Document:

Exhibit 10.19

 

***  Where this marking appears throughout this Exhibit 10.19,
information has been omitted pursuant to a request for confidential treatment;
a complete copy of this agreement has been filed separately with the Securities
and Exchange Commission.

 

EXECUTION COPY

 

FOURTH AMENDED AND RESTATED 

INDEPENDENT AGENCY AGREEMENT

 

THIS
FOURTH AMENDED AND RESTATED INDEPENDENT AGENCY AGREEMENT (this “Agreement”)
is entered into as of the 2nd day of June, 2008, to be effective as set forth
in Section 37 below, by and between ACE Cash Express, Inc., a Texas
corporation (“ACE”), and NetSpend Corporation, a Delaware corporation (“NetSpend”).
ACE and NetSpend are collectively referred to in this Agreement as the “Parties.”

 

WHEREAS,
ACE offers financial products and services to its customers, both through
neighborhood brick and mortar store fronts (“Stores”) and through its
website on the internet (the “ACE Website”);

 

WHEREAS,
NetSpend is a processor and program manager for certain prepaid debit cards
issued by the Issuing Banks (as hereinafter defined), using NetSpend’s
proprietary technology, business methods, services, and processes that are
together used to facilitate the activation, reload, sale, use, reporting and
regulatory compliance related to such prepaid debit cards (the “NetSpend
System”);

 

WHEREAS,
the Parties have entered into that certain Third Amended and Restated
Independent Agency Agreement, dated as of January 1, 2004 (as amended to
date, the “Prior Agreement”), which provides for, among other things,
ACE and certain of its or its affiliates’ franchisees to act as independent
agents (i) to receive for delivery to NetSpend sign-up information and
applications for prepaid debit cards that are distributed, sold and serviced by
NetSpend (“NetSpend Cards”), (ii) to provide for the reloading of,
or the withdrawal of value from, NetSpend Cards via point-of-sale swipe
transactions, (iii) to deliver to the Issuing Bank application fees for
NetSpend Cards and funds tendered by customers to ACE for the purpose of
reloading NetSpend Cards and (iv) to offer to its customers certain other
services related to the NetSpend Cards as set forth therein;

 

WHEREAS,
the Parties desire to enter into this Agreement in order to amend and restate
the Prior Agreement in its entirety.

 

NOW,
THEREFORE, for and in consideration of the mutual promises and covenants
contained herein, the receipt and sufficiency of which are hereby acknowledged,
the Parties agree as follows:

 

1.             Agency Appointment.  NetSpend hereby appoints ACE, and those
franchisees (if any) of ACE or any of ACE’s affiliates that (i) elect, by
agreement with ACE, to participate and who are approved for participation by
NetSpend, as NetSpend’s independent agent to provide retail agent services as
set forth in Sections 2 and 4 (the “Agent Services”) during the term of
this Agreement and (ii) execute and deliver to NetSpend an agreement, in
form and substance reasonably satisfactory to NetSpend, pursuant to which such
franchisee becomes entitled to the same rights and subject to the same
responsibilities as are applicable to ACE with respect to its provision of the
relevant Agent Services hereunder.  In
addition, the Parties acknowledge and 

 

 

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agree that NetSpend, ACE
and the issuer of any NetSpend Cards subject to this Agreement (any such
issuer, the “Issuing Bank”) shall enter into a Third Party Agency
Agreement setting forth certain obligations among the parties thereto (any such
agreement, the “Bank Agreement”). 
It is acknowledged and agreed that MetaBank, a federally chartered
savings association (“Meta”), is currently the issuer of the NetSpend
Cards offered in ACE locations pursuant to this Agreement.  The Parties acknowledge that certain terms of
ACE’s appointment as an agent for the Issuing Bank shall be governed and
administered pursuant to the terms of this Agreement and that any rights and
obligations imposed upon either of the Parties under the Bank Agreement shall
be supplemental to and not in lieu of (and shall not supersede) those imposed
under this Agreement.  It is also
acknowledged that the Issuing Bank is a third-party beneficiary of certain
rights granted under this Agreement to NetSpend in certain circumstances.  Except as otherwise expressly provided in the
Bank Agreement, such limited grant of third party rights to the Issuing Bank
under the Bank Agreement shall not be deemed to impose upon the Issuing Bank
any of the obligations of NetSpend under this Agreement, and ACE agrees that,
except as otherwise provided in the Bank Agreement, its exclusive remedy upon
any breach of this Agreement by NetSpend shall be to seek redress from NetSpend
or its successors in the manner provided by law and this Agreement. NetSpend
and ACE are subject to supervision, examination and regulation as provided by
applicable federal and state law and regulations, as in effect from time to
time, as well as any applicable commitments under contracts to which either
such Party is a party from time to time. 
With respect to any franchisee of ACE or any of its affiliates that
elects in accordance with this Section 1 to participate as NetSpend’s
independent agent to provide the Agent Services, ACE shall inform such
franchisee of its obligations to NetSpend hereunder.

 

2.             Agent Services.  To the extent and where permitted by
applicable law and during the term of this Agreement, ACE shall provide the
following Agent Services at the Participating Stores (as hereinafter defined)
during their normal business hours:

 

(a)         make available to its customers applications for
NetSpend Cards, accept applications for NetSpend Cards for delivery to
NetSpend, accept corresponding application fees from customers, and issue
Temporary Cards (as hereinafter defined);

 

(b)         receive for delivery to the Issuing Bank voluntary
payments from customers, in the form of cash only, to add or “load” funds to
the accounts associated with their NetSpend Cards via point-of-sale swipe
transactions (“Card Payments”);

 

(c)         permit customers to withdraw funds from the
accounts associated with such customer’s NetSpend Cards via point-of-sale swipe
transactions (“Cash Withdrawals”);

 

(d)         make available to, and accept applications from,
customers to enroll or participate in programs or features with respect to the
NetSpend Cards as NetSpend and ACE shall mutually agree upon from time to time,
which shall include, without limitation, (i) enrollment in the direct
deposit program offered by NetSpend with respect to the NetSpend Cards and (ii) the
marketing and sale of NetSpend Cards that shall be marketed by ACE as “gift”
and “payroll” cards; and

 

(e)         maintain a link on the ACE website (the “ACE
Website Link”), and otherwise engage in such marketing as ACE shall
determine, to direct ACE customers to a

 

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website
operated and maintained by NetSpend (the “ACE/NetSpend Acquisition Website”)
where such customers shall be able to apply for and, if approved, obtain a
NetSpend Card from NetSpend. The content, style and placement of the ACE
Website Link shall be determined by ACE in its sole discretion.  NetSpend shall develop the ACE/NetSpend
Acquisition Website with the cooperation of ACE and subject to the approval of
ACE, which shall not be unreasonably withheld. 
The ACE/NetSpend Acquisition Website shall have the “look and feel” of
an ACE website, though the NetSpend name, logos, trademarks, tradenames and
other intellectual property may also appear.

 

3.             Store Locations.  ACE agrees to offer the Agent Services in
substantially all of the Stores owned by ACE (“Owned Stores”).  Notwithstanding the foregoing, it is
understood and agreed that ACE shall only be obligated to offer the Agent
Services in any of its locations that are (a) in states of the United
States (including, without limitation, the District of Columbia) in which each
of ACE and NetSpend has applied for and obtained all necessary licenses,
permits, and other authorizations to offer and issue the NetSpend Cards and
provide the Agent Services and may issue the NetSpend Cards and provide the
Agent Services, as applicable, in compliance with all applicable laws,
(b) electronically connected with ACE’s central servers at or for ACE’s
headquarters without any network impediment to performing the services required
by ACE under this Agreement, and (c) not prohibited from offering the
Agent Services by the lease or sublease for the location.  ACE will also use commercially reasonable
efforts to make available to its franchisees, and the franchisees of any of its
affiliates, an opportunity to make the NetSpend Cards available at the
franchisees’ retail locations as NetSpend’s independent agent under this
Agreement.  The Owned Stores, together
with any stores operated by franchisees of ACE or its affiliates that elect, by
written agreement with ACE, to make the NetSpend Cards available are
individually referred to herein as a “Participating Store” and
collectively as the “Participating Stores.” ACE acknowledges and agrees
that each Participating Store’s participation in the distribution of NetSpend
Cards will be subject to compliance with the requirements outlined in NetSpend’s
Distributor Manual, which has been or will be provided to ACE, and subject to
NetSpend’s normal distributor due diligence and risk management processes.

 

4.             Additional Responsibilities of ACE.  The following are also Agent Services to be
performed:

 

(a)           For any transaction involving the Agent Services in
a Participating Store, the full amount of each Customer Fee (as hereinafter
defined), each Card Payment and each Cash Withdrawal at any Participating Store
(collectively, “Customer Transactions”) will be recorded in the
Participating Store-based computer and communicated to a central computer
located at ACE’s corporate office and electronically reported by ACE to
NetSpend.

 

(b)           ACE will electronically communicate to NetSpend the
information obtained from the customers at the Participating Stores for the
purchase of NetSpend Cards or any of the other NetSpend Services.  Such information shall consist of the
customer’s name, address, telephone number, social security number and date of
birth (collectively, “Customer Data”). ACE will use its commercially
reasonable efforts to ensure that the Customer Data is accurately and properly
reported.  ACE will comply with its
Safeguarding Customer Information Policy, as in effect from time to time (the “Privacy
Policy”), in connection with its receipt, disclosure and use of any
Customer Data.  ACE has previously
provided to NetSpend a copy of the Privacy Policy as 

 

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in
effect on the date hereof and will notify NetSpend in writing of any material
change to the Privacy Policy.

 

(c)           Upon ACE’s processing of any and all Customer
Transactions, ACE shall give the customer a standard receipt, which shall
indicate the amount, date and type or types
of Customer Transactions (i.e., Customer
Fees, Card Payments, and/or Cash Withdrawals), and shall indicate a toll-free telephone number for NetSpend (supplied
to ACE by NetSpend) by which the Customer may contact NetSpend.

 

(d)           Upon request of a customer at a Participating Store
who has completed an application for a NetSpend Card, paid the required
Customer Fee and made a Card Payment, and upon information from NetSpend that
the customer’s application for a NetSpend Card has been accepted by NetSpend,
ACE will provide the customer with a temporary blank NetSpend Card (“Temporary
Card”) that the customer may then use until NetSpend provides a permanent
personal NetSpend Card to the customer.

 

(e)           At NetSpend’s request, ACE will discuss with
NetSpend making certain Owned Stores available from time to time for purposes
of market testing improved NetSpend Cards and NetSpend Services or for purposes
of objectively testing consumer response to pricing or other changes to
existing NetSpend Cards and NetSpend Services.

 

(f)            ACE shall not, as a precondition to a customer “loading”
funds onto a NetSpend Card, require such customer to obtain any card issued by
ACE, whether such card provides  loyalty
benefits to the customer or otherwise.

 

5.             Responsibilities of NetSpend.

 

(a)           NetSpend will at its own expense prepare and
deliver to ACE a sufficient quantity of marketing materials relating to the
NetSpend Cards (which shall include, at a minimum, the marketing materials
provided by NetSpend to ACE immediately prior to the Effective Date, including,
without limitation, as requested by ACE, those set forth on Schedule 4
hereto) and a sufficient number of Temporary Cards as may be necessary for ACE
to perform the Agent Services at each of the Participating Stores.  The marketing materials shall be delivered by
means of bulk deliveries to such ACE personnel per district or region of
Participating Stores as shall be designated by ACE.  The Temporary Cards shall be delivered
directly to the Participating Stores. 
ACE shall have no responsibility to NetSpend for any lost or stolen Temporary
Cards or marketing materials necessary for ACE otherwise to perform the Agent
Services.  ACE may order additional
Temporary Cards from NetSpend to adequately fill requests from customers.  Orders placed by ACE may be canceled by ACE
at any time.  NetSpend will at its own
expense deliver the ordered Temporary Cards within ten (10) Business Days
(as hereinafter defined) after ACE’s order.

 

(b)           Following the time that an application for a
NetSpend Card is submitted by ACE to NetSpend, NetSpend will process the
request and inform ACE whether or not such customer has been approved to
receive a NetSpend Card.  In the event
such customer is approved, ACE will provide such Customer with a Temporary
Card, and NetSpend shall thereafter deliver to such customer a permanent
NetSpend Card.  NetSpend will deliver
such NetSpend Card to the

 

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address
indicated on such Customer’s application within ten (10) Business Days
after an application is made available to NetSpend.

 

(c)           NetSpend will establish (without the need for any
consent or approval of ACE) the fees it charges and receives from customers
related to NetSpend Cards and the services related thereto (the “NetSpend
Services”), except to the extent such fees constitute Customer Fees charged
by ACE for which authority to determine the amount of such fee has been granted
to ACE pursuant to Schedule 2 hereto. 
NetSpend will, however, provide ACE at least thirty (30) days’ prior
written notice of any change in the fees it charges to customers.

 

(d)           NetSpend shall develop, operate and maintain the
ACE/NetSpend Acquisition Website in accordance with Section 2(e).  NetSpend shall additionally develop, operate
and maintain a website dedicated to servicing its customers, including, without
limitation, the customers of ACE that purchase NetSpend Cards through the
ACE/NetSpend Acquisition Website or otherwise (the “NetSpend Service Website’).  NetSpend shall have the right to make changes
to the NetSpend Service Website from time to time in its sole discretion
without the consent of ACE.

 

(e)         At the request of ACE, Netspend shall, through a
joint initiative of NetSpend and ACE ***.

 

(f)            NetSpend shall maintain and provide to ACE on a
monthly  basis (or such other
interval of time as specified in Schedule 6 or as the Parties shall
agree in writing) standard and customized reports containing the information
set forth in Schedule 6 hereto relating to the issuances of ACE/NetSpend
Cards and the provision of NetSpend Services (as hereinafter defined) to
customers holding ACE/NetSpend Cards; provided, however, that
prior to the date that is six (6) months from Effective Date, NetSpend
shall only be obligated under this Section 5(f) to provide such
reports as specified in Schedule 6 as NetSpend was obligated to provide
under the Prior Agreement.  Schedule 6
may be updated from time to time to include additional reports as agreed to by
the Parties.

 

(g)           As between NetSpend and the Issuing Bank, on the
one hand, and ACE, on the other hand, NetSpend will be solely responsible,
alone or through contracts with third parties, for the determination of the
customers to whom or which NetSpend Cards are issued, for the issuance of the
NetSpend Cards, for the provision of all NetSpend Services and for the
production and delivery of numbered accounts, reports, invoices, and statements
to, and its relationship with, customers. 
This responsibility of NetSpend and the Issuing Bank includes, without
limitation, responding to and satisfying any customers’ complaints regarding
the availability and quality of the NetSpend Cards and the NetSpend
Services.  In addition, NetSpend will use
commercially reasonable efforts to comply with the service requirements set
forth on Schedule 7 attached hereto.

 

6.             Fees.

 

(a)           ACE shall charge customers the service fees for the
Agent Services as set forth in Schedule 2  hereto (collectively, the “Customer Fees”).  The Customer Fees shall be allocated between
ACE and NetSpend as set forth in Schedule 2 hereto and shall be
transmitted

 

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by
ACE to the Issuing Bank on behalf of NetSpend (to the extent of NetSpend’s
portion of such Customer Fees) in the manner set forth in Schedule 1
hereto.

 

(b)           NetSpend agrees to pay to ACE additional fees (the “NetSpend
Fees”) with respect to Agent Services provided by ACE on the terms and
conditions set forth in Schedule 3 hereto.  The NetSpend Fees shall be transmitted to ACE
in the manner set forth in Schedule 1 hereto.

 

7.             Exclusivity.

 

(a)           ACE agrees that, except as set forth in this
Agreement, neither ACE nor any direct or indirect subsidiary of ACE shall, by
itself or in conjunction with others, directly or indirectly, during the term
of this Agreement ***.

 

(b)           Notwithstanding the provisions of Section 7(a) or
anything to the contrary in this Agreement, in the event that, at any time
during the term of this Agreement, ACE desires to ***.

 

8.             Marketing; Card Branding.

 

(a)           ACE will make available in its Participating Stores
marketing information as set forth on Schedule 4 hereto and such other
materials supplied by NetSpend and approved by ACE, in its sole
discretion.  NetSpend agrees that ACE
shall be entitled to develop and market NetSpend Cards with such card
appearance, including skin design and designation or brand as shall be created
by ACE (which shall include, without limitation, NetSpend Cards designed and
branded as “ACE” cards).  NetSpend shall
assist ACE with the design and production of such NetSpend Cards and shall
facilitate the distribution of NetSpend Cards with such skin designs to
customers who have purchased a NetSpend Card at a Participating Store or on the
ACE/NetSpend Acquisition Website.  As
between ACE and NetSpend, NetSpend acknowledges and agrees that ACE shall
retain the ownership rights in the skin design of any NetSpend Card conceived
of and created by ACE (with the assistance of NetSpend as set forth above) and
shall retain the ownership rights for its previously developed card skin
designs set forth on Schedule 8 hereto. 
Schedule 8 hereto may be updated from time to time by the Parties
to include additional card skin designs conceived of and created by ACE as set
forth above.  As between ACE and
NetSpend, ACE acknowledges and agrees that NetSpend shall retain the ownership
rights in any other skin design created in connection with the development of
any ACE/NetSpend Card or otherwise and that NetSpend retains the right and
discretion to use for any purpose any such skin design. Any card skin design,
designation or brand developed or produced by ACE containing NetSpend’s, the
Issuing Bank’s and/or the applicable bank card association’s trade name,
trademarks or other intellectual property rights must be approved in writing by
NetSpend, such consent not to be unreasonably withheld.

 

(b)           ***

 

(c)           NetSpend and ACE agree that they shall continue, as
mutually agreed by the Parties in a manner consistent with past practice, ***.

 

9.             Training.  As mutually agreed, ACE and NetSpend shall
schedule and conduct

 

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information and training
seminars or sessions for such ACE personnel as is necessary to enable such ACE
personnel to train its store-level employees in marketing and processing
applications for the NetSpend Cards and in providing all of the other Agent
Services.  If such a seminar or session
is scheduled and conducted, ACE will be responsible for having the designated
personnel attend the seminar or session, and NetSpend will be responsible for
the cost of the facilities for, and for the expenses of its personnel to
conduct, the seminar or session, the location and details of such seminar or
session to be mutually agreed by the Parties. NetSpend will also make available
to ACE the toll-free telephone number NetSpend dedicates to its distributors by
which ACE’s employees may pose questions directly to NetSpend and will take
such other actions as are reasonably necessary to keep ACE informed of news and
developments related to the NetSpend Cards and the products and services
offered by NetSpend related thereto.

 

10.           Deposit and Transmission Procedures.

 

(a)           ACE acknowledges and agrees that ACE will receive
Card Payments from customers for the express purpose of delivering such funds
to the Issuing Bank so that they may be deposited to the accounts associated
with their NetSpend Cards. The Card Payments will not be used for, or deposited
by ACE in connection with, any operating or general purpose account of ACE or
otherwise treated as property of ACE.  It
is understood and agreed that the Card Payments are being deposited in an
account maintained by the Issuing Bank for NetSpend customers, and that ACE
does not maintain any account in respect of the Card Payments.  ACE shall be liable to NetSpend for all Card
Payments and NetSpend’s portion of any Customer Fees associated with Agent
Services provided at Participating Stores. The deposit and transmission of all
funds in connection with this Agreement, including ACE’s acceptance and
remittance of Card Payments on behalf of the customers, and its remittance of
NetSpend’s portion of any Customer Fees, will be in accordance with Schedule 1
hereto.

 

(b)           ACE may provide to all or some of the customers, or
may have all or some of the customers sign, an acknowledgement that the
NetSpend Cards are being issued only by the Issuing Bank and NetSpend, that ACE
is not responsible in any manner for the NetSpend Cards or any of the other
products and services provided by NetSpend and/or the Issuing Bank.

 

(c)           In connection with the Agent Services, ACE will act
in the capacity of a “messenger service” as defined in 12 CFR § 7.1012, as
amended from time to time, for payments or other items intended for delivery to
the Issuing Bank.

 

11.           Intellectual Property.

 

(a)           ACE may use NetSpend’s name, trade names,
trademarks, service marks, drawings, logos, symbols and other indicia of origin
as provided to ACE by NetSpend (“NetSpend Marks”) as necessary or
reasonably appropriate to advertise and perform the Agent Services and any of
its other obligations under this Agreement. 
NetSpend may use ACE’s name, trade names, trademarks, service marks,
drawings, logos, symbols and other indicia of origin as provided to NetSpend by
ACE (“ACE Marks” and, together with the NetSpend Marks, the “Marks”)
as necessary or reasonably appropriate to advertise and promote the Agent
Services and to perform any of its other obligations under this Agreement.  Nevertheless, each Party shall limit such
usage to programs and placements that have been previously approved in writing
by the

 

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other
Party. ACE and NetSpend each own all right, title and interest in and to their
respective Marks, along with all related intellectual property rights and
associated goodwill.  A Party will comply
with the guidelines and procedures established by the other party with respect
to its use of such Party’s Marks and will otherwise cooperate and agree upon
the details of such identification.  A
Party will not modify or alter the other Party’s Marks and will include an
appropriate trademark notice (e.g., ® or TM, as the case may be) with each use
of any of such Marks.  Neither Party will
adopt brands, logos, trademarks, trade name or other marks which are the same
as or confusingly similar to the Marks of the other Party.  In no event and under no circumstances shall
a Party use the other Party’s Marks in any manner that is derogatory, negative,
likely to confuse a third party as to source of goods or services, or otherwise
injurious to the other Party, as determined by the other Party in its sole
discretion.  Upon expiration or earlier
termination of this Agreement, each Party will immediately cease all display,
advertising and use of all Marks of the other Party.

 

(b)           No right, title or interest in, to or under any
existing copyright, patent, trademark or trade secret (collectively, the “Existing
Proprietary Rights”) of any Party are created or assigned or otherwise
transferred to the other Party pursuant to this Agreement.  Nothing in this Agreement constitutes a work
for hire agreement, and nothing in this Agreement constitutes an agreement by a
Party to assign or otherwise convey title to any Existing Proprietary Rights to
the other Party.  Each Party will retain
full ownership of and title to all equipment, materials, hardware, software,
inventions, innovations and other tangible and intangible property provided by
or developed by such Party in connection with this Agreement.  As between ACE and NetSpend, NetSpend will
own the NetSpend Cards, any information and data associated with account
activity of customers, the NetSpend System and any modifications, enhancements
and derivative works of the foregoing and any intellectual property rights
related thereto.

 

12.           Refunds; Reversals; Adjustments.  Any reversal or adjustment by ACE to any
receipt of funds by ACE for remittance to the Issuing Bank (an “Adjustment”)
will be effective only when both of the following have occurred: (a) such
Adjustment is communicated electronically to NetSpend and (b) NetSpend has
confirmed electronically its receipt of such Adjustment and its approval of
such Adjustment.  Upon receipt by
NetSpend of an electronic communication by ACE of an Adjustment, NetSpend will
immediately acknowledge receipt electronically and approve or disapprove such
Adjustment.  NetSpend shall be entitled
to disapprove an Adjustment only if it has already paid a mistaken amount on a
NetSpend Card.  ACE acknowledges that it
is obligated for any mistake in any financial data or funds delivered by ACE to
the Issuing Bank and/or NetSpend (as applicable) pursuant to this Agreement
which requires Adjustment at all times prior to the time NetSpend acknowledges
receipt of and approves (or is deemed to have acknowledged receipt of and
approved) the Adjustment in question. 
After ACE electronically communicates any Adjustment to NetSpend and
NetSpend acknowledges and approves (or is deemed to have acknowledged and
approved) the Adjustment, ACE will have no further obligation relating to any
payment made on that NetSpend Card in a mistaken amount or otherwise for any
liability or cost of NetSpend and/or the Issuing Bank relating to the data or
funds subsequently adjusted.  If NetSpend
disapproves an Adjustment in accordance with this Section 12, then ACE
will be obligated for that mistake in any financial data or funds delivered or
communicated by ACE to the Issuing Bank and/or NetSpend pursuant to this
Agreement for which the Adjustment was disapproved.  ACE agrees that it shall remit to the Issuing
Bank the full amount of funds received by ACE (except for ACE’s portion of any
Customer Fees) in accordance with Schedule 1; and the Parties agree that
any Adjustment with

 

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respect to the actual
amount of funds received by ACE will be reconciled within one Business Day
after the Adjustment is communicated by ACE.

 

13.           Representations and Warranties of NetSpend.  NetSpend represents, warrants, and covenants
to ACE that, to the extent related to the NetSpend Cards and the services
offered and provided by NetSpend to customers and otherwise related to the
performance of its obligations under this Agreement and the Prior Agreement, (a) it
is in compliance in all material respects with all federal, state, and local
laws and regulations, as well as any applicable orders, rules, agreements, and
settlements to which NetSpend is a party, relating to the activities
contemplated by this Agreement and the Prior Agreement; (b) any and all
licenses, permits, and other authorizations required by federal, state, and
local laws (collectively, the “NetSpend Authorizations”) have been
obtained, are in full force and effect, and are valid under applicable federal,
state, and local laws; (c) the continuation, validity, and effectiveness
of all the NetSpend Authorizations shall not be impaired or adversely affected
by the terms hereof; and (d) it will maintain the effectiveness of all of
the NetSpend Authorizations, or obtain new or additional NetSpend
Authorizations, as necessary to permit it to perform its obligations under this
Agreement.

 

14.           Representations and Warranties of ACE.  ACE represents, warrants, and covenants to
NetSpend that, to the extent related to the Agent Services under this Agreement
and the Prior Agreement, (a) it is in compliance in all material respects
with all federal, state, and local laws and regulations, as well as any
applicable orders, rules, agreements, and settlements to which ACE is a party,
relating to the activities contemplated by this Agreement and the Prior
Agreement; (b) any and all licenses, permits, and other authorizations
required by federal, state and local laws (collectively, the “Agent
Authorizations”) have been obtained, are in full force and effect, and are
valid under applicable federal, state, and local laws; (c) the
continuation, validity, and effectiveness of all of the Agent Authorizations
shall not be impaired or adversely affected by the terms hereof; and (d) it
will maintain in effect the Agent Authorizations, or obtain new or additional
Agent Authorizations, as necessary to permit it to perform its obligations
under this Agreement.

 

15.           Representations and Warranties of Each of the Parties.  Each Party represents and
warrants to the other as of the Effective Date:

 

(a)           Such Party is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction in which it is
organized, is duly qualified and in good standing as a foreign corporation in
every state in which the character of its business requires such qualification
(except where the failure to obtain such foreign qualification would not have a
material adverse effect on such Party’s business) and has the power to own its
property and carry on its business as now conducted.

 

(b)           The execution and delivery by such Party of this
Agreement, the consummation by such Party of the transactions contemplated
hereby and the compliance by the such Party with the terms of this Agreement,
(i) are within such Party’s power and authority and (ii) have been
duly authorized by all necessary corporate action.  This Agreement has been duly executed and
delivered by such Party and constitutes a valid and binding agreement of such Party,
enforceable in accordance with its terms.

 

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(c)           Neither the execution and delivery of this
Agreement by such Party nor the performance by such Party of its obligations
hereunder requires any consent, authorization, approval, notice to or other
action by or in respect of, or filing with, any third party or any governmental
body or agency.

 

16.           Payment of Taxes.  NetSpend will pay when due all federal excise
taxes and all state and local use or sales taxes imposed in connection with the
provision of NetSpend Cards and the services provided by NetSpend in connection
with the NetSpend Cards.  ACE will pay
when due all federal excise taxes and all state and local use or sales taxes
imposed in connection with funds collected by it for the Agent Services to the
extent such taxes can be collected from the customer.  Each Party will also file when due all
required tax returns required to be filed in connection with its business and
with the collection and remittance of any applicable excise, use, or sales
taxes for which it bears responsibility under this Section 16.  NetSpend will indemnify ACE for, and hold ACE
harmless from and against, any such taxes imposed on or due by the Issuing
Bank.  For the avoidance of doubt, this Section 16
shall apply to periods both before and after the Effective Date.

 

17.           Term; Termination.

 

(a)           The term of this Agreement begins on the Effective
Date and shall continue until terminated in accordance with the next sentence
or in accordance with Section 17(b). 
Either Party may cause the term of this Agreement to expire at 11:59 p.m.
(Central Time) on March 31, 2016 or on any anniversary of that date (March 31,
2016 and any anniversary of that date,
the “Annual Expiration Date”) by giving written notice to the other
Party of the notifying Party’s intent to terminate this Agreement at least 270
days  before the Annual Expiration
Date; if that notice is timely given, the term of this Agreement shall expire
on the Annual Expiration Date immediately following the date on which that
notice was given.  Any other reference in
this Agreement to the “termination” of this Agreement shall include,
without limitation, the expiration of the term set forth in this Section 17(a).

 

(b)           Either Party may terminate this Agreement
before the expiration of the term set forth in Section 17(a), by giving
the other Party written notice of termination, upon any of the following events
of default by the other Party: (i) the other Party fails to pay any amount
when due under this Agreement and that payment failure continues for ten
Business Days after written notice of that payment failure is given by the
Party entitled to payment; (ii) the other Party continues its failure to perform,
or fails to cure or correct any nonperformance of, any of its obligations under
this Agreement (other than a payment or other obligation addressed in the
immediately preceding clause) for thirty (30) days after written notice of that
failure (which describes the failure with reasonable specificity) is given by
the Party entitled to performance; (iii) any bankruptcy, insolvency,
liquidation, dissolution, or similar action or proceeding is instituted,
commenced, or acquiesced in by the other Party or, if instituted or commenced
involuntarily against the other Party, is not stayed or dismissed within sixty
(60) days after that involuntary institution or commencement; (iv) the
other Party otherwise becomes insolvent, admits in writing its inability to pay
its debts as they mature, makes a general assignment for the benefits of its
creditors, or enters into any workout or similar arrangement with its
creditors; (v) the Issuing Bank terminates its agreement(s) with
NetSpend pursuant to which NetSpend offers 
ACE/NetSpend Cards and NetSpend is unable to make alternative
arrangements with a Successor

 

10

 

*** Confidential Treatment
Requested

 

Bank
in accordance with the terms of Section 18 (other than due to refusal,
failure or delay by ACE in entering into an agreement with such Successor Bank)
within a commercially reasonable time period thereafter; or (vi) any Party
receives a cease & desist order from its regulatory authority with
respect to the activities contemplated by this Agreement.  Whenever in this section the term “Party”
is used in relation to rights of ACE to terminate this Agreement for the action
or inaction, or an event involving, the other Party, ACE shall have the same
termination rights with respect to any such action or inaction by, or event
involving, either NetSpend or the Issuing Bank. 
The Parties may also terminate this Agreement by mutual written consent.

 

(c)                            Notwithstanding clause (ii) of Section 17(b), the Parties
agree that a Party’s inability or unwillingness to secure, or loss of, any
governmental or regulatory license or authorization in any particular state of
the United States, including (without limitation) the District of Columbia (a “Lost
State”), while maintaining necessary governmental or regulatory licenses or
authorizations in one or more other states, shall not alone (i.e., without any
other failure to perform by that Party) give the other Party a right to
terminate this Agreement as a whole, but will give the other Party the right to
cease performing those of its obligations hereunder, after the loss of, or
failure to obtain within a reasonable time, that license or authorization,
which arise or are performable only in, or correspond to or facilitate the
performance of the first Party of its obligations hereunder in, the Lost State.

 

(d)                           A Party’s termination of this Agreement under Section 17(b) shall
not be its exclusive remedy for any default by the other Party or affect such
other Party’s responsibility for performing its obligations under this
Agreement.

 

(e)                            Upon termination of this Agreement, each Party
shall cease all theretofore permitted use of the other Party’s name,
tradenames, trademarks, servicemarks, and logos.  Upon termination of this Agreement, NetSpend
agrees to (i) continue in good faith in the performance of the services
related to the NetSpend Cards pursuant to the terms and provisions of this Agreement
until ACE transfers such card services to an alternative card processor(s) and/or
card-issuing bank association(s) selected by ACE and (ii) cooperate
with ACE and use its best efforts to assist ACE in the transfer of such card
services to card processor(s) and/or card-issuing banking association(s) selected
by ACE.  ACE shall continue to receive
its portion of the Customer Fees and the NetSpend Fees until such migration has
been completed, which shall occur no later than twelve (12) months from the date
of termination of this Agreement.

 

18.                                 Successor Bank.  Any other provision of this Agreement or the
Bank Agreement to the contrary notwithstanding, NetSpend shall have the right
at any time with the prior approval of ACE, not to be unreasonably withheld,
conditioned or delayed, to cause a national bank, federal savings bank or
federal savings association (each such institution, a “Successor Bank”)
to become an additional or alternative issuer of NetSpend Cards contemplated to
be distributed under the terms of this Agreement (such Successor Bank to be an
Issuing Bank for all purposes under this Agreement).  If NetSpend determines that it would be
desirable or advantageous to engage a Successor Bank to serve as an Issuing
Bank, NetSpend shall consult with ACE regarding the engagement of such
Successor Bank during the sixty (60) day period following ACE’s receipt of
notice of NetSpend’s desire to engage such Successor Bank.  ACE agrees that it will enter into an
agreement (the “Successor Bank Agreement”) comparable in terms and
effect to the Bank Agreement with NetSpend and any such Successor Bank (such
Successor Bank

 

11

 

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Requested

 

Agreement to be a Bank
Agreement for all purposes under this Agreement), provided that the terms of
the Successor Bank Agreement shall be no more burdensome upon ACE in any
material respect than is the Bank Agreement.

 

19.                                 Independent Parties.  Notwithstanding anything to the contrary
contained herein, this Agreement shall not be construed to provide that a Party
in any manner controls the operations of the other Party or the manner in which
the other Party complies with its obligations hereunder.  The Parties are independent.  This Agreement does not create or evidence a
partnership or joint venture between the Parties, and no Party has any
authority hereunder with respect to any of the employees or agents of the other
Party.  Each Party is responsible for its
own business expenses generally, including (without limitation) expenses of
performing its obligations under this Agreement, and for the payment of all
taxes relating to its own business activities. 
Notwithstanding the foregoing, to the extent required by applicable law,
the Issuing Bank’s appointment of NetSpend and NetSpend’s appointment of ACE as
the Issuing Bank’s authorized representative will establish an agency
relationship, limited strictly to the rights, duties and obligations as set
forth herein and in the Bank Agreement. 
Accordingly, NetSpend and ACE hereby agree as follows:

 

(a)                            NetSpend and ACE shall serve as the Issuing
Bank’s representative and agent for purposes of rendering the marketing,
solicitation, sales and distribution services and other related services as set
forth herein;

 

(b)                           NetSpend and ACE acknowledge the Issuing Bank’s
right to monitor and review the activities NetSpend and ACE perform for or on
behalf of such Issuing Bank hereunder;

 

(c)                            NetSpend and ACE acknowledge the statutory
authority of the Issuing Bank’s regulators (“Federal Regulator”), to
regulate and examine and take an enforcement action pursuant to the federal law
against NetSpend or ACE with respect to the activities performed by NetSpend or
ACE as an agent or representative of the Issuing Bank;

 

(d)                           Each Issuing Bank shall provide NetSpend and
ACE with information and training that ACE understands are designed to ensure
that NetSpend and ACE will be adequately informed about the Issuing Bank’s
products and services offered hereunder, including the distinctions between
insured and non-insured products, and relevant law that may apply to the
marketing, solicitation and customer service activities instituted on behalf of
the Issuing Bank hereunder; and it is understood that in determining the scope
of its obligations with respect to the Issuing Bank’s products or services
covered in this Agreement, ACE may rely on the information provided by such
Issuing Bank;

 

(e)                            NetSpend agrees to ensure that training
material and regulatory compliance materials furnished to ACE are updated from
time to time as NetSpend determines to be reasonably necessary;

 

(f)                              NetSpend and ACE acknowledge that the Issuing
Bank is required to adopt a detailed compliance program to ensure adequate
monitoring, supervision, and control over NetSpend and ACE and the activities
that NetSpend and ACE perform on behalf of the Issuing Bank.  Such oversight includes ensuring NetSpend’s
and ACE’s own anti-money 

 

12

 

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laundering
compliance programs are detailed, thorough, and implemented accurately and
fully in compliance with applicable law;

 

(g)                           NetSpend and ACE acknowledge that the Issuing
Bank may undertake an annual review conducted under the auspices of the Issuing
Bank’s compliance officer to determine if NetSpend and ACE are operating in
compliance with the Issuing Bank’s established policies and procedures
regarding the marketing, solicitation, customer service or other activities
related to the Issuing Bank’s authorized bank products or services;

 

(h)                           NetSpend and ACE acknowledge that the Issuing
Bank may institute a system for tracking and resolving consumer complaints
involving NetSpend Cards and programs hereunder in a timely manner and each
agrees to provide an annual report regarding consumer complaints and their
resolution to the Issuing Bank’s board of directors;

 

(i)                               NetSpend and ACE acknowledge that a review and
approval process will be undertaken by the Issuing Bank for all NetSpend Card
and program disclosures, advertising, and other promotional material and that
such process will be timely communicated to ACE;

 

(j)                               NetSpend and ACE acknowledge that NetSpend and
ACE in their capacity as the Issuing Bank’s authorized delegate and
representative, are all subject to control and supervision by the appropriate
office of the Federal Regulator. This control and supervision includes, without
limitation, the ability to require that the Issuing Bank obtain Federal
Regulator’s approval (or non-objection) before entering into any contractual
arrangement with NetSpend and ACE and the right of the Federal Regulator to
approve specific contractual language;

 

(k)                            NetSpend and ACE acknowledge that the Federal
Regulator may require ACE, in its capacity as the Issuing Bank’s authorized
delegate and representative, to submit periodic reports to the Federal
Regulator regarding its performance under this Agreement. If any such reports
are required, NetSpend will ensure that the Issuing Bank informs ACE of the
required content of any such report and shall provide reasonable assistance to
ACE in preparing such report;

 

(l)                               NetSpend and ACE acknowledge that the Federal
Regulator may require the Issuing Bank to modify or terminate its relationship
with NetSpend and ACE at any time.  NetSpend agrees to employ its best efforts to
ensure that the Issuing Bank will use commercially reasonable efforts to avoid
any required termination or material modification of its relationship with ACE,
and to the extent that Federal Regulator requires modification or termination
in spite of the Issuing Bank’s reasonable efforts, NetSpend will employ it as
best efforts to ensure that the Issuing Bank provides as much advance written
notice thereof as possible to ACE (and in the case of a termination of such
relationship, to engage a Successor Bank for such relationship pursuant to Section 18);
and

 

(m)                         The Federal Regulator may institute any other
requirements or conditions that the Federal Regulator deems appropriate for the
particular purpose of reviewing the Issuing Bank’s compliance program, which
may include an examination of ACE’s programs and its records relating to
performance of this Agreement.

 

13

 

*** Confidential Treatment Requested

 

20.                                 Indemnification.

 

(a)                            NetSpend hereby agrees to indemnify and hold
harmless ACE and its agents, employees, officers, directors, successors, and
permitted assigns (collectively, the “ACE Indemnified Persons”) against,
and will pay or reimburse the ACE Indemnified Persons as suffered or incurred
any and all losses, claims, or expenses (including, without limitation,
reasonable attorneys’ fees and expenses) in any way arising from or connected
with the inaccuracy of any representation or warranty of NetSpend under this
Agreement and/or the Prior Agreement and the performance or nonperformance of
NetSpend’s obligations under this Agreement and/or the Prior Agreement; provided,
however, that NetSpend shall not have any indemnification obligations
hereunder for any losses, claims or expenses to the extent caused by any act or
omission of ACE in violation of this Agreement.

 

(b)                           ACE hereby agrees to indemnify, defend, and
hold harmless NetSpend and its agents, employees, officers, directors,
successors, and permitted assigns (collectively, the “NetSpend Indemnified
Persons”) against, and will pay or reimburse the NetSpend Indemnified
Persons as suffered or incurred, any and all losses, claims or expenses
(including, without limitation, reasonable attorneys’ fees and expenses),
including any liability NetSpend has to the Issuing Bank, in any way arising
from or connected with the inaccuracy of any representation or warranty of ACE
under this Agreement and/or the Prior Agreement or the performance or
nonperformance of ACE’s obligations under this Agreement and/or the Prior
Agreement; provided, however, that ACE shall not have any
indemnification obligations hereunder for any losses, claims or expenses to the
extent caused by any act or omission of NetSpend in violation of this Agreement
or in violation of any agreement with the Issuing Bank.

 

(c)                            In no event shall either Party be liable for
any consequential, indirect, punitive, special, or exemplary damages relating
to this Agreement.

 

(d)                           The Parties’ respective indemnification obligations
under this Section 20 shall survive the termination of this Agreement.

 

21.                                 Confidentiality.  Except for disclosures to the Issuing Bank,
the Parties shall keep this Agreement and its terms confidential, and each
Party shall keep the Confidential Information of the other Party confidential
and shall not use any of that Confidential Information for any purpose other
than in connection with this Agreement (or for regulatory compliance and market
research purposes).  The “Confidential
Information” of a Party is any trade secret or other confidential or
proprietary information relating to that Party’s services, business, or
customers; except that information that is generally known to the public or in
the industry (other than by a breach of this Section 21), is in the
possession of the receiving Party before disclosure by the other Party, or is
or becomes available to the receiving Party from a source that (to the
receiving Party’s knowledge) is not bound by any nondisclosure obligation to
the other Party is not “Confidential Information” of the other Party
under this Agreement.  A Party may,
without violating this Section 21, make such disclosures (a) to its
directors, officers, employees, attorneys, and other agents as may be necessary
to permit that Party to perform its obligations and to exercise its rights
hereunder, and (b) as it reasonably deems are required by law, though a
Party will use its reasonable efforts to notify the other Party in advance of
any such disclosure 

 

14

 

*** Confidential Treatment
Requested

 

required by law.  The Parties’ respective obligations under
this Section 21 shall survive the termination of this Agreement.

 

22.                                 Compliance with Laws.

 

(a)                            The Parties will perform their respective
obligations under this Agreement in compliance, in all material respects, with
all applicable laws, orders, or regulations. 
ACE shall adopt (as necessary) and maintain programs, policies and
procedures, which shall be subject to NetSpend’s review and approval, designed
to ensure that the Agent Services conducted by ACE under this Agreement are in
compliance with all applicable federal and state laws, rules and
regulations (as modified or amended from time to time). These shall include, to
the extent applicable to the Agent Services provided by ACE, programs, policies
and procedures relating to:

 

(i)                                     Emergency Preparedness;

 

(ii)                                  Electronic Funds Transfers;

 

(iii)                               Truth in Savings;

 

(iv)                              Funds Availability;

 

(v)                                 Financial Record Keeping;

 

(vi)                              Bank Secrecy;

 

(vii)                           Equal Credit Opportunity;

 

(viii)                        Bank Bribery Act;

 

(ix)                                Fair Debt Collection;

 

(x)                                   Right to Financial Privacy;

 

(xi)                                Unfair or Deceptive Credit Practices;

 

(xii)                             Know your customer policy;

 

(xiii)                          Notices (30 days) to customers of changes in the Electronic Accounts
Deposit Agreement;

 

(xiv)                         The Gramm-Leach-Bliley Act; and

 

(xv)                            The Patriot Act.

 

(b)                           ACE and NetSpend acknowledge and agree that
certain Customer Data is subject to all terms and conditions governing
information that is considered “cardholder data” or “sensitive authentication
data” under the Payment Card Industry Data Security Standard (the “PCI
Standard”), and with respect to the Issuing Banks, may include “Customer
Information” as defined under GLBA, 15 U.S.C. § 6801.  ACE acknowledges its responsibility to
safeguard 

 

15

 

*** Confidential Treatment
Requested

 

Customer
Data in its possession or control, both during and after the termination of the
Agreement. ACE shall perform its obligations under the Agreement in compliance
with all applicable requirements of the PCI Standard in the performance of any
obligations concerning NetSpend Cards or Customer Data. ACE agrees to notify
NetSpend in writing prior to disposing of any Customer Data (except in
accordance with applicable law and its general procedures for disposing of
Customer Data as previously disclosed to NetSpend), and only to dispose of
Customer Data in a manner reasonably acceptable to NetSpend and the Issuing
Banks.  ACE shall comply with all
reasonable requests for information from NetSpend, including, without
limitation, all requests for information arising from third-party or internal
audits regarding security incidents, on behalf of NetSpend, any Issuing Bank,
PCI representatives, PCI approved third parties, and any governmental authority
or regulator exercising jurisdiction (“Approved Persons”). ACE shall
make available to Approved Persons upon reasonable request all books and
records regarding security processes and procedures, use of Customer Data,
disaster recovery planning, the Agreement, and the services rendered
hereunder.  ACE will provide full
cooperation with and access for Approved Persons to conduct a thorough security
review after any security intrusion, any loss or unauthorized release of
Customer Data, or otherwise in connection with ACE’s or Stores’ breach of any
obligation under the Agreement concerning Customer Data.

 

(c)                            Each of ACE and NetSpend shall provide to the
other (i) an annual certification, executed by a senior executive officer
of such Party, that such Party has appropriate internal controls designed to
ensure compliance with applicable state and federal law (including laws
relating to money laundering, terrorism or terrorist financing), including an
appropriate BSA/AML program and process for monitoring and detecting of
suspicious activities and (ii) copies of any third party audits conducted
for such Party with respect to such matters, subject to any restrictions on
such delivery as may be imposed by any regulatory or governmental authority
with jurisdiction over such Party.

 

23.                                 Access to Records.

 

(a)                                  NetSpend shall maintain accurate records with
respect to all issuances of the NetSpend Cards and the provision of the
services related to the NetSpend Cards to customers, the receipt of all
payments and other amounts from customers, all transactions of customers using
the NetSpend Cards, and all other matters related to this Agreement and copies
of all documents and other materials related to NetSpend’s obligations to ACE
under this Agreement, including without limitation NetSpend’s compliance with
applicable state and federal law (including laws relating to money laundering,
terrorism or terrorist financing). 
Within thirty (30) days of ACE’s written request to NetSpend, but not
more than twice in any twelve-month period, ACE, by its duly authorized agents
and representatives, shall have the right to inspect such records, documents
and materials from time to time during ordinary business hours, subject to
(i) such security procedures as NetSpend may reasonably impose and
(ii) such limitations as may be required under applicable governmental or
regulatory rules, regulations or statutes governing the conduct of NetSpend’s
business; provided, however, that (except as provided elsewhere
in this Agreement) the Parties shall have no obligation to disclose to each
other, or to inspect or copy, or have any other right of access to any other
corporate financial information, or Customer Data, or to obtain photocopies of
such records, documents and materials. 
ACE agrees that any records, documents, and materials made available for
inspection under this Section 23 shall be deemed Confidential Information
of NetSpend that is subject to 

 

16

 

*** Confidential Treatment
Requested

 

Section 21 and
NetSpend’s Privacy Policy, except with respect to any disclosure required by
any regulatory agency with jurisdiction over ACE, or Section 21.

 

(b)                           Within thirty (30) days of NetSpend’s written
request to ACE, but not more than twice in any twelve-month period, NetSpend,
by its duly authorized agents and representatives, shall have the right to
inspect the records, documents, materials, procedures and facilities maintained
by ACE relating to the NetSpend Cards and this Agreement, including without
limitation ACE’s compliance with applicable state and federal law (including
laws relating to money laundering, terrorism or terrorist financing) and the
corresponding program requirements of NetSpend and any Issuing Bank from time
to time during normal business hours, subject to (i) such security
procedures as ACE may reasonably impose and (ii) such limitations as may
be required under applicable governmental or regulatory rules, regulations or
statutes governing the conduct of ACE’s business; provided, however,
that (except as provided elsewhere in this Agreement) the Parties shall have no
obligation to disclose to each other, or to inspect or copy, or have any other
right of access to any other corporate financial information, or Customer Data,
or to obtain photocopies of such records, documents and materials.  NetSpend agrees that any records, documents
and materials made available for inspection under this Section 23(b) shall
be deemed Confidential Information of ACE that is subject to Section 21
and ACE’s Privacy Policy, except with respect to any disclosure required by any
regulatory agency with jurisdiction over NetSpend, or Section 21.

 

(c)                            NetSpend will provide to ACE, within ten (10) Business
Days after they are available, annual audited financial statements, including
at least a balance sheet and statement of profits and losses, together with the
report of independent certified public accountants relating thereto.

 

24.                                 Notice.  Any notice, consent, or other communication to
be given under this Agreement by either Party to the other Party shall be in
writing and shall be either (a) personally delivered, (b) mailed by
registered or certified mail, postage prepaid with return receipt requested,
(c) delivered by prepaid overnight express delivery service or same-day
local courier service, or (d) delivered by prepaid facsimile
communication, in any case to the address or number set forth below or at such
other address or number as may have previously been designated by a Party for
it by notice to the other Party in accordance with this Section 24.  Notices delivered personally, by overnight
express delivery service, or by local courier service shall be deemed given as
of actual receipt.  Mailed notices shall
be deemed given three Business Days after mailing.  (A “Business Day” is any Monday
through Friday other than a day that is a Federal Reserve Bank holiday or other
applicable bank holiday.)  Notices
delivered by facsimile communication shall be deemed given upon receipt by the
sender of the communication confirmation.

 

	
  If
  to ACE:

  	
  ACE
  Cash Express, Inc.

  
	
   

  	
  1231
  Greenway Drive

  
	
   

  	
  Suite 600

  
	
   

  	
  Irving,
  Texas 75038

  
	
   

  	
  Facsimile
  no.: (972) 582-1426

  
	
   

  	
  Attn:
  General Counsel

  

 

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  If
  to NetSpend:

  	
  NetSpend
  Corporation

  
	
   

  	
  710 Brazos, Suite 1200

  
	
   

  	
  Austin, Texas 78701

  
	
   

  	
  Facsimile no.: (512) 532-8309

  
	
   

  	
  Attn:  General Counsel

  

 

25.                                 Assignment.  Except as provided in this Agreement, the
rights and obligations under this Agreement may not be assigned or delegated by
either Party without the prior written consent of the other Party, and any such
purported assignment or delegation without such consent shall be void.  Either Party may assign its rights and
obligations under this Agreement to any entity that controls, is controlled by,
or is under common control with such Party, so long as that other entity is not
a direct competitor of the non-assigning Party and is capable of performing
(and agrees to perform) the obligations of the assigning Party under this
Agreement.  Any requested consent to
assignment will not be unreasonably withheld by a Party, unless the entity to
which the assignment is to be made is a direct competitor of the non-assigning
Party (in which case, consent shall be in the sole discretion of the
non-assigning Party).

 

26.                                 Governing Law.  This Agreement shall be governed by,
construed in accordance with, and enforced under the laws of the State of
Texas.

 

27.                                 Force Majeure.  Except as otherwise expressly set forth
herein, in the event a Party shall be delayed or hindered in, or prevented
from, the performance of any act required of it hereunder by reason of strike,
inability to procure materials, failure of power, telecommunications or
connectivity failure, restrictive governmental laws or regulations, inability
to obtain or maintain (for any reason outside of a Party’s reasonable control)
any governmental or regulatory license or authorization, riot, insurrection,
war, act of God, or other event outside that Party’s reasonable control (each
such cause or event being hereinafter referred to as a “Force Majeure”),
then performance of such acts will be excused for the period of the delay and
the period for performance of any such act shall be extended for a period
equivalent to the period of such delay. 
Any time a Party is experiencing a Force Majeure that is expected to
result in a significant failure or delay, such Party will give notice to the
other Party describing the Force Majeure and the nature of the failure or delay
and giving an estimate as to how long the delay will be.  A Party claiming an excusable delay or
failure under this Section 27 shall use reasonable efforts to alleviate or
overcome the Force Majeure as soon as practicable.

 

28.                                 Offset.  A Party shall be entitled to credit or offset
an amount equal to any or all amounts due to it by the other Party under this
Agreement.

 

29.                                 Dispute Resolution.  Any dispute or controversy arising out of or
relating to this Agreement or the interpretation or termination of this
Agreement (“Dispute”), shall be resolved or settled by arbitration
before a single arbitrator pursuant to the Rules for Commercial
Arbitration of the American Arbitration Association (the “Rules”).  Arbitration may be commenced at any time by a
Party’s giving written notice to the other Party and to Issuing Bank that a
Dispute has been referred to arbitration under this Section 29.  The arbitration proceeding shall be conducted
in Dallas County, Texas.  The arbitrator
shall be selected by agreement of the Parties, but if they do not so agree
within twenty (20) days after the date of the notice referred to in the second
preceding sentence, the selection shall be made by the Dallas office of the 

 

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American Arbitration
Association pursuant to the Rules.  Any
award rendered by the arbitrator shall be conclusive and binding upon the
Parties.  This provision for arbitration
shall be specifically enforceable by either of the Parties, and judgment upon
the arbitration award may be entered and enforced in any court having
jurisdiction over the Parties or their respective assets, it being the intent
of the Parties that these arbitration provisions be enforced to the fullest
extent permitted by applicable law.  Each
of the Parties shall pay its own expenses of arbitration (including, without
limitation, those of its own counsel and witnesses), and the expenses of the
arbitrator shall be shared equally by the Parties; except that if, in the
opinion of the arbitrator, any claim or any defense or objection thereto was
unreasonable, the arbitrator may assess, as part of his or her award, all or
part of the arbitration expenses of the other Party (including, without
limitation, its reasonable attorneys’ fees) and of the arbitrator against the
Party asserting that unreasonable claim, defense, or objection.  Nothing in this Section 29 precludes a
Party from applying to a court having jurisdiction to (a) seek provisional
or temporary injunctive relief, in response to an actual or threatened breach
of this Agreement or otherwise to avoid irrevocable damage or maintain the
status quo, until a final arbitration decision or award is rendered or a
Dispute is otherwise resolved or (b) enforce the provisions of this Section 29.  Nothing in this Section 29 precludes the
Parties from resolving a Dispute by agreement at any time.

 

30.                                 Amendment; Waiver.  This Agreement may only be amended by the
written consent of both Parties, and any provision hereof may be waived only by
a document signed by the Party against which the waiver is sought to be
enforced.  A Party’s failure or delay in
enforcing the other Party’s performance of any of such other Party’s
obligations under this Agreement shall not be a waiver of any of those
obligations.

 

31.                                 Invalid Provisions.  If any provision of this Agreement is ever
held to be invalid or unenforceable, that provision will be severed from the
rest of this Agreement, and all of the other provisions of this Agreement will
remain in effect, but will be amended by the Parties to the extent possible to
result in this Agreement having the same relative economic benefits and
detriments to the Parties as existed before the severance of the invalid or
unenforceable provision.

 

32.                                 Entire Agreement.  This Agreement (together with the Schedules
hereto, which are integral parts of this Agreement) contains the entire
agreement of the Parties as to the subject matter hereof and supersedes all
prior agreements and understandings, whether oral or written, between the
Parties with respect to the subject matter hereof.

 

33.                                 Binding Effect; No Third-Party Beneficiaries.  This Agreement and the rights
and obligations hereunder shall be binding upon and shall inure to the benefit
of the Parties and their legal successors and permitted assigns.  Except as otherwise expressly provided in Section 1,
nothing in this Agreement, expressed or implied, is intended to confer upon any
person or entity, other than the Parties and their legal successors and
permitted assigns, any rights, benefits, or obligations.

 

34.                                 Compliance with Gramm-Leach-Bliley Act.  Notwithstanding the foregoing, nothing herein
shall require either Party to violate Title V of the Gramm-Leach-Bliley Act or
any regulation promulgated thereunder with respect to the privacy of the
customers of any financial institution.

 

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35.                                 Press Releases.  Neither Party shall issue a press release
making reference to this Agreement, the other Party to this Agreement, or to
the services provided by such Party pursuant to this Agreement, without the
prior written consent of the other Party, such consent not to be unreasonably
withheld, conditioned or delayed.

 

36.                                 Counterparts.  This Agreement may be executed in
counterparts, each of which shall be an original, but all of which shall
constitute one, and the same, document

 

37.                                 Effectiveness; Termination of Prior Agreement.  The effectiveness of this
Agreement is contingent upon the closing (the “Closing”) of the
transactions contemplated by that certain Agreement and Plan of Merger, dated
as of the date hereof, by and among NetSpend Holdings, Inc., Aurora
Acquisition Sub, Inc., Skylight Acquisition I, Inc., Skylight
Holdings I, LLC, JLL Partners Fund IV, L.P., JLL Partners Fund V, L.P. and Oak
Investment Partners X, L.P. (the “Merger Agreement”).  In the event the Closing does not occur for
any reason, this Agreement shall be null and void and of no further force and
effect and the Prior Agreement shall continue in effect (taking into account
any actions or notifications previously delivered by the Parties) in accordance
with its terms.  The first day of the
month in which the Closing occurs shall be deemed to be the “Effective Date”
of this Agreement.  The effectiveness of
this Agreement is additionally contingent upon the execution and delivery of
the Bank Agreement with Meta.  On the
Effective Date, the Prior Agreement shall be deemed amended and restated in its
entirety by this Agreement.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

 

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*** Confidential Treatment Requested

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of
the date first above written, to be effective as of the Effective Date.

 

	
   

  	
  ACE
  CASH EXPRESS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ted Eades

  
	
   

  	
  Name:

  	
  Ted
  Eades

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NETSPEND
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Daniel R. Henry

  
	
   

  	
  Name:

  	
  Daniel
  R. Henry

  
	
   

  	
  Title:

  	
  CEO

  

 

21

 

*** Confidential Treatment Requested

 

Schedule 1

 

DEPOSIT AND TRANSMISSION PROCEDURES

 

 

On
the Business Day following the day that Customer Transaction(s) are
processed by ACE, ACE will (a) cause those funds constituting Card
Payments (less the amount of any Cash Withdrawals) to be credited, through the
Automatic Clearinghouse system, to a custodial customer bank account designated
by NetSpend at the Issuing Bank (or in the event that Cash Withdrawals exceed
the amount of Card Payments, to cause such amount to be credited from such
account to an account designated by ACE), (b) cause those funds
constituting NetSpend’s portion of any Customer Fees to be credited, through
the Automatic Clearinghouse system, to a bank account designated by NetSpend,
and (c) make Customer Data available for electronic communication to NetSpend
(as initiated by NetSpend) to correspond to such funds remittance.

 

On
or before the fifth (5th) Business Day
of each month, NetSpend shall provide ACE with a calculation of the NetSpend
Fees and ACE’s portion of any Customer Fees generated on the ACE/NetSpend
Acquisition Website (which shall include an aggregate list of all relevant data
necessary to calculate the NetSpend Fees 
and ACE’s portion of any Customer Fees generated on the ACE/NetSpend
Acquisition Website (the “NetSpend Fee/Web Fee Calculation”)), in each
case during the immediately preceding month. Payment of the NetSpend Fees and
ACE’s portion of any Customer Fees generated on the ACE/NetSpend Acquisition
Website corresponding to the NetSpend Fee/Web Fee Calculation will be made by
NetSpend initiating a credit, through the Automatic Clearing House system, to a
bank account designated by ACE no later than ten (10) days after due date
of the NetSpend Fee/Web Fee Calculation.

 

On
or before the thirtieth (30th) day immediately following the termination of this Agreement (and
within five (5) Business Days after the end of each calendar month
thereafter), NetSpend shall provide ACE with the NetSpend Fee/Web Fee
Calculation for such period. Payment of all NetSpend Fees and ACE’s portion of
any Customer Fees generated on the ACE/NetSpend Acquisition Website due for any
such period will be made by NetSpend’s initiating a credit, through the
Automatic Clearinghouse system, to a bank account designated by ACE no later
than ten days after due date of the NetSpend Fee/Web Fee Calculation.

 

If
ACE objects to any NetSpend Fee/Web Fee Calculation, ACE shall deliver to
NetSpend a dispute notice within five Business Days of receipt by ACE of such
NetSpend Fee/Web Fee Calculation. If a dispute notice is delivered to NetSpend,
the Parties shall negotiate in good faith to resolve any differences related to
the NetSpend Fee/Web Fee Calculation. To assist in this process, NetSpend shall
provide ACE with reasonable access, as requested by ACE, to the relevant books
and records of NetSpend. Any dispute not resolved by the Parties’ negotiations
within thirty (30) Business Days after ACE’s dispute notice shall be a Dispute
subject to Section 29.

 

ACE shall be solely
responsible for forwarding payments of the relevant portion of any Customer
Fees or NetSpend Fees received by ACE to any franchisees of ACE or of any of
ACE’s affiliates whose retail locations are Participating Stores.

 

The
terms of this Schedule 1 shall survive termination of this Agreement.

 

 

*** Confidential Treatment Requested

 

Schedule 2

 

CUSTOMER FEES

 

Application Fee

 

ACE
shall charge the customer an application fee (the “Application Fee”) for
each complete and valid application accepted (and the related Customer Data
communication services) at any Participating Store or completed on the
ACE/Netspend Acquisition Website.  The
Application Fee shall be between $3.95 and $29.95 (unless otherwise agreed by the Parties), and shall be
determined by ACE in its sole discretion upon not less than thirty (30) day’s
prior written notice to NetSpend. The Application Fee shall be divided between
ACE and NetSpend as set forth below; provided, however, that in
the event the NetSpend portion of the Application Fee based on the calculation
below is less than zero, the NetSpend portion of such Application Fee shall be
deemed to be zero and ACE shall be entitled to 100% of such Application Fee,
and NetSpend shall not be obligated to pay any additional amounts to ACE in
respect of such Application Fee.

 

	
   

  	
  Application Fee

  	
   

  	
  ACE Portion

  	
   

  	
  NetSpend Portion

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  $*** to $***

  	
   

  	
  ***% + $***

  	
   

  	
  ***% - $***

  	
   

  
	
   

  	
  $*** to $***

  	
   

  	
  ***% + $***

  	
   

  	
  ***% - $***

  	
   

  

 

Customer Convenience Fee

 

ACE
may charge the customer a convenience fee (the “Customer Convenience Fee”)
for Card Payments accepted and/or Cash Withdrawals processed (and related
administrative services) by ACE at any Participating Store.  ACE shall be entitled to retain ***% of the
Customer Convenience Fee.  The Customer
Convenience Fee shall initially be between $1.00 and $3.00 per Card Payment or
Cash Withdrawal, irrespective of the amount of the Card Payment or Cash
Withdrawal. ACE may increase or decrease the Customer Convenience Fee in its
sole discretion.

 

Customer Gift Card Fees

 

For
each Gift Card sold by at any Participating Store or on the ACE/NetSpend
Acquisition Website, the customer will be charged a fee (“Customer Gift Card
Fee”) amounting to $4.95 per Gift Card, subject to modification by ACE upon
notification to NetSpend, provided that the modified fee shall not be less than
$3.95 or greater than $19.95.  ACE and
NetSpend shall *** be entitled to *** percent (***%) of all Customer Gift Card
Fees collected.

 

 

*** Confidential Treatment Requested

 

Schedule 3

 

NETSPEND FEES

 

***

 

 

*** Confidential Treatment Requested

 

Schedule 4

 

MARKETING INFORMATION

 

 

	
  Application & FAQ Flyer

  	
   

  	
  Display
  by ACE is required 

   

  Produced
  by NetSpend

  
	
   

  	
   

  	
   

  
	
  Temporary Card with Welcome Kit

  	
   

  	
  Availability
  by ACE is required 

   

  Produced
  by NetSpend

  
	
   

  	
   

  	
   

  
	
  Window Cling

  	
   

  	
  Display
  by ACE is required 

   

  Produced
  by NetSpend

  
	
   

  	
   

  	
   

  
	
  Vinyl Product Poster

  	
   

  	
  Display
  by ACE is optional 

   

  Produced
  by NetSpend

  
	
   

  	
   

  	
   

  
	
  Vinyl Promotional Poster

  	
   

  	
  Display
  by ACE is optional 

   

  Produced
  by NetSpend as necessary and agreed upon by NetSpend and ACE

  
	
   

  	
   

  	
   

  
	
  ACE Service Menu Listing

  	
   

  	
  Display
  by ACE is required 

   

  Produced
  by ACE

  

 

 

*** Confidential Treatment Requested

 

Schedule 5

 

ACE EMPLOYEE ACCOUNTS

NETSPEND OBLIGATIONS

 

***

 

 

*** Confidential Treatment Requested

 

Schedule 6

 

REPORTS

 

***

 

 

*** Confidential Treatment Requested

 

Schedule 7

 

NETSPEND CUSTOMER SERVICE REQUIREMENTS

 

1.                                       Consumer Service Calls.  Front-line, consumer service calls will be
answered by NetSpend *** of the time within *** after the time the call enters
the queue.  The consumer service call
abandoned rate will not exceed ** on one hundred percent (100%) of all incoming
calls received during the standard customer service hours outlined below for
each year covered by the agreement.  Upon
request, at intervals which will not exceed a monthly frequency, ACE can receive
reports from NetSpend related to NetSpend’s performance against the minimum
consumer service level requirements described in this Schedule 6.

 

2.                                       Customer Service Hours.  NetSpend customer service will be open from
8:00 A.M. to 9:00 P.M. Central Time, (“CT”) on business days and 8:00 A.M.
to 5:00 P.M. (CT), Saturdays and Sundays (excluding Thanksgiving,
Christmas and New Years Day).

 

3.                                       Resolution of Payment Inquiries.  Standard research inquiries shall be handled
in compliance with Regulation E.  It is
NetSpend’s policy and practice to continuously improve customer service,
including responses to consumer inquiries.

 

4.                                       Standard of Care.  The
Parties agree to use reasonable care in accordance with industry standards
regarding consumers (i.e., in
compliance with Regulation E).  If a
Party fails to meet this standard, it must take corrective action as provided
in this Agreement.

 

5.                                       Disaster Recovery.  NetSpend shall provide a “hot” back-up center
capable of ensuring that all ACE point of sale and debit/ATM network
transactions could be processed normally within fifteen minutes after the
occurrence of any unplanned outage.  Such
back-up center will be completely separate from and located at least ten miles
from NetSpend’s primary data center. 
NetSpend also agrees to test such back-up center at least annually and
provide ACE or its designated representatives with documented results to show
actual recovery times and results.

 

6.                                       System
Availability.  NetSpend
systems used to provide NetSpend Services shall be fully operational at least
*** of the time during any calendar month, excluding reasonable scheduled
maintenance.  ACE systems necessary for
NetSpend to provide the NetSpend Services shall be fully operational at least
*** of the time during any calendar month, excluding reasonable scheduled
maintenance.

 

7.                                      System
Response Times.  NetSpend
systems will respond to POS/consumer transactions conducted in Participating
Stores within *** of the request, for at least *** of all transactions, as
measured over any consecutive seven-day period. 
This response time will be measured by the ACE host system.  NetSpend will not be responsible for response
times between the ACE host and the ACE POS.

 

 

*** Confidential Treatment Requested

 

Schedule 8

 

CARD DESIGNS

 

(See Attached)Exhibit
10.20

 

***  Where this marking appears throughout this Exhibit 10.21,
information has been omitted pursuant to a request for confidential treatment;
a complete copy of this agreement has been filed separately with the Securities
and Exchange Commission.

 

SECOND AMENDED AND RESTATED CARD PROGRAM MANAGEMENT AGREEMENT

 

This
Second Amended and Restated Card Program Management Agreement (the “Agreement”) dated as of February 1,
2010 is entered into by and between NetSpend Corporation whose
address is 701 Brazos Street, Suite 1200, Austin, Texas 78701 (“Program Manager”) and MetaBank, dba Meta Payment Systems, whose address is 5501 S.
Broadband Lane, Sioux Falls, South Dakota 57108 (“Bank”)
(each of Bank and Program Manager, a “Party” and
collectively, the “Parties”).

 

WHEREAS, Bank is a federally-chartered savings association,
a member of Visa, MasterCard, Discover and various other card associations and
electronic payment networks, and, among other things, issues prepaid cards and
establishes settlement accounts for the settlement of card transactions;

 

WHEREAS, Bank has developed, and shall continue to develop,
various prepaid card programs, under which it shall issue fixed and variable
denomination, reloadable and non-reloadable prepaid cards, as well as a series
of card-related products and services in conjunction therewith;

 

WHEREAS, Program Manager is in the business of marketing and
distributing prepaid cards and can provide services, either directly or through
subcontractors, to support prepaid card programs;

 

WHEREAS, Bank desires to engage Program Manager to provide
certain program management services in connection with the Program as further
described herein, including, without limitation, the exclusive marketing and
distribution of the Cards issued by Bank under the Card Programs contemplated
herein, and Program Manager wishes to provide such services as set forth
herein; and

 

WHEREAS, as of July 1, 2009, the Parties entered into
that certain Amended and Restated Card Program Management Agreement (the “Existing Agreement”) and desire to
amend and restate the Existing Agreement as set forth herein;

 

NOW, THEREFORE, in consideration of the premises and mutual
covenants set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties, intending
to be legally bound, hereby agree as follows:

 

ARTICLE I — DEFINITIONS

 

SECTION 1.1
— Definitions

 

Except
as otherwise specifically indicated, the following terms shall have the
following meanings in this Agreement (such meanings to be equally applicable to
both the singular and plural forms of the terms defined):

 

“ACH Transactions” has the meaning
set forth in Section 4.3(b).

 

“Affiliate” means, with respect to
any Person, any other Person that directly or indirectly Controls, is
Controlled by, or is under common Control with such Person.

 

“Agent Agreement” means an agreement,
in form and substance mutually agreed upon in writing by the Parties, between a
Retailer or Distributor, as applicable, Program Manager and Bank, pursuant to
which the Retailer or Distributor, as applicable, is appointed as the agent of
Bank and Program Manager for purposes of compliance with Applicable Law.

 

“Applicable Law” means (i) System
Rules, (ii) any applicable rule or requirement of the National
Automated Clearinghouse Association, (iii) the published policies and
procedures of Bank, as

 

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promulgated
by Bank’s Board of Directors in good faith to ensure the continued safety and
soundness of Bank, and (iv) any and all laws, treaties, rules,
regulations, regulatory guidance, determinations of (or agreements with) an
arbitrator or governmental agency or authority and mandatory written direction
from (or agreements with) any arbitrator or governmental agency or authority,
including, without limitation, the Bank Secrecy Act, any and all sanctions or
regulations enforced by OFAC, and statutes or regulations of any state relating
to gift cards, money transmission or unclaimed property, that are applicable to
the marketing, issuance, sale, authorization or usage of the Cards, or
otherwise applicable to any of the Parties by law or made applicable to any
Party as specifically provided for in this Agreement, as the same may be
amended and in effect from time to time during the Term.

 

“ATM” means automated teller
machine.

 

“BIN” means the bank
identification number assigned to Bank by Visa U.S.A., Inc., the Interbank
Card Association number assigned to Bank by MasterCard International, Inc.,
the Institution Identification Number assigned to Bank by Discover Network, Inc.,
or similar identifier assigned to Bank by other card associations or payment
systems for the purposes of identifying and routing electronic payment
transactions.

 

“Business Day” means any day
other than a Saturday, Sunday or holiday recognized by the Federal Reserve
Board.

 

“Card” means a reloadable or non-reloadable
prepaid card or other access device issued by Bank as a product of the Bank in
connection with a card program managed by the Program Manager, and pursuant
both to this Agreement and under authority from the System.  For purposes of this Agreement, a “Card” does
not include any credit card or product that accesses credit.

 

“Card Program Account Manager” has
the meaning set forth in Section 4.6.

 

“Cardholder” means (i) a
person who is issued a Card, and/or (ii) uses the Card to effect a
Transaction.

 

“Cardholder Account” has the meaning
set forth in Section 4.4.

 

“Cardholder Agreement” means a
written agreement between Bank and the Cardholder, which includes (i) the
terms and conditions applicable to such Card, and (ii) any other notices
or documents related to such Card as may be required by Bank or Applicable Law,
including, but not limited to, those disclosures required under the Electronic
Fund Transfer Act, 15 USC § 1693 et seq., and Regulation E.

 

“Cardholder Data” means any
data or information of any Cardholder that is provided to or obtained by any
Party in the performance of its obligations under this Agreement or otherwise,
including but not limited to, all lists of Cardholders, former Cardholders, and
all information relating to and identified with such Cardholders, including,
but not limited to account transaction and balance data, and “non-public
personal information” as defined by the Gramm-Leach-Bliley Act and its
implementing regulations, as amended, including but not limited to postal and e-mail
addresses and associated data (including any personally identifiable
information, personal account information, financial information, account
numbers, personal identification numbers and other related information, social
security numbers, or other non-public business or personal or financial
information) provided by the Cardholders to any Party.

 

“Cardholder Funds” means those
funds which have been received from or on behalf of a Cardholder for purposes
of being loaded to a Card, but which have not yet been redeemed.

 

“Change of Control” means, with
respect to any Person, (i) an acquisition of the voting control of such
Person (i.e., the ability to elect a majority of the members of the Board of
Directors or similar governing body of such Person) by another entity or group
(as such term is defined in Rule 13d-5 under the Securities Exchange Act
of 1934, as amended) by means of any transaction or series of transactions
(including, without limitation, any reorganization, merger or consolidation) or
(ii) a sale of all or

 

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substantially
all of the assets of such Person to any entity or entities in which the
equityholders of such Person, directly or indirectly, do not have voting
control (i.e., the ability to elect a majority of the members of the Board of
Directors or similar governing body of such entity).

 

“Claim” has the meaning set forth in Section 14.1.

 

“Confidential Information” has the
meaning set forth in Section 11.1.

 

“Control” means the possession,
direct or indirect, of the power to vote fifty percent (50%) or more of the
securities that have ordinary voting power for the election of directors of any
entity, or to direct or cause the direction of the management and policies of
such entity, whether through ownership of voting securities or by contract or
otherwise and

 

“Customer Care Center” has the
meaning set forth in Section 3.5.

 

“Discloser” has the meaning set forth
in Section 11.1.

 

“Dispute” has the meaning set forth
in Section 14.4.

 

“Distributor” means an entity which Program
Manager, as manager of the Program(s) hereunder, has engaged for the
purposes of marketing and distributing the Cards through such distribution
channel(s) as agreed to by Program Manager and such entity, and approved
by Bank, including, but not limited to, Retailer locations.

 

“***”
has the meaning set forth in Section 10.2(e).

 

“Effective Date” has the meaning set
forth in Section 10.1.

 

“GLBA” means, collectively,
Title V - Privacy of the Gramm-Leach-Bliley Act, P.L. 106-102, the Privacy
Regulations and implementing regulations promulgated thereunder, and the
standards for safeguarding customer information set forth in 12 CFR Part 364
and 16 CFR Part 314, all as they may be amended, supplemented and/or
interpreted in writing from time to time by any federal Regulatory Authority.

 

“Gross Dollar Volume” has the
meaning set forth in Section 2.1(b).

 

“Guidelines” means the Interagency
Guidelines Establishing Standards for Safeguarding Customer Information.

 

“***”
means ***.

 

“***”
means ***.

 

“Indemnified Party” has the meaning
set forth in Section 14.1.

 

“Indemnifying Party” has the meaning
set forth in Section 14.1.

 

“Interchange” means the fee
paid to the issuer of a Card by a System in connection with a Transaction.

 

“Initial Term” has the meaning set
forth in Section 10.1.

 

“Mark” means the service marks and
trademarks of a Bank, Program Manager or a System, including but not limited
to, the names and other distinctive marks or logos, which identify Bank,
Program Manager or a System.

 

“Material Adverse Change” means, with
respect to either Party, an event, change or occurrence which, individually or
together with any other event, change or occurrence, has a material adverse
impact on the ability of such Party to perform its obligations under this Agreement.

 

“MFG” means Meta Financial Group, Inc.,
a Delaware corporation.

 

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“Monthly System Fees” has the meaning
set forth in Section 8.2(d).

 

“NetSpend ABA Number” has the meaning
set forth in Section 4.3(b).

 

“***” has the meaning set forth in Section 2.1(b).

 

“Nonreloadable Card” means a Card
issued under a Program that is a fixed denomination, non-reloadable Card.

 

“OFAC” has the meaning set forth in Section 4.3.

 

“OTS” means the Office of Thrift
Supervision.

 

“Person” means an individual,
corporation, partnership, limited liability company, limited liability
partnership, syndicate, trust, association, organization or other entity, or
any governmental authority.

 

“Processing Services” means those
services which are necessary to issue and service a Card and process a
Transaction in accordance with Applicable Law.

 

“Program” means a system of services
as mutually agreed by Program Manager and Bank and provided by Program Manager
and Bank pursuant to the terms of this Agreement under which Cardholders
subject to a Cardholder Agreement for such Program utilize a Card to submit
Transactions into a System utilizing a Settlement Account established by Bank
to access Cardholder Funds. This Agreement contemplates that Program Manager
may be permitted by Bank to offer multiple Programs hereunder, each subject to
the terms hereof and the prior written approval of Bank.

 

“Program Affiliate” means a
party with whom Program Manager contracts, with the approval of Bank, for the
express purpose of marketing or selling the Cards or performing any of Program
Manager’s duties hereunder.

 

“Program Revenue” means all
income derived from a Cardholder’s use of a Card or participation in a Program,
net any amounts payable to Distributors and Retailers under the Agent
Agreements.

 

“Program Telephone Numbers and Websites” has the
meaning set forth in Section 10.3(c).

 

“Recipient” has the meaning
set forth in Section 11.1.

 

“Regulation E” means 12 CFR Part 205
and its successor provisions.

 

“Regulatory Authority” means,
as the context requires, any System, the National Automated Clearing House
Association, and any federal or state agency having jurisdiction or regulatory
powers over Bank, Program Manager, the Cards or a Program.

 

“Reloadable Card” means a Card
issued under a Program which allows a Cardholder to add additional funds to
such Card following the initial sale and loading of such Card.

 

“Renewal Term” has the meaning set
forth in Section 10.1.

 

“Retailer” means an entity which
Program Manager, as manager of the Program(s) hereunder, has engaged,
either directly or indirectly through a Distributor, for the purposes of
offering Cards to consumers through one or more retail locations operated by such
entity.

 

“Settlement” means the movement and
reconciliation of funds between Bank and System members in accordance with the
System Rules to settle Transactions.

 

“Settlement Account” means the
account maintained by Bank used for Settlement of all Transactions initiated by
use of a Card(s) by or on behalf of a Cardholder.

 

“Skylight” means Skylight Financial, Inc.,
a Delaware corporation, or any successor and assign.

 

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“Skylight ABA Number” means the ABA
routing and transit number maintained by Bank exclusively for the prepaid card
programs with respect to which Skylight serves as program manager and the
Program.

 

“Solicitation Notice” has the meaning
set forth in Section 2.1(d).

 

“Successor Bank” has the meaning set
forth in Section 10.3.

 

“Switchover Date” has the meaning set
forth in Section 10.3.

 

“System” means Visa U.S.A., Inc.,
MasterCard International, Inc., Discover Network, Inc., American
Express Travel Related Services Company, Inc., or any other card network
selected by Bank and agreed to by Program Manager.

 

“System Rules”  means the bylaws, operating rules and
regulations of System or any other card association operating a payment network
which is utilized by any Party hereto for the purposes of fulfilling such Party’s
obligations hereunder.

 

“Term” has the meaning set forth in Section 10.1.

 

“Texas
Authorized Services” has the meaning set forth in Section 2.1(b).

 

“Third
Party Program Manager” means a third party program manager of
prepaid cards or other payment devices issued by Bank.

 

“Third
Party Processor” means a third party that serves as processor
with respect to prepaid cards or other payment devices issued by Bank.

 

“***” has the meaning set forth in ***.

 

“***” has the meaning set forth in ***.

 

“Transaction” means using a
Card to: (i) make a purchase; (ii) obtain a credit for a previous
purchase; (iii) obtain cash from a an ATM; (iv) make a bill payment
or other payment to a third party; or (v) engage in any other activity
which may positively or negatively impact the balance of Cardholder Funds
associated with such Card.

 

“Transition Period” means the
period commencing on the termination or expiration of this Agreement and
continuing for three hundred sixty five (365) calendar days, unless, to the
extent permitted by Applicable Law, such longer period is required for Program
Manager to (i) sell all remaining Cards in its inventory which contain
Bank’s Marks or (ii) complete the transfer of the Cards and Program(s) to
a Successor Bank or the wind-down of the Program(s) pursuant to Section 10.3,
in which case such period shall extend to such date that such items are
completed.

 

“Well-Capitalized Institution”
has the meaning set forth in Section 6.2(e).

 

ARTICLE II — GENERAL
DESCRIPTION OF PROGRAMS

 

SECTION 2.1 — Appointment of Program Manager

 

(a)           Bank hereby (i) appoints
Program Manager as its authorized delegate and representative to (A) assist
Bank in the development and marketing of the Program(s), (B) market and
sell Cards on behalf of Bank that meets Bank requirements, and (C) perform
services that are necessary or appropriate to support the Cards and Program(s),
solely in accordance with the terms of this Agreement; and (ii) grants
Program Manager the right to offer the Cards for sale on behalf of Bank.  Bank further appoints Company as its agent or
authorized delegate, as the case may be, for the purpose of compliance with
state money transmitter statutes and the Bank Secrecy Act.

 

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(b)           With respect to
activities under this Agreement in the State of Texas, Bank hereby appoints
Program Manager, and Program Manager hereby accepts such appointment, to act as
Bank’s independent representative and independent agent in the State of Texas,
with the authority to sell payment instruments, specifically the Cards, in the
State of Texas and to engage in money transmission services on behalf of the
Bank in the State of Texas to the extent specifically authorized in this
Agreement (the “Texas Authorized Services”).  For the purposes of Program Manager’s
provision of the Texas Authorized Services, Program Manager shall be deemed an
agent of Bank in the State of Texas. 
Program Manager and Bank hereby acknowledge and agree that: (i) Bank
is the issuer of all Cards under the Program(s); (ii) Bank has the primary
relationship with the Cardholders; and (iii) upon receipt by Program
Manager or its agents of the Cardholder’s funds, Bank shall be responsible for
such funds.  The Parties hereby
acknowledge and confirm that they shall continue to indemnify each other in
accordance with Section 14.1, including, without limitation, with respect
to Claims that arise in the State of Texas. 
The provisions of this Section 2.1 shall not apply to and shall not
affect the provision of services or any other activities under this Agreement
in any other state or jurisdiction other than the State of Texas.

 

(c)           Subject to Section 3.1(a),
Bank agrees to reasonably cooperate with Program Manager in the execution of
such agreements or provision of such extensions of agency, commitments,
assurances, references or such other similar items as may be requested by
Program Manager or required under Applicable Law or by any Regulatory Authority
for Program Manager and any Retailer or Distributor to offer the Cards in any
state or territory of the United States or otherwise perform their respective
obligations hereunder, unless otherwise prohibited by Bank’s charter
restrictions, Applicable Law or any Regulatory Authority directive.

 

(d)           Bank will use
its commercially reasonable efforts to promote and recommend Program Manager as
a preferred program manager and processor for general-purpose, reloadable
prepaid card programs with respect to which Bank will serve as the issuing
bank.  Without limiting the generality of
the foregoing:

 

(i)            Bank will not
directly solicit any current or prospective Distributor, Retailer or Program
Affiliate to enter into any agreement or other relationship with Bank or any
Third Party Program Manager or Third Party Processor pursuant to which Bank or
such Third Party Program Manager or Third Party Processor would directly (A) provide
program management and/or processing services to such Distributor, Retailer or
Program Affiliate or (B) market, distribute and/or reload general-purpose,
reloadable prepaid cards through such Distributor, Retailer or Program
Affiliate.

 

(ii)           Bank further
agrees to promptly notify Program Manager in the event that any company that is
a Distributor, Retailer or Program Affiliate as of the Effective Date solicits
Bank to provide program management and/or processing services for such
Distributor, Retailer or Program Affiliate in connection with the marketing,
distribution and/or reload of general-purpose, reloadable prepaid cards that
could reasonably be construed to compete with Cards or the Program (a “Solicitation Notice”), unless Bank
is prohibited from providing such notice by a nondisclosure agreement entered into
by and between Bank and such Distributor, Retailer or Program Affiliate prior
to July 1, 2009.  Bank shall not
enter into a nondisclosure agreement with an entity that is a Distributor,
Retailer or Program Affiliate as of the Effective Date unless such
nondisclosure agreement allows Bank to provide a Solicitation Notice to Program
Manager in accordance with the immediately preceding sentence.

 

(e)           Program Manager
will use its commercially reasonable efforts to promote Bank as a preferred
issuing bank for general-purpose, reloadable prepaid card programs with respect
to which Program Manager serves as program manager and processor.

 

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(f)            On a monthly basis (or such
other period as the Parties may agree), the Parties will meet in good faith by
telephone or otherwise as mutually agreed (each, a “Prospect
Meeting”) to discuss the origination, and the status of the
engagement of, of Prospects and Program Manager Prospects.

 

ARTICLE III - DUTIES OF PROGRAM MANAGER

 

SECTION 3.1
— Marketing

 

(a)               Program Manager shall, in
accordance with Bank’s policies and procedures as communicated to Program
Manager by Bank, select the merchants to participate in the Program(s) as
Retailers, and entities to participate in the Program(s) as
Distributors.  Program Manager is hereby
authorized to enter into agreements with each Retailer and Distributor which
set forth the terms by which such Retailer or Distributor shall be compensated
for its services related to the Cards. 
The Parties acknowledge and agree that prior to any Retailer offering
the Cards for sale, or any Distributor marketing or distributing the Cards, if
in its sole discretion Bank approves of such Retailer or Distributor, which approval
will not be unreasonably withheld or delayed, Bank shall execute an Agent
Agreement with such Retailer or Distributor.

 

(b)           Program Manager shall
develop Programs and promote and market Cards and Programs to prospective
Cardholders in accordance with the Bank’s instructions and the terms of this
Agreement.  Program Manager acknowledges
and agrees that Bank may require Program Manager to suspend the use of any
Program marketing materials and the issuance of Cards in a Program as may be
necessary to comply with Applicable Law or any change in a Regulatory Authority’s
interpretation of Applicable Law; provided, however, that in such event, Bank
and Program Manager will agree to an implementation process that enables
Program Manager to utilize any existing inventories of such materials to the
extent practicable and allowable under Applicable Law and System Rules.

 

SECTION 3.2 — Printing of Cards and Cardholder Agreements

 

(a)           The terms and conditions
contained in the Cardholder Agreements, including any applicable fees charged
with respect to all Cards issued hereunder, shall be determined by Bank, in
consultation with Program Manager, and may be amended by Bank from time to
time, in consultation with Program Manager, upon such notice to each Cardholder
as required by Applicable Law.  Program
Manager shall develop and submit to the Bank for final review and approval one
or more proposed Card designs and proposed terms of the Cardholder Agreement
for each Program.  From time to time,
Program Manager may submit additional or alternative Card designs and
Cardholder Agreements for each Program.

 

(b)           Bank shall be the
contracting party under all Cardholder Agreements, and shall enter into a
Cardholder Agreement with each Cardholder. 
During the Term, the relationship with each Cardholder shall be owned by
Bank.  All Cards, Cardholder Agreements
or other Program materials, including, without limitation, all marketing
materials, shall (i) identify the Bank as the issuing bank of the Cards, (ii) include
any such names, Marks, and disclosures as may be required to conform to Graphic
Standards and Applicable Law, and (iii) be subject to prior approval by
Bank and System prior to use.  Bank shall
review and approve or reject, with such approval not to be unreasonably withheld
or delayed, those Cardholder Agreements and Program materials proposed by
Program Manager, and obtain System approval where such approval is required
under the System Rules to implement the use of such proposed Cardholder
Agreements or Program materials, within a reasonable amount of time following
receipt of the same from Program Manager.

 

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(c)           Program Manager shall
arrange and pay for production and delivery of the Cards, Card packaging,
informational disclosures, marketing materials and Cardholder Agreements;
provided, however, that Bank shall be responsible for any costs associated with
any changes to the Cards, Card packaging, informational disclosures, marketing
materials and Cardholder Agreements required by Bank, which are not required by
Applicable Law or any change in a Regulatory Authority’s interpretation of
Applicable Law.  In the event of any
modification to the Cards, Card packaging, informational disclosures, marketing
materials or Cardholder Agreements, Bank and Program Manager will agree to an
implementation process that enables Program Manager to utilize any existing
inventories of such materials to the extent practicable and allowable under
Applicable Law and System Rules.

 

SECTION 3.3 — Processing Services

 

Program Manager, at its sole expense, shall provide for Processing
Services. Any processor retained by Program Manager to provide Processing
Services must be approved in advance by Bank, and must have executed a
Processing Services agreement with Bank. 
A list of pre-approved processors may be obtained from Bank, upon
Program Manager’s request. All Processing Services related to the Programs
shall be provided pursuant to that certain Processor Servicing Agreement, dated
as of March 22, 2005, between Bank and Program Manager (“Processing Agreement”), or as
otherwise mutually agreed by the Parties. 
In the event of any conflict between this Agreement and the Processing
Agreement, the terms of this Agreement shall control to the extent of such
conflict.

 

SECTION 3.4 — Accounting

 

Program Manager shall be responsible for all
accounting related to the Cards.  The
Parties agree that all accounting calculations relating to this Agreement will
be performed in accordance with generally accepted accounting principles in the
United States.  The Parties further agree
to work together in good faith to reconcile any accounting discrepancies.

 

ARTICLE IV - DUTIES OF BANK

 

SECTION 4.1
— Memberships in System

 

Bank, as a principal member of System, shall support the sponsorship
and registration of Program Manager as a marketing agent or service provider of
Bank with each System, as applicable. However, the Parties hereto acknowledge
and agree that Program Manager assumes all risk that the Program Manager or any
Program may not be approved by any System. 
Bank will promptly provide to Program Manager copies of all
correspondence and forms relating to any Program which are submitted to or
received from any System.   Bank
acknowledges and agrees that Program Manager is entitled to enter into
arrangements with the Systems pursuant to which the Systems agree to provide
Program Manager with incentives to market and promote System-branded Cards and
that Bank has no right to any portion of such incentives.

 

SECTION 4.2
— Assessment, Development and Approval of Programs

 

(a)           Bank shall work closely with Program Manager to develop Programs that
meet Bank’s strategic objectives and customer goals.  Any Programs proposed by Program Manager
shall be reviewed and assessed by Bank, and shall be promptly approved or
declined in Bank’s sole discretion. Bank shall work diligently with Program
Manager to implement any approved Programs.

 

(b)           Subject to Applicable Law, including applicable Regulatory Authority
restrictions, and the sole discretion of Bank, Bank will use commercially
reasonable efforts to support such products and features proposed by Program
Manager and approved by Bank with respect to the Program, including, without
limitation, a savings program for the Cardholders.

 

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SECTION 4.3
— Issuer of Cards and Approval of Cardholders

 

(a)           Bank shall sponsor one or
more BINs for the Cards and will maintain one or more Programs whereby it is
the issuer of all Cards marketed and distributed by Program Manager pursuant to
this Agreement and in accordance with Applicable Law.   In addition, with respect to Programs that
establish an ongoing relationship with the Cardholder, Bank shall review
customer information regarding each such Cardholder, and shall be responsible
for ensuring that each such Cardholder meets Bank’s Customer Identification
Program as required by Applicable Law. 
Bank will also regularly screen all Cardholders through Bank’s screening
system implemented to comply with Applicable Law, including, without
limitation, any and all regulations enforced by the U.S. Department of Treasury’s
Office of Foreign Assets Control (“OFAC”).

 

(b)           Bank will apply for and use
commercially reasonable efforts to obtain and, if issued, will maintain, at all
times during the Term, an ABA routing and transit number exclusively for the
Program (the “NetSpend ABA Number”).   Bank will additionally allow Program Manager
to use the Skylight ABA Number in connection with the Program, provided,
however, that the Skylight ABA Number is available pursuant to the terms of the
Skylight Card Program Management Agreement, and that Skylight provides approval
for such usage.

 

SECTION 4.4 — Remittance and Handling of Cardholder Funds;
Settlement

 

(a)           All Cardholder
Funds tendered by or on behalf of a Cardholder to be loaded or deposited onto a
Card hereunder shall be collected and forwarded by the Distributors and
Retailers, as applicable, to a pooled custodial account in which Bank shall
hold all Cardholder Funds in a fiduciary or custodial manner for the benefit of
Cardholders, in accordance with Applicable Law (the “Cardholder
Account”).

 

(b)           Company and
Bank acknowledge and agree that (i) all Cardholder Funds shall be held in
trust for the benefit of the Cardholders, (ii) neither Bank nor Company
have an equitable interest in the Cardholder Funds, and (iii) the
Cardholder Funds will not be used for any other purpose.  Bank shall transfer Cardholder
Funds from the Cardholder Account to Settlement Accounts in an amount adequate
to facilitate Settlement with the System on a daily basis or as otherwise
determined by Bank.  The Parties acknowledge
and agree that Bank shall be responsible for compliance with state unclaimed
property laws as they relate to the Cards and Cardholder Funds.

 

(c)           With respect to
all Reloadable Cards, Bank shall structure the Cardholder Account in a manner
sufficient to allow for pass-through federal deposit insurance coverage under
Federal Deposit Insurance Corporation regulations.  Program Manager shall be responsible for
maintaining accurate books and records of Cardholders and Cardholder Funds that
are sufficient under Applicable Law, including, without limitation, 12 CFR §
330.5, to permit the Cardholder Funds associated with Reloadable Cards to
qualify for pass-through federal deposit insurance coverage.

 

(d)           Bank shall
provide for and facilitate Settlement of Card Transactions for all Cards issued
by Bank.  To facilitate such Settlement,
Bank has established or will establish one or more Settlement Account(s) owned
by Bank.  To reflect such Settlement,
Bank shall update its account records with respect to the Cardholder Account on
each Business Day to reflect all such Settlement activity pursuant to
information provided by Program Manager. 
If necessary, Bank shall enter into an inter-bank settlement agreement
with one or more financial institutions issuing stored value cards pursuant to
any card program managed by Program Manager to facilitate settlement of
transactions effected by Bank’s Cardholders and those of such financial
institution(s).

 

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SECTION 4.5 — Customer Service Standards

 

Bank shall develop, or cause Program Manager to develop with Bank’s
approval, customer service standards for servicing that are designed to promote
customer satisfaction and to promote the preservation and growth of the
customer base.  Bank may require
additional customer service standards; if the Bank receives any guidance,
complaints or comments from any Regulatory Authority or System or is required
to do so by Applicable Law, Bank, in its sole discretion, shall cause the
Program Manager to alter or amend such customer service standards as necessary.

 

SECTION 4.6
— Bank Support

 

Within ten (10) Business Days after the Effective Date, the Bank
will designate one of its employees as the “Card
Program Account Manager.” 
The Card Program Account Manager will serve as the single point of
contact for Bank with respect to the Program(s) and will have day-to-day
authority for undertaking to ensure Bank fulfills its obligations hereunder in
a timely manner.  The Card Program
Account Manager will be responsible for ensuring that all proposed Programs and
Program changes are promptly reviewed and approved, or, if not approved,
declined with notice detailing the reasons why.

 

SECTION 4.7
— ***

 

ARTICLE V - REPRESENTATIONS
AND WARRANTIES OF PROGRAM MANAGER

 

SECTION 5.1
— Program Manager Representations and Warranties

 

Program Manager represents and warrants to Bank as follows:

 

(a)           Program Manager
is a corporation duly incorporated, validly existing and in good standing under
the laws of Delaware and is authorized to conduct business as defined within
the Agreement in each state in which the nature of Program Manager’s activities
hereunder makes such authorization necessary.

 

(b)           Program Manager
has the full power and authority to execute and deliver this Agreement, to
perform all its obligations under this Agreement and other agreements which
must be executed to effect the services contemplated herein.  The provisions of this Agreement and the
performance by Program Manager of its obligations under this Agreement are not
in conflict with the Program Manager’s certificate of incorporation, bylaws or
any other organizational document, agreement, contract, lease or obligation to
which Program Manager is a party or by which it is bound.

 

(c)           Except as otherwise
disclosed, neither Program Manager nor any principal of Program Manager has
been subject to the following:

 

(i)            Criminal
conviction (except minor traffic offenses and other petty offenses);

 

(ii)           Any unpaid
Federal or state tax lien;

 

(iii)          Administrative
or enforcement proceedings commenced by the Securities and Exchange Commission,
any state securities regulatory authority, Federal Trade commission, federal or
state bank regulator, or any other state or federal regulatory agency; or

 

(iv)          Restraining
order, decree, injunction, or judgment in any proceeding or lawsuit, alleging
fraud or deceptive practice on the part of Program Manager or any principal
thereof.

 

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For
purposes of this subparagraph, the word “principal” shall include (x) any
person directly or indirectly owning ten percent (10%) or more of Program
Manager, (y) any officer or director of the Program Manager, or (z) any
person actively participating in the control of Program Manager’s business.

 

(d)           There is not pending, or to
Program Manager’s actual knowledge threatened, against Program Manager any
litigation or proceeding, judicial, tax or administrative, the outcome of which
could reasonably be expected to have a Material Adverse Effect with respect to
the continuing operations of Program Manager.

 

(e)           Program Manager has, on or
prior to the Effective Date, delivered to Bank complete and correct copies of
its most recent balance sheets and related statements of income and cash
flow.  Program Manager’s financial
statements, subject to any limitation stated therein, which have been or which
hereafter will be furnished to Bank will fairly represent the financial condition
of the Program Manager as of the date of such financial statements.

 

SECTION 5.2 — Bank Representations and
Warranties

 

Bank hereby warrants and represents to Program Manager as follows:

 

(a)           Bank is a
federally-insured financial institution validly existing, in good standing and
authorized to perform all activities contemplated by this Agreement.

 

(b)           Bank has the full power and
authority to execute and deliver this Agreement and to perform all its
obligations under this Agreement.  The
provisions of this Agreement and the performance by Bank of its obligations
under this Agreement are not in conflict with the Banks charter, bylaws or any
other organizational document, agreement, contract, lease or obligation to
which Bank is a party or by which it is bound.

 

(c)           Except as otherwise
disclosed, neither Bank nor any principal of Bank has been subject to the
following:

 

(i)            Criminal conviction (except
minor traffic offenses and other petty offenses);

 

(ii)           Any unpaid Federal or state
tax lien;

 

(iii)          Administrative or enforcement proceedings commenced
by the Securities and Exchange Commission, any state securities regulatory
authority, Federal Trade commission, federal or state bank regulator, or any
other state or federal regulatory agency; or

 

(iv)          Restraining order, decree, injunction, or judgment
in any proceeding or lawsuit, alleging fraud or deceptive practice on the part
of Program Manager or any principal thereof.

 

For
purposes of this subparagraph, the word “principal” shall include (x) any
person directly or indirectly owning ten percent (10%) or more of Bank, (y) any
officer or director of the Bank, or (z) any person actively participating
in the control of Bank’s business.

 

(d)           There is not pending or
threatened against Bank, any litigation or proceeding, judicial, tax or
administrative, the outcome of which might materially adversely affect the
continuing operations of Bank.

 

(e)           Bank’s deposits are insured
by the Federal Deposit Insurance Corporation to the full extent permitted by
Applicable Law, and no proceeding has been instituted to revoke such insurance.

 

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ARTICLE VI — COVENANTS

 

SECTION 6.1 — Covenants of Program Manager

 

Program
Manager covenants and agrees with Bank as follows:

 

(a)           Program Manager will, not
less than once each calendar year, provide Bank with a copy of Program Manager’s
updated balance sheet and related statements of income and cash flow.

 

(b)           Program Manager shall
catalog and maintain copies of all written consumer complaints and responses
relating to the Card or its use which are received by Program Manager.  Bank (i) shall have access to such
complaints and responses during Program Manager’s normal operating hours, and (ii) may
audit a reasonable number of such complaints. 
Program Manager acknowledges that Bank will institute a system for
tracking and resolving consumer complaints involving Cards and Programs
hereunder in a timely manner and will provide an annual report regarding
consumer complaints and their resolution to the Bank’s board of directors.

 

(c)           All material written
consumer complaints received by Program Manager relating to the Card or its use
will be reported to Bank as soon as reasonably practicable.  Any litigation or court proceedings filed
against Program Manager, relating to the Card or its use, will be immediately
reported to Bank.  Such report shall
include a copy of the court papers or proceedings, together with a summary of
the Program Manager’s position with respect to the matter, the name and address
of Program Manager’s counsel handling the matter, and the estimated likelihood
of settlement of such matter.

 

(d)           Program Manager shall obtain
Bank’s written approval prior to engaging in any oral or written correspondence
related to any Program with any Regulatory Authority having jurisdiction over
Bank.

 

(e)           Program Manager shall remain
in good standing with (i) each Regulatory Authority with jurisdiction over
it, and (ii) each System or other electronic payment network with which it
may be registered from time to time as a marketing representative, agent or
service provider.

 

(f)            Program Manager shall
provide notice to Bank within a reasonable amount of time following the
occurrence of a Material Adverse Change with respect to Program Manager.

 

SECTION 6.2 — Covenants of Bank

 

Bank
covenants and agrees with Program Manager as follows:

 

(a)           Any litigation or court
proceedings filed against Bank, relating to the Card or its use, will be
immediately reported to Program Manager. 
Such report shall include a copy of the court papers or proceedings,
together with a summary of the Bank’s position with respect to the matter, the
name and address of Bank’s counsel handling the matter, and the estimated
likelihood of settlement of such matter.

 

(b)           Bank shall promptly notify
Program Manager after Bank engages in any written correspondence related to any
Program with any Regulatory Authority having jurisdiction over Program Manager,
and shall provide Program Manager with copies of any such written
correspondence unless such disclosure is prohibited by Applicable Law.

 

(c)           Bank shall remain (i) a
federally-chartered, federally-insured financial institution, and (ii) in
good standing with (A) each Regulatory Authority with jurisdiction over
it, and (B) each System or other electronic payment network which it may
be a member of or registered with from time to time.

 

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(d)           Bank shall ensure that its
deposits remain insured by the Federal Deposit Insurance Corporation in
accordance with Applicable Law.

 

(e)           Bank shall (i) maintain
sufficient capital to support its deposits and assets, (ii) remain a
well-capitalized institution, as defined under the prompt corrective actions
provisions of the Federal Deposit Insurance Act, 12 U.S.C. § 1831o and 12
C.F.R. Part 565 as enacted as of the Effective Date (a “Well-Capitalized Institution”),
provided, however, that the failure of Bank to remain a Well-Capitalized
Institution shall not constitute a breach of this Section 6.2(e)(ii) unless
such failure could reasonably be expected to have a material adverse impact on
the Program or Bank’s ability to perform its obligations hereunder, and (iii) provide
notice to Program Manager within a reasonable amount of time following the
occurrence of a Material Adverse Change with respect to Bank.

 

ARTICLE VII - COMPLIANCE

 

SECTION 7.1 — Bank Products

 

(a)            For the
avoidance of doubt, Bank and Program Manager hereby acknowledge and agree that (i) the
Cards are products of Bank, a federally-chartered financial institution, (ii) Program
Manager is Bank’s authorized delegate and program manager, to which Bank has
delegated specific responsibilities relating to the management of the
Program(s), including the marketing and sale of the Cards, (iii) that Bank
has established the Program(s), and the Program(s) will be subject to Bank’s
continued oversight and control, and (iv) Program Manager shall submit to
Bank’s oversight and control in connection with all aspects of the Program(s) to
the extent not otherwise expressly provided herein or agreed to by the Parties,
including but not limited to Program Manager’s performance of services
hereunder.  Bank shall review reports and financials from the Program(s), and shall
meet regularly with Program Manager, on at least an annual basis, to discuss
the results of the Program(s) (including any problems, losses or complaints,
and any changes or modifications that may be necessary to ensure the viability
of the Program(s).

 

(b)           Program Manager
acknowledges that Bank has provided the Program Manager with information and
training designed to insure that Program Manager will be adequately educated
about the Bank’s products and services offered hereunder, including the
distinctions between insured and non-insured products, and relevant law that
may apply to the marketing, solicitation, and customer service activities
instituted on behalf of Bank hereunder. 
Program Manager further acknowledges that Bank will review and update
the training material on an annual basis and will take reasonable steps to
ensure that Program Manager receives training as needed.  Program Manager’s training records will be
made available for review by Bank’s Regulatory Authority.

 

(c)            Program Manager
acknowledges that Bank must adopt a compliance program to ensure adequate
monitoring, supervision, and control over the Program Manager and the
activities that the Program Manager performs on behalf of the Bank.  Such oversight includes ensuring Program
Manager’s anti-money laundering compliance programs are detailed, thorough, and
implemented accurately and fully.

 

SECTION 7.2 — Legal Compliance

 

(a)           Each Party agrees that it
will comply with the System Rules and Applicable Law in the performance of
its obligations hereunder.

 

(b)           Without limiting subsection (a) above,
the Parties acknowledge and agree that (i) Bank

 

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may
delegate all or a portion of its anti-money laundering compliance obligations
under Applicable Law, including, without limitation, the Bank Secrecy Act, to
Program Manager, and (ii) Program Manager shall develop, implement and
maintain an anti-money laundering compliance program, approved in writing by
Bank, which addresses such delegated obligations.

 

(c)           Program Manager acknowledges
the statutory authority of Bank’s federal regulator to regulate and examine and
take an enforcement action against the Program Manager with respect to the
activities performed by Program Manager as agent or representative of the
Bank.  Program Manager further
acknowledges that such Regulatory Authority (i) retains the rights to (A) require
that Bank obtain the Regulatory Authority’s approval (or non-objection) before
entering into a contractual arrangement with Program Manager and (B) approve
specific contractual language, and (ii) may institute any other
requirements or conditions relating to this Agreement that the Regulatory
Authority deems appropriate.

 

SECTION 7.3 — Audits and Regulatory Examinations

 

(a)           Program Manager agrees to: (i) submit
to any audit or examination of Program Manager’s facilities, records, and
personnel regarding the Program which may be required by any auditing function
of Bank or any Regulatory Authority or System with audit and examination
authority over Bank, to the fullest extent required by such Regulatory
Authority or System; (ii) promptly provide to Bank any information that
may be required by any auditor, Regulatory Authority or System in connection
with their audit or review of Bank or the Program(s) and reasonably
cooperate with such auditor, Regulatory Authority or System in connection with
such any audit or review; and (iii) promptly provide such other information
as Bank, System or any Regulatory Authority may from time to time reasonably
request with respect to the financial condition of Program Manager.  Bank may, upon ten (10) Business Days
prior written notice, require an annual operational audit of Program Manager’s
operations to be performed during normal business hours by Bank or a third
party designated by Bank.

 

Bank
shall be responsible for all costs and expenses associated any inspection,
audit or examination conducted pursuant to this subsection (a).   In the event that any audit or examination
under this Section 7.3(a) is initiated or required by any Regulatory
Authority or System, Bank and Program Manager will each be responsible for 50%
of all third-party costs and expenses associated with any such audit or
examination.  In the event that any audit
or examination under this Section 7.3(a) is initiated by Bank and is
not required by any Regulatory Authority or System, Bank will be responsible
for all costs and expenses associated with any such audit or examination;
provided, however, that if such audit or examination is being conducted as a
result of a Material Adverse Change with respect to Program Manager, Program
Manager will be responsible for all costs and expenses associated any such
audit or examination.

 

(b)           Bank agrees to (i) promptly
provide Program Manager any information that may be required by any auditor,
Regulatory Authority or System in connection with any inquiry directed to
Program Manager, or their audit or review of Program Manager and reasonably
cooperate with such auditor, Regulatory Authority or System in connection with
such any inquiry, audit or review; and (ii) promptly provide such other
information as Program Manager may from time to time reasonably request
relating to the Bank or the Program(s).  
With respect to clause (i) of the foregoing, Bank and Program
Manager will each be responsible for 50% of all third-party costs and expenses
associated therewith.  With respect to
clause (ii), Program Manager will be responsible for all costs and expenses
associated therewith; provided, however, that if request is made by Program
Manager a result of a Material Adverse Change with respect to Bank, Bank will
be responsible for all costs and expenses associated any such audit or examination.

 

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SECTION 7.4 — Access to Program Documents and Information

 

(a)            Bank shall at
all times have reasonable access to and have the right to make abstracts from all
information and documents it reasonably requires with respect to the Program
which may be in the control and possession of Program Manager, including, but
not limited to, information and documents concerning Program revenues or
transactions and agreements affecting the management and administration of the
Program(s), and any other books, accounts, data, reports, papers, and computer
records directly pertaining to the subject matter of this Agreement.

 

(b)           Program Manager
will also provide to the Bank any other information requested by Bank in
accordance with industry or national banking standards as may be required, from
time to time by the System or Regulatory Authorities, to ensure that safe and
sound business practices are being followed concerning processing, Settlement
and income to the Bank.

 

ARTICLE VIII - COMPENSATION
AND EXPENSES

 

SECTION 8.1
— Expenses of Bank

 

Bank
shall be solely responsible for the following expenses:

 

(a)           Membership fees related to
Bank’s own membership in the System.

 

(b)           All fees, fines and
penalties assessed by any Regulatory Authority or System due to Bank’s actions,
inactions or omissions, except to the extent of any indemnification of Bank by
Program Manager as provided in Section 14.1.

 

(c)           Bank’s own costs and overhead
generated from its review, assessment and development of the Program(s), and
from its supervision and oversight of Program Manager and the results of the
Program(s).

 

(d)           Compensation of Program
Manager for its services as set forth in Section 8.3.

 

(e)           Bank’s own internal costs
and expenses incurred in connection with maintaining the Cardholder Accounts
and, except as may be otherwise agreed herein, its own internal monitoring of
the Program(s).

 

(f)            Such other services and
expenses that Bank may deem necessary or appropriate for the Program(s) and
which are not the obligation of Program Manager hereunder.

 

SECTION 8.2
— Expenses of Program Manager

 

Program Manager shall be solely responsible for the following:

 

(a)           Advertising and other
expenses associated with the marketing of Cards to potential Cardholders.

 

(b)           All fees, fines and
penalties assessed by any Regulatory Authority or System (other than Bank) due
to Program Manager’s actions, inactions, or omissions, except to the extent of
any indemnification of Program Manager by Bank as provided in Section 14.1.

 

(c)           All System fees including
ATM interchange due, ISO registration fees, program BINs/IINs fees, and
transaction fees, assessed to the Bank daily shall be paid on a daily pass
through basis.

 

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(d)           All System fees assessed to
the Bank monthly (the “Monthly System Fees”),
subject to Bank’s provision to Program Manager with the Monthly Statement of a
detailed invoice setting forth such amounts and explaining each such fee or
charge.

 

(e)           All expenses associated with
and losses resulting from over limit processing, Cardholder fraud, value load
processing, value load fraud and under floor limit processing shall be paid on
a daily basis.

 

(f)            Any fees charged by a System
in relation to Program Manager’s registration, as applicable, as a marketing
agent or service provider of Bank.

 

(g)           All expenses associated with
establishing and maintaining any accounts with, or receiving services from, any
financial institution providing Settlement and all expenses in providing Bank
with account balances.

 

(h)           All reasonable expenses incurred in connection with
Bank’s completion of a due diligence review of any third party proposed by
Program Manager to perform any of Program Manager’s obligations hereunder,
which shall not exceed Five Thousand Dollars ($5,000) for any specific matter
without the prior written approval of Program Manager.

 

(i)            All expenses associated with Program Manager’s
retention, oversight and supervision of a processor providing Processing
Services.

 

SECTION 8.3
— Compensation Payable to Program Manager

 

Program
Manager shall be entitled to the compensation as defined in Schedule A.

 

ARTICLE IX - LIMITATION OF LIABILITY

 

SECTION 9.1 — Limitation of Liability

 

NEITHER PARTY, NOR THEIR RESPECTIVE SUBSIDIARIES,
PARENTS OR AFFILIATES SHALL BE LIABLE TO THE OTHER PARTY TO THIS AGREEMENT OR
ITS SUBSIDIARIES, PARENT OR AFFILIATES, WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE,
FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR
EXEMPLARY DAMAGES, INCLUDING LOST PROFITS (EVEN IF SUCH DAMAGES ARE
FORESEEABLE, AND WHETHER OR NOT ANY PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES), ARISING FROM OR RELATING TO THIS AGREEMENT, INCLUDING,
WITHOUT LIMITATION, THE WRONGFUL DEATH OR INJURY OF ANY PERSON.  NOTWITHSTANDING THE FOREGOING, THE
LIMITATIONS CONTAINED IN THIS SECTION 9.1 SHALL NOT APPLY TO ANY CLAIM
THAT (A) IS SUBJECT TO INDEMNIFICATION UNDER SECTION 14.1, (B) ARISES
OUT OF A BREACH OF CONFIDENTIALITY UNDER ARTICLE XI OR A BREACH OF
INFORMATION SECURITY UNDER ARTICLE XII, OR (C) WITH RESPECT TO ANY
PARTY, ARISES OUT OF SUCH PARTY’S GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR
FRAUD.

 

SECTION 9.2 — Disclaimer of Warranties

 

ALL SERVICES PROVIDED BY THE PARTIES HEREUNDER ARE PROVIDED ON AN “AS
IS” AND “AS AVAILABLE” BASIS, AND EXCEPT AS OTHERWISE EXPRESSLY SET FORTH
HEREIN, NEITHER PARTY, NOR THEIR RESPECTIVE AFFILIATES MAKES ANY
REPRESENTATIONS OR WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL

 

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WARRANTIES,
EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, RELATING TO OR ARISING OUT OF
THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED WARRANTIES
ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE.

 

ARTICLE X - TERM AND
TERMINATION

 

SECTION 10.1
— Term

 

The
term of this Agreement shall commence on February 1, 2010 (the “Effective Date”) and continue for
five (5) years (the “Initial Term”)
unless terminated earlier as provided below. 
After the Initial Term, the Agreement shall automatically extend for
additional periods of one year each (each, a “Renewal
Term”) (the Initial Term, collectively with any Renewal Terms,
the “Term”) unless either party
terminates this Agreement for any reason by providing written notice to the
other at least one hundred twenty (120) days prior to the commencement of the
next Renewal Term.

 

SECTION 10.2
— Termination of Agreement

 

(a)           Either Bank or Program
Manager shall have the right to terminate this Agreement upon occurrence of one
or more of the following events:

 

(i)            Failure by the
other Party to observe or perform, in any material respect, that Party’s
obligations to the other Party hereunder, so long as such failure is not due to
the actions or failure to act of the terminating Party, but only if the failure
continues for a period of (A) thirty (30) days after the non-performing
Party receives written notice from the other Party specifying the failure in
the case of a failure not involving the payment of money, or (B) ten (10) days
after the non-performing Party receives written notice from the other Party specifying
the failure in the case of a failure to pay any amount then due hereunder;
provided, however, that either Party, in its sole discretion, may terminate
this Agreement without such a cure period if there is a repeated failure by the
other Party to perform that Party’s obligations hereunder in a manner that, in
the aggregate, has a material adverse impact on the terminating Party or the
Program, so long as the failure is not due to the actions or failure of the
terminating Party.

 

(ii)           In the event any
financial statement, representation, warranty, statement or certificate
furnished to it by the other Party in connection with or arising out of this
Agreement is materially adverse to the terminating party and is untrue,
misleading or omits material information, as of the date made or delivered.

 

(iii)          The other Party
(A) voluntarily or involuntary (and such involuntary petition or
proceeding is not dismissed within sixty (60) days) commences (or is the
subject of, as the case may be) any proceeding or filing any petition seeking
relief under Title 11 of the United States Code or any other Federal, state or
foreign bankruptcy, insolvency, liquidation or similar law, (B) applies
for or consents to the appointment of a receiver, trustee, custodian, sequestrator
or similar official for such party or for a substantial part of its property or
assets, (C) makes a general assignment for the benefit of creditors, (D) commences
the winding up or liquidation of its business or affairs, or (E) takes
corporate action for the purpose of effecting any of the foregoing.

 

(iv)          Upon any change
to or enactment of or change in interpretation or enforcement of any law or
regulation which would have a material adverse effect upon such Party’s ability
to perform its obligations or such Party’s costs/revenues with respect to the
Program(s), provided that the Parties cannot find a legally workable solution
to the change in law or regulation within a reasonable amount of time.

 

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(v)            Violation of any federal or
state law relating to the performance of this Agreement rendering any of the
Parties unable to substantially perform this Agreement, provided that the
Parties cannot find a legally workable solution to avoid violating the law or
regulation within a reasonable amount of time.

 

(vi)           Upon direction from any
Regulatory Authority or System to cease or materially limit performance of the
rights or obligations under this Agreement.

 

(vii)          In the event that any
Regulatory Authority requires the alteration of specific language contained in
this Agreement, or imposes other requirements or conditions relating to this
Agreement, which would have a material adverse effect upon such Party’s ability
to perform its obligations or such Party’s costs/revenues with respect to the
Program(s), provided that the Parties cannot find a legally workable solution
to alteration or imposition within a reasonable amount of time.

 

(b)           Program Manager may
immediately terminate this Agreement in the event that Bank fails to achieve
the ratios set forth on Schedule B hereto as of the end of two (2) consecutive
calendar quarters,.

 

(c)           Program Manager may
immediately terminate this Agreement in the event that Bank or MFG undergoes a
Change of Control, if such Change of Control has a material adverse impact on
the Bank’s or MFG’s ability to fulfill the obligations set forth in this
Agreement.  Notwithstanding the
foregoing, if Bank or MFG undergoes a Change of Control whereby Control is
assumed by a direct competitor of Program Manager, Program Manager may
immediately terminate this Agreement.

 

(d)           ***

 

SECTION 10.3 — Termination and Transition Assistance

 

(a)           With respect to
each Program terminated as a result of the expiration or termination of this
Agreement, Program Manager may elect to either transition such Program in
accordance with Applicable Law to an alternative card issuer pursuant to Section 10.3(b) or
wind down such Program in accordance with Applicable Law pursuant to Section 10.3(c).  Each Party acknowledges that the two goals of
the Transition Period are to benefit the Cardholders by minimizing any possible
burdens or confusion and to protect and enhance the names and reputations of
the Parties, each of whom have invested their names and reputations in the
Program(s) and Cards issued hereunder. 
Unless otherwise required by Applicable Law or any Regulatory Authority,
upon the expiration or termination of this Agreement for any reason, the
Parties agree to cooperate in good faith to wind down or transition all
affected Programs in a commercially reasonable way as soon as reasonably
possible to provide for a smooth and orderly transition or wind-down.  Such cooperation will include continued
acceptance of Cards presented for payment until such Cards expire or are
cancelled as set forth below, and continued provision of customer service to
all outstanding Cardholders in accordance with the terms of this Agreement up
until the Cards expire, are terminated, or transitioned to another bank or
financial institution.

 

(b)           With respect to
Programs that Program Manager elects to transition to another card issuer
pursuant to Section 10.3(a), Bank’s obligations pursuant to Section 10.3(a) will
include, without limitation:  (A) transferring
all Cardholder Funds on deposit at Bank to another federally-insured financial
institution designated by Program Manager, which institution shall assume
responsibility for all obligations and liabilities which arise after transfer
of the Program to a successor bank (such institution, a “Successor
Bank”) including those with respect to payment of the Cardholder
Funds to Cardholders and Settlement of Transactions with the appropriate
System(s), (B) assigning all of Bank’s rights, duties and

 

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obligations
with respect to all Cards, Cardholder Agreements, Cardholder Data, and the Bank’s
relationship with each Cardholder to such Successor Bank, (C) making any
and all regulatory filings necessary to effect the transition of its
undertakings in connection with this Agreement to such Successor Bank, (D) making
all filings and taking all other actions necessary to transfer the related BINs
and the NetSpend ABA Number to such Successor Bank, (E) executing and
delivering, if necessary or appropriate, an account transfer agreement
containing terms and conditions generally consistent with banking industry
practice for the transfer of accounts between institutions, and (F) executing
other documents as may reasonably be necessary for Bank to perform its
obligations under this Section 10.3. 
Bank shall provide such services without charge, provided that Program
Manager reimburses Bank for any expenses reasonably incurred by Bank in the
performance of its obligations under this Section 10.3(b).  During the Transition Period, the Parties
shall continue to be bound by and comply with the terms of this Agreement and
perform all of their obligations hereunder until such date as Program Manager
notifies Bank that the transition of the Program(s) to the Successor Bank
is complete.

 

(c)           In the event of
an expiration or termination of this Agreement, the Parties agree to use the
following process or such other similar processes that are mutually agreed by
Bank and Program Manager at such time:

 

(i)            As soon as reasonably possible after expiration of
this Agreement or receipt or delivery of a termination notice, Program Manager,
or Bank, as applicable, will provide to the other Party in writing a proposed
transition plan, detailing (A) for each Program, whether the Program is to
be wound down or transferred to a Successor Bank; and (B) a proposed
timeline, which shall designate a schedule of dates as of which each Program
will be wound down or transferred from Bank to a Successor Bank (each, a “Switchover Date”).  Bank and Program Manager shall meet promptly
thereafter to finalize a mutually agreed transition plan and Switchover
Date.  Bank shall use commercially
reasonable efforts to obtain all approvals from any System or Regulatory
Authority which may be necessary to in order for the length of the Transition
Period to be sufficient to permit Program Manager to sell all remaining unsold
Cards which contain Bank’s Marks.

 

(ii)           As soon as possible, but no later than ten (10) Business
Days, after the Switchover Date, each of Bank and Program Manager shall submit
to the other an invoice for any costs, expenses or other amounts due and owing
by the other as of the Switchover Date, which amounts shall be netted and the
Party owing the greater amount shall pay the net amount to the other Party
within thirty (30) calendar days thereafter.

 

(iii)          If Program Manager elects not to transition an
affected Program to a Successor Bank pursuant to Section 10.3(a), Bank and
Program Manager shall continue to be bound by and comply with the terms of this
Agreement and perform all of their obligations hereunder during the Transition
Period until such time as all Cards expire or are canceled pursuant to and
consistent with the Cardholder Agreements, or such earlier date, as permitted
by Applicable Law, and as mutually agreed by Bank and Program Manager; provided
that the Parties agree that such Cards will be treated in accordance with the
following principles:

 

(A)          With respect to Reloadable
Cards, the affected Cardholders will be given at least sixty (60) calendar days
notice of termination; and

 

(B)           With respect to
Nonreloadable Cards, the Cards will be permitted to “wind down” until all of
such Nonreloadable Cards have expired in accordance with their terms or the
balance related to such Cards has been depleted, whichever occurs first.

 

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Confidential Treatment Requested

 

During the Transition Period, Program Manager agrees to continue to
provide customer service to the affected Cardholders in accordance with the
terms of this Agreement.  In the event
that Program Manager elects not to transition an affected Program to a Successor
Bank pursuant to Section 10.3(a) or Program Manager fails to continue
to provide customer service to the affected Cardholders during the Transition
Period in accordance with the terms of this Agreement, Program Manager shall,
in its sole discretion, either (i) transfer to Bank control of the toll
free telephone numbers and websites used by Program Manager with respect to
such Program (the “Program Telephone Numbers and Websites”)
or (ii) re-direct Cardholders using the Program Telephone Numbers and
Websites to such toll-free telephone numbers and websites as designated by
Bank.

 

(d)           In no event
will any Party make any public statement or customer communication regarding
the termination or wind-down of this Agreement, or any Cards or Programs
without the express prior written approval of the other Party, which approval
shall not be unreasonably withheld or delayed. 
Notwithstanding the foregoing, each Party may communicate the
termination or expiration of this Agreement to any third party with which it
has contracted to provide services for the affected Cards and/or Programs
(e.g., affected Systems) and Program Manager may communicate the termination or
expiration of this Agreement to any third party with which it desires to
negotiate to serve as the Successor Bank for the affected Program(s).

 

ARTICLE XI — CONFIDENTIALITY &
DATA SECURITY

 

SECTION 11.1
— Confidential Information

 

The
term “Confidential Information”
shall mean this Agreement and any schedule, exhibit, attachment or amendment
hereto; any information concerning any Program, the objectives of any Program
and the financial results of the Program(s); any marketing plan for any Program
and any marketing materials for any Program which are not publicly available;
and all proprietary information, data, trade secrets, business information and other
information of any kind whatsoever which a Party (“Discloser”)
discloses, in writing, orally or visually, to another Party (“Recipient”) or to which Recipient
obtains access in connection with the negotiation and performance of this
Agreement. Cardholder Data shall not be Confidential Information, but rather
shall be subject to the provisions of Article XII below.  Confidential Information shall not include
information that: (i) is already rightfully known to the Recipient at the
time it obtains Confidential Information from the Discloser; (ii) is or
becomes generally available to the public other than as a result of disclosure
in breach of this Agreement or any other confidentiality obligations; (iii) is
lawfully received on a non-confidential basis from a third party authorized to
disclose such information without restriction and without breach of this
Agreement; (iv) is contained in, or is capable of being discovered through
examination of publicly available records or products; or (v) is developed
by Program Manager or Bank without the use of any proprietary, non-public
information provided by the other Party.

 

SECTION 11.2 — Use and
Disclosure of Confidential Information

 

(a)           Each Recipient
shall use and disclose the Confidential Information of the Discloser only for
the purpose of performing its obligations or enforcing its rights with respect
to any Program or as otherwise expressly permitted by this Agreement, and shall
not accumulate in any way, disclose or make use of such Confidential Information
for any other purpose.  Each Recipient
may disclose Confidential Information to the extent such Confidential
Information is required to be disclosed by Applicable Law, including in the
course of an examination by a Regulatory Authority; provided (i) that,
except in connection with disclosure in the ordinary course of an examination
by a Regulatory Authority, the Party subject to such Applicable Law shall
notify the Discloser of any such use or requirement prior to disclosure of any
Confidential Information obtained from the Discloser in order to afford the
Discloser an

 

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opportunity
to seek a protective order to prevent or limit disclosure of the Confidential
Information to third parties and (ii) that the Party subject to such
Applicable Law shall disclose Confidential Information of the Discloser only to
the extent required by such Applicable Law.

 

(b)           Each Recipient
shall (i) limit access to the Discloser’s Confidential Information to
those employees, authorized agents, vendors, consultants, service providers and
subcontractors who have a reasonable need to access such Confidential
Information in connection with the Agreement and applicable Program(s); and (ii) ensure
that any person with access to the Discloser’s Confidential Information is
bound to maintain the confidentiality of Confidential Information and maintains
the existence of this Agreement and the nature of their obligations hereunder
strictly confidential.

 

(c)           Each Recipient
agrees that any unauthorized use or disclosure of Confidential Information of
the Discloser might cause immediate and irreparable harm to the Discloser for
which money damages might not constitute an adequate remedy.  In that event, the Recipient agrees that
injunctive relief may be warranted in addition to any other remedies the
Discloser may have.  In addition, the
Recipient agrees promptly to advise the Discloser by telephone and in writing
via facsimile of any security breach that may have compromised any Confidential
Information, of any unauthorized misappropriation, disclosure or use by any
person of the Confidential Information of the Discloser which may come to its
attention and to take all steps at its own expense reasonably requested by the
Discloser to limit, stop or otherwise remedy such misappropriation, disclosure
or use.

 

SECTION 11.3 — Return of
Confidential Materials

 

Upon the termination or expiration of this Agreement and any applicable
Transition Period, or at any time upon the reasonable request of a Discloser,
the Recipient shall return (or destroy if so directed by the Discloser) all
Confidential Information in the possession of the Recipient or in the
possession of any representative, contractor or third party of the
Recipient.  Notwithstanding the
foregoing, a Recipient in possession of tangible property containing the
Discloser’s Confidential Information may retain one archived copy of such
material, subject to the terms of this Agreement, which may be used solely for
regulatory purposes and may not be used for any other purpose.  Compliance with this Section 11.3 shall
be certified in writing, including a statement that no copies of Confidential
Information have been retained, except as necessary for regulatory purposes.

 

SECTION 11.4
— Non-Solicitation of Employees

 

Each
Party agrees that during the term of this Agreement it will not seek out or
induce any person (by offering employment or otherwise) who is an employee of
the other Party to terminate their employment with the other Party.  For purposes of clarity, this
non-solicitation provision does not apply to those employees responding to a
general advertisement.

 

SECTION 11.5
— Media Releases

 

All
media releases, public announcements and public disclosures by Bank or Program
Manager, or their representatives, employees or agents, relating to this
Agreement or the name or Marks of Bank or Program Manager, any Bank or Program
Manager affiliate or supplier, including, without limitation, promotional or
marketing material, but not including any disclosure required by legal,
accounting or regulatory requirements beyond the reasonable control of the
releasing Party, shall be coordinated with and approved by Program Manager or
Bank, respectively, in writing prior to the release thereof.

 

ARTICLE XII — DATA SECURITY

 

SECTION 12.1 — General

 

The
purpose of this Article XII is to ensure that this Agreement conforms to
the applicable

 

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provisions
of the Gramm-Leach-Bliley Act and the System Rules and otherwise set forth
the Parties’ agreement with respect to the shared use and disclosure of
Cardholder Data.  All sharing, use and
disclosure of Cardholder Data under this Agreement shall be subject to the
provisions of this Article XII. 
Each Party will establish and maintain appropriate administrative,
technical and physical safeguards designed to (i) protect the security,
confidentiality and integrity of the Cardholder Data, (ii) ensure against
any anticipated threats or hazards to its security and integrity, (iii) protect
against unauthorized access to or use of such information or associated records
which could result in substantial harm or inconvenience to any Cardholder or
applicant; and (iv) ensure the proper disposal of Cardholder Data.  Such safeguards shall be established in
accordance with Applicable Law, including, without limitation, Section 501
of GLBA and the Interagency Guidelines Establishing Standards for Safeguarding
Customer Information adopted pursuant to Section 501 of GLBA.  Each Party shall use the same degree of care
in protecting the Cardholder Data against unauthorized disclosure as it accords
to its other confidential customer information, but in no event less than a reasonable
standard of care.  In the event either
Bank or Program Manager becomes aware of any unauthorized use, modification,
destruction or disclosure of, or access to, Cardholder Data, such Party shall
immediately notify the other Party and shall cooperate with such other Party, (x) to
assess the nature and scope of such incident, (y) to contain and control
such incident to prevent further unauthorized access to or use of Cardholder
Data, and (z) to provide prompt notice to affected Cardholders.  The Party through which such unauthorized
use, modification, destruction, disclosure or access occurred shall bear the
cost and expenses of any notice or other action required due to unauthorized
use, modification, destruction or disclosure of, or access to, Cardholder Data.

 

SECTION 12.2
— Ownership of Cardholder Data and Privacy Policy

 

As
between the Parties, during the Term of this Agreement, the Cardholder Data
shall be the property of and owned by Bank and shall be subject to Bank’s
Privacy Policy.  Bank agrees that at all
times its Privacy Policy shall permit (i) Bank to share Cardholder Data
with Program Manager and each person or entity with which Program Manager
contracts to perform services in connection with the applicable Program, and (ii) Program
Manager to use such Cardholder Data to market other products and services to
Cardholders.  Bank shall develop, and
Program Manager shall provide Cardholders with, such notices, opt-ins, opt-outs
and other disclosures to the extent necessary to permit, subject to Applicable
Law, Bank to share such information with Program Manager and to permit Program
Manager to use and disclose such information for marketing purposes in each of
the jurisdictions where Cards are offered, subject to Applicable Law.  During normal business hours and upon ten (10) calendar
days prior written notice, Bank has the right to inspect Program Manager’s
records to ensure that Program Manager complies with the opt-out elections made
by Cardholders.  Products or services
provided to a Cardholder by Program Manager, and any information regarding such
Cardholder obtained by Program Manager in connection therewith, which are
outside the scope of this Agreement, will, following the termination or
expiration of this Agreement, remain the property of Program Manager.

 

SECTION 12.3
— Use and Disclosure of Cardholder Data

 

(a)           Neither Party shall use, or
permit to be used, the Cardholder Data, except as provided in this Article XII.  Bank agrees that, during and after the Term
of this Agreement, it shall not use, nor permit any third party other than
Program Manager or its designated Program Affiliate(s) to use, any
Cardholder Data other than as necessary to perform Bank’s regulatory
obligations hereunder or as required to comply with Applicable Law.

 

(b)           Each Party, and each Person
with which either Party contracts to perform any portion of such Party’s
obligations hereunder may receive, use and disclose the Cardholder Data with
respect to the relevant Program(s) solely to the extent permitted by this Article XII
and in compliance with Applicable Law and the Privacy Policy (i) for
purposes of promoting the Cards and Programs, (ii) as otherwise necessary
to carry out its obligations under this Agreement, and (iii) as otherwise
permitted by the

 

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Privacy
Policy and Applicable Law.  Neither Party
shall, directly or indirectly, sell or otherwise transfer any right in or to
the Cardholder Data other than as provided herein.

 

(c)           During the Term of this
Agreement, the Cardholder Data shall be owned by Bank, but the manner in which
such Cardholder Data may be used, shared and disclosed by the Parties and/or
the customer during the Term shall be as set forth herein.

 

(d)           Each Party may disclose the
Cardholder Data in compliance with Applicable Law and the Privacy Policy
solely:

 

(i)            to any System
or other entity to which disclosure is necessary in connection with the
processing a Transaction;

 

(ii)           to its
subcontractors in connection with a permitted use of such Cardholder Data under
this Article XII, provided that each such subcontractor agrees in writing
to maintain all such Cardholder Data as strictly confidential in perpetuity and
not to use or disclose such information to any person other than Program
Manager or Bank, except as required by Applicable Law or any Regulatory
Authority (after giving Bank or Program Manager ,as applicable, prior notice
and an opportunity to defend against such disclosure); provided, further, that
each such subcontractor maintains, and agrees in writing to maintain, an
information security program that is designed to protect Cardholder Data and
information related to Transactions, and which complies with the requirements
under Applicable Law;

 

(iii)          to its
employees, consultants, attorneys and accountants with a need to know such
Cardholder Data in connection with a permitted use of such Cardholder Data
under this Article XII; provided that (A) any such person is bound by
terms substantially similar to this Article XII as a condition of
employment or of access to Cardholder Data or by professional obligations
imposing comparable terms; and (B) such Party shall be responsible for the
compliance by each such person with the terms of this Article XII

 

(iv)          to any
Regulatory Authority with authority over Program Manager (A) in connection
with an examination of either Party; or (B) pursuant to a specific
requirement to provide such Cardholder Data by such Regulatory Authority or
pursuant to compulsory legal process; provided that such Party seeks the full
protection of confidential treatment for any disclosed Cardholder Data to the
extent available under Applicable Law governing such disclosure, and with
respect to clause (B), to the extent permitted by Applicable Law, such Party (1) provides
at least ten (10) Business Days’ prior notice of such proposed disclosure
to the other Party if reasonably possible under the circumstances, and (2) seeks
to redact the Cardholder Data to the fullest extent possible under Applicable
Law governing such disclosure;

 

(e)           Notwithstanding the
foregoing, Program Manager shall be permitted to disclose the Cardholder Data
in compliance with Applicable Law and the Privacy Policy to any third party for
purposes of marketing other goods or services to the extent permissible under
Applicable Law and the Privacy Policy.

 

SECTION 12.4
— Treatment of Cardholder Data Upon Expiration or Termination

 

With
respect to the sharing, use and disclosure of Cardholder Data following the
expiration or termination of this Agreement in its entirety:

 

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(a)           the rights and obligations
of the Parties under this Article XII with respect to affected Cardholder
Data shall continue through any Transition Period; and

 

(b)           The manner in which
Cardholder Data may be used, shared and disclosed by the Parties and/or the
customer after the expiration or termination of this Agreement shall be as set
forth herein.

 

SECTION 12.5
– Additional Products & Services

 

During
the Term of this Agreement and with Bank’s approval, which shall not be
unreasonably withheld or delayed, Program Manager shall be permitted to offer
and market, consistent with Applicable Law and the Privacy Policy, additional
products and services that are not included in an existing Program, including,
without limitation, third party products and services, to all or a portion of
existing Cardholders.

 

SECTION 12.6
– Data Security

 

Program
Manager agrees to and represents to Bank that it (and/or any of its
subcontractors) has implemented a security program including measures designed
to meet the objectives of the Guidelines. 
At all times during the Term, Program Manager shall be in compliance
with all information and data security requirements promulgated by the System
and applicable to card issuers (as set forth in the System Rules), the Payment
Card Industry Data Security Standard and the Guidelines, as the same may be
revised from time to time.  Program
Manager shall provide Bank with copies of all reports on compliance, quarterly
and annual status forms and other reports filed by Program Manager with any
System in accordance with the System Rules. 
During normal business hours and upon twenty (20) calendar days prior
written notice, or such other time as required by Applicable Law or the
Regulatory Authority, Bank has the right to inspect, no more than once during
any consecutive twelve (12) month period unless required more frequently by
Applicable Law or the Regulatory Authority, Program Manager’s security program,
associated audit reports, summaries of test results or equivalent measure taken
by Program Manager , and any third party engaged by Program Manager to perform
any of Program Manager’s obligations hereunder, to ensure that its security
measures meet the objectives of the Guidelines in accordance with the System Rules and
this Agreement.

 

ARTICLE XIII - INSURANCE

 

SECTION 13.1 – Insurance

 

Each
Party shall maintain, throughout the Term, appropriate comprehensive general
liability (which shall include contractual liability), errors and omissions,
bodily injury, property damage, and employee theft and dishonesty insurance
policies, the limit of which shall be no less than a combined single limit of
One Million Dollars ($1,000,000) per occurrence.

 

ARTICLE XIV - GENERAL PROVISIONS

 

SECTION 14.1 – Indemnification

 

(a)           Program Manager covenants
and agrees to indemnify and hold harmless Bank, its parent, subsidiaries or
affiliates, and their respective officers, directors, employees and permitted
assigns, as such, against any and all liability, damages, costs, expenses,
including reasonable legal fees and expenses, for any third party claim or
demand, including, without limitation, any fees or penalties assessed by any
System or Regulatory Authority (“Claim”),
arising out of or related to: (i): Program Manager’s breach of a
representation, warranty, covenant or obligation under this Agreement, (ii) the
gross negligence, fraud or willful misconduct of Program Manager, (iii) any
claim relating to obligations owed to or by Program Manager or any third party
retained by it. This provision shall not apply to the extent Bank is obligated
to provide indemnity under sub paragraph (b) below.  In the event of any conflict between this Section 12.1

 

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and
any other provision of this Agreement, this Section 12.1 shall control.

 

(b)           Bank covenants and agrees to
indemnify and hold harmless Program Manager, its parent, subsidiaries or
affiliates, and their respective officers, directors, employees and permitted
assigns, as such, against any Claim arising out of or related to: (i): Bank’s
breach of a representation, warranty, covenant or obligation under this
Agreement, (ii) the gross negligence, fraud or willful misconduct of Bank,
(iii) any claim relating to obligations owed to or by Bank or any third
party retained by it. This provision shall not apply to the extent Program
Manager is obligated to provide indemnity under sub paragraph (a) above.

 

(c)           If any Claim is asserted
against any party or parties (individually or collectively, the “Indemnified Party”) by any person
who is not a Party to this Agreement in respect of which the Indemnified Party
may be entitled to indemnification under the provisions of subsections (a), (b) or
(c) above, written notice of such Claim shall promptly be given to any
Party or Parties (individually or collectively, the “Indemnifying
Party”) from whom indemnification may be sought.  The Indemnifying Party shall have the right,
by notifying the Indemnified Party within ten (10) Business Days of its
receipt of the notice of the Claim, to assume the entire control (subject to
the right of the Indemnified Party to participate at the Indemnified Party’s
expense and with counsel of the Indemnified Party’s choice) of the defense,
compromise or settlement of the matter, including, at the Indemnifying Party’s
expense, employment of counsel of the Indemnifying Party’s choice.  If the Indemnifying Party gives notice to any
Indemnified Party that the Indemnifying Party will assume control of the
defense, compromise or settlement of the matter the Indemnifying Party will be
deemed to have waived all defenses to the claims for indemnification by the
Indemnified Party with respect to that matter. 
Any damage to the assets or business of the Indemnified Party caused by
a failure of the Indemnifying Party to defend, compromise or settle a claim or
demand in a reasonable and expeditious manner, after the Indemnifying Party has
given notice that it will assume control of the defense, shall be included in
the damages for which the Indemnifying Party shall be obligated to indemnify
the Indemnified Party.  The Indemnifying
Party shall not compromise or settle a Claim against the Indemnified Party without
the Indemnified Party’s consent, which shall not be unreasonably withheld or
delayed.

 

SECTION 14.2
– Disclosure

 

(a)           Each Party shall promptly
notify the other of any action, suit, proceeding, facts and circumstances, and
the threat of reasonable prospect of same, which might give rise to any
indemnification hereunder or which might materially and adversely affect either
Party’s ability to perform this Agreement.

 

(b)           Each Party represents and
warrants to the other that it has no knowledge of any pending or threatened
suit, action, arbitration or other proceedings of a legal, administrative or
regulatory nature, or any governmental investigation, against it or any of its
affiliates or any officer, director, or employee which has not been previously
disclosed in writing and which would materially and adversely affect its
financial condition, or its ability to perform this Agreement.

 

SECTION 14.3 – Use of Marks

 

(a)            Bank’s Marks.  Bank hereby grants to Program Manager during
the Term, and any wind-down or Transition Period, a non-exclusive, royalty-free,
non-assignable license, in the United States, to use Bank’s Marks (and the
copyrights that exist in such Marks, if any) as the Bank authorizes in
connection with the Program(s), including on the Cards, on account statements,
on Cardholder Agreements, and in other communications to Cardholders and
prospective Cardholders.  Bank’s Marks
shall be used only in the forms and format expressly approved by Bank, which
approval shall not be unreasonably withheld, condition or delayed.  Except as provided herein, it is expressly
agreed that neither Program Manager nor any Cardholder is acquiring any right,
title or interest (other than the 

 

25

 

*** Confidential Treatment Requested

 

foregoing license rights) in Bank’s Marks, which shall remain the
property and/or rights of Bank.  Program
Manager agrees that it shall not challenge the title or any rights of Bank in
and to Bank’s Marks.

 

(b)           Processor Marks.  Program Manager hereby grants to Bank during
the Term, and any wind-down or Transition Period, a non-exclusive,
non-assignable license, in the United States, to use Program Manager’s Marks
(and the copyrights that exist in such Marks, if any) as Program Manager
authorizes in connection with the Program(s), including on the Cards, on
account statements, on Cardholder Agreements, and in other communications to
Cardholders and prospective Cardholders. 
Program Manager’s Marks shall be used only in the forms and format
expressly approved by Program Manager, which approval shall not be unreasonably
withheld, condition or delayed.  Except
as provided herein, it is expressly agreed that neither Bank nor any Cardholder
is acquiring any right, title or interest (other than the foregoing license
rights) in Program Manager’s Marks, which shall remain the property and/or
rights of Program Manager.  Bank agrees
that it shall not challenge the title or any rights of Program Manager in and
to Program Manager’s Marks.

 

SECTION 14.4  – Third Party Services

 

Program Manager shall obtain Bank’s prior written approval, which Bank
may grant or deny in its reasonable discretion, before retaining any Program
Affiliate, and will assist Bank in obtaining such due diligence materials from,
or agreements with, any proposed Program Affiliate that Bank may deem
reasonably necessary or that may otherwise be required by Applicable Law.  Bank’s approval of any proposed Program
Affiliate shall not in any way relieve Program Manager of its duties and
obligations under this Agreement, nor shall such approval constitute a
representation or warranty by the Bank that the services to be performed or
products to be furnished by such Program Affiliate will be performed as agreed
or represented.

 

SECTION 14.5
– Relationship of Parties

 

Bank
and Program Manager agree they are independent contractors to each other in
performing their respective obligations hereunder.  Nothing in this Agreement or in the working
relationship being established and developed hereunder shall be deemed, nor
shall it cause, Bank and Program Manager to be treated as partners, joint
ventures, or otherwise as joint associates for profit.  Notwithstanding the foregoing, to extent
required by Applicable Law, Bank’s appointment of Program Manager as Bank’s
authorized representative will establish an agency relationship, limited
strictly to the rights, duties and obligations as set forth herein.  Accordingly, Program Manager hereby agrees as
follows:

 

(a)           Program Manager shall serve
as Bank’s representative or agent for purposes of rendering the marketing,
solicitation, sales and distribution services and other related services as set
forth herein.

(b)           Program Manager acknowledges
Bank’s right to monitor and review the activities Program Manager performs for
Bank hereunder;

(c)           Program Manager acknowledges
the statutory authority of Bank’s Regulatory Authority to regulate and examine
and take an enforcement action against the Program Manager with respect to the
activities performed by Program Manager as agent or representative of the Bank;

(d)           Program Manager acknowledges
that Bank has provided the Program Manager with information and training
designed to insure that Program Manager will be adequately educated about the
Bank’s products and services offered hereunder, including the distinctions between
insured and non-insured products, and relevant law that may apply to the
marketing, solicitation, and customer service activities instituted on behalf
of Bank hereunder;

(e)           Program Manager acknowledges
that Bank will review and update the training material on an annual basis and
will ensure that Program Manager receives training as needed; 

 

26

 

*** Confidential Treatment Requested

 

Program Manager’s training records will be made available for review by
Bank’s Regulatory Authority;

(f)            Program Manager acknowledges
that Bank must adopt a detailed compliance program to ensure adequate
monitoring, supervision, and control over the Program Manager and the
activities that the Program Manager performs on behalf of the Bank.  Such oversight includes ensuring Program
Manager’s own anti-money laundering compliance programs are detailed, thorough,
and implemented accurately and fully.

(g)           Program Manager acknowledges
that Bank will undertake an annual review of the compliance program conducted
under the auspices of the Bank’s compliance officer to determine if Program
Manager is operating in compliance with the Bank’s established policies and
procedures regarding the marketing, solicitation, customer service, or other
activities related to the Bank’s authorized banking products or services;

(h)           Program Manager acknowledges
that Bank will institute a system for tracking and resolving consumer
complaints involving Cards and Programs hereunder in a timely manner and will
provide an annual report regarding consumer complaints and their resolution to
the Bank’s board of directors;

(i)            Program Manager acknowledges
that a review and approval process will be undertaken by Bank for all Card and
Program disclosures, advertising, and other promotional material;

(j)            Program Manager acknowledges
that the Bank and Program Manager, in its capacity as the Bank’s authorized
delegate and representative, are both subject to control and supervision by
Bank’s Regulatory Authority.  This control
and supervision includes, but is not limited to, the ability to require that
Bank obtain it’s Regulatory Authority’s approval (or non-objection) before
entering into a contractual arrangement with Program Manager and the right of
Bank’s Regulatory Authority to approve specific contractual language;

(k)           Program Manager acknowledges
that Bank’s Regulatory Authority may require both Bank and the Program Manager,
in its capacity as the Bank’s authorized delegate and representative to submit
periodic reports to Bank’s Regulatory Authority;

(l)            Program Manager acknowledges
that Bank’s Regulatory Authority may require the Bank to modify or terminate
its relationship with the Program Manager at any time; and

(m)          Bank’s Regulatory Authority
may institute any other requirements or conditions that it deems appropriate
for that particular purpose.

 

SECTION 14.6
– Governing Law

 

The
Parties acknowledge that Bank, as a federally charted savings bank, is
regulated by the OTS, and is therefore subject to federal law, and entitled to
preemption from state laws to the fullest extent permitted by law.  In any matters not so preempted (if any) this
Agreement shall be governed by the internal laws, and not by the laws regarding
conflicts of laws, of the State of South Dakota.  Each Party hereby submits to the jurisdiction
of the courts of such state, and (subject to the Bank’s reservation of
preemption rights above) waives any objection to venue with respect to actions
brought in such courts.

 

SECTION 14.7 – Force Majeure

 

No Party shall be liable for any failure or delay on its part to
perform, and shall be excused from performing any of its non-monetary
obligations hereunder if such failure, delay or non-performance results in
whole or in part from any cause beyond the absolute control of the Party,
including without limitation, any act of God, act of war, riot, actions of
terrorists, earthquake, fire, explosion, natural disaster, flooding, embargo,
sabotage, government law, ordinance, rule, regulation, order or actions.  Any Party desiring to rely upon any of the
foregoing as an excuse for failure, default or delay in performance shall, when
the cause arises, give to the other Parties prompt notice in writing of the
facts which constitute such cause; and, when the cause ceases to exist, give
prompt notice thereof to the other Parties. 
This 

 

27

 

*** Confidential Treatment Requested

 

Section 14.7 shall in no way limit the right of any Party to this
Agreement to make any claim against third parties for any damages suffered due
to said cause.  If any performance under
this Agreement is postponed or extended for longer than sixty (60) calendar
days any Party may, by written notice to the other Parties, terminate this
Agreement immediately.

 

SECTION 14.8
– Severability

 

In
the event that any part of this Agreement is deemed by a court, Regulatory
Authority, System, or other public or private tribunal of competent
jurisdiction to be invalid or unenforceable, such provision shall be deemed to
have been omitted from this Agreement. The remainder of this Agreement shall
remain in full force and effect, and shall be modified to any extent necessary
to give such force and effect to the remaining provisions, but only to such
extent.

 

SECTION 14.9
– Survival

 

The
Parties agree that the following sections will survive termination:  Article IX (Limitation of Liability); Section 10.3
(Termination and Transition Assistance); Article XI (Confidentiality); Article XII
(Data Security); Section 14.1 (Indemnification); Section 14.3 (Use of
Marks); Section 14.6 (Governing Law); and Sections 14.8 through 14.16.

 

SECTION 14.8
– Successors and Third Parties

 

Except as limited by Section 14.9, this Agreement and the rights
and obligations hereunder shall bind, and inure to the benefit of the Parties
and their successors and permitted assigns.

 

SECTION 14.9
– Assignments

 

Neither Party may assign this Agreement or any of
its rights or obligations hereunder, by operation of law or otherwise, without
the prior written consent of the other Party, which consent shall not be
unreasonably withheld, provided that the non-assigning Party’s consent need not
be obtained in connection with the assignment of this Agreement pursuant to a
merger by the assigning Party with, or sale of all or substantially all of its
assets, stock or securities to, any entity or controlled affiliate thereof that
(a) has a net worth and cash flow as of the date of the merger or sale at
least as much as the net worth and cash flow of the assigning Party on such
date; and in each case (b) is not currently subject to any written order
or action by any Regulatory Authority. 
Notwithstanding the foregoing, Bank may not assign this Agreement or any
of its rights or obligations hereunder other than to a federally-chartered,
federally-insured financial institution.

 

SECTION 14.10
– Notices

 

All
notices, requests and approvals required by this Agreement shall be in writing
addressed/directed to the other Party at the address and facsimile set forth
below, or at such other address of which the notifying Party hereafter receives
notice in conformity with this section. 
All such notices, requests, and approvals shall be deemed given upon the
earlier of receipt of facsimile transmission during the normal business day or
actual receipt thereof.  All such
notices, requests and approvals shall be addressed as follows:

 

	
  If
  to Bank:

  	
  MetaBank
  dba Meta Payment Systems

  
	
   

  	
  5501
  S. Broadband Lane

  
	
   

  	
  Sioux
  Falls, SD 57108

  
	
   

  	
  Attention:  General Counsel

  
	
   

  	
  Facsimile
  Number: (605) 338-0596

  

 

28

 

*** Confidential Treatment Requested

 

	
  If
  to Program Manager:

  	
  NetSpend
  Corporation

  
	
   

  	
  701
  Brazos St., Suite 1200

  
	
   

  	
  Austin,
  Texas 78701

  
	
   

  	
  Attention:  General Counsel

  
	
   

  	
  Facsimile
  Number:  (512) 469-9951

  

 

SECTION 14.11 – Waivers

 

Neither
Party shall be deemed to have waived any of its rights, power, or remedies
hereunder except in writing signed by an authorized agent or representative of
the Party to be charged.  Either Party
may, by an instrument in writing, waive compliance by the other Party with any
term or provision of this Agreement on the part of the other Party to be
performed or complied with.  The waiver
by either Party of a breach of any term or provision of this Agreement shall
not be construed as a waiver of any subsequent breach.

 

SECTION 14.12
– Entire Agreement; Amendments

 

This
Agreement constitutes the entire Agreement between the Parties and supersedes
all prior agreements, understandings, and arrangements, oral or written, between
the Parties with respect to the subject matter hereof.  This Agreement may not be modified or amended
except by an instrument or instruments in writing signed by the Party against
whom enforcement of any such modification or amendment is sought.

 

SECTION 14.13 – Counterparts

 

This
Agreement may be executed and then delivered via facsimile transmission, via
the sending of PDF or other copies thereof via email and in one or more
counterparts, each of which shall be an original but all of which taken together
shall constitute one and the same Agreement.

 

SECTION 14.14 – Disputes

 

(a)           Duty to Notify.  In the event of any dispute, controversy, or
claim arising out of or relating to this Agreement or the construction,
interpretation, performance, breach, termination, enforceability or validity
thereof (hereinafter, a “Dispute”),
the Party raising such Dispute shall notify the other promptly and no later
than sixty (60) days from the date of its discovery of the Dispute.  In the case of a Dispute relating to account
or transaction statements or similar matter, the failure of a party to notify
the other party of such Dispute within sixty (60) days from the date of its
receipt shall result in such matter being deemed undisputed and accepted by the
party attempting to raise such Dispute.

 

(b)           Cooperation to
Resolve Disputes.  The Parties
shall cooperate and attempt in good faith to resolve any Dispute promptly by
negotiating between persons who have authority to settle the Dispute and who
are at a higher level of management than the persons with direct responsibility
for administration and performance of the provisions or obligations of this
Agreement that are the subject of the Dispute.

 

(c)           Confidentiality
of Proceedings.  The
proceedings contemplated by this Section shall be as confidential and
private as permitted by law.  To that
end, the Parties shall not disclose the existence, content or results of any
proceedings conducted in accordance with this Section, and materials submitted
in connection with such proceedings shall not be admissible in any other
proceeding, provided, however, that this confidentiality provision shall not
bar disclosures required by any laws or regulations.

 

SECTION 14.15 – Headings

 

The headings, captions, headers, footers and
version numbers contained in this Agreement are 

 

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*** Confidential Treatment Requested

 

inserted for convenience only and shall not affect
the meaning or interpretation of any provision of this Agreement.  References in this Agreement to any Article or
Section are to such Article or Section of this Agreement.

 

SECTION 14.16 – Drafting Presumption

 

Program Manager and Bank agree that they participated in the drafting
of this Agreement and, in the event that any dispute arises in the
interpretation or construction of this Agreement, no presumption shall arise that either one party or the other
drafted this Agreement.

 

[Signature page to
follow]

 

30

 

*** Confidential Treatment Requested

 

IN WITNESS WHEREOF, this Agreement is executed
by the Parties’ authorized officers or representatives and shall be effective
as of the date first above written.

 

 

	
  NetSpend Corporation

  	
   

  	
  MetaBank,
  dba Meta Payment Systems

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Dan Henry

  	
   

  	
  By:

  	
  /s/
  Brad C. Hanson

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Dan
  Henry

  	
   

  	
  Name:

  	
  Brad
  C. Hanson

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  CEO

  	
   

  	
  Title:

  	
  President

  

 

 

*** Confidential Treatment Requested

 

SCHEDULE A

Flow of Funds, Revenues and Compensation

 

I.  Flow of Funds

 

A.            All Cardholder
Funds hereunder shall be collected and forwarded by the Distributors and
Retailers, as applicable, to the Cardholder Account.

 

B.            All Program
Revenues shall accrue to the benefit of the Bank, provided that from such
Program Revenues Bank shall pay compensation to Program Manager as set forth in
Section II below.

 

C.            Bank shall
transfer Cardholder Funds from the Cardholder Account to Settlement Accounts in
an amount adequate to facilitate Settlement with the System on a daily basis or
as otherwise determined by Bank.

 

II.            Compensation
to Program Manager.

 

A.            MONTHLY
STATEMENTS.  Program
Manager’s compensation for any month shall be equal to: ***.  Bank
shall provide Program Manager a monthly electronic statement (the “Monthly Statement”), no later than
the fifteenth (15th) day of each
month (if a business day, or if not, the next business day), setting forth ***
for the immediately preceding month.  As
Program Manager’s compensation for the immediately preceding month, Program
Manager shall be entitled to retain in the Operating Account an amount equal to
*** for such month.  Within ten (10) days
after the delivery of the Monthly Statement to Program Manager, Bank shall
debit a bank account designated by Program Manager (the “Operating
Account”) by an amount equal to the sum of ***.

 

B.            ***

 

C.            ***

 

D.            ***

 

 

*** Confidential Treatment Requested

 

SCHEDULE B

Ratios

 

	
   

  	
  Metric

  	
   

  	
  Threshold

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ***

  	
   

  	
  ***

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ***

  	
   

  	
  ***

  	
  %

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