Nautilus 2000 Annual Report Download - page 41

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This settlement did not affect the ongoing direct marketing campaign for the Company's Bowflex home fitness equipment. Additionally, in the
normal course of business, the Company is a party to various other legal claims, actions and complaints. Although it is not possible to predict
with certainty whether the Company will ultimately be successful in any of these legal matters, or what the impact might be, the Company
believes that disposition of these matters will not have a material adverse effect on the Company's financial position, results of operations or
cash flows.
16.EMPLOYEE BENEFIT PLAN
The Company adopted a 401(k) profit sharing Plan in 1999 covering all employees over the age of 18, who also have three months of service.
The Plan was amended in 2000 to allow for immediate eligibility in the plan. Each participant in the 401(k) Plan may contribute up to 20% of
eligible compensation during any calendar year, subject to certain limitations. The 401(k) Plan provides for Company matching contributions of
up to 50% for eligible contributions for participants who have one year of service. In addition, the Company may make discretionary
contributions. Employees are 100% vested in the matching and discretionary contributions after four years of service. Expense for the Plan was
$103,793 and $134,669 for the years ended December31, 1999 and 2000, respectively.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
39
2002. EDGAR Online, Inc.