Document:

Exhibit 10.12

 

INDEMNIFICATION AGREEMENT

 

This
Indemnification Agreement (“Agreement”) is entered into as of the
       day of
                ,
2010 by and between NetSpend Holdings, Inc., a Delaware corporation (the “Company”),
and
                    
(“Indemnitee”).

 

RECITALS

 

WHEREAS,
highly competent persons have become more reluctant to serve corporations as
directors or in other capacities unless they are provided with adequate
protection through insurance and indemnification against risks of claims and
actions against them arising out of their service to and activities on behalf
of the corporation.

 

WHEREAS,
the Board of Directors of the Company (the “Board”) has determined that,
in order to attract and retain qualified individuals, the Company will attempt
to maintain on an ongoing basis, at its sole expense, liability insurance to
protect persons serving the Company and its subsidiaries from certain
liabilities.  Although the furnishing of
such insurance has been a customary and widespread practice among United
States-based corporations and other business enterprises, the Company believes
that, given current market conditions and trends, such insurance may be
available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers, and
other persons in service to corporations or business enterprises are being
increasingly subjected to expensive and time-consuming litigation relating to,
among other things, matters that traditionally would have been brought only
against the Company or business enterprise itself.

 

WHEREAS,
the Amended and Restated Bylaws of the Company (the “Bylaws”) provide
that the Company shall indemnify and advance expenses to all directors and
officers of the Company in the manner set forth therein and to the fullest
extent permitted by applicable law, and the Company’s Third Amended and
Restated Certificate of Incorporation (the “Certificate of Incorporation”)
provides for limitation of liability for directors.  In addition, Indemnitee may be entitled
to indemnification pursuant to the General Corporation Law of the State of
Delaware (“DGCL”).  The
Certificate of Incorporation and the DGCL expressly provide that the
indemnification provisions set forth therein are not exclusive, and thereby
contemplate that contracts may be entered into between the Company and members
of the Board, officers and other persons with respect to indemnification.

 

WHEREAS,
the uncertainties relating to such insurance and to indemnification have
increased the difficulty of attracting and retaining such persons.

 

WHEREAS, Indemnitee
is concerned that the protection available under the Company’s Certificate of
Incorporation and Bylaws and insurance may not be adequate, and may not be
willing to continue to serve as an officer or director of the Company,
especially in the context of the possible sale of the Company, without greater
certainty concerning such protection, and the Company desires Indemnitee to
serve in such capacity and is willing to provide such greater certainty.

 

 

WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to
obligate itself to indemnify, and to advance expenses on behalf of, such
persons to the fullest extent permitted by applicable law so that they will
serve or continue to serve the Company free from undue concern that they will
not be so indemnified.

 

WHEREAS,
this Agreement is a supplement to and in furtherance of the Bylaws and any
resolutions adopted pursuant thereto and shall not be deemed a substitute therefor,
nor to diminish or abrogate any rights of Indemnitee thereunder.

 

WHEREAS,
the Board has determined that the increased difficulty in attracting and
retaining such persons is detrimental to the best interests of the Company’s
stockholders and that the Company should act to assure such persons that there
will be increased certainty of such protection in the future.

 

NOW,
THEREFORE, in consideration of the premises and the covenants contained herein,
the Company and Indemnitee do hereby covenant and agree as follows:

 

1.             Indemnification.

 

1.1           Indemnification
of Expenses.  If
Indemnitee is, by reason of his Corporate Status, a party to and is successful,
on the merits or otherwise, in any Proceeding, he shall be indemnified against
all Expenses actually and reasonably incurred by him or on his behalf in
connection therewith.  If Indemnitee is
not wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to any Matter in such Proceeding, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by him or on
his behalf relating to such Matter.  The
termination of any Matter in such a Proceeding by dismissal, with or without
prejudice, shall be deemed to be a successful result as to such Matter.  To the extent that the Indemnitee is, by
reason of his Corporate Status, a witness in any Proceeding, he shall be
indemnified against all Expenses actually and reasonably incurred by him or on
his behalf in connection therewith.

 

1.2           Advances.  In the event of any threatened or pending
Proceeding in which Indemnitee is a party or is involved and that may give rise
to a right of indemnification under this Agreement, following written request
to the Company by Indemnitee, the Company shall promptly pay to Indemnitee
amounts to cover Expenses reasonably incurred by Indemnitee in connection with
such Proceeding in advance of its final disposition upon the receipt by the
Company of (i) a written undertaking executed by or on behalf of
Indemnitee providing that Indemnitee will repay the advance if it shall
ultimately be determined that Indemnitee is not entitled to be indemnified by
the Company as provided in this Agreement and (ii) reasonably satisfactory
evidence as to the amount of such Expenses.

 

1.3           Request
for Indemnification.  To obtain
indemnification, Indemnitee shall submit to the Secretary of the Company a
written claim or request.  Such written
claim or request shall contain sufficient information to reasonably inform the
Company about the nature and extent of the indemnification or advance sought by
Indemnitee.  The Secretary of the Company
shall promptly advise the Board of Directors of such request.

 

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1.4           Determination
of Entitlement; No Change of Control.  If there has been no Change of Control at the
time the request for indemnification is submitted, Indemnitee’s
entitlement to indemnification shall be determined in accordance with Section 145(d) of
the DGCL.  If entitlement to
indemnification is to be determined by Independent Counsel, the Company shall
furnish notice to Indemnitee within ten days after receipt of the request for
indemnification notice specifying the identity and address of Independent
Counsel.  The Indemnitee may, within 14
days after receipt of such written notice, deliver to the Company a written
objection to such selection.  Such
objection may be asserted only on the ground that the Independent Counsel so
selected does not meet the requirements of Independent Counsel and the objection
shall set forth with particularity the factual basis for such assertion.  If there is an objection to the selection of
Independent Counsel, either the Company or Indemnitee may petition the Court
for a determination that the objection is without a reasonable basis or for the
appointment of Independent Counsel selected by the Court.

 

1.5           Determination
of Entitlement; Change of Control.  If there has been a Change of Control at the
time the request for indemnification is submitted, Indemnitee’s entitlement
to indemnification shall be determined in a written opinion by Independent
Counsel selected by Indemnitee. 
Indemnitee shall give the Company written notice advising of the
identity and address of the Independent Counsel so selected.  The Company may, within 14 days after receipt
of such written notice of selection, deliver to the Indemnitee a written
objection to such selection.  Indemnitee
may, within 14 days after the receipt of such objection from the Company, submit
the name of another Independent Counsel and the Company may, within seven days
after receipt of such written notice, deliver to the Indemnitee a written
objection to such selection.  Any
objections referred to in this Section 1.5 may be asserted only on
the ground that the Independent Counsel so selected does not meet the
requirements of Independent Counsel and such objection shall set forth with
particularity the factual basis for such assertion.  Indemnitee may petition the Court for a
determination that the Company’s objection to the first or second selection of
Independent Counsel is without a reasonable basis or for the appointment as
Independent Counsel selected by the Court.

 

1.6           Procedures
of Independent Counsel.  If a
Change of Control shall have occurred before the request for indemnification is
sent by Indemnitee, Indemnitee shall be presumed (except as otherwise
expressly provided in this Agreement) to be entitled to indemnification upon
submission of a request for indemnification in accordance with Section 1.3
hereof, and thereafter the Company shall have the burden of proof to overcome
the presumption in reaching a determination contrary to the presumption.  The presumption shall be used by Independent
Counsel as a basis for a determination of entitlement to indemnification unless
the Company provides information sufficient to overcome such presumption by
clear and convincing evidence or the investigation, review and analysis of
Independent Counsel convinces him by clear and convincing evidence that the
presumption should not apply.

 

Except
in the event that the determination of entitlement to indemnification is to be
made by Independent Counsel, if the person or persons empowered under Section 1.4
or 1.5 hereof to determine entitlement to indemnification shall not have
made and furnished to Indemnitee in writing a determination within 60 days
after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been
made and 

 

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Indemnitee
shall be entitled to such indemnification unless Indemnitee knowingly
misrepresented a material fact in connection with the request for
indemnification or such indemnification is prohibited by applicable law.  The termination of any Proceeding or of any
Matter therein, by judgment, order, settlement or conviction, or upon a plea of
nolo contendere or its equivalent, shall not (except as otherwise expressly
provided in this Agreement) of itself adversely affect the right of Indemnitee
to indemnification or create a presumption that Indemnitee did not act in good
faith and in a manner that he reasonably believed to be in or not opposed to
the best interests of the Company, or with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that his conduct was
unlawful.  A person who acted in good
faith and in a manner he reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan of the Company shall
be deemed to have acted in a manner not opposed to the best interests of the
Company.

 

For
purposes of any determination hereunder, a person shall be deemed to have acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company, or, with respect to any criminal Proceeding,
to have had no reasonable cause to believe his conduct was unlawful, if his
action is based on the records or books of account of the Company or another
enterprise or on information, opinions, reports or statements presented to him
or to the Company by any of the Company’s officers, employees or directors, or
by any other person as to matters the person reasonably believes are in such
other person’s professional or expert competence and who has been selected with
reasonable care by or on behalf of the Company or another enterprise in the
course of their duties or on the advice of legal counsel for the Company or
another enterprise or on information or records given or reports made to the
Company or another enterprise by an independent certified public accountant or
by an appraiser or other expert selected with reasonable care by the Company or
another enterprise.  The term “another
enterprise” as used in this Section 1.6 shall mean any other corporation
or any partnership, limited liability company, association, joint venture,
trust, employee benefit plan or other enterprise for which such person is or
was serving at the request of the Company as a director, officer, employee or
agent.  The provisions of this paragraph
shall not be deemed to be exclusive or to limit in any way the circumstances in
which an Indemnitee may be deemed to have met the applicable standards of
conduct for determining entitlement to rights under this Agreement.

 

1.7           Independent
Counsel Expenses.  The Company
shall pay any and all reasonable fees and expenses of Independent Counsel
incurred acting pursuant to this Agreement and in any Proceeding to which it is
a party or witness in respect of its investigation and written report and shall
pay all reasonable fees and expenses incident to the procedures in which such
Independent Counsel was selected or appointed. 
No Independent Counsel may serve if a timely objection has been made to
his selection until a court has determined that such objection is without a
reasonable basis.

 

1.8           Adjudication.  In the event that (i) a determination is
made pursuant to Section 1.4 or 1.5 hereof that Indemnitee
is not entitled to indemnification under this Agreement; (ii) advancement
of Expenses is not timely made pursuant to Section 1.2 hereof; (iii) Independent
Counsel has not made and delivered a written opinion determining the request
for indemnification (a) within 90 days after being appointed by the Court,
(b) within 90 days after 

 

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objections
to his selection have been overruled by the Court or (c) within 90 days
after the time for the Company or Indemnitee to object to his selection; or (iv) payment
of indemnification is not made within five days after a determination of
entitlement to indemnification has been made or is deemed to have been made
pursuant to Section 1.4, 1.5 or 1.6 hereof, Indemnitee
shall be entitled to an adjudication by the Court of his entitlement to such
indemnification or advancement of Expenses. 
In the event that a determination shall have been made that Indemnitee
is not entitled to indemnification, any judicial proceeding or arbitration
commenced pursuant to this Section 1.8 shall be conducted in all
respects as a de novo trial on the merits and Indemnitee shall not be
prejudiced by reason of that adverse determination.  If a Change of Control shall have occurred,
in any judicial proceeding commenced pursuant to this Section 1.8,
the Company shall have the burden of proving that Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be.  If a determination shall have been made or is
deemed to have been made that Indemnitee is entitled to indemnification, the
Company shall be bound by such determination in any judicial proceeding
commenced pursuant to this Section 1.8, or otherwise, unless
Indemnitee knowingly misrepresented a material fact in connection with the
request for indemnification, or such indemnification is prohibited by law.

 

The
Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 1.8 that the procedures and presumptions
of this Agreement are not valid, binding and enforceable.  If Indemnitee, pursuant to this Section 1.8,
seeks a judicial adjudication to enforce his rights under, or to recover
damages for breach of, this Agreement, and if he prevails therein, then
Indemnitee shall be entitled to recover from the Company, and shall be
indemnified by the Company against, any and all Expenses actually and
reasonably incurred by him in such judicial adjudication.  If it shall be determined in such judicial
adjudication that Indemnitee is entitled to receive part but not all of the
indemnification or advancement of Expenses sought, then the Expenses incurred
by Indemnitee in connection with such judicial adjudication or arbitration
shall be prorated.

 

1.9           Participation
by the Company.  With
respect to any Proceeding: (a) the Company will be entitled to participate
therein at its own expense; (b) except as otherwise provided below, to the
extent that it may wish, the Company (jointly with any other indemnifying party
similarly notified) will be entitled to assume the defense thereof, with
counsel reasonably satisfactory to Indemnitee; and (c) the Company shall
not be liable to indemnify Indemnitee under this Agreement for any amounts paid
in settlement of any action or claim effected without its written consent,
which consent shall not be unreasonably withheld.  After receipt of notice from the Company to
Indemnitee of the Company’s election to assume the defense thereof, the Company
will not be liable to Indemnitee under this Agreement for any legal or other
expenses subsequently incurred by Indemnitee in connection with the defense thereof
other than as otherwise provided below. 
Indemnitee shall have the right to employ his own counsel in such
action, suit, proceeding or investigation but the fees and expenses of such
counsel incurred after notice from the Company of its assumption of the defense
thereof shall be at the expense of Indemnitee unless the employment of counsel
by Indemnitee has been authorized by the Company, or Indemnitee shall have
reasonably concluded that there is a conflict of interest between the Company
and Indemnitee in the conduct of the defense of such action, or the Company
shall not in fact have employed counsel to assume the defense of such action,
in each of which cases the fees and expenses of counsel employed by Indemnitee
shall be 

 

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subject
to indemnification pursuant to the terms of this Agreement.  The Company shall not be entitled to assume
the defense of any Proceeding brought in the name of or on behalf of the
Company or as to which Indemnitee shall have reasonably concluded that there is
a conflict of interest between the Company and Indemnitee in the conduct of the
defense of such action.  The Company
shall not settle any action or claim in any manner which would impose any
limitation or un-indemnified penalty on Indemnitee without Indemnitee’s written
consent, which consent shall not be unreasonably withheld.

 

1.10         Insurance
and Subrogation.  If, at the
time of the receipt by the Company of a notice of a Claim pursuant to this
Agreement, the Company has liability insurance in effect which may cover such
Claim, the Company shall give prompt notice of the commencement of such Claim
to the insurers in accordance with the procedures set forth in the respective
policies.  The Company shall thereafter
take all reasonably necessary or desirable action to cause such insurers to
pay, on behalf of Indemnitee, all amounts payable as a result of such action,
suit, proceeding, inquiry or investigation in accordance with the terms of such
policies.

 

Except
as provided in Section 1.11, the Company shall not be liable under
this Agreement to make any payment of amounts otherwise indemnifiable hereunder
if, but only to the extent that, Indemnitee has otherwise actually
received such payment under any insurance policy, contract, agreement or
otherwise.  Except as provided in Section 1.11,
in the event of any payment hereunder, the Company shall be subrogated to the
extent of such payment to all the rights of recovery of Indemnitee (other than
against the Fund Indemnitors), who shall execute all papers required and take
all action reasonably requested by the Company to secure such rights, including
execution of such documents as are necessary to enable the Company to bring
suit to enforce such rights.

 

1.11         Primacy
of Indemnification.  The Company
hereby acknowledges that Indemnitee has certain rights to indemnification,
advancement of expenses and/or insurance provided by third parties
(collectively, the “Fund Indemnitors”).  The Company hereby agrees (a) that the
Company is the indemnitor of first resort with respect to the Corporate Status
of the Indemnitee (i.e., the Company’s obligations to the Indemnitee are
primary, and any obligation of the Fund Indemnitors to advance expenses or to
provide indemnification for the same expenses or liabilities incurred by
Indemnitee in connection with the Corporate Status of such Indemnitee are
secondary), (b) that the Company shall be required to advance the full
amount of expenses incurred by the Indemnitee and shall be liable for the full
amount of all Expenses, judgments, penalties, fines and amounts paid in
settlement to the extent legally permitted and as required by the terms of this
Agreement or the Company’s certificate of incorporation or bylaws, without
regard to any rights the Indemnitee may have against the Fund Indemnitors, and,
(c) that the Company irrevocably waives, relinquishes and releases the
Fund Indemnitors from any and all claims against the Fund Indemnitors for
contribution, subrogation or any other recovery of any kind in respect
thereof.  The Company further agrees that
no advancement or payment by the Fund Indemnitors on behalf of the Indemnitee
with respect to any claim for which the Indemnitee has sought indemnification
from the Company shall affect the foregoing, and the Fund Indemnitors shall
have a right of contribution and/or be subrogated to the extent of such
advancement or payment to all of the rights of recovery of the Indemnitee
against the Company.  

 

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The
Company and the Indemnitee agree that the Fund Indemnitors are express third
party beneficiaries of the terms of this Section 1.11.

 

1.12         Selection
of Counsel.  In the
event the Company shall be obligated hereunder to pay the Expenses of any
Claim, the Company shall be entitled to assume the defense of such Claim with
counsel approved by Indemnitee, which approval shall not be unreasonably
withheld, delayed or conditioned, upon the delivery to Indemnitee of written
notice of its election so to do.  After
delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to
Indemnitee under this Agreement for any fees of counsel subsequently incurred
by Indemnitee with respect to the same Claim; provided that,
(i) Indemnitee shall have the right to employ Indemnitee’s counsel in any
such Claim at Indemnitee expense and (ii) if (A) the employment of
counsel by Indemnitee has been previously authorized by the Company,
(B) Indemnitee shall have reasonably concluded that there is a conflict of
interest between the Company and Indemnitee in the conduct of any such defense,
or (C) the Company shall not continue to retain such counsel to defend
such Claim, then the fees and expenses of Indemnitee’s counsel shall be at the
expense of the Company.  The Company
shall have the right to conduct such defense as it sees fit in its sole
discretion; provided, however, that the Company shall not be entitled to settle
any claim against Indemnitee without the consent of the Indemnitee, which
consent shall not be unreasonably withheld, conditioned or delayed, unless the
settlement involves only the payment of monetary relief for which the
Indemnitee will be indemnified and does not include a statement or an admission
of fault or culpability by or on behalf of the Indemnitee.

 

2.             Additional
Indemnification Rights; Nonexclusivity.

 

2.1           Scope.  The Company hereby agrees to indemnify
Indemnitee to the fullest extent permitted by law, notwithstanding that such
indemnification is not specifically authorized by the other provisions of this
Agreement, the Company’s Certificate of Incorporation or the Company’s
Bylaws.  In the event of any change after
the date of this Agreement in any applicable law, statute or rule which
expands the right of a Delaware corporation to indemnify a member of its Board
or an officer, employee, agent or fiduciary, it is the intent of the parties
hereto that Indemnitee shall enjoy by this Agreement the greater benefits
afforded by such change.  In the event of
any change in any applicable law, statute or rule which narrows the right
of a Delaware corporation to indemnify a member of its Board or an officer,
employee, agent or fiduciary, such change, to the extent not otherwise required
by such law, statute or rule to be applied to this Agreement, shall have
no effect on this Agreement or the parties’ rights and obligations hereunder
except as set forth in Section 6.1 hereof.

 

2.2           Nonexclusivity.  The rights of indemnification and advancement
of Expenses as provided by this Agreement shall not be deemed exclusive of any
other rights to which Indemnitee may at any time be entitled to under
applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a
vote of stockholders or a resolution of directors, or otherwise.  The rights to indemnification and advancement
of Expenses provided by, or granted pursuant to, this Agreement shall be deemed
vested at the time a person becomes a director or officer of the Company and no
subsequent amendment, alteration or repeal of this Agreement or any other
provision of the Certificate of Incorporation or the Bylaws shall adversely
affect the rights of any person that is or was a director or officer with
respect to events, actions or

 

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circumstances
occurring, in whole or in part, prior to such amendment, alteration or
repeal.  The provisions of this Agreement
shall continue as to an Indemnitee whose Corporate Status has ceased for any
reason and shall inure to the benefit of his or its heirs, executors,
administrators, successors or assigns. 
Neither the provisions of this Agreement nor those of any agreement to
which the Company is a party shall be deemed to preclude the indemnification of
any person who is not specified in this Agreement as having the right to
receive indemnification or is not a party to any such agreement, but whom the
Company has the power or obligation to indemnify under the provisions of the
DGCL.

 

3.             Partial
Indemnification.  If
Indemnitee is entitled under any provision of this Agreement to indemnification
by the Company for some or a portion of Expenses incurred in connection with
any Claim, but not, however, for all of the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion of such Expenses to
which Indemnitee is entitled.

 

4.             Mutual
Acknowledgement.  Both the
Company and Indemnitee acknowledge that in certain instances, federal law or
applicable public policy may prohibit the Company from indemnifying its
directors, officers, employees, agents or fiduciaries under this Agreement or
otherwise.  Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future
to undertake with the Securities and Exchange Commission to submit the question
of indemnification to a court in certain circumstances for a determination of
the Company’s right under public policy to indemnify Indemnitee; provided,
however, that such determination shall in no event affect Indemnitee’s right to
recovery under any insurance policy contemplated by Section 5 hereof.

 

5.             Liability
Insurance.  To the
extent the Company maintains liability insurance applicable to directors,
officers, employees, agents or fiduciaries, Indemnitee shall be covered by such
policies in such a manner as to provide Indemnitee the same rights and benefits
as are accorded to the most favorably insured of the Company’s directors, if
Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a
director of the Company but is an officer; or of the Company’s key employees,
agents or fiduciaries, if Indemnitee is not an officer or director but is a key
employee, agent or fiduciary.

 

6.             Exceptions.  Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

 

6.1           Excluded Action or Omissions.  To indemnify Indemnitee for Indemnitee’s
acts, omissions or transactions from which Indemnitee or the Indemnitee may not
be relieved of liability under applicable law;

 

6.2           Claims Initiated by Indemnitee.  To indemnify or advance expenses to
Indemnitee with respect to Claims initiated or brought voluntarily by
Indemnitee and not by way of defense, except (i) with respect to actions or
proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other agreement or insurance policy or under the Company’s
Certificate of Incorporation or Bylaws now or hereafter in effect relating to
Claims for Indemnifiable Events, (ii) in specific cases if the Board has
approved the initiation or bringing of such Claim, or (iii) as otherwise
required under Section 145 of the DGCL, regardless 

 

8

 

of
whether Indemnitee ultimately is determined to be entitled to such
indemnification, advance expense payment or insurance recovery, as the case may
be;

 

6.3           Lack of Good Faith.  To indemnify Indemnitee for any expenses
incurred by Indemnitee with respect to any proceeding instituted by Indemnitee
to enforce or interpret this Agreement, if a court of competent jurisdiction
determines that each of the material assertions made by Indemnitee in such
proceeding was not made in good faith or was frivolous;

 

6.4           Claims Under Section 16(b).  To indemnify Indemnitee for expenses and the
payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”),
or any similar successor statute;

 

6.5           Proceeding
by or in the Right of the Company.  To indemnify for judgments, fines and
penalties incurred in connection with the defense or settlement of any Claim by
or in the right of the Company to procure a judgment in its favor (except to
the extent indemnification is permitted under Section 145(b) of the DGCL);

 

6.6           Fraudulent
Conduct.  To indemnify Indemnitee for any Expenses,
judgments, fines or penalties resulting from Indemnitee’s conduct which is
finally adjudged to have been willful misconduct, knowingly fraudulent or deliberately
dishonest; or

 

6.7           Unlawful
Payment.  If a court of competent
jurisdiction finally determines that such payment hereunder is unlawful.

 

7.             Construction
of Certain Phrases.

 

7.1           Company.  References to “Company” shall include, in
addition to the resulting corporation, any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which,
if its separate existence had continued, would have had power and authority to
indemnify its directors, officers, employees, agents or fiduciaries, so that if
Indemnitee is or was a director, officer, employee, agent or fiduciary of such
constituent corporation, or is or was serving at the request of such
constituent corporation as a director, officer, employee, agent or fiduciary of
another corporation, partnership, joint venture, employee benefit plan, trust
or other enterprise, Indemnitee shall stand in the same position under the
provisions of this Agreement with respect to the resulting or surviving
corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

 

7.2           Definitions.  For purposes of this Agreement:

 

“Change of Control” means a change in control of the Company
after the date Indemnitee acquired his Corporate Status, which shall be deemed
to have occurred in any one of the following circumstances occurring after such
date: (i) there shall have occurred an event that is or would be required to be
reported with respect to the Company in response to Item 6(e) of Schedule 14A
of Regulation 14A (or in response to any similar item on any similar schedule
or form) promulgated under the Exchange Act, if the Company is or were subject
to such reporting requirement; (ii) any “person” (as such 

 

9

 

term
is used in Sections 13(d) and 14(d) of the Exchange Act) shall have become the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 40% or more of the
combined voting power of the Company’s then outstanding voting securities
without prior approval of at least two-thirds of the members of the Board of
Directors in office immediately prior to such person’s attaining such
percentage interest; (iii) the Company is a party to a merger, consolidation,
sale of assets or other reorganization, or a proxy contest, as a consequence of
which members of the Board of Directors in office immediately prior to such
transaction or event constitute less than a majority of the Board of Directors
thereafter; or (iv) during any period of two consecutive years, individuals who
at the beginning of such period constituted the Board of Directors (including,
for this purpose, any new director whose election or nomination for election by
the Company’s stockholders was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such
period) cease for any reason to constitute at least a majority of the Board of
Directors.

 

“Claim” any threatened, pending or completed action, suit,
proceeding, arbitration or alternative dispute resolution mechanism, or any
inquiry or investigation, whether conducted by the Company or any other party,
that Indemnitee in good faith believes might lead to the institution of any
such action, suit or proceeding, whether civil, criminal, administrative,
investigative or other.

 

“Corporate Status” describes the status of an individual as a
present or former director or officer of the Company, or as a director, officer
or other designated legal representative of any other corporation, partnership,
limited liability company, association, joint venture, trust, employee benefit
plan or other enterprise for which an individual is or was serving as a
director, officer or other designated legal representative at the request of
the Company.

 

“Court” means the Court of Chancery of the State of Delaware or
any other court of competent jurisdiction.

 

“Expenses” shall include all reasonable attorneys’ fees,
retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges,
postage, delivery service fees, and all other disbursements or expenses of the
types customarily incurred in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, or being or preparing to be a witness in
a Proceeding.

 

“Indemnifiable Event” any event or occurrence related to the
fact that Indemnitee is or was a director, officer, employee, agent or
fiduciary of the Company, or is or was serving at the request (express or
implied) of the Company as a director, officer, employee, trustee, agent or
fiduciary of another corporation, partnership, joint venture, employee benefit
plan, trust or other enterprise, or by reason of anything done or not done by
Indemnitee in any such capacity.

 

10

 

“Indemnitee” includes any person who is, or is threatened to be
made, a witness in or a party to any Proceeding by reason of his Corporate
Status.

 

“Independent Counsel” means a law firm, or a member of a law
firm, that is experienced in matters of corporate law and neither presently is,
nor in the five years previous to his selection or appointment has been,
retained to represent: (i) the Company or Indemnitee in any matter material to
either such party or (ii) any other party to the Proceeding giving rise to a
claim for indemnification hereunder.

 

“Matter” is a claim, a material issue or a substantial request
for relief.

 

“Proceeding” includes any action, suit, arbitration, alternate
dispute resolution mechanism, investigation, administrative hearing or any
other proceeding, whether civil, criminal, administrative or investigative, except
one initiated by an Indemnitee pursuant to Section 1.8 hereof to enforce
his rights under this Agreement.

 

11

 

8.             Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

 

9.             Binding
Effect; Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their
respective successors, assigns, including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the
business and/or assets of the Company, spouses, heirs, and personal and legal
representatives.  The Company shall
require and cause any successor (whether direct or indirect by purchase,
merger, consolidation or otherwise) to all, substantially all, or a substantial
part, of the business and/or assets of the Company, by written agreement in
form and substance satisfactory to Indemnitee, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform if no such succession had taken
place.  This Agreement shall continue in
effect with respect to Claims relating to Indemnifiable Events regardless of
whether Indemnitee continues to serve as a director, officer, employee, agent
or fiduciary of the Company or of any other enterprise at the Company’s
request.

 

10.          Attorneys’
Fees.  In the event
that any action is instituted by Indemnitee under this Agreement or under any
liability insurance policies maintained by the Company to enforce or interpret
any of the terms hereof or thereof, Indemnitee shall be entitled to be paid all
Expenses incurred by Indemnitee with respect to such action, and shall be
entitled to the advancement of Expenses with respect to such action, unless, as
a part of such action, a court of competent jurisdiction over such action
determines that each of the material assertions made by Indemnitee as a basis
for such action was not made in good faith or was frivolous.  In the event of an action instituted by or in
the name of the Company under this Agreement to enforce or interpret any of the
terms of this Agreement, Indemnitee shall be entitled to be paid all Expenses
incurred by Indemnitee in defense of such action (including costs and expenses
incurred with respect to Indemnitee counterclaims and cross-claims made in such
action), and shall be entitled to the advancement of Expenses with respect to
such action, unless, as a part of such action, a court having jurisdiction over
such action determines that each of Indemnitee material defenses to such action
was made in bad faith or was frivolous.

 

11.          Notice.  Promptly after receipt by Indemnitee of
notice of the commencement of any Proceeding, Indemnitee shall, if he
anticipates or contemplates making a claim for indemnification or advancement
of Expenses pursuant to the terms of this Agreement, notify the Company of the
commencement of such Proceeding; provided, however, that any delay in so
notifying the Company shall not constitute a waiver or release by Indemnitee of
rights hereunder and that any omission by Indemnitee to so notify the Company
shall not relieve the Company from any liability that it may have to Indemnitee
otherwise than under this Agreement.  All
notices and other communications required or permitted hereunder shall be in
writing, shall be effective when given, and shall in any event be deemed to be
given (a) five (5) days after deposit with the U.S. Postal Service or other
applicable postal service, if delivered by first class mail, postage prepaid,
(b) upon delivery, if delivered by hand, (c) one business day after the
business day of deposit with Federal Express or similar overnight courier,
freight prepaid, or (d) one day after the business day of delivery by
facsimile transmission, if delivered by facsimile transmission, with copy by
first class mail, postage prepaid, and shall be addressed if to Indemnitee, at
the Indemnitee address as set forth on the Company’s records and if to the 

 

12

 

Company at the address of its principal corporate
offices (attention:  Secretary) or at
such other address as such party may designate by ten (10) days’ advance
written notice to the other party hereto.

 

12.          Consent
to Jurisdiction.  The Company
and Indemnitee each hereby irrevocably consents to the jurisdiction of the
courts of Delaware for all purposes in connection with any action or proceeding
which arises out of or relates to this Agreement.

 

13.          Severability.  The provisions of this Agreement shall be
severable in the event that any of the provisions hereof (including any
provision within a single section, paragraph or sentence) are held by a court
of competent jurisdiction to be invalid, void or otherwise unenforceable, and
the remaining provisions shall remain enforceable to the fullest extent
permitted by law.  Furthermore, to the
fullest extent possible, the provisions of this Agreement (including, without
limitations, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

 

14.          Choice
of Law.  This
Agreement shall be governed by and its provisions construed and enforced in
accordance with the laws of the State of Delaware, as applied to contracts
between Delaware residents, entered into and to be performed entirely within
the State of Delaware, without regard to the conflict of laws principles
thereof.

 

15.          Amendment
and Termination.  No
amendment, modification, termination or cancellation of this Agreement shall be
effective unless it is in writing signed by both the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

 

16.          Integration
and Entire Agreement.  This
Agreement sets forth the entire understanding between the parties hereto and
supersedes and merges all previous written and oral negotiations, commitments,
understandings and agreements relating to the subject matter hereof between the
parties hereto.

 

17.          No
Construction as Employment Agreement.  Nothing contained in this Agreement shall be
construed as giving Indemnitee any right to be retained in the employ of the
Company or any of its subsidiaries.

 

[Signature Page Follows]

 

13

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written.

 

 

	
  NETSPEND
  HOLDINGS, INC.:

  	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  701
  Brazos Street

  	
   

  	
  Address:

  
	
   

  	
  Suite
  1300

  	
   

  	
   

  
	
   

  	
  Austin,
  TX 78701

  	
   

  	
   

  
					

 

SIGNATURE
PAGE TO INDEMNIFICATION AGREEMENTExhibit 10.22

 

Amended and Restated
NetSpend Holdings, Inc. 2004 Stock Option Plan

Notice of Grant

 

	
  Name: 

  	
  Daniel Henry

  	
      Address:

  	
   

  

 

You have been granted an option to purchase Common Stock of the
Company, subject to the terms and conditions of the Stock Option Agreement
attached hereto (the “Stock Option Agreement”) and the Amended and Restated
NetSpend Holdings, Inc. 2004 Stock Option Plan (the “Plan”), as follows:

 

	
   

  	
  Date of Grant:

  	
   

  	
  March 11, 2008

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Vesting Measurement Date:

  	
   

  	
  February 5, 2008

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Option Price per Share:

  	
   

  	
  $3.53

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Total Number of Shares Granted: 

  	
   

  	
  3,043,231 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Total Option Price:

  	
   

  	
  $10,742,605.43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Type of Option:

  	
   

  	
  o Incentive
  Stock Option x Nonqualified
  Stock Option

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Expiration Date:

  	
   

  	
  March 10, 2018

  

 

Capitalized terms not defined herein shall have the meanings ascribed
to such terms in the Plan or the Stock Option Agreement.

 

I. Vesting and Exercise Schedule:

 

(a)   This Option shall become
vested subject to two conditions, a performance-based vesting condition and, to
the extent a performance-based vesting condition is met, a time-based vesting
condition, as follows: (1) subject to the time vesting conditions in
clause (2) below, (A) 10% of the Option shall be vested the first
time the Company achieves an Equity Value (as defined below) of $600 million,
(B) an additional 10% of the Option (up to an aggregate of 70% of the
Option) shall be vested the first time the Company achieves each of the
following Equity Values: $700 million, $800 million, $900 million, $1 billion,
$1.1 billion, $1.2 billion and $1.3 billion (e.g., if the Company achieves an
Equity Value of $1.01 billion, 50% of the Option will be vested pursuant to
clause (A) and this clause (B)); and (C) 20% of the Option shall be vested
if the Company achieves an Equity Value of at least $1.75 billion, subject, in
each case, to your continued employment with the Company or an Affiliate
through the applicable vesting date (any portion of the Option that vests
(subject to the time vesting conditions set forth in clause (2)) based upon
meeting the performance vesting condition pursuant to this clause (1) is
the “Performance Vested Portion”), and (2) any Performance Vested Portion
shall vest in four equal annual installments, beginning on the first anniversary
of the Vesting Measurement Date, subject to your continued service through the
applicable vesting date.

 

(b)   Notwithstanding the
foregoing, in the event that a Change in Control occurs prior to the fourth
anniversary of the Vesting Measurement Date (excluding any Change in Control
that also constitutes an Initial Public Offering (as defined below) and
excluding any Change in Control, the pursuit of which is approved by the Chief
Executive Officer of the Company), 50% of the portion of the Option eligible for
vesting under clauses (A) and (B) above (i.e., 1,217,292 shares as
may be adjusted pursuant to

 

 

Section 8(a) of the Stock Option Agreement) shall qualify as
a Performance Vested Portion upon the Change in Control whether or not
otherwise vested prior to or as of the Change in Control pursuant to clauses
(A) and (B) above, subject to your continued employment with the
Company or an Affiliate through the date of the Change in Control.

 

(c)   In addition, notwithstanding
the foregoing, the portion of the Option described in subsection (a)(1)(C) above,
to the extent not previously vested or terminated (whether pursuant to
subsection (f) below or otherwise), shall be vested on the sixth
anniversary of the Vesting Measurement Date; provided that the Participant has
remained continuously employed with the Company or an Affiliate through such
date.

 

(d)   Determination of whether a
particular Equity Value Hurdle (as defined below) has been achieved shall be
made only (i) in connection with a Change in Control of the Company and/or
(ii) upon or at any time, and from time to time, following an Initial
Public Offering (as defined below), all as provided below. The $600 million,
$700 million, $800 million, $900 million, $1 billion, $1.1 billion, $1.2
billion, $1.3 billion and $1.75 billion thresholds set forth in the first
sentence shall each be referred to herein as an “Equity Value Hurdle.” Each
Equity Value Hurdle shall be increased (without duplication):

 

(i)           in the event that the
Company raises additional capital from the sale of equity by the Company, the
proceeds of which are used to fund acquisitions by the Company or any
subsidiary thereof, based on the following formula:

 

a. I = (EVH/(1-N/FD))-EVH, where

 

i.      I is the amount of the
increase in each Equity Value Hurdle,

 

ii.     EVH is the Equity Value
Hurdle in effect immediately prior to such issuance,

 

iii.    N is the number of common
stock equivalents of the Company issued in connection with such sale of equity,
and

 

iv.    FD is the fully diluted
number of common stock equivalents of the Company outstanding after giving
effect to such issuance.

 

(ii)          in the event
that the Company issues securities of the Company in connection with any acquisition
by the Company or any subsidiary thereof (whether by way of merger, acquisition
or similar transaction), joint venture, corporate partnering arrangement or
similar arrangement, based on the following formula:

 

a. I = (EVH/(1-N/FD))-EVH, where

 

i.      I is the amount of the
increase in each Equity Value Hurdle,

 

ii.     EVH is the Equity Value
Hurdle in effect immediately prior to such issuance,

 

iii.    N is the number of common
stock equivalents of the Company issued in connection with such acquisition,
joint venture, corporate partnering arrangement or similar arrangement, and

 

2

 

iv.    FD is the fully diluted
number of common stock equivalents of the Company outstanding after giving
effect to such issuance.

 

(iii)         by the
aggregate value of other consideration (including assumed indebtedness) paid by
the Company or any subsidiary thereof (as determined in good faith by the
Board) in connection with any such acquisition, transaction or arrangement by
the Company or any subsidiary thereof.

 

The Company shall promptly determine the amount of
any such increase in the Equity Value Hurdles and shall provide written notice
to you of any such increase in the Equity Value Hurdles.

 

(e)   The following is an example
(and assumes that no Change in Control occurs): If an Initial Public Offering
occurs 13 months following the Vesting Measurement Date and the Equity Value at
the time of the Initial Public Offering exceeds all of the Equity Value
Hurdles, 25% of the Option will be vested upon the Initial Public Offering and
the remainder of the Option will vest in three equal annual installments on the
next three anniversaries of the Vesting Measurement Date, subject to your
continued employment with the Company or an Affiliate through the applicable
vesting date. If an Initial Public Offering occurs five years following the
Vesting Measurement Date and the Equity Value at the time of the Initial Public
Offering exceeds all of the Equity Value Hurdles, 100% of the Option will be
vested upon the Initial Public Offering so long as you have remained employed
with the Company or an Affiliate through the date of the Initial Public
Offering.

 

(f)    Prior to an Initial Public
Offering, the Option will only be eligible to fully vest upon a Change in
Control (based on the Equity Value as of the Change in Control). Any portion of
the Option that is not a Performance Vested Portion as of the Change in Control
shall be terminated upon the Change in Control without any payment therefor.

 

(g)   Notwithstanding any
provision of the Plan or the Stock Option Agreement to the contrary, in the
event of a Change in Control (excluding any Change in Control that also
constitutes an Initial Public Offering), if in connection therewith any portion
of the Performance Vested Portion that has not met the time-based vesting
condition is not being assumed by, or substituted for new options (“New
Options”) covering the stock of, the surviving, successor or purchasing
corporation, or a parent or subsidiary thereof, 100% of such portion of the
Performance Vested Portion that has not met the time-based vesting condition
shall be vested upon the consummation of such Change in Control. Further, in
the event that (a) a Change in Control (excluding any Change in Control
that also constitutes an Initial Public Offering) occurs and (b) during
the twelve-month period following such Change in Control, your employment is
terminated by the Company or an Affiliate for any reason other than for
(i) Cause or (ii) Disability, then 100% of the Performance Vested
Portion or New Options, as applicable, shall be vested immediately. For
purposes of clarification, in the event of a termination of your employment by
the Company or an Affiliate for Cause, by you for any other reason or in the
event of your death, the Performance Vested Portion or New Options, as
applicable, shall not be vested pursuant to the preceding sentence.

 

(h)   For purposes of this Notice
of Grant, the Option Agreement and the Plan:

 

“Initial Public Offering” or “IPO” means the first
firm commitment underwritten public offering for shares of Common Stock pursuant
to an effective registration statement under the Securities Act with aggregate
gross proceeds of at least $40,000,000.

 

“Equity Value” means, with respect to a
determination made in connection with a Change in Control, the aggregate value
of the fully-diluted equity of the Company, as determined

 

3

 

in good faith by the Board based on the proceeds
received in connection with a Change in Control. With respect to a
determination made upon or at any time, and from time to time, following the
date of an IPO and not made in connection with a Change in Control, a
particular Equity Value Hurdle shall be deemed to be achieved only upon the
aggregate market capitalization of the Common Stock being equal to or greater
than the applicable Equity Value Hurdle for thirty consecutive trading days.
For purposes of the foregoing, the market capitalization of the Common Stock
shall be determined by multiplying the average of the closing sale prices
(without regard to after-hours trading) of the Common Stock on the applicable
securities exchange for the applicable 30 consecutive trading days by the
weighted average number of shares of the Common Stock outstanding during such
30-day trading period.

 

“Change in Control” shall mean the first to occur of
the following events: (i) the consummation of a merger, reorganization,
consolidation or sale or other transfer of all or substantially all of the
assets of the Company or of at least 50.1% of the combined voting power of the
Company’s then outstanding voting securities (“Outstanding Voting Securities”)
(a “Corporate Transaction”), excluding, however, such a Corporate Transaction
pursuant to which all or substantially all of the persons who are the
beneficial owners of the Outstanding Voting Securities immediately prior to
such Corporate Transaction will beneficially own, directly or indirectly, more
than 50% of the Outstanding Voting Securities of the corporation or other
entity resulting from such Corporate Transaction; and (ii) approval by the
holders of a majority of the Outstanding Voting Securities of a liquidation or
dissolution of the Company.

 

II. Termination Period:

 

This Option (to the extent vested) may be exercised for the period set
forth in Section 4 of the Stock Option Agreement which generally provides
the following: (1) the Option may be exercised for 90 days after any
termination of employment, or for such longer period as may be applicable upon
death or Disability, but in no event later than the Expiration Date (as
provided above) and (2) the Option may not be exercised (A) after the
termination of your employment by the Company or an Affiliate for Cause (as
defined in the Plan), (B) after a breach by you of any confidentiality,
non-solicitation or non-competition agreement between you and the Company or
any of its Affiliates, or (C) after you engage in any Detrimental
Activity.

 

4

 

Amended and
Restated NetSpend Holdings, Inc.

2004 Stock
Option Plan

 

Stock
Option Agreement

 

This Stock Option Agreement
(this “Agreement”) is made as of the     day of
                         ,
200   , between NetSpend Holdings, Inc., a Delaware corporation (the “Company”),
and                                                    
(the “Participant”, which term as used herein shall be deemed to include any
successor to the Participant by will or by the laws of descent and
distribution, unless the context shall otherwise require).

 

Pursuant to the Company’s Amended and Restated 2004
Stock Option Plan (the “Plan”), the Company, acting through the Committee,
approved the issuance to the Participant, effective as of the date set forth
above, of a stock option to purchase the number of shares (the “Shares”) of
Common Stock, $0.001 par value per share, of the Company (the “Option Stock”),
at the price (the “Option Price”), each as set forth in the Notice of Grant
attached hereto (the “Notice of Grant”), upon the terms and conditions
hereinafter set forth. Capitalized terms not defined herein shall have the
meanings ascribed to such terms in the Plan or in the Notice of Grant.

 

NOW, THEREFORE, in
consideration of the mutual premises and undertakings hereinafter set forth,
the parties hereto agree as follows:

 

1.             Option; Option Price.

 

On behalf of the Company, the Committee hereby
grants to the Participant an option (the “Option”) to purchase the number of
shares of Option Stock of the Company set forth in the Notice of Grant, at an
exercise price per share equal to the Option Price set forth in the Notice of
Grant, subject to the terms and conditions of this Agreement and the Plan
(which is incorporated by reference herein and which in all cases shall control
in the event of any conflict with the terms, definitions and provisions of this
Agreement). If designated in the Notice of Grant as an “incentive stock
option”, the Option is intended to qualify for Federal income tax purposes as
an “incentive stock option” within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”). A copy of the Plan as
in effect on the date hereof has been supplied to the Participant, and the
Participant hereby acknowledges receipt thereof.

 

2.             Term.

 

The term (the “Option Term”) of the Option shall
commence on the Date of Grant and shall expire on the Expiration Date set forth
in the Notice of Grant, unless such Option shall theretofore have been
terminated in accordance with the terms hereof or of the Plan.

 

3.             Time of Exercise.

 

(a)           The Option shall be vested and exercisable as set
forth in the Notice of Grant.

 

(b)           Anything contained in this Agreement to the contrary
notwithstanding, to the extent that this Option is intended to be an “incentive
stock option”, as set forth in the Notice

 

1

 

of Grant, the Option shall not be exercisable as an incentive stock
option, and shall be treated as a non-qualified stock option, to the extent
that the aggregate Fair Market Value (as determined in accordance with Section 6(b) of
the Plan) on the date hereof of all stock with respect to which incentive stock
options are exercisable for the first time by the Participant during any
calendar year (under the Plan and all other plans of the Company and its
Subsidiaries, if any) exceeds $100,000.

 

4.             Termination of Option.

 

(a)           The unexercised portion of
the Option shall automatically terminate and shall become null and void and be
of no further force or effect upon the first to occur of the following:

 

(i)            the expiration of the Option Term;

 

(ii)           the expiration of ninety (90) days from the date of
the Participant’s Termination of Service (other than as a result of death,
Disability or a Termination of Service by the Company or an Affiliate for
Cause); provided, however, that if the Participant shall die
during such ninety-day period, the time of termination of the unexercised
portion of the Option shall be one year from the date of the Participant’s
death;

 

(iii)          the expiration of one year from the date of the
Participant’s Termination of Service if such Termination of Service is a result
of the Participant’s death or Disability;

 

(iv)          immediately upon the Participant’s Termination of
Service if such Termination of Service is by the Company or an Affiliate for
Cause;

 

(v)           except to the extent permitted by Section 7(c) of
the Plan or Section 11, the date on which the Option or any part thereof
or right or privilege relating thereto is transferred (otherwise than by will
or by the laws of descent and distribution), assigned, pledged, hypothecated,
attached or otherwise disposed of by the Participant; and

 

(vi)          except as otherwise permitted by the Committee, the
date on which the Participant breaches any confidentiality, non-competition or
non-solicitation agreement between the Participant and the Company or the date
on which the Participant engages in a Detrimental Activity. For purposes of
this Agreement, a “Detrimental Activity” means (1) the rendering of
services for any organization or engaging directly or indirectly in any
business which is or becomes competitive with the Company, or which
organization or business, or the rendering of services to such organization or
business, is or becomes otherwise prejudicial to or in conflict with the
interests of the Company; (2) the disclosure to anyone outside the Company,
or the use in other than the Company’s business without the prior written
authorization from the Company, of any confidential information or material;
(3) any attempt to directly or indirectly induce any employee of the
Company (or any person who was an Employee or Consultant during the six-month
period preceding the Participant’s Termination of Service) to be employed or
perform services elsewhere; (4) any attempt directly or indirectly to
solicit the trade or business of any current or prospective customer (or entity
that was a customer during the six-month period preceding the Participant’s
Termination of Service); or (5) any other conduct or act

 

2

 

determined to be injurious, detrimental or prejudicial to any interest
of the Company, in each case as determined by the Committee in its sole
discretion. For purposes of this clause (vi), the term “Company” means the
Company and its Affiliates.

 

(b)           Anything contained herein to the contrary
notwithstanding, the Option shall not be affected by any change of duties or
position of the Participant (including a transfer to or from the Company or any
of its Affiliates), so long as the Participant continues to be an Employee or a
Consultant.

 

(c)           In the event of the Participant’s Termination of
Service, the Company shall have the right, but not the obligation, to
repurchase any and all Optioned Shares as set forth in the Notice (defined in
Section 5(a)) or in any stockholders, stock restriction or similar
agreement to which the Participant is a party, as applicable.

 

5.             Procedure for Exercise.

 

(a)           The Option may be exercised, from time to time, in
whole or in part (but for the purchase of whole shares only), by delivery of a
written notice in the form attached as Exhibit A hereto (the “Notice”)
from the Participant to the Chief Financial Officer of the Company, which
Notice shall:

 

(i)            state that the Participant elects to exercise the
Option;

 

(ii)           state the number of shares with respect to which the
Option is being exercised (the “Optioned Shares”);

 

(iii)          state the method of payment for the Optioned Shares
pursuant to Section 5(b);

 

(iv)          state the date upon which the Participant desires to
consummate the purchase of the Optioned Shares (which date must be prior to the
termination of such Option and no sooner that 5 business days from the delivery
of such Notice and no later than 30 calendar days from the delivery of such
Notice, as may be appropriately adjusted by the Committee in the event of a
Change in Control);

 

(v)           if the Option shall be exercised by any person other
than the Participant, include evidence to the satisfaction of the Committee of
the right of such person to exercise the Option pursuant to Section 11;
and

 

(vi)          include such further provisions consistent with the
Plan (including, without limitation, the execution of a joinder to a
stockholders agreement and/or stock restriction agreement or similar agreement)
as the Committee may from time to time require.

 

(b)           Payment of the Option Price for the Optioned Shares
shall be made (i) in cash or by personal or certified check payable to the
Company, (ii) by delivery of stock certificates (in negotiable form)
representing shares of Option Stock that have been owned of record by the
Participant for more than six months on the date of exercise and that have a
Fair Market Value on the date of exercise (determined in the manner set forth
in Section 6(b) of the

 

3

 

Plan as if the date of exercise were the Date of Grant) equal to the
aggregate Option Price of the Optioned Shares, (iii) in compliance with
any cashless exercise program authorized by the Committee in its sole
discretion; or (iv) a combination of the methods set forth in the
foregoing clauses (i), (ii) and (iii).

 

(c)           The Company shall issue (or
cause to be issued) a stock certificate in the name of the Participant (or such
other person exercising the Option in accordance with the provisions of
Section 11) for the Optioned Shares as soon as reasonably practicable after
receipt of the Notice and payment of the aggregate Option Price for such
shares. Such stock certificate shall contain the legend set forth in
Section 7 of the Exercise Notice attached hereto as Exhibit A.

 

6.             Withholding.

 

The Committee shall be entitled to require as a
condition of delivery of shares of Option Stock in connection with the exercise
of an Option that the Participant remit or, in appropriate cases, agree to
remit when due, an amount sufficient to satisfy all current or estimated future
federal, state and local withholding tax and employment tax requirements
relating thereto. The Committee may in its discretion permit the minimum
statutorily required withholding obligations be satisfied by having the Company
withhold a portion of the shares that would otherwise be issued to the
Participant upon exercise of an Option, if any.

 

7.             No
Rights as a Stockholder.

 

The Participant shall not have any privileges of a
stockholder of the Company with respect to any Optioned Shares until the date
of issuance of a stock certificate pursuant to Section 5(c).

 

8.             Adjustments.

 

(a)           Changes in Capital Structure. Subject to
Section 8(b), if the Option Stock is changed by reason of a change in
corporate capitalization, such as a stock split, reverse stock split, stock
dividend or recapitalization, or converted into or exchanged for other
securities as a result of a merger, consolidation or reorganization, the
Committee shall make such adjustments as shall be equitable and appropriate in
order to make any outstanding Option, as nearly as may be practicable,
equivalent to the portion of the Option outstanding as of the effective date of
such transaction. Anything contained in the Plan or in this Agreement to the
contrary notwithstanding, in the case of ISOs, no adjustment under this
Section 8(a) shall be appropriate if such adjustment (i) would
constitute a modification, extension or renewal of such ISOs within the meaning
of Sections 422 and 424 of the Code, and the regulations promulgated by the Treasury
Department thereunder, or (ii) would, under Section 422 of the Code
and the regulations promulgated by the Treasury Department thereunder, be
considered the adoption of a new plan requiring stockholder approval.

 

(b)           Change in Control.
Notwithstanding any provision of the Plan to the contrary, in the event of a
Change in Control, the Committee may make such adjustments and/or settlements
of the outstanding portion of the Option as it deems appropriate and consistent
with the Plan’s purposes, including, without limitation, canceling the Option
if the Option Price

 

4

 

exceeds the price paid for a share of Option Stock in connection with a
Change in Control; provided, however, that (1) in the event of
any inconsistency between the provisions of this subsection (b) and any
provision in the Notice of Grant regarding vesting upon a Change in Control,
the provisions in the Notice of Grant shall govern and (2) in the event of
the assumption of the Option by, or the substitution for such Option of a new
option covering the stock of, the surviving, successor or purchasing
corporation, or a parent or subsidiary thereof, with appropriate adjustments as
to the number, kind and option price of shares subject to such option, the
Committee shall, in the case of ISOs, to the extent not inconsistent with the
best interests of the Company or its Affiliates (such best interests to be
determined in good faith by the Committee in its sole discretion), use its best
efforts to ensure that any such assumption or substitution will not constitute
a modification, extension or renewal of the ISOs within the meaning of
Section 424(h) of the Code and the regulations promulgated by the Treasury
Department thereunder.

 

(c)           Any adjustments referred to
in Section 8(a) or (b) shall be made by the Committee in its
sole discretion and shall be conclusive and binding on the Participant.

 

9.         Additional Provisions Related to
Exercise.

 

(a)           The Option shall be exercisable only on such date or
dates and during such period and for such number of shares of Option Stock as
are set forth in this Agreement.

 

(b)           To exercise the Option, the Participant shall follow
the procedures set forth in Section 5 hereof. Upon the exercise of the
Option at a time when there is not in effect a registration statement under the
Securities Act of 1933, as amended (the “Securities Act”), relating to the
shares of Option Stock issuable upon exercise of the Option, the Committee in
its discretion may, as a condition to the exercise of the Option, require the
Participant (i) to make the representations set forth in Exhibit B
hereto and (ii) to make such other representations and warranties as are
deemed appropriate by counsel to the Company. No shares of Option Stock shall
be issued and delivered upon the exercise of the Option unless and until the
Company and/or the Participant shall have complied with all applicable Federal
or state registration, listing and/or qualification requirements and all other
requirements of law or of any regulatory agencies having jurisdiction.

 

10.          No Evidence of Employment or
Consulting Relationship.

 

Nothing contained in the Plan or in this Agreement
shall confer upon the Participant any right with respect to the continuation of
his or her employment by, or service relationship with, the Company or any
Affiliate or interfere in any way with the right of the Company or any
Affiliate (subject to the terms of any separate agreement to the contrary), at
any time to terminate such employment or service relationship or to increase or
decrease the compensation of the Participant from the rate in existence at the
time of the grant of the Option. For the avoidance of doubt, this Option shall
not guarantee employment for the length of all, or any portion of, the vesting
schedule set forth in the Notice of Grant.

 

5

 

11.          Restriction on Transfer.

 

The Option may not be transferred, pledged,
assigned, hypothecated or otherwise disposed of in any way by the Participant,
except by will or by the laws of descent and distribution, and may be exercised
during the lifetime of the Participant only by the Participant. If the
Participant dies, the Option shall thereafter be exercisable, during the period
specified in Section 4(a)(iii), by the Participant’s executors or
administrators to the full extent to which the Option was exercisable by the
Participant at the time of the Participant’s death. The Option shall not be
subject to execution, attachment or similar process. Any attempted assignment,
transfer, pledge, hypothecation or other disposition of the Option contrary to
the provisions hereof, and the levy of any execution, attachment or similar
process upon the Option, shall be null and void and without effect.

 

12.            Lock-Up
Period.

 

In the event that the Company files a registration
statement under the Securities Act with respect to an underwritten public
offering of any Option Stock, the Participant shall be prohibited from
effecting any public sale or distribution of any Option Stock (other than as
part of such underwritten public offering), including, but not limited to, pursuant
to Rule 144 or Rule 144A under the Securities Act, during the
“lock-up” period established by the Committee, which lockup period shall be no
shorter than that required by the underwriters of such public offering.

 

13.          Disqualifying Dispositions.

 

If Optioned Shares acquired by exercise of an ISO
are disposed of within two years following the date of this Agreement or one
year following the issuance thereof to the Participant (a “Disqualifying
Disposition”), the Participant shall, immediately prior to such Disqualifying
Disposition, notify the Company in writing of the date and terms of such
Disqualifying Disposition and provide such other information regarding the
Disqualifying Disposition as the Company may reasonably require.

 

14.          Notices.

 

All notices or other communications which are
required or permitted hereunder shall be in writing and sufficient if
(i) personally delivered, (ii) sent by nationally-recognized
overnight courier or (iii) sent by registered or certified mail, postage
prepaid, addressed as follows:

 

if to the Participant, to the address set forth on
the Notice of Grant; and

 

if to the Company, to:

 

NetSpend Holdings, Inc.

c/o Netspend Corporation

Austin Centre

701 Brazos Street, 12th Floor

Austin, TX 78701

Attention: Chief Financial Officer

 

6

 

or to such other address as the party to whom notice is to be given may
have furnished to each other party in writing in accordance herewith. Any such
communication shall be deemed to have been given (x) when delivered, if
personally delivered, (y) on the first Business Day (as hereinafter
defined) after dispatch, if sent by nationally-recognized overnight courier and
(z) on the third Business Day following the date on which the piece of
mail containing such communication is posted, if sent by mail. As used herein,
“Business Day” means a day that is not a Saturday, Sunday or a day on which
banking institutions in the city to which the notice or communication is to be
sent are not required to be open.

 

15.          Transfer Restrictions; Mandatory
Participation in Sale of the Company.

 

(a)           Prior to an Initial Public
Offering, the Participant agrees that he or she will not Transfer all or any
portion of the Optioned Shares, except in connection with, and strictly in
compliance with applicable securities laws and with this Section 15.

 

(b)           Sale of the Company and/or
Its Subsidiaries.

 

(i)            Conditions. So long as
Oak continues to hold at least a majority of the Common Stock (on an as
converted basis) held by it on the effective date of the Plan, if Oak
determines to pursue the sale of the business of the Company and/or its
Subsidiaries to a third party that is not (i) an Affiliate of Oak or
(ii) a Person in which Oak or an Affiliate of Oak holds a direct or
indirect equity interest (other than a ownership interest of less than 5% of
the outstanding capital stock of a public company) or any other material
interest (as a creditor or otherwise) (a “Third Party Purchaser”) in a
bona fide arms’ length transaction (whether by way of a merger, consolidation,
sale of all or substantially all of its assets, sale of outstanding capital
stock or otherwise) (an “Approved Sale”), then, subject to the
provisions of subsection (c) of this Section 15:

 

(A)     the Participant shall, subject
to the conditions set forth in subsection (c), consent to, vote for, and raise
no objections against, and waive dissenters and appraisal rights (if any) with
respect to, the Approved Sale, and

 

(B)      if the Approved Sale is
structured as a sale of stock, the Participant will agree to sell and will be
permitted to sell all of the Optioned Shares on the terms and conditions
approved by Oak.

 

(C)      if the Approved Sale
includes the sale, contribution, exchange, redemption, cancellation or other
disposition of options, the Participant will sell, contribute, exchange,
redeem, cancel or otherwise dispose of the Option on the terms and conditions
approved by the Oak.

 

The Participant will take all reasonably necessary
and desirable actions to consummate such Approved Sale, including, without
limitation, the execution of all agreements and other instruments and such
other actions reasonably necessary to effectuate the allocation and
distribution of the aggregate consideration upon the Approved Sale as set forth
in subsection (c) below.

 

7

 

(c)           Approved Sale Obligations. The
obligations of the Participant with respect to an Approved Sale are subject to
the satisfaction of the conditions that:

 

(i)            the proceeds of the Approved Sale are applied in
accordance with the Company’s Certificate of Incorporation as in effect
immediately prior to such Approved Sale;

 

(ii)           each holder of shares of capital stock of the
Company shall receive the same proportion of the aggregate consideration from
such Approved Sale that such holder would have received if such aggregate
consideration had been distributed by the Company in complete liquidation
pursuant to the rights and preferences set forth in the Company’s Certificate
of Incorporation as in effect immediately prior to such Approved Sale and no
holder of any shares of capital stock of the Company shall receive any
consideration of any kind from the purchaser or any of its Affiliates other
than such proportionate consideration (except in respect of such holder’s
employment with the Company and other matters personal to such holder);

 

(iii)          upon the consummation of the Approved Sale, all of
the holders of each class of Option Stock will receive the same form and amount
of consideration per share of each such class of Option Stock;

 

(iv)          if any holder of a particular class of Option Stock
is given an option as to the form and amount of consideration to be received,
all holders of the same class or series of stock will be given the same option;

 

(v)           the Participant shall not be required to make any
representations or warranties other than representations and warranties about
the Company and its business, operations, liabilities and the like that are
required by all Stockholders, in which case, the indemnification obligations of
the Participant with respect to any such representations and warranties
provided for in this clause (v) shall be limited to the Participant’s pro
rata portion thereof (based upon the share ownership of all Stockholders).

 

(d)           Prohibited Transfers. If any
purported Transfer is made or attempted contrary to the provisions of this
Agreement, such purported Transfer shall be void ab initio; the
Company, and the Stockholders shall have, in addition to any other legal or
equitable remedies which they may have, the right to enforce the provisions of
this Agreement by actions for specific performance (to the extent permitted by
law); and the Company shall have the right to refuse to recognize any
Transferee as one of its stockholders for any purpose. Without limitation to
the foregoing, the Participant (and any Permitted Transferees) further agree
that the provisions of Section 20 shall apply in the event of any
violation or threatened violation of this Agreement.

 

(e)           Definitions.

 

(i)            “Initial Public Offering”
means the first firm commitment underwritten public offering for shares of
Option Stock pursuant to an effective registration statement under the
Securities Act with aggregate gross proceeds of at least $25,000,000.

 

(ii)           “Oak” means Oak
Investment Partners X, Limited Partnership and/or Oak X Affiliates Fund, L.P.

 

8

 

(iii)          “Permitted Transfer”
shall mean any Transfer permitted under this Agreement or the Plan.

 

(iv)          “Permitted Transferree”
shall mean any Transferee of a Participant permitted under this Agreement or
the Plan.

 

(v)           “Stockholder” and “Stockholders”
shall have the meaning set forth in the Preamble.

 

(vi)          “Transfer” means any
direct or indirect transfer, donation, sale, assignment, pledge, hypothecation,
grant of a security interest in or other disposal of all or any portion of a
Security or of any rights thereunder. “Transferred” means the
accomplishment of a Transfer, and “Transferee” means the recipient of a
Transfer.

 

16.          No Waiver.

 

No waiver of any breach or condition of this
Agreement shall be deemed to be a waiver of any other or subsequent breach or
condition, whether of like or different nature.

 

17.          Participant
Undertaking.

 

The Participant hereby agrees to take whatever
additional actions and execute whatever additional documents the Company may in
its reasonable judgment deem necessary or advisable in order to carry out or
effect one or more of the obligations or restrictions imposed on the
Participant pursuant to the express provisions of this Agreement.

 

18.          Successors
and Assigns.

 

Except as otherwise provided herein, this Agreement
shall bind and inure to the benefit of and be enforceable by the Participant
and the Company and their respective successors, assigns, heirs,
representatives and estates, as the case may be (including subsequent holders
of Optioned Shares); provided, however, that the rights and obligations of the
Participant under this Agreement shall not be assignable except in connection
with a Permitted Transfer of Optioned Shares hereunder (so long as the
transferee agrees in writing in advance to become bound by the terms and
conditions hereof).

 

19.          Modification
of Rights.

 

The rights of the Participant are subject to
modification and termination in certain events as provided in this Agreement
and the Plan.

 

20.          Governing
Law.

 

(a)           This Agreement shall be
deemed to be a contract made under, and shall be construed in accordance with,
the laws of the State of Delaware, without giving effect to conflict of laws
principles thereof.

 

9

 

(b)           Each of the parties hereto
hereby irrevocably and unconditionally submits, for himself or herself and his
or her property, to the nonexclusive jurisdiction of any Delaware State court
or any federal court of the United States of America sitting in the State of
Delaware, 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 any such Delaware State court or, to
the extent permitted by law, in any 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
irrevocably and unconditionally waives, to the fullest extent that he or she
may legally and effectively do so, any objection that he or she may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to the Agreement in any Delaware state or federal court
sitting in the State of Delaware. Each of the parties hereto 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.

 

21.          Counterparts.

 

This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

 

22.          Entire
Agreement.

 

This Agreement (including the Notice of Grant), the
Plan and, upon execution, the Exercise Notice and the Investment Representation
Statement, constitute the entire agreement between the parties with respect to
the subject matter hereof, and supersede all previously written or oral
negotiations, commitments, representations and agreements with respect thereto.

 

23.          WAIVER OF
JURY TRIAL. NO PARTY TO THIS AGREEMENT OR ANY
ASSIGNEE, SUCCESSOR, HEIR OR PERSONAL REPRESENTATIVE OF A PARTY SHALL SEEK A
JURY TRIAL IN ANY LAWSUIT, PROCEEDING, COUNTERCLAIM OR ANY OTHER LITIGATION
PROCEDURE BASED UPON OR ARISING OUT OF THIS AGREEMENT. NO PARTY WILL SEEK TO
CONSOLIDATE ANY SUCH ACTION, IN WHICH A JURY TRIAL HAS BEEN WAIVED, WITH
ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN WAIVED. THE
PROVISIONS OF THIS SECTION HAVE BEEN FULLY DISCUSSED BY THE PARTIES
HERETO, AND THESE PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS. NEITHER PARTY
HAS IN ANY WAY AGREED WITH OR REPRESENTED TO THE OTHER PARTY THAT THE PROVISIONS
OF THIS SECTION WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

 

10

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first written above.

 

	
   

  	
  NetSpend Holdings, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher T. Brown

  
	
   

  	
   

  	
  Name: Christopher T. Brown

  
	
   

  	
   

  	
  Title: General Counsel and Secretary 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Participant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Daniel R. Henry

  
	
   

  	
  Name:
  Daniel R. Henry

  

 

Acknowledgment and Agreement of Spouse

 

The undersigned spouse of the Participant
acknowledges that he/she has read this agreement and agrees to be bound thereby
to the extent that the Participant has executed such document.

 

 

	
  /s/
  Diana Henry

  	
   

  	
   

  
	
  Name: Diana Henry

  	
   

  	
   

  

 

Declaration of Unmarried Status

 

I,                        ,
the undersigned hereby declare that I am not married as of the date hereof.

 

	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  

 

 

EXHIBIT A

 

Amended and
Restated NetSpend Holdings, Inc. 2004 Stock Option Plan

Exercise
Notice

 

NetSpend Holdings, Inc.

c/o Netspend Corporation

Austin Centre

701 Brazos Street, 12th Floor

Austin, TX 78701

Attention: Chief Financial Officer

 

	
  Date of Notice:

  	
   

  	
   

  	
   

  

 

1.             Exercise
of Option. Effective as of                         
,          , [Please insert date that is at least 5 days from the
Date of Notice and no later than 30 days from the Date of Notice], the
undersigned (the “Participant”) hereby elects to exercise the Participant’s
option to purchase
                        
shares of the Common Stock (the “Shares”) of NetSpend Holdings, Inc. (the
“Company”) under and pursuant to the 2004 Stock Option Plan (the “Plan”) and
the Stock Option Agreement, dated                               ,
200    (the “Stock Option Agreement”).

 

2.             Representations of the Participant. The Participant
acknowledges that the Participant has received, read and understood the Plan
and the Stock Option Agreement and the Investment Representation Statement and
agrees to abide by and be bound by their terms and conditions.

 

3.             Rights as Stockholder. Until the stock
certificate evidencing such Shares is issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Shares, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
stock certificate as soon as practicable after the Option is exercised. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 10 of the Plan.

 

The Participant shall enjoy
rights as a stockholder until such time as the Participant disposes of the
Shares. Upon such disposition, the Participant shall have no further rights as
a holder of the Shares so purchased except the right to receive payment for the
Shares so purchased in accordance with the provisions of the Option Agreement,
and the Participant shall forthwith cause the certificate(s) evidencing the
Shares so purchased to be surrendered to the Company and/or its assignee(s) for
transfer or cancellation.

 

4.             Plan; Transfer Restrictions; Drag-Along. Unless otherwise determined by the Committee, any
shares of Stock acquired pursuant to this Option (including any Shares acquired
by way of stock dividend or stock split or in connection with a combination of
shares,

 

A-1

 

recapitalization, merger, consolidation or other reorganization) shall
be subject to the Option Agreement and the Plan including, without limitation,
transfer restrictions and the Company’s right to require the Participant to
sell the Optioned Shares and otherwise cooperate in the event of an Approved
Sale as set forth in Section 15 of the Option Agreement.

 

5.             Repurchase
Right for Participants.

 

(a)           In the event of the
Participant’s Termination of Service, the Company shall have the right, but not
the obligation, to repurchase any and all Optioned Shares acquired by the
Participant (for cash or cancellation of purchase money indebtedness for the
Optioned Shares) within 185 days following the date of the Participant’s
Termination of Service. In the event of the Participant’s Termination of
Service for any reason other than by the Company for Cause, the per share
purchase price for each Optioned Share shall be the Fair Market Value of a
share of Common Stock on the date of such Termination of Service. In the event
of a Participant’s Termination of Service for Cause, the purchase price shall
be the lower of the exercise price for such Optioned Share and the Fair Market
Value of such Optioned Share on the date of such Termination of Service. The
Company’s repurchase right set forth in this Section 5(a) shall lapse
upon an Initial Public Offering.

 

(b)           In the event of the
Company’s exercise of its repurchase right, the Participant and his, her or its
successors or assigns shall (i) take all steps necessary and desirable to
obtain all required third-party, governmental and regulatory consents and
approvals with respect to the surrender and cancellation of the Optioned
Shares, (ii) deliver for cancellation the certificate(s) representing the
Option Shares for cancellation in person or by first class mail, registered
mail, certified first class mail or by reputable overnight courier service to
the address set forth in the Company’s notice to the Participant within 10 days
of receipt of such notice and (iii) take all other actions necessary and
desirable to facilitate consummation of the repurchase and the cancellation of
the Option Shares in a timely manner. If the Participant fails or refuses to
take any action required by this Section 5, the Company may note in its
stock ledger and books and records the cancellation of the Participant’s
Optioned Shares which are subject to cancellation after application of this
Section 5.

 

6.             Tax
Consultation. The Participant understands
that the Participant may suffer adverse tax consequences as a result of the
Participant’s purchase or disposition of the Shares. The Participant represents
that the Participant has consulted with any tax consultants the Participant
deems advisable in connection with the purchase or disposition of the Shares
and that the Participant is not relying on the Company for any tax advice.

 

7.             Restrictive
Legends and Stop-Transfer Orders.

 

(a)           Legends. The
Participant understands and agrees that the Company shall cause the legends set
forth below or legends substantially equivalent thereto, to be placed upon any
certificate(s) evidencing ownership of the Shares together with any other
legends that may be required by state or federal securities laws at the time of
the issuance of the Shares:

 

THE SALE AND ISSUANCE OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE

 

A-2

 

SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
UNDER THE SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION. THESE SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
WITH, THE DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT BE OFFERED, SOLD,
PLEDGED, OR TRANSFERRED UNLESS (I) A REGISTRATION STATEMENT UNDER THE ACT
IS IN EFFECT AS TO THESE SECURITIES AND SUCH OFFER, SALE, PLEDGE, OR TRANSFER
IS IN COMPLIANCE WITH APPLICABLE SECURITIES LAW OF ANY STATE OR OTHER
JURISDICTION OR (II) THERE IS AN OPINION OF COUNSEL OR OTHER
EVIDENCE, IN EITHER CASE, SATISFACTORY TO THE CORPORATION, THAT AN
EXEMPTION THEREFROM IS AVAILABLE AND THAT SUCH OFFER, SALE, PLEDGE, OR TRANSFER
IS IN COMPLIANCE WITH APPLICABLE SECURITIES LAW OF ANY STATE OR OTHER
JURISDICTION.

 

TRANSFER OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE IS SUBJECT TO THE CONDITIONS SPECIFIED IN AN AWARD AGREEMENT
BETWEEN THE ISSUER AND A PARTICIPANT IN THE ISSUER’S 2004 STOCK OPTION PLAN. NO
TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE SHALL BE VALID OR
EFFECTIVE UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED. SUCH AGREEMENTS
MAY BE INSPECTED AT THE PRINCIPAL EXECUTIVE OFFICES OF THE ISSUER.

 

(b)           Stop-Transfer Notices. The
Participant agrees that, in order to ensure compliance with the restrictions
referred to herein, the Company may issue appropriate “stop transfer”
instructions to its transfer agent, if any, and that, if the Company transfers
its own securities, it may make appropriate notations to the same effect in its
own records.

 

(c)           Refusal to Transfer. The Company
shall not be required (i) to transfer on its books any Shares that have
been sold or otherwise transferred in violation of any of the provisions of
this Agreement or (ii) to treat as owner of such Shares or to accord the
right to vote or pay dividends to any purchaser or other transferee to whom
such Shares shall have been so transferred.

 

8.             Successors and Assigns. The Company may
assign any of its rights under this Agreement to single or multiple assignees
(who may be stockholders, officers, directors, employees or consultants of the
Company), and this Agreement shall inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer herein set
forth, this Agreement shall be binding upon the Participant and his or her
heirs, executors, administrators, successors and assigns.

 

9.           Interpretation. Any dispute
regarding the interpretations of this Agreement shall be submitted by the
Participant or by the Company forthwith to the Committee, which shall review
such dispute at its next regular meeting. The resolution of such a dispute by
the Committee shall be final and binding on the Company and on the Participant.

 

A-3

 

10.           Governing Laws; Severability.

 

(a)           This Agreement shall be
deemed to be a contract made under, and shall be construed in accordance with,
the laws of the State of Delaware, without giving effect to conflict of laws
principles thereof.

 

(b)           Each of the parties hereto
hereby irrevocably and unconditionally submits, for himself or herself and his
or her property, to the nonexclusive jurisdiction of any Delaware State court
or any federal court of the United States of America sitting in the State of
Delaware, 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 any such Delaware State court or, to
the extent permitted by law, in any 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
irrevocably and unconditionally waives, to the fullest extent that he or she
may legally and effectively do so, any objection that he or she may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to the Agreement in any Delaware state or federal court
sitting in the State of Delaware. Each of the parties hereto 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.

 

11.           Specific Performance. The right and remedy to seek from any court of competent jurisdiction
specific performance of the transfer restrictions set forth or referenced
herein or injunctive relief against any act which would violate Section 4
hereof, it being acknowledged and agreed that any such breach or threatened
breach will cause irreparable injury to the Company and that money damages will
not provide an adequate remedy to the Company.

 

12.           Notices. Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given if given in the manner specified in the
Stock Option Agreement.

 

13.           Further Instruments. The parties agree to execute such further instruments and to take such
further action as may be reasonably necessary to carry out the purposes and
intent of this Agreement.

 

14.           Delivery of Payment. The Participant herewith delivers to the Company the full Option Price
for the Shares.

 

15.           Definitions. Capitalized terms not defined herein shall have the meaning set forth in
the Plan.

 

16.           Entire Agreement. The Plan, the Notice of Grant, the Stock Option Agreement and the
Investment Representation Statement (if applicable) are incorporated herein by
reference.  This Agreement, the Plan, the
Notice of Grant, the Stock Option Agreement and the Investment Representation
Statement (if applicable) constitute the entire agreement of the parties and

 

A-4

 

supersede in their entirety all prior undertakings and agreements of
the Company and the Participant with respect to the subject matter hereof.

 

17.           WAIVER OF JURY TRIAL. NO PARTY TO
THIS AGREEMENT OR ANY ASSIGNEE, SUCCESSOR, HEIR OR PERSONAL REPRESENTATIVE OF A
PARTY SHALL SEEK A JURY TRIAL IN ANY LAWSUIT, PROCEEDING, COUNTERCLAIM OR ANY
OTHER LITIGATION PROCEDURE BASED UPON OR ARISING OUT OF THIS AGREEMENT. NO
PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION, IN WHICH A JURY TRIAL HAS
BEEN WAIVED, WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN
WAIVED. THE PROVISIONS OF THIS SECTION HAVE BEEN FULLY DISCUSSED BY THE
PARTIES HERETO, AND THESE PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS. NEITHER
PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO THE OTHER PARTY THAT THE
PROVISIONS OF THIS SECTION WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

 

[Signature
Page Follows]

 

A-5

 

	
   

  	
  Submitted by: 

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

Acknowledgment and Agreement of Spouse

 

The undersigned spouse of the Participant
acknowledges that he/she has read this agreement and agrees to be bound thereby
to the extent that the Participant has executed such document.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  

 

Declaration of Unmarried Status

 

I,           ,
the undersigned hereby declare that I am not married as of the date hereof.

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  

 

 

	
  Accepted by:

  	
   

  
	
   

  	
   

  
	
  NetSpend Holdings, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

A-6

 

EXHIBIT B

 

INVESTMENT REPRESENTATION
STATEMENT

 

	
  PARTICIPANT:

  
	
   

  	
   

  	
   

  
	
  COMPANY

  	
  :

  	
  NetSpend Holdings, Inc.

  
	
   

  	
   

  	
   

  
	
  SECURITY

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  AMOUNT

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE

  	
  :

  	
   

  

 

In connection with the purchase of the above-listed
Securities, the undersigned Participant represents to the Company the
following:

 

The Participant is aware of the Company’s business
affairs and financial condition and has acquired sufficient information about
the Company to reach an informed and knowledgeable decision to acquire the
Securities. The Participant is acquiring these Securities for investment for
the Participant’s own account only and not with a view to, or for resale in
connection with, a “distribution” thereof within the meaning of the Securities
Act.

 

The Participant acknowledges and understands that
the Securities constitute “restricted securities” under the Securities Act and
have not been registered under the Securities Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona
fide nature of the Participant’s investment intent as expressed herein. In this
connection, the Participant understands that, in the view of the Securities and
Exchange Commission, the statutory basis for such exemption may be unavailable
if the Participant’s representation was predicated solely upon a present
intention to hold these Securities for the minimum capital gains period
specified under tax statutes, for a deferred sale, for or until an increase or
decrease in the market price of the Securities, or for a period of one year or
any other fixed period in the future. The Participant further understands that
the Securities must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is available.
The Participant further acknowledges and understands that the Company is under
no obligation to register the Securities. The Participant understands that the
certificate evidencing the Securities will be imprinted with a legend which
prohibits the transfer of the Securities unless they are registered or such
registration is not required in the opinion of counsel satisfactory to the
Company and other legends required under the applicable state or federal
securities laws.

 

The Participant is familiar with the provisions of
Rule 701 and Rule 144, each promulgated under the Securities Act,
which, in substance, permit limited public resale of “restricted securities”
acquired, directly or indirectly from the issuer thereof, in a non-public
offering subject to the satisfaction of certain conditions. Rule 701
provides that if the issuer qualifies under Rule 701 at the time of the
grant of the Option to the Participant, the exercise will be exempt from
registration under the Securities Act.

 

 

In the event that the Company does not become
subject to the requirements of Section 13 or 15(d) of the Exchange
Act, then the Securities may be resold in certain limited circumstances subject
to the provisions of Rule 144, which requires the resale to occur not less
than one year after the later of the date the Securities were sold by the
Company or the date the Securities were sold by an affiliate of the Company,
within the meaning of Rule 144; and, in the case of acquisition of the
Securities by an affiliate only, the satisfaction of the following conditions:
(1) the resale being made through a broker in an unsolicited “broker’s
transaction,” in transactions directly with a market maker (as said term is
defined under the Exchange Act) or in “riskless principal transactions” (as
said term is defined in the Note to Rule 144(f)(1)); (2) the amount
of Securities being sold during any three month period not exceeding the
limitations specified in Rule 144(e); (3) the availability of certain
public information about the Company; and (4) the timely filing of a
Form 144, if applicable.

 

In the event the Company becomes subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, then
ninety (90) days thereafter (or such longer period as any market stand-off
agreement may require), Securities exempt under Rule 701 may be resold by
non-affiliates in reliance on Rule 144, without compliance with any of the
conditions set forth in Rule 144, and Securities exempt under
Rule 701 may be resold by affiliates in reliance on Rule 144, subject
to the satisfaction of the conditions set forth in the clauses (1) through
(4) immediately above and without compliance with any specified holding
period requirement.

 

The Participant further understands that in the
event all of the applicable requirements of Rule 701 or Rule 144 are
not satisfied, registration under the Securities Act, compliance with
Regulation A under the Securities Act, or some other registration exemption
will be required; and that, notwithstanding the fact that Rules 144 and
701 are not exclusive, the Staff of the Securities and Exchange Commission has
expressed its opinion that a person proposing to sell private placement securities
other than in a registered offering and otherwise than pursuant to
Rules 144 or 701 will have a substantial burden of proof in establishing
that an exemption from registration is available for such offers or sales, and
that such persons and their respective brokers who participate in such
transactions do so at their own risk. The Participant understand that no
assurances can be given that any such other registration exemption will be
available in such event.

 

The Participant further represents and warrants that
it comes within the category or categories marked below, and that for any
category marked, it can truthfully set forth the factual basis or reason the
investor comes within that category. The undersigned agrees to furnish any
additional information which the Company deems necessary in order to verify the
answers set forth below.

 

o            (a)            The Participant is an
individual (not a partnership, corporation, etc.) whose individual net
worth, or joint net worth with his or her spouse, presently exceeds US$1,000,000.

 

Explanation: In calculating net worth you may
include equity in personal property and real estate, including your principal
residence, cash, short-term investments, stock and securities. Equity in
personal property and real estate

 

 

should be based on the appraised fair market value
of such property less debt secured by such property.

 

o            (b)           The Participant is an
individual (not a partnership, corporation, etc.) who had an income in
excess of US$200,000 in each of the two most recent years, or joint income with
his or her spouse in excess of US$300,000 in each of those years (in each case
including foreign income, tax exempt income and full amount of capital gains
and losses but excluding any income of other family members and any unrealized
capital appreciation) and has a reasonable expectation of reaching the same
income level in the current year.

 

o            (c)            The Participant is a
director or executive officer of the Company.

 

o            (d)           The Participant is a
non-profit organization within the meaning of Section 501(c)(3) of the
Internal Revenue Code, corporation, business trust, partnership or limited
liability company, in each case not formed for the specific purpose of
acquiring the Securities and with total assets in excess of US$5,000,000. If
so, please describe entity:

 

o            (e)            The Participant is a trust
with total assets in excess of US$5,000,000, not formed for the specific
purpose of acquiring the Securities, where the purchase is directed by a
“sophisticated person” as defined in Rule 506(b)(2)(ii) of Regulation
D under the Securities Act.

 

o            (f)            The Participant is a
revocable grantor trust in which each of the grantors is an individual who
(i) has a net worth, either alone or with his or her spouse, of more than
$1,000,000 or (ii) had income in excess of $200,000 during each of the
previous two years and reasonably expects to have income in excess of $200,000
during the current year, or joint income with his or her spouse in excess of
$300,000 during each of the previous two years and reasonably expects to have
joint income in excess of $300,000 during the current year.

 

o            (g)           The Participant is an entity
(other than a trust) all the equity owners of which are “accredited investors”
within one or more of the above categories. If so, please describe entity: (If relying upon this category alone, each equity owner must complete a
separate copy of this questionnaire.)

 

o            (h)           The Participant is not
within any of the categories above and is therefore a non-accredited investor.

 

 

	
   

  	
  Signature of Participant:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
  ,

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