NetSpend 2011 Annual Report Download - page 136

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ARTICLE I.
Establishment and Purpose
NetSpend Holdings, Inc. (the
“Company”) hereby adopts the NetSpend Holdings, Inc. Deferred Compensation Plan (the “Plan”),
effective May
1, 2009. This Plan is effective for Deferrals and Company Contributions on and after the Plan’s Effective Date.
The purpose of the Plan is to attract and retain key employees of the Participating Employers by providing Participants with an opportunity to
defer receipt of a portion of their salary, bonus, and other specified compensation. The Plan is not intended to meet the qualification
requirements of Code Section 401(a), but is intended to meet the requirements of Code Section 409A, and shall be operated and interpreted
consistent with that intent.
The Plan constitutes an unsecured promise by a Participating Employer to pay benefits in the future. Participants in the Plan shall have the
status of general unsecured creditors of the Company or the Adopting Employer, as applicable. Each Participating Employer shall be solely
responsible for payment of the benefits of its employees and their beneficiaries. The Plan is unfunded for federal tax purposes and is intended
to be an unfunded arrangement for eligible employees who are part of a select group of management or highly compensated employees of the
Participating Employers within the meaning of Sections 201(2), 301(a)(3), and 401(a)(1) of ERISA. Any amounts set aside to defray the
liabilities assumed by the Company or an Adopting Employer will remain the general assets of the Company or the Adopting Employer, as
applicable, and shall remain subject to the claims of the Company’s or the Adopting Employer’s creditors until such amounts are distributed to
the Participants.
ARTICLE II.
Definitions
2.1
Account. Account means a bookkeeping account maintained by the Committee to record the payment obligation of a Participating
Employer to a Participant as determined under the terms of the Plan. The Committee may maintain an Account to record the total
obligation to a Participant and component Accounts to reflect amounts payable at different times and in different forms. Reference to
an Account means any such Account established by the Committee, as the context requires. Accounts are intended to constitute
unfunded obligations within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.
2.2
Account Balance. Account Balance means, with respect to any Account, the total payment obligation owed to a Participant from such
Account as of the most recent Valuation Date.
2.3
Adopting Employer. Adopting Employer means an Affiliate who, with the consent of the Company, has adopted the Plan for the
benefit of its eligible employees. Absent further action by the Company, each of NetSpend Corporation, NetSpend Payment Services,
Inc. and Skylight Financial, Inc. is authorized to be an Adopting Employer.
1