NetSpend 2011 Annual Report Download - page 109

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Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2011, 2010 and 2009
NOTE 17: COMMITMENTS AND CONTINGENCIES (Continued)
Operations for the year ended December 31, 2009, the period in which the chargebacks and fee-related recoveries were settled.
Other
In the normal course of business, the Company is at times subject to pending and threatened legal actions and proceedings. Management
believes that the outcomes of such actions or proceedings will not have a material effect on the Company's financial position, results of
operations, cash flows or liquidity.
NOTE 18: EMPLOYEE BENEFIT PLANS
The Company has established a defined contribution retirement plan under section 401(k) of the Internal Revenue Code (the "401(k)
Plan"). This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion
of their annual compensation, not to exceed a federally specified maximum ($16,500 for 2011, plus $5,500 for employees age 50 or older), on a
pre-
tax basis. The Company contributes to the program by matching funds based on a percentage of the employee's contribution. The Company
matches 100% of the first 3% of wages contributed by an employee and 50% of the next 2% of wages contributed by that employee. The
Company is also permitted to make a profit-
sharing contribution as determined annually at the discretion of the board of directors. For the years
ended December 31, 2011, 2010 and 2009, the 401(k) match made by the Company was approximately $0.9 million, $0.8 million and
$0.7 million, respectively. No profit-sharing contributions were made during 2011, 2010 or 2009.
In 2009, the Company established a deferred compensation plan (the "Deferral Plan") for the benefit of certain of its eligible employees.
Participating employees may defer a certain percentage of their base salary and annual bonus. These percentages are determined on an annual
basis by the Company's compensation committee. For 2011, participating employees could defer up to 80% of their salary and 100% of their
annual bonus. Amounts deferred by a participant are credited with earnings and investment gains and losses by assuming that the deferral was
invested in one or more investment options selected by the participants from a family of mutual funds chosen by the Company. In addition, the
Company may, but is not required to, make contributions into the Deferral Plan on behalf of the participating employees. The amount of any
Company contributions is discretionary and subject to change. The Company did not make any contributions to the Deferral Plan during the
years ended December 31, 2011, 2010 or 2009. Each employee's deferrals, together with any earnings thereon, are accrued as part of the
unsecured, other non-current liabilities of the Company on the accompanying Consolidated Balance Sheets. The deferred compensation
liability was $1.4 million and less than $0.1 million as of December 31, 2011 and December 31, 2010, respectively.
100