged Collateral. Without the prior written consent of the Second Priority Collateral
Agent each Pledgor agrees that it shall not, and not otherwise permit any Issuer, to opt-in to
Article 8 of the UCC with respect to any uncertificated Pledged Collateral which will cause such
Pledged Collateral to become a “Security” within the meaning of Section 8-102 of the UCC.
Section 5. Administration of Security.
(a) Each Pledgor shall be entitled (subject to the other provisions hereof, including,
without limitation, Section 8 below):
(i) until receipt of notice to the contrary from the Second Priority Collateral Agent
during the continuance of an Event of Default, to vote or consent, or refrain from voting or
consenting, with respect to the Pledged Shares; provided however, that no vote or
other right shall be exercised or action taken by any Pledgor which would
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have the effect of materially impairing the rights of the Second Priority Collateral
Agent in respect of such Pledged Collateral; and
(ii) until receipt of notice to the contrary from the Second Priority Collateral Agent
delivered during the continuance of an Event of Default, to receive cash dividends or other
distributions in the ordinary course made in respect of the Pledged Shares, to the extent
payment is not prohibited pursuant to the Indenture.
(b) Upon the occurrence and continuance of an Event of Default, (i) prior to the First
Priority Obligations Payment Date, the First Priority Collateral Agent or (ii) on and after
the First Priority Obligations Payment Date or the Second Priority Enforcement Date (as
defined in the Intercreditor Agreement), the Second Priority Collateral Agent, may act as
each Pledgor’s proxy and attorney-in-fact pursuant to the terms of Section 22,
subject to the limitations set forth in the last sentence of this clause (b), with respect
to its Pledged Collateral, including the right to vote such Pledged Collateral, with full
power of substitution to do so, and the right to exercise all other rights, powers,
privileges and remedies to which a holder of such Pledged Collateral would be entitled
(including giving or withholding written consents of shareholders, calling special meetings
of shareholders and voting at such meetings). Such proxy shall be effective, automatically
and without the necessity of any action (including any transfer of any such Pledged
Collateral on the record books of the issuer thereof) by any person (including the issuer of
such Pledged Collateral or any officer or agent thereof), upon the occurrence and
continuation of an Event of Default.
(c) Upon the occurrence and during the continuance of an Event of Default, in the event
that any Pledgor, as record and beneficial owner of its Pledged Shares, shall have received
or shall have become entitled to receive, any cash dividends or other distributions on
account of the Pledged Shares in the ordinary course or pursuant to the recapitalization of
the capital of the Issuer thereof or pursuant to the reorganization thereof, such Pledgor
shall, at the Second Priority Collateral Agent’s written request, promptly deliver such cash
or other distributions to the Second Priority Collateral Agent or its Representative, for
the benefit of the Second Priority Secured Parties, and the Second Priority Collateral
Agent, shall be entitled to receive and retain, all such cash or other distributions as
additional Pledged Collateral.
Section 6. [Reserved]
Section 7. Certain Rights of the Second Priority Collateral Agent. Neither the Second
Priority Collateral Agent nor any of the other Second Priority Secured Parties shall be liable for
failure to collect or realize upon any of the Second Priority Secured Obligations or any collateral
security or guaranty therefor, or any part thereof, or for any delay in so doing, nor shall the
Second Priority Collateral Agent or any of the other Second Priority Secured Parties be under any
obligation to take any action whatsoever with regard thereto. Any or all of the Pledged Shares
held by the First Priority Collateral Agent or the Second Priority Collateral Agent or any
Representative thereof hereunder may, if an Event of Default has occurred and is continuing, be
registered in the name of the Second Priority Collateral Agent or its nominee and the Second
Priority Collateral Agent or its nominee may thereafter (with prompt subsequent, but not prior,
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notice to the Pledgors) exercise all voting and corporate rights at any meeting with respect
to any Issuer and exercise any and all rights of conversion, exchange, subscription or any other
rights, privileges or options pertaining to any of the Pledged Shares as if it were the absolute
owner thereof, including, without limitation, the right to vote in favor of, and to exchange at its
discretion any and all of the Pledged Shares upon, the merger, consolidation, reorganization,
recapitalization or other readjustment with respect to any Issuer or upon the exercise by any
Pledgor or the Second Priority Collateral Agent or any Representative thereof, of any right,
privilege or option pertaining to any of the Pledged Shares, and in connection therewith, to
deposit and deliver any and all of the Pledged Shares with any depository, transfer agent,
registrar or other designated agency upon such terms and conditions as the Second Priority
Collateral Agent may determine, all without liability except to account for property actually
received by the Second Priority Collateral Agent or any Representative thereof. For purposes of
this Agreement, the Second Priority Collateral Agent shall act at the written direction of the
Required Second Priority Secured Parties.
Section 8. Remedies. Upon the occurrence and during the continuance of an Event of
Default, the Second Priority Collateral Agent, without demand of performance or other demand,
advertisement or notice of any kind (except the notice specified below of time and place of public
or private sale) to or upon any Pledgor or any other person (all and each of which demands,
advertisements and/or notices are hereby expressly waived), may forthwith collect, receive,
appropriate and realize upon the Pledged Collateral, or any part thereof, and/or may forthwith
sell, assign, give an option or options to purchase, contract to sell or otherwise dispose of
(including the disposition by merger) and deliver said Pledged Collateral, or any part thereof, in
one or more portions at public or private sale or sales or transactions, at any exchange, broker’s
board or at the Second Priority Collateral Agent’s offices or elsewhere upon such terms and
conditions as the Second Priority Collateral Agent may deem commercially reasonable and at such
prices as it may deem best, for any combination of cash and/or securities or other property or on
credit or for future delivery without assumption by any Second Priority Secured Party of any credit
risk, with the right to the Second Priority Collateral Agent or its Representative upon any such
sale or sales, public or private, to purchase the whole or any part of said Pledged Collateral so
sold, free of any right or equity of redemption in any Pledgor, which right or equity is hereby
expressly waived or released. Each Pledgor agrees that the Second Priority Collateral Agent or its
Representative need not give more than ten (10) days’ notice (but shall give at least ten (10)
days’ notice) of the time and place of any public sale or of the time after which a private sale or
other intended disposition is to take place and that such notice is reasonable notification of such
matters. No notification need be given to any Pledgor if such Pledgor has signed after the
occurrence and during the continuance of an Event of Default a statement renouncing or modifying
any right to notification of sale or other intended disposition. In addition to the rights and
remedies granted to the Second Priority Collateral Agent for the benefit of the Second Priority
Secured Parties in this Agreement and in any other instrument or agreement securing, evidencing or
relating to any of the Obligations, the Second Priority Collateral Agent and the other Second
Priority Secured Parties shall have all the rights and remedies of a secured party under the UCC
and under any other applicable law.
Section 9. Sale of Pledged Shares.
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(a) Each Pledgor recognizes that the Second Priority Collateral Agent or its
Representative, on behalf of the Second Priority Secured Parties may be unable to effect a
public sale or disposition (including, without limitation, any disposition in connection
with a merger of any Subsidiary) of any or all the Pledged Collateral by reason of certain
prohibitions contained in the Securities Act of 1933, as amended (the “Act”), and
applicable state securities laws, but may be compelled to resort to one or more private
sales or dispositions thereof to a restricted group of purchasers who will be obliged to
agree, among other things, to acquire such securities for their own account for investment
and not with a view to the distribution or resale thereof. Each Pledgor acknowledges and
agrees that any such private sale or disposition may result in prices and other terms
(including the terms of any securities or other property received in connection therewith)
less favorable to the seller than if such sale or disposition were a public sale or
disposition and, notwithstanding such circumstances, agrees that any such private sale or
disposition shall be deemed to be reasonable and affected in a commercially reasonable
manner. The Second Priority Collateral Agent, shall be under no obligation to delay a sale
or disposition of any of the Pledged Collateral in order to permit any Pledgor or any Issuer
to register such securities for public sale under the Act, or under applicable state
securities laws, even if such Pledgor or any Issuer would agree to do so. No Second
Priority Secured Party shall incur any liability as a result of the sale of any such Pledged
Collateral, or any part thereof, at any private sale provided for in this Agreement
conducted in a commercially reasonable manner, and each Pledgor hereby waives any claims
against the Second Priority Secured Parties arising by reason of the fact that the price at
which the Pledged Collateral may have been sold at such a private sale was less than the
price which might have been obtained at a public sale or was less than the aggregate amount
of the Obligations, even if, acting in a commercially reasonable manner, the Second Priority
Collateral Agent or its Representative accepts the first offer received and does not offer
the Pledged Collateral to more than one offeree.
(b) Upon the occurrence and during the continuance of an Event of Default, each Pledgor
agrees to do or cause to be done all such other acts and things as may be reasonably
necessary to make such sale or sales or dispositions of any portion or all of the Pledged
Collateral valid and binding and in compliance with any and all applicable laws,
regulations, orders, writs, injunctions, decrees or awards of any and all courts,
arbitrators or governmental instrumentalities, domestic or foreign, having jurisdiction over
any such sale or sales or dispositions, all at such Pledgor’s expense.
(c) Each Pledgor agrees to indemnify and hold harmless the Second Priority Secured
Parties, each of their respective successors and assigns, officers, directors, employees,
agents and attorneys, and any Person in control of any thereof, from and against any loss,
liability, claim, damage and expense (limited with respect to legal expenses to the
reasonable out-of-pocket fees, disbursements and other charges of one counsel to such
indemnified Persons taken as a whole and, if reasonably necessary, one local counsel in any
relevant jurisdiction) (collectively called the “Indemnified Liabilities”), under
federal and state securities laws or otherwise insofar as any such Indemnified Liability:
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(i) arises out of or is based upon any Pledgors’ untrue statement or alleged untrue
statement of a material fact contained in any registration statement, prospectus or offering
memorandum or in any preliminary prospectus or preliminary offering memorandum or in any
amendment or supplement to any of the foregoing or in any other writing prepared in
connection with the offer, sale or resale of all or any portion of the Pledged Collateral
prior to the termination of this Agreement unless such untrue statement of material fact was
provided by the Second Priority Collateral Agent specifically for inclusion therein; or
(ii) arises out of or is based upon any Pledgors’ omission or alleged omission to state
therein a material fact required to be stated or necessary to make the statements therein
not misleading;
such indemnification to remain operative regardless of any investigation made by or on behalf of
the Second Priority Collateral Agent, any Representative, any Second Priority Secured Party or any
successor thereof, or any Person in control of any thereof. In connection with a public sale or
other distribution, each Pledgor will provide customary indemnification to any underwriters, their
respective successors and assigns, their respective officers and directors and each Person who
controls any such underwriter (within the meaning of the Act). If and to the extent that the
foregoing undertakings in this Section 9(c) may be unenforceable for any reason, each
Pledgor agrees to make maximum contribution to the payment and satisfaction of each of the
Indemnified Liabilities which is permissible under applicable law. The obligations of each Pledgor
under this Section 9(c) shall survive any termination of this Agreement.
Section 10. Application of Proceeds. The proceeds of any collection, sale or other
realization of all or any part of the Pledged Collateral, and any other cash at the time held by
the First Priority Collateral Agent (acting as bailee on behalf of the Second Priority Collateral
Agent) or the Second Priority Collateral Agent, as applicable under this Agreement, shall (subject
to the Intercreditor Agreement), following an Event of Default, be applied in the manner set forth
in Section 7.06 of the Indenture. Each Pledgor shall remain liable for any deficiency remaining
after such application.
Section 11. Further Assurances. Each Pledgor agrees that at any time and from time to
time, upon the written request of the Second Priority Collateral Agent, such Pledgor will execute
and deliver all stock powers, financing statements, proxies and such further documents and do such
further reasonable acts and things as the Second Priority Collateral Agent may reasonably request
consistent with the provisions hereof in order to effect the purposes of this Agreement. Without
limiting the foregoing, each Pledgor will take any and all actions reasonably required or requested
by the Second Priority Collateral Agent, from time to time, to cause the Second Priority Collateral
Agent to obtain exclusive control of any Pledged Collateral owned by such Pledgor in a manner
reasonably acceptable to the Second Priority Collateral Agent. For purposes of this Section
11, the Second Priority Collateral Agent shall have control of Pledged Collateral if (i) in the
case of Pledged Collateral consisting of certificated securities, such Pledgor delivers such
certificated securities (prior to the First Priority Obligations Payment Date) to the First
Priority Collateral Agent (acting as bailee on behalf of the Second Priority Collateral Agent) or
thereafter to the Second Priority Collateral Agent or its Representative (in each case with
appropriate endorsements (in blank or otherwise) if such certificated securities are
11
in registered form), as the case may be, and (ii) in the case of any other Pledged Collateral,
(prior to the First Priority Obligations Payment Date) the First Priority Collateral Agent (acting
as bailee on behalf of the Second Priority Collateral Agent) or thereafter to the Second Priority
Collateral Agent or its Representative, has control thereof for all applicable purposes of the UCC,
in each case subject only to the Lien of the First Priority Collateral Agent.
Section 12. Limitation on Duty of the Second Priority Collateral Agent.
(a) The powers conferred on the Second Priority Collateral Agent under this Agreement
are solely to protect the Second Priority Collateral Agent’s interest in the Pledged
Collateral and shall not impose any duty upon it to exercise any such powers. The Second
Priority Collateral Agent shall be accountable only for amounts that it actually receives as
a result of the exercise of such powers and neither the Second Priority Collateral Agent nor
its Representative nor any of their respective officers, directors, employees or agents
shall be responsible to Pledgors for any act or failure to act, except for bad faith, gross
negligence, willful misconduct or breach of this Agreement. Without limiting the foregoing,
the Second Priority Collateral Agent and any Representative shall be deemed to have
exercised reasonable care in the custody and preservation of the Pledged Collateral in their
possession if such Pledged Collateral is accorded treatment substantially equivalent to that
which the Second Priority Collateral Agent or any Representative, in its individual
capacity, accords its own property consisting of the type of Pledged Collateral involved, it
being understood and agreed that neither the Second Priority Collateral Agent nor any
Representative shall have any responsibility for taking any necessary steps (other than
steps taken in accordance with the standard of care set forth above) to protect, preserve or
exercise rights against any Person with respect to any Pledged Collateral and shall be
relieved of all responsibility for the Pledged Collateral upon surrendering it to the
applicable Pledgor.
(b) Also without limiting the generality of the foregoing, neither the Second Priority
Collateral Agent nor any Representative shall have any obligation or liability under any
contract or license by reason of or arising out of this Agreement or the granting to the
Second Priority Collateral Agent of a security interest therein or assignment thereof or the
receipt by the Second Priority Collateral Agent or any Representative of any payment
relating to any contract or license pursuant hereto, nor shall the Second Priority
Collateral Agent or any Representative be required or obligated in any manner to perform or
fulfill any of the obligations of any Pledgor under or pursuant to any contract or license,
or to make any payment, or to make any inquiry as to the nature or the sufficiency of any
payment received by it or the sufficiency of any performance by any party under any contract
or license, or to present or file any claim, or to take any action to collect or enforce any
performance or the payment of any amounts which may have been assigned to it or to which it
may be entitled at any time or times.
Section 13. Second Priority Collateral Agent’s Actions. Whenever reference is made in
this Agreement to any action by, consent, designation, specification, requirement or approval of,
notice, request or other communication from, or other direction given or action to be undertaken or
to be (or not to be) suffered or omitted by the Second Priority Collateral Agent or to any
election, decision, opinion, acceptance, use of judgment, expression of satisfaction or
12
other exercise of discretion, rights or remedies to be made (or not to be made) by the Second
Priority Collateral Agent, it is understood that in all cases the Second Priority Collateral Agent
shall be fully justified in failing or refusing to take any such action under this Agreement if it
shall not have received such advice or concurrence of the Required Second Priority Secured Parties,
as it deems appropriate. This provision is intended solely for the benefit of the Second Priority
Collateral Agent and its successors and permitted assigns and is not intended to and will not
entitle the other parties hereto to any defense, claim or counterclaim, or confer any rights or
benefits on any party hereto.
Section 14. Severability. If any provision hereof is invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (a) the other provisions hereof shall
remain in full force and effect in such jurisdiction and (b) the invalidity or unenforceability of
any provision hereof in any jurisdiction shall not affect the validity or enforceability of such
provision in any other jurisdiction.
Section 15. No Waiver; Cumulative Remedies. No failure on the part of the Second
Priority Collateral Agent to exercise, and no course of dealing with respect to, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise by the Second Priority Collateral Agent of any right, power or remedy
hereunder preclude any other or further exercise thereof or the exercise of any other right, power
or remedy. Neither the Second Priority Collateral Agent nor any of the other Second Priority
Secured Parties shall be liable for any failure to collect or realize upon any of the Secured
Obligations (as defined in the Second Priority Security Agreement) or any collateral security or
guaranty therefor, or any part thereof, or for any delay in so doing, nor shall the Second Priority
Collateral Agent or any of the other Second Priority Secured Parties be under any obligation to
take any action whatsoever with regard thereto. The rights and remedies herein provided are
cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or
remedies provided by law.
Section 16. Specific Performance. Each Pledgor agrees that a breach of any of the
covenants contained in Sections 2(b), 4, 5(c), 9 or 11
hereof will cause irreparable injury to the Second Priority Secured Parties, that the Second
Priority Secured Parties have no adequate remedy at law in respect of such breach and, as a
consequence, agrees that each and every covenant referenced above shall be specifically enforceable
against such Pledgor in an action for specific performance.
Section 17. Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties hereto, the Second Priority Secured Parties and the respective
successors and assigns of the foregoing, provided, that no Pledgor shall assign or transfer
its rights hereunder without the prior written consent of the Second Priority Collateral Agent.
Section 18. Termination. This Agreement and the Liens granted hereunder shall
terminate upon the date of the termination of the Indenture, the full and complete performance and
indefeasible satisfaction of all the Obligations (other than contingent indemnification
obligations) and the termination of all commitments which could give rise to Obligations (the
“Termination Date”), whereupon each Pledgor shall automatically be released from its
obligations hereunder (other than those expressly stated to survive such termination) and the
13
Second Priority Collateral Agent shall forthwith cause to be assigned, transferred and
delivered, against receipt but without any recourse, warranty or representation whatsoever, any
remaining Collateral (including all certificates evidencing the Pledged Collateral in its
possession or control) to or on the order of the Pledgors. The Second Priority Collateral Agent,
at the Pledgors’ expense, shall also execute and deliver to the Pledgors upon such termination such
UCC termination statements and such other documentation as shall be reasonably requested by the
Pledgors to effect the termination and release of the Liens in favor of the Second Priority
Collateral Agent created hereby.
Section 19. Possession of Pledged Collateral. Beyond the exercise of reasonable care
to assure the safe custody of the Pledged Collateral in the physical possession of the Second
Priority Collateral Agent or its Representative pursuant hereto, neither the Second Priority
Collateral Agent nor any nominee or Representative of the Second Priority Collateral Agent shall
have any duty or liability to collect any sums due in respect thereof or to protect, preserve or
exercise any rights pertaining thereto, and shall be relieved of all responsibility for the Pledged
Collateral upon surrendering them to the applicable Pledgor.
Section 20. Survival of Representations and Warranties. All representations and
warranties of each Pledgor contained in this Agreement shall survive the execution and delivery of
this Agreement.
Section 21. Expenses. Any taxes (including income taxes) and stamp duties payable or
ruled payable by any domestic or foreign Governmental Entity in respect of this Agreement shall be
paid by the Pledgors, together with related interest, penalties, fines and expenses, if any. The
Pledgors shall reimburse the Second Priority Collateral Agent or its Representative promptly
following demand for any and all reasonable and documented costs and out-of-pocket expenses
(limited with respect to legal expenses to the reasonable fees, disbursements and other charges of
one counsel to the Second Priority Collateral Agent and, if reasonably necessary, one local counsel
in any relevant jurisdiction) relating to this Agreement. For purposes thereof, costs and expenses
relating to the collection, preservation or sale of the Pledged Collateral shall be deemed to be in
connection with the administration of this Agreement. Any and all costs and expenses incurred by
the Pledgors in the performance of actions required pursuant to the terms hereof shall be borne
solely by the Pledgors.
Section 22. Attorney-In-Fact. Until the Termination Date, each Pledgor hereby
irrevocably appoints (i) prior to the First Priority Obligations Payment Date, the First Priority
Collateral Agent or (ii) on and after the First Priority Obligations Payment Date or the Second
Priority Enforcement Date, the Second Priority Collateral Agent, as such Pledgor’s
attorney-in-fact, effective upon the occurrence and during the continuance of an Event of Default,
with full authority in the place and stead of such Pledgor and in the name of such Pledgor or
otherwise, from time to time in the Second Priority Collateral Agent’s discretion, to take any
action and to execute any instrument that the Second Priority Collateral Agent deems reasonably
necessary or advisable to accomplish the purposes of this Agreement, including, without limitation,
to receive, endorse and collect all instruments made payable to such Pledgor representing any
dividend, payment or other distribution in respect of the Pledged Collateral or any part thereof
and to give full discharge for the same, when and to the extent permitted by this Agreement.
14
Section 23. Notices. All notices, demands and requests that any party is required or
elects to give to any other party shall be given in accordance with the provisions of Section 14.01
of the Indenture, and if given (i) to the Second Priority Collateral Agent, shall be given to it at
Deutsche Bank Trust Company Americas, Trust & Securities Services, ▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇, ▇▇▇
▇▇▇▇, ▇▇▇ ▇▇▇▇ 10005, Attn: Deal Manager — Corporates Team, Facsimile No. (▇▇▇) ▇▇▇-▇▇▇▇; with a
copy to: Deutsche Bank Trust Company America c/o Deutsche Bank National Trust Company, Trust &
Securities Services, ▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, Attn: Deal
Manager — Corporates Team, Facsimile No. (▇▇▇) ▇▇▇-▇▇▇▇; or as otherwise specified by the
Collateral Agent in writing, (ii) to a Pledgor other than the Company, shall be given to it c/o the
Company at the address specified in the Indenture and (iii) to the Company, shall be given to it at
its address specified in the Indenture.
Section 24. Choice of Law, Submission to Jurisdiction, etc.
(a) This Agreement shall be construed in accordance with and governed by the laws of
the State of New York, without regard to conflicts of laws principles thereof.
(b) Each Pledgor hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District
of New York, and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Agreement, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such New York State
or, to the extent permitted by law, in such Federal court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law.
(c) Each of the parties hereto hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement in any court referred to in paragraph (b) of this Section. Each
of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or proceeding in any such
court.
(d) Each party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 23. Nothing in this Agreement will affect
the right of any party to this Agreement to serve process in any other manner permitted by
law.
Section 25. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,
15
TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
Section 26. Amendments, Etc. The terms of this Agreement may be waived, altered or
amended only by an instrument in writing duly executed by each Pledgor and the Second Priority
Collateral Agent with (other than in the case of amendments hereof solely for the purpose of adding
Pledged Collateral as contemplated hereby) the concurrence or at the direction of the Required
Second Priority Secured Parties. Any such amendment or waiver shall be binding upon the Second
Priority Collateral Agent and each Pledgor and their respective successors and assigns.
Section 27. Counterparts; Headings. This Agreement may be authenticated in any number
of counterparts, all of which taken together shall constitute one and the same instrument and any
of the parties hereto may authenticate this Agreement by signing any such counterpart. This
Agreement may be authenticated by manual signature, facsimile or electronic means, all of which
shall be equally valid. The headings in this Agreement are for convenience of reference only and
shall not alter or otherwise affect the meaning hereof.
Section 28. Entire Agreement. This Agreement embodies the entire agreement and
understanding between the Pledgors and the Second Priority Collateral Agent with respect to the
subject matter hereof and supersedes all prior oral and written agreements and understandings
between any Pledgor and the Second Priority Collateral Agent relating to the subject matter hereof.
Nothing in this Agreement shall be deemed to limit or supersede the rights granted to the Second
Priority Collateral Agent or the other Second Priority Secured Parties in the Indenture. In the
event of any inconsistencies between the provisions of this Agreement and the provisions of the
Second Priority Security Agreement relating to Pledged Collateral, the provisions of this Agreement
relating to the Pledged Collateral shall govern.
Section 29. Patriot Act. The parties hereto acknowledge that in accordance with
Section 326 of the USA Patriot Act, Deutsche Bank Trust Company Americas, like all financial
institutions and in order to help fight the funding of terrorism and money laundering, is required
to obtain, verify, and record information that identifies each person or legal entity that
establishes a relationship or opens an account. The parties to this agreement agree that they will
provide Deutsche Bank Trust Company Americas with such information as it may request in order for
Deutsche Bank Trust Company Americas to satisfy the requirements of the USA Patriot Act.
[Signature Page Follows]
16
IN WITNESS WHEREOF, the parties hereto have caused this Second Priority Pledge Agreement to be
duly executed and delivered as of the day and year first above written.
| PLEDGORS: | ||||||
| MONEYGRAM INTERNATIONAL, INC. | ||||||
| By: | /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||||
| Title: | Executive Vice President and Chief Financial Officer |
|||||
| MONEYGRAM PAYMENT SYSTEMS WORLDWIDE, INC. | ||||||
| By: | /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||||
| Title: | Executive Vice President and Chief Financial Officer |
|||||
| MONEYGRAM PAYMENT SYSTEMS, INC. | ||||||
| By: | /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||||
| Title: | Executive Vice President and Chief Financial Officer |
|||||
| FSMC, INC. | ||||||
| By: | /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||||
| Title: | Executive Vice President and Chief Financial Officer |
|||||
| MONEYGRAM INVESTMENTS, LLC | ||||||
| By: | /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||||
| Title: | Executive Vice President and Chief Financial Officer |
|||||
[Signature Page to Amended and restated Pledge Agreement]
| PROPERTYBRIDGE, INC. | ||||||
| By: | /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||||
| Title: | Executive Vice President and Chief Financial Officer |
|||||
| MONEYGRAM OF NEW YORK LLC, | ||||||
| By: MONEYGRAM PAYMENT | ||||||
| SYSTEMS, INC., its Sole Member | ||||||
| By: | /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||||
| Title: | Executive Vice President and Chief Financial Officer |
|||||
[Signature Page to Amended and restated Pledge Agreement]
| SECOND PRIORITY COLLATERAL AGENT: | ||||||
| DEUTSCHE BANK TRUST COMPANY | ||||||
| AMERICAS, as Second Priority Collateral | ||||||
| Agent for the benefit of the Second Priority | ||||||
| Secured Parties | ||||||
| By: Deutsche Bank National Trust Company | ||||||
| By: | /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |||||
| Title: | Vice President | |||||
| By: | /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇ | |||||
| Title: | Vice President | |||||
[Signature Page to Amended and Restated Pledge Agreement]
Exhibit A
to Pledge Agreement
to Pledge Agreement
| % of | ||||||||||||||||
| Issued | ||||||||||||||||
| Shares of | ||||||||||||||||
| Certificate | No. | Class of | such Class | |||||||||||||
| Pledgor | Issuer | No. | of Shares | Shares | of Issuer | |||||||||||
MoneyGram
International, Inc.
|
MoneyGram Payment Systems Worldwide, Inc. | 2 | 1 | Common | 100 | % | ||||||||||
MoneyGram Payment
Systems Worldwide,
Inc.
|
MoneyGram Payment Systems, Inc. | 2 | 1 | Common | 100 | % | ||||||||||
MoneyGram Payment
Systems, Inc.
|
FSMC, Inc. | 1 | 1,000 | Common | 100 | % | ||||||||||
MoneyGram Payment
Systems, Inc.
|
MoneyGram Investments, LLC |
Uncertificated | N/A | N/A | 100 | % | ||||||||||
MoneyGram Investments, LLC |
Long Lake Partners, LLC |
Uncertificated | N/A | N/A | 100 | % | ||||||||||
MoneyGram Payment
Systems, Inc.
|
PropertyBridge, Inc. | C-18 | 1 | Commnon | 100 | % | ||||||||||
MoneyGram Payment
Systems, Inc.
|
MoneyGram of New York LLC | Uncertificated | N/A | N/A | 100 | % | ||||||||||
MoneyGram Payment
Systems, Inc.
|
Travelers Express Company (P.R.), Inc. | 7 | 32.5 | Common | 65 | % | ||||||||||
MoneyGram Payment
Systems, Inc.
|
MoneyGram Payment Systems Canada, Inc. | 2 | 0.65 | Common | 65 | % | ||||||||||
MoneyGram Payment
Systems, Inc.
|
MoneyGram International Holdings Limited |
3 | 65,000 | Ordinary | 65 | % | ||||||||||
| % of | ||||||||||||||||
| Issued | ||||||||||||||||
| Shares of | ||||||||||||||||
| Certificate | No. | Class of | such Class | |||||||||||||
| Pledgor | Issuer | No. | of Shares | Shares | of Issuer | |||||||||||
MoneyGram Payment
Systems, Inc.
|
MoneyGram France, S.A. | Uncertificated | N/A | N/A | 100 | % | ||||||||||
MoneyGram Payment
Systems, Inc.
|
MoneyGram Payments Systems Italy S.r.l. | Uncertificated | N/A | N/A | 100 | % | ||||||||||
MoneyGram Payments
Systems, Inc.
|
GBP Holdings, Inc. | 1 | 1 | Common | 100 | % | ||||||||||
Please note that the stock certificate issued by FSMC, Inc. is actually issued to Travelers Express
Company, Inc. which is now known as MoneyGram Payment Systems, Inc. (merger was effective December
31, 2005).
Exhibit B
to Second Priority Pledge Agreement
Addendum to Second Priority Pledge Agreement
to Second Priority Pledge Agreement
Addendum to Second Priority Pledge Agreement
The undersigned, being a Pledgor pursuant to that certain Second Priority Pledge Agreement
dated as of March [___], 2008 (the “Pledge Agreement”) in favor of Deutsche Bank Trust
Company Americas, a New York banking corporation, as Collateral Agent (the “Second Priority
Collateral Agent”), by executing this Addendum, hereby acknowledges that such Pledgor legally
and beneficially owns Capital Stock as set forth below of ______, a ______ [corporation]
(“Corporation”). Capitalized terms used but not defined herein have the meanings given
them in the Second Priority Pledge Agreement. Such Pledgor hereby agrees and acknowledges that
Corporation is an Issuer pursuant to the Pledge Agreement and the Shares (as hereinafter defined)
shall be deemed Pledged Shares pursuant to the Pledge Agreement. Such Pledgor hereby represents
and warrants to the Collateral Agent and the other Second Priority Secured Parties that (i) all of
the Capital Stock of Corporation now owned by such Pledgor (“Shares”), to the extent the
same do not constitute Excluded Shares, is presently represented by the stock certificates listed
below, which stock certificates, with undated stock powers duly executed in blank by such Pledgor,
are being delivered (i) prior to the First Priority Obligations Payment Date, to the First Priority
Collateral Agent or (ii) on and after the First Priority Obligations Payment Date, to the Second
Priority Collateral Agent, simultaneously herewith, and (ii) after giving effect to this addendum,
the representations and warranties set forth in Section 3 of the Second Priority Pledge Agreement
are true, complete and correct as of the date hereof (except to the extent such representations and
warranties are stated to relate to an earlier date, in which case such representations and
warranties shall have been made on and as of such earlier date).
Pledged Shares
| % of Issued | ||||||||||||||||||||||
| Certificate | No. | Class of | Shares of | |||||||||||||||||||
| Pledgor | Issuer | No. | of Shares | Shares | Class | |||||||||||||||||
IN WITNESS WHEREOF, Pledgor has executed this Addendum this day of , 200___.
| PLEDGOR: | ||||||
| By: | ||||||
| Its: | ||||||
ACKNOWLEDGED
DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Second Priority Collateral Agent
as Second Priority Collateral Agent
By: |
||||
Its: |
||||
Exhibit C
to Second Priority Pledge Agreement
Joinder to Second Priority Pledge Agreement
to Second Priority Pledge Agreement
Joinder to Second Priority Pledge Agreement
The undersigned, , a
, as of the ___ day of ___, 20___, hereby
joins in the execution of that certain Pledge Agreement dated as of March ___, 2008 (as the same may
be amended, restated, amended and restated supplemented or otherwise modified and in effect from
time to time, the “Second Priority Pledge Agreement”) among MoneyGram International, Inc.,
MoneyGram Payment Systems Worldwide, Inc., MoneyGram Payment Systems, Inc., FSMC, Inc., MoneyGram
Investments, LLC, PropertyBridge, Inc., MoneyGram of New York LLC and each other Person that
becomes a Pledgor thereunder after the date and pursuant to the terms thereof, to and in favor of
Deutsche Bank Trust Company Americas, a New York banking corporation, as the Second Priority
Collateral Agent. Capitalized terms used but not defined herein have the meanings given them in
the Second Priority Pledge Agreement. By executing this Joinder, the undersigned hereby agrees
that it is a Pledgor thereunder and agrees to be bound by all of the terms and provisions of the
Second Priority Pledge Agreement.
The undersigned represents and warrants to the Second Priority Collateral Agent and the other
Second Priority Secured Parties that the undersigned is the record and beneficial owner of, and has
legal title to, the Capital Stock set forth below.
, a
By: |
||||
Name:
|
||||
Title:
|
||||
Pledged Shares
| % of Issued | ||||||||||||||||||||||
| Certificate | No. | Class of | Shares of | |||||||||||||||||||
| Pledgor | Issuer | No. | of Shares | Shares | Class | |||||||||||||||||
ACKNOWLEDGED
DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Second Priority Collateral Agent
as Second Priority Collateral Agent
By: |
||||
Its:
|
||||