NetSpend 2011 Annual Report Download - page 110

Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2011, 2010 and 2009
NOTE 18: EMPLOYEE BENEFIT PLANS (Continued)
To offset this liability, the Company has purchased life insurance policies on some of the plan participants. The Company is the owner and
beneficiary of the policies and the policies are intended to produce cash to help fund the Company's obligations under the Deferral Plan. The
Company intends to hold the life insurance policies until the death of the plan participants. The net cash surrender value of these life insurance
policies was $1.4 million and $0.6 million as of December 31, 2011 and December 31, 2010, respectively. The values of the life insurance
policies are included on the accompanying Consolidated Balance Sheets in other assets.
In 2011, the board of directors of the Company approved an employee stock purchase plan (the "Stock Purchase Plan"). Subject to certain
limitations, the Stock Purchase Plan enables eligible employees to utilize after-tax payroll deductions to purchase shares of Company's
common stock at the lesser of 85% of its fair market value on the first or last business day of each quarterly purchase period (six months with
respect to the first purchase period in 2012). A total of 2,000,000 of the Company's treasury shares have been reserved for issuance under this
plan. This plan will be submitted to the Company's stockholders for approval in 2012. No shares will be issued under the plan if it is not so
approved.
NOTE 19: CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
ACE
The JLL Funds own approximately 97% of ACE, the Company's largest distributor. The JLL Funds beneficially owned more than five
percent of the Company's outstanding common stock as of December 31, 2011. The Company incurred expenses from transactions with ACE
of $40.5 million, $31.0 million and $23.0 million for the years ended December 31, 2011, 2010 and 2009, respectively. Although revenues
generated from cardholders acquired at ACE locations represented more than one-third of the Company's revenues, the portion of those
revenues earned from transactions directly with ACE were $4.8 million, $4.4 million and $2.9 million for the years ended December 31, 2011,
2010 and 2009, respectively. As of December 31, 2011 and December 31, 2010, $3.2 million and $2.8 million, respectively, was payable to
ACE.
Sutherland
Oak Investment Partners X, LP and Oak X Affiliates Fund LP (collectively "Oak") own in excess of 10% of Sutherland Global
Services, Inc. ("Sutherland"), one of the Company's external customer service providers. Oak beneficially owned more than five percent of the
Company's outstanding common stock as of December 31 2011. The Company incurred expenses from transactions with Sutherland of
$8.6 million, $7.4 million and $5.9 million, for the years ended December 31, 2011, 2010 and 2009, respectively. As of both December 31,
2011 and 2010, $0.6 million was payable to Sutherland.
Vesta
Oak owns in excess of 10% of Vesta Corporation ("Vesta"), which provides reload services to the Company's cardholders. The Company
earned revenues from transactions with Vesta of $0.6 million and $0.2 million during the years ended December 31, 2011 and 2010,
respectively. Additionally, the
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