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Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2008, 2009 and 2010
NOTE 12: SHARE BASED PAYMENT (Continued)
The remaining service period associated with a portion of CEO's performance-based options was shortened based on the Company's
achievement of performance targets related to the Company's equity valuation. As a result of the initial public offering, certain performance
based attributes were triggered in addition to the time based vesting conditions embedded in these awards. The Company accelerated
recognition of the unamortized stock option expense over the remaining estimated explicit service period.
During the year ended December 31, 2010, the Company recognized additional compensation expense of approximately $0.9 million
related to accelerated vesting associated with its initial public offering, of which $0.7 million related to the accelerated vesting of options and
$0.2 million related to the accelerated vesting of restricted stock.
The following table presents a summary of stock option activity for the year ended December 31, 2010:
The aggregate intrinsic value in the table above represents the total pre-tax value, which is calculated as the difference between the
Company's stock price on December 31, 2010 and the exercise price, multiplied by the number of in-the-money options that would have been
received by the option holders had all option holders exercised their options on December 31, 2010. This amount changes based on the fair
value of the Company's stock. The intrinsic value of options exercised during 2008, 2009 and 2010 was $2.3 million, $0.1 million and
$9.2 million, respectively.
90
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
Outstanding December 31, 2009
9,716,961
$
3.26
Granted
3,244,574
5.22
Exercised
(1,239,724
)
2.81
Expired
(86,278
)
1.48
Forfeited
(599,927
)
3.54
Outstanding December 31, 2010
11,035,606
$
3.88
7.8 years
$
98,705,957
Vested and expected to vest at December 31,
2010
10,116,746
$
3.86
7.2 years
$
90,622,200
Exercisable at December 31, 2010
2,705,097
$
3.02
7.0 years
$
52,414,740