Employee Benefit Plan

12 Months Ended

Dec. 31, 2011

Employee Benefit Plans

Employee Benefit Plans

Note 12 - Employee Benefit Plans

The QNB Bank Retirement Savings Plan provides for elective employee contributions up to the maximum allowed by the IRS and a matching company contribution limited to three percent. In addition, the plan provides for safe harbor non-elective contributions of five percent of total compensation by QNB. QNB contributed a matching contribution of approximately $169,000 and $164,000 for the years ended December 31, 2011 and 2010, respectively, and a safe harbor contribution of approximately $345,000 for 2011 and $327,000 for 2010.

QNB's Employee Stock Purchase Plans (the Plans) offer eligible employees an opportunity to purchase shares of QNB Corp. Common Stock at a ten percent discount from the lesser of fair market value on the first or last day of each offering period (as defined by the plan). The 2006 Plan authorized the issuance of 20,000 shares. As of December 31, 2011, 19,591 shares were issued under the 2006 Plan. The 2006 Plan expired May 31, 2011. At the 2011 Annual Meeting, shareholders approved the 2011 Employee Stock Purchase Plan (the 2011 Plan), which authorizes the issuance of 30,000 shares. As of December 31, 2011, 1,815 shares were issued under the 2011 Plan. The 2011 Plan expires May 31, 2016.

Shares issued pursuant to the Plan were as follows:

Year ended December 31,	Shares	Price per share
2011	3,786	$18.23 and $19.44
2010	4,118	$15.30 and $17.96