Document:

EX-10.5

 

Exhibit 10.5

NORTHFIELD BANK

2007 EXECUTIVE INCENTIVE COMPENSATION

Northfield Bank (the Bank) has adopted the following guidelines for the 2007 Executive Incentive
Compensation Plan (the Plan).

	(1)	 	Bank executives (executive vice president and above) are defined as Participants in the Plan
and are eligible for base awards based upon the guidelines detailed below.
	 
	(2)	 	The maximum base award is 10 percent of an individual executive’s base salary.
	 
	(3)	 	The Compensation Committee has the discretion to recommend additional bonus payments for
individual performance that is deemed to warrant additional recognition.
	 
	(4)	 	The Compensation Committee will review Participant performance and recommend all base awards
and discretionary bonus payments for approval by the Board of Directors.

Budgeted net income will be based upon the board approved budget and actual results may be
adjusted, at the discretion of the Compensation Committee, for unusual or non-recurring items.
Actual results will be adjusted by the affect of the IPO proceeds and related charges on 2007
net income, as such amounts were not considered in the preparation of the 2007 board approved
budget.

	(5)	 	The Bank’s performance goals, with the provided weighting in the evaluation, are listed
below. Detailed items after each goal are key initiatives to attain the goal.

	 	1.	 	Removal of 2005 regulatory agreement (10% weighting)

	 	a.	 	Attain a satisfactory Safety and Soundness
Examination-Alexander, Doherty, Widmer, Klein
	 
	 	b.	 	Formalize a company-wide training program for BSA/AML- Widmer
	 
	 	c.	 	Enhance BSA policies and procedures for updated regulatory
guidance.-Widmer
	 
	 	d.	 	Automate of BSA monitoring processes-Widmer

	 	2.	 	Attainment of 2007 net income at or better than 90% of board approved budget
(70% weighting)

	 	a.	 	Evaluate Branch Staffing Efficiency — Widmer
	 
	 	b.	 	Established goals and targets for checking deposit and Invest
product sales- Widmer, Alexander
	 
	 	c.	 	Maintain deposit product pricing disciplines-Alexander,
Klein, Doherty, Widmer
	 
	 	d.	 	Expand Product Offerings- Demand Money Market
Accounts-Widmer, Alexander

	 	3.	 	Completion of the Initial Pubic Offering (10% weighting)

	 	a.	 	Draft and review of S-1 Prospectus-Klein, Alexander, Doherty
Widmer

 

 

NORTHFIELD BANK

2007 EXECUTIVE INCENTIVE COMPENSATION

Page -2-

	 	b.	 	Implement Stock Employee Benefit Plans (ESOP and
401(k)-Alexander, Klein, Doherty, Widmer
	 
	 	c.	 	Revise Charters and By-Laws-Alexander, Klein, Doherty, Widmer
	 
	 	d.	 	Establish Charitable Foundation-Alexander, Klein, Doherty,
Widmer
	 
	 	e.	 	Manage of Due Diligence Process-Widmer, Klein, Alexander,
Doherty
	 
	 	f.	 	Develop public company reporting infrastructure-Klein,
Doherty, Widmer, Alexander
	 
	 	g.	 	Develop Stock Information Center-Widmer, Klein
	 
	 	h.	 	Review of Regulatory Business Plan-Alexander, Doherty, Klein,
Widmer

	 	4.	 	Formalization of Strategic business plan (10% weighting)

	 	a.	 	Open Brooklyn Branch- Alexander, Widmer, Doherty, Klein
	 
	 	b.	 	Create Staff Position for Corporate Governance and Investor
Relations-Alexander, Klein
	 
	 	c.	 	Create new Home Equity Loan Department-Doherty
	 
	 	d.	 	Develop policies and procedures to implement regulatory
guidance on commercial real estate concentration guidance-Doherty
	 
	 	e.	 	Automate credit administration function-Doherty
	 
	 	f.	 	Develop and Implement Remote Deposit Capture-Widmer,
Alexander, Doherty, Klein
	 
	 	g.	 	Identify de novo branch locations-Alexander, Widmer, Doherty,
Klein
	 
	 	h.	 	Identify appropriate space for corporate headquarters-
Alexander, Widmer, Doherty, Klein

*****EX-10.7

 

Exhibit 10.7

NORTHFIELD BANK

 

Resolutions of the Board of Directors

 

     WHEREAS, RSGroup Trust Company entered into a Grantor Trust Agreement (the “Trust”) with
Northfield Bank (formerly, Northfield Savings Bank) and Northfield
Bancorp, MHC (formerly, NSB
Holding Corp.) ( the “Company”); and

     WHEREAS, the Bank desires to revise Appendix A to the Trust to delete references to the “NSB
Holding Corp. and Northfield Savings Bank Board of Trustees and Board of Directors Deferred
Compensation Plan” and the “Northfield Savings Bank Supplemental Executive Retirement Plan,” which
plans were previously consolidated into the Northfield Savings Bank Non-qualified Deferred
Compensation Plan”; and

     WHEREAS, the Board of Directors desires to change the name of the Northfield Savings Bank
Non-qualified Deferred Compensation Plan to the “Northfield Bank Non-qualified Deferred
Compensation Plan” to reflect the Bank’s name change, and

     WHEREAS, the Bank desires to further revise Appendix A to the Trust to add “Northfield Bank
Non-qualified Deferred Compensation Plan, as amended and restated effective as of January 1, 2005”
and “Northfield Bank Non-qualified Supplemental Employee Stock Ownership Plan effective January 1,
2007” to the list of plans covered by the Trust; and

     WHEREAS, Section 12(a) of the Trust permits the Trust to be amended from time to time by a
written instrument executed by the trustee, the Bank and the Company.

     NOW, THEREFORE, BE IT RESOLVED, that the names “Northfield Savings Bank” and “NSB Holding
Corp.” shall be changed to “Northfield Bank” and
“Northfield Bancorp, MHC” wherever they appear in
the Northfield Savings Bank Non-qualified Deferred Compensation Plan as amended and restated
effective as of January 1, 2005; and be it

     RESOLVED FURTHER, that Appendix A attached hereto shall be and become the Appendix A to the
Trust; and be it

     RESOLVED, FURTHER, that the Bank or its designee shall be, and the same hereby is, authorized,
empowered and directed to take any and all action necessary for the implementation of the aforesaid
amendment.

 

 

NORTHFIELD BANCORP, MHC

 

Resolutions of the Board of Directors

 

     WHEREAS, RSGroup Trust Company entered into a Grantor Trust Agreement (the “Trust”) with
Northfield Bank (formerly, Northfield Savings Bank) (the “Bank”) and Northfield Bancorp, MHC
(formerly, NSB Holding Corp.) (the “Company”); and

     WHEREAS, the Company desires to revise Appendix A to the Trust to delete references to “NSB
Holding Corp. and Northfield Savings Bank Board of Trustees and Board of Directors Deferred
Compensation Plan” and the “Northfield Savings Bank Supplemental Executive Retirement Plan,” which
plans were previously consolidated into the Northfield Savings Bank Non-qualified Deferred
Compensation Plan”; and

     WHEREAS, the Company desires to further revise Appendix A to the Trust to add “Northfield
Bank Non-qualified Deferred Compensation Plan, as amended and restated effective as of January 1,
2005” and “Northfield Bank Non-qualified Supplemental Employee Stock Ownership Plan effective
January 1, 2007” to the list of plans covered by the Trust; and

     WHEREAS, Section 12(a) of the Trust permits the Trust to be amended from time to time by a
written instrument executed by the trustee, the Bank and the Company.

     NOW, THEREFORE, BE IT RESOLVED, that Appendix A attached hereto shall be and become the
Appendix A to the Trust; and be it

     RESOLVED, FURTHER, that the Company or its designee shall be, and the same hereby is,
authorized, empowered and directed to take any and all action necessary for the implementation of
the aforesaid amendment.

 

 

APPENDIX A

SCHEDULE OF PLANS UNDER

RS GROUP TRUST COMPANY

GRANTOR TRUST

Northfield Bank Non-qualified Deferred Compensation Plan, as amended and restated, effective
January 1, 2005

Northfield Bank Non-qualified Supplemental ESOP Plan, effective January 1, 2007EX-10.11

 

Exhibit 10.11

2008 Management Incentive Plan

December 5, 2007

 

 

Management Incentive Plan (MIP)

Introduction and Objectives

Northfield Bancorp, Inc.’s Management Incentive Plan (the “MIP” or the “Plan”) is designed to
recognize and reward designated management team members for their collective contributions to the
performance and success of Northfield Bancorp, Inc. and its subsidiaries (the “Company” or the
“Bank”). The Plan focuses on the financial and key performance measures that are critical to the
Company’s growth and profitability. The MIP serves as a critical component of a competitive total
compensation package that enables the Company to attract and retain talent needed to drive the
Company’s future success.

Objectives of the plan include:

	•	 	Align management compensation with Company performance.
	 
	•	 	Provide clear focus on key strategic business objectives.
	 
	•	 	Position the Company’s total cash compensation to be competitive with market.
	 
	•	 	Enable the Company to attract and retain the talent needed to drive success.
	 
	•	 	Motivate and reward management for achieving/exceeding performance goals.
	 
	•	 	Encourage teamwork across the Company’s operating groups.

Eligibility/Participation

	•	 	Eligibility will be limited to key members of management and key employees. Participants
will be nominated by management and approved by the Compensation Committee.
	 
	•	 	New employees must be hired by July 1 to participate in that year’s incentive. Incentive
awards for employees hired between January 1 and July 1 will be pro-rated based on the
employee’s date of hire (i.e. base salary actually earned in the year). Participants must
maintain a satisfactory level of performance to be eligible for an incentive award.
	 
	•	 	Participants must be an active employee as of the award payout date to receive an award,
unless they are out on disability, in which case they will receive a pro-rata award.

Performance Period

The performance period and plan operate on a calendar year basis (January 1 - December
31).

2

 

Incentive Award Opportunity

Each participant will have a target incentive opportunity that is expressed as a percentage
of base salary. Incentive targets are based on the Company’s philosophy to pay competitive cash
compensation at approximately the 65th percentile of the compensation committee
determined peer group. The 2008 incentive targets consider market practice and the Company’s
current base salary levels. For 2008, all participants will have a 10% of base salary target
incentive opportunity (range of 5% — 20% of base salary).

Achieving all performance goals will generally result in a full target award. Actual payouts will
vary above and below the target incentive to reflect actual performance relative to the goals and
weights. The Compensation Committee retains the discretion to determine awards relative to goals
and may consider other factors in making the award (e.g. extraordinary events).

The total incentive opportunity and range is summarized below. These are subject to change based
on market practice, internal Company practices, and compensation philosophy.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2008 Annual Incentive as a % of Base Salary
	 	 	(in future years these targets may change and be different by tier)
	 	 	Below	 	Threshold	 	Target	 	Stretch
	Positions	 	Threshold	 	Performance	 	Performance	 	Performance
	CEO
	 	 	0	%	 	 	5	%	 	 	10	%	 	 	15	%
	EVP
	 	 	0	%	 	 	5	%	 	 	10	%	 	 	15	%
	SVP
	 	 	0	%	 	 	5	%	 	 	10-15	%	 	 	15-20	%

Incentive Plan Measures

For 2008, the Corporate performance goal will be budgeted Net Income (before taxes). A significant
portion of all participants’ incentive will be based on our overall corporate performance. This
performance measure reflects our becoming a public company and the need during the transition to
focus on Company’s growth and profitability. This approach also supports our desire to foster a
collaborative team-oriented culture among our senior leadership team. The Compensation Committee,
at its sole discretion, may determine to exclude from actual 2008 performance results, items that
are considered non-recurring in nature, and not suitable for consideration in measuring 2008
financial performance against 2008 budgeted net income (before taxes). In the future, we may focus
on other key corporate performance goals. In addition to corporate performance,
individual/division performance goals will also be considered.

Below is a summary of the weighting of awards based on Corporate and Individual/Divison Goals:

	 	 	 	 	 	 	 	 	 
	 	 	Corporate	 	Individual/Division
	Role	 	Performance	 	Performance
	CEO
	 	 	85	%	 	 	15	%
	EVP
	 	 	75	%	 	 	25	%
	SVP
	 	 	40% - 60	%	 	 	60% - 40	%

3

 

Goal Setting

The Corporate Performance goal will be recommended by the Compensation Committee as part of
the Board’s annual business planning process, and approved by the Board of Directors. The
Compensation Committee will approve the performance range and weights associated with the Corporate
Performance goal.

The 2008 Corporate Net Income (before taxes) goal will have a defined threshold, target and stretch
performance and payout range. For example, Net Income (before taxes) must be at least 90% of the
budgeted goal in order to pay out any award. At 90% of budget, the payout will be 50% of the
incentive portion allocated to net income. Once threshold performance is achieved, the award will
increase incrementally. The payout ranges are shown below. Performance in between levels will be
interpolated, at the Compensation Committees discretion, such that incremental increases in net
income result in incremental increases in awards.

	 	 	 	 	 	 	 
	 	 	 	 	Incentive Payout
	Performance	 	 	 	(for portion based on
	Level	 	Performance Goal	 	Corporate performance)
	Below Threshold

	 	Less than 90% of budget
	 	 	0	%
	Threshold

	 	90% of budgeted NI before taxes
	 	 	50	%
	Target

	 	Budgeted NI before taxes
	 	 	100	%
	Stretch

	 	120% or greater of budgeted NI before taxes
	 	 	150	%

Individual/Division goals will be developed and recommended by management and determined
and approved by the Compensation Committee at the start of the fiscal year. Generally, Individual
goals should be limited to no more than three goals that reflect critical financial and strategic
goals. Some possible examples include: deposit growth, loan growth, efficiency. Each goal should
have a defined target. Payout relative to the target will be determined by management and the
Compensation Committee.

Award Payouts

Payouts will be made in cash as soon as possible after year-end. Generally, payouts will occur
within 75 days following the close of the fiscal year. Awards are calculated based on actual
performance relative to target. Payouts will be based on percentage of base salary earnings
(actual earnings) for the year. This will allow for ease of calculation of incentives to reflect
participants who work a partial year or part time hours.

4

 

Plan Terms and Conditions 

Plan Authorization

The Plan is authorized by the Board of Directors of the Company and administered by the
Compensation Committee.

Program Changes or Discontinuance

The Company has developed this plan based on current objectives and business conditions. The Plan
was developed based on existing business, market and economic conditions; current services; and
staff assignments. If substantial changes occur that affect these conditions, services,
assignments, or forecasts, the Company may add to, amend, modify, or discontinue any of the terms
or conditions of the Plan at any time.

The Compensation Committee may, at its sole discretion, waive, change, or amend the Plan as it
deems appropriate. The Committee, at its sole discretion, may increase or decrease an award based
upon its consideration of a Plan participant’s performance or achievements.

Termination of Employment

If a Plan participant leaves or is terminated by the Company before awards are paid, no incentive
award will be paid. Participants must be an active employee of the Company on the date the
incentive is paid to receive an award. (See exceptions for death, and disability below.)

Disability or Death

If a participant is disabled by an accident or illness, his/her bonus award for the Plan period
will be prorated so that the award is based on the period of active employment only (i.e. the award
will be reduced by the period of time of disability).

In the event of death, the Company will pay to the participant’s estate the pro rata portion of the
award that had been earned by the participant as of the date of death.

Ethics and Interpretation

If there is any ambiguity as to the meaning of any terms or provisions of this Plan or any
questions as to the correct interpretation of any information contained therein, the Company’s
interpretation expressed by the Compensation Committee will be final and binding.

The altering, inflating, and/or inappropriate manipulation of performance/financial results or any
other infraction of recognized ethical business standards, will subject the employee to
disciplinary action up to and including termination of employment. In addition, any incentive
compensation as provided by the Plan to which the employee would otherwise be entitled will be
revoked.

The Company may recover incentive income if an incentive award was based on performance that was
subsequently subject to a restatement or where performance targets were later reasonably determined
to have not been achieved. In such a situation, the Company retains the

5

 

right to seek recovery of
part or the entire incentive award paid to senior executive officers (i.e. named executives).

Miscellaneous

The Plan will not be deemed to give any participant the right to be retained in the employ of the
Company nor will the Plan interfere with the right of the Company to discharge any participant at
any time.

The Compensation Committee will determine on at least an annual basis, those employees of
Northfield Bancorp, Inc. and its consolidated subsidiaries that will be eligible to participate in
the Plan.

In the absence of an authorized, written employment contract, the relationship between employees
and the Company is one of at-will employment. The Plan does not alter the relationship. The Plan
will not supersede any specific employment contract obligations the Company may have with a Plan
participant.

This Plan and the transactions and payments hereunder shall, in all respect, be governed by, and
construed and enforced in accordance with applicable governmental laws and regulations.

Each provision in this Plan is severable, and if any provision is held to be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining provisions shall not, in
any way, be affected or impaired thereby.

6

 

Example

Below is an illustration of a simple plan design for an employee with a base salary of $150,000 and
an incentive target of 10% of base salary ($15,000). Goals are for illustration purposes only.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Participant Goals	 	Performance and Payout
	 	 	Performance Goal	 	 	 	 	 	 	 	 	 	 	 	Payout	 	 
	Performance	 	threshold/target/stretch	 	 	 	 	 	 	 	 	 	Actual	 	Allocation	 	 
	Measure	 	(may be absolute or relative)	 	Wt	 	$	 	Performance	 	(0% - 150%)	 	Payout ($)
	Net Income

	 	TBD
	 	 	75	%	 	$	11,250	 	 	Between Threshold
and Target
(i.e. 95% of goal)
	 	 	75	%	 	$	8,437.50	 
	Deposit Growth

	 	TBD
	 	 	15	%	 	$	2,250	 	 	Threshold
	 	 	50	%	 	$	1,125	 
	Loan Growth

	 	TBD
	 	 	10	%	 	$	1,500	 	 	Below Threshold
	 	 	0	%	 	$	0	 
	TOTAL	 	 	 	 	100	%	 	$	15,000	 	 	       63.75% payout
	 	$	9,562.50	 

This participant’s payout of $9,562.50 is approximately 64% of target. The payout reflects the
Company’s performance between threshold and target, and individual performance at threshold or
below.

This illustration shows a simplified calculation. In practice, actual performance and payout would
be interpolated and pro-rated between payout levels (i.e. not just at 50%, 100% or 150%).

7

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