AMENDMENT NUMBER 2 TO PURCHASE AGREEMENT March 10, 2008

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EX-10.2 3 amendmenttwo.htm AMENDMENT NO. 2 TO PURCHASE AGREEMENT amendmenttwo.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.2

AMENDMENT NUMBER 2 TO PURCHASE AGREEMENT

March 10, 2008

       Reference is hereby made to that certain Purchase Agreement, dated as of February 11, 2008, by and among MoneyGram International, Inc., a Delaware corporation (the “Company”), and the Investors party thereto, as amended on March 8, 2008 (as so amended, the “Purchase Agreement”). All terms not defined herein shall have the meanings ascribed to them in the Purchase Agreement.

       1. The Company and each of the Investors hereby agree that the Purchase Agreement shall be amended to reflect the terms set forth in Exhibit A hereto.

       2. The Company hereby acknowledges and agrees that paragraph 1 of the Amendment to Purchase Agreement dated March 8, 2008, by and among the Company and the Investors shall remain in full force and effect as if the Purchase Agreement were not amended by this amendment. Accordingly, the Company further hereby acknowledges and agrees that the Company shall not assert, claim or otherwise take a position that the Investors are obligated to close under the Purchase Agreement, notwithstanding any events that occur, or the Company’s ability to satisfy any conditions referenced in such paragraph 1 of such Amendment to Purchase Agreement, after March 8, 2008.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

     IN WITNESS WHEREOF, the undersigned has executed this agreement on the date first written above.

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

[Signature Page to Amendment to Purchase Agreement]

THOMAS H. LEE EQUITY FUND VI, L.P. 
 
By:  THL EQUITY ADVISORS VI, LLC, 
        its general partner 
 
By: /s/ Seth W. Lawry                                             
      Name: Seth W. Lawry 
      Title: Managing Director 
  
  
THOMAS H. LEE PARALLEL FUND VI, L.P. 
  
By:  THL EQUITY ADVISORS VI, LLC 
        its general partner 
  
By: /s/ Seth W. Lawry                                             
      Name: Seth W. Lawry 
      Title: Managing Director 
   
  
THOMAS H. LEE PARALLEL (DT) FUND VI, 
         L.P. 
    
By:  THL EQUITY ADVISORS VI, LLC 
        its general partner 
 
By: /s/ Seth W. Lawry                                             
      Name: Seth W. Lawry 
      Title: Managing Director 
 
 

[Signature Page to Amendment to Purchase Agreement]


GS CAPITAL PARTNERS VI FUND, 
           L.P. 
   
By:  GSCP VI Advisors, L.L.C. 
        its General Partner 
    
By: /s/ Bradley Gross                                  
      Name: Bradley Gross 
      Title: Managing Director 
  
  
GS CAPITAL PARTNERS VI 
           OFFSHORE FUND, L.P. 
   
By:  GSCP VI Offshore Advisors, L.L.C. 
        its General Partner 
    
By: /s/ Bradley Gross                                  
      Name: Bradley Gross 
      Title: Managing Director 
  
    
GS CAPITAL PARTNERS VI GmbH & 
           Co. KG 
   
By: GS Advisors VI, L.L.C. 
       its Managing Limited Partner 
     
By: /s/ Bradley Gross                                  
      Name: Bradley Gross 
      Title: Managing Director 
 

[Signature Page to Amendment to Purchase Agreement]


GS CAPITAL PARTNERS VI 
PARALLEL, L.P. 
By:  GS Advisors VI, L.L.C. 
        its General Partner 
      
By: /s/ Bradley Gross                               
      Name: Bradley Gross 
      Title: Managing Director 
   
   
GSMP V ONSHORE US, LTD. 
     
By: /s/ Bradley Gross                               
      Name: Bradley Gross 
      Title: Managing Director 
 
   
GSMP V OFFSHORE US, LTD. 
    
By: /s/ Bradley Gross                                 
      Name: Bradley Gross 
      Title: Managing Director 
 
    
GSMP V INSTITUTIONAL US, LTD. 
    
By: /s/ Bradley Gross                               
      Name: Bradley Gross 
      Title: Managing Director 
 

[Signature Page to Amendment to Purchase Agreement]


    Exhibit A 
 
The Purchase Agreement shall be amended to incorporate the following terms: 
 
Equity Investment:    •    $760,000,000, in the aggregate, of Series B Preferred Stock 
        and Series B-1 Preferred Stock at Closing, without 
        adjustment. No Temporary Security Units will be issued or 
        acquired, and no Exchange will be required 
 
Series B and B-1    The terms of the Series B Preferred Stock and Series B-1 
Preferred:    Preferred Stock shall be modified as follows: 
    •    Conversion Price (as defined in Series B Certificate and 
        Series B-1 Certificate) shall initially be $2.50 
    •    In circumstances where the Company is required to pay cash 
        dividends pursuant to the Series B Certificate and Series B-1 
        Certificate but fails to do so, the Dividend Rates shall be 
        15% rather than 12.5%. 
    •    Series B Preferred Stock shall have voting rights initially 
        representing 9.9% of the outstanding post-Closing voting 
        stock of the Company through June 15, 2008 (or such earlier 
        date as all applicable state regulatory approvals for THL’s 
        acquisition of control of the Company shall have been 
        obtained) (June 15, 2008 or such earlier date, the “Voting 
        Date”). The 9.9% shall increase prior to the Voting Date to 
        the extent permitted by applicable state regulatory laws. 
        From and after the Voting Date, the voting rights shall be as 
        currently set forth in the Series B Certificate and the Series 
        B-1 Certificate. The Company shall agree not to take or 
        permit to occur any stockholder vote (or action by written 
        consent) on any matter with a record date prior to the Voting 
        Date, except to the extent required by law. If required by 
        law to have a record date that is earlier than the Voting Date, 
        then the Voting Date shall occur no later than immediately 
        prior to such record date. 
    •    At Closing, the Investors shall have (i) the right to designate 
        two directors and (ii) at the option of the Investors, shall also 
        be entitled to designate a majority of the directors at any time 
        after Closing 
    •    The Series B Certificate and the Series B-1 Certificate shall 
        be amended to include the negative control provisions of the 
        Series C Preferred Certificate through the Voting Date 
 
 
Closing Conditions:    The Closing under the Purchase Agreement, as amended to 
    reflect the terms of this Term Sheet, shall be subject to the 

    following conditions: 
        •    NYSE shall have confirmed in writing that the Rule 
            312.05 exception to the stockholder vote requirement is 
            available for this transaction, and the 10-day notice 
            period contemplated thereby shall have passed 
        •    The Company shall have raised $50 million of additional 
            debt financing, over and above that contemplated by the 
            Purchase Agreement, on terms acceptable to the 
            Investors in their sole discretion. 
        •    Other closing conditions that are mutually acceptable to 
            the Investors and the Company, each acting in their sole 
            discretion. 
 
    The Purchase Agreement, as amended to reflect the terms of this 
    Term Sheet, shall contain such other terms and conditions not set 
    forth herein as shall be mutually acceptable to the Investors and 
    the Company, each acting in their sole discretion. 
 
    The Company and the Investors agree that each shall not 
    challenge or dispute any action or decision taken by the other 
    that, under the Purchase Agreement, such other party is entitled 
    to take in its sole discretion. 
 
Go Shop:    The Go-Shop Period shall be extended through the Closing. 
 
Termination:    Section 5.1(a) shall be revised to state that the Purchase 
    Agreement can be terminated by mutual consent of the Company 
    and the Investors, or by either the Investors or the Company in 
    either’s sole discretion if they are unable to agree upon mutually 
    acceptable terms, closing conditions and definitive 
    documentation on or prior to March 14, 2008. References in the 
    Agreement to “March 13” shall be changed to “March 25.” 
 
Expenses:    •    On March 10, 2008, the Company shall pay to the Investors 
        as an advance for unreimbursed out-of-pocket transaction 
        expenses, $3,690,000. If the Closing does not occur, the 
        Investors shall repay to the Company the excess, if any, of 
        such amount over actual out-of-pocket expenses incurred by 
        the Investors through the termination of the Purchase 
        Agreement or reasonably expected to be incurred by them 
        pursuant to last bullet point in this section. 
    •    On the Closing Date (or the earlier termination of the 
        Purchase Agreement), Company shall reimburse the 
        Investors for unreimbursed out-of-pocket transaction 
        expenses incurred prior thereto 

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    •                The Company shall reimburse the Investors upon demand for 
                      unreimbursed out-of-pocket expenses incurred by them after 
                      the Closing Date or after termination of the Purchase 
                      Agreement in connection with negotiation, execution, 
                      delivery, performance, consummation or termination of the 
                      Purchase Agreement (including, without limitation, in 
                      connection with obtaining regulatory approvals) 
 
Director Approval:                      The Company shall confirm that the directors of the Company 
                      received fairness opinions, dated as of March 10, 2008, in the 
                      form contemplated by Section 2.2(s) of the Purchase Agreement 
                      with respect to the transaction contemplated hereby and that the 
                      Company’s directors unanimously approved the transaction 
                      contemplated hereby. The Company’s directors shall 
                      unanimously approve the amendment to the Purchase Agreement 
                      contemplated by this Term Sheet and, at the time of such 
                      amendment, receive updated fairness opinions in the form 
                      contemplated by Section 2.2(s) of the Purchase Agreement. 

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