Document:

Exhibit
10.13

 

NCB Executive Long-Term Incentive Plan

Measurement Period 1/1/03 – 12/3/05

 

Approved
by the Compensation Committee 7/28/03

 

The Executive Long Term Incentive Plan, as approved by the Board of
Directors on July 31, 1999, delegates to the Compensation Committee the
authority to approve the Measurement Period, the Employee Participants, the
Performance-Based Cash Awards, and the Performance Goals.

 

A.                                    The Measurement Period is the 3-year
period from 1/01/2003 through 12/31/2005, and the Performance-Based Cash
Awards, if any, will be granted every other year according to the following
schedule:

 

	
  '99

  	
   

  	
  '00

  	
   

  	
  '01

  	
   

  	
  '02

  	
   

  	
  '03

  	
   

  	
  '04

  	
   

  	
  '05

  	
   

  	
  '06

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Award

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Award

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Award

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B.                                    Employee
Participants:

 

	
  CEO:

  	
   

  	
  Charles E. Snyder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Others:

  	
   

  	
  Steven Brookner

  
	
   

  	
   

  	
  Patrick N. Connealy

  
	
   

  	
   

  	
  Charles H. Hackman

  
	
   

  	
   

  	
  Michele Fantt Harris

  
	
   

  	
   

  	
  Mark Hiltz

  
	
   

  	
   

  	
  Darrell M. Johnson

  
	
   

  	
   

  	
  Andrew Kho

  
	
   

  	
   

  	
  Kathleen Luzik

  
	
   

  	
   

  	
  Richard L. Reed

  
	
   

  	
   

  	
  Russell J. Schofield

  

 

C.                                    Performance-Based
Cash Award Potential:

 

Annualized
Award Opportunity at Select Performance 

as % of Base Salary not including Low Income Adjustment

 

	
   

  	
   

  	
  Threshold

  	
   

  	
  Target

  	
   

  	
  Superior

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CEO

  	
   

  	
  20%

  	
   

  	
  50%

  	
   

  	
  65%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other Participants

  	
   

  	
  15%

  	
   

  	
  30%

  	
   

  	
  45%

  	
   

  

 

 

D.                                    Performance
Goals used to compute potential Performance-Based Cash Awards:

 

	
  PERFORMANCE GOALS
1/1/03 – 12/31/05

  	
   

  	
  Weight

  	
   

  	
   

  	
   

  	
  Goals and
  Awards for the CEO

  
	
   

  	
   

  	
   

  	
  Threshold

  	
   

  	
  Target

  	
   

  	
  Superior

  
	
  Value to Customers:  Revenue
  from New Customers and Products

  	
   

  	
  35%

  	
   

  	
  Goal

  	
   

  	
  20% of '05 Revenues from  post '02 sources

  	
   

  	
  30% of '05 Revenues from  post '02 sources

  	
   

  	
  50% of '05 Revenues from  post '02 sources

  
	
   

  	
   

  	
  Award

  	
   

  	
  7% of Salary

  	
   

  	
  17.5% of Salary

  	
   

  	
  22.75% of Salary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Financial Strength: Average ROE less NCBDC contribution over three
  years

  	
   

  	
  35%

  	
   

  	
  Goal

  	
   

  	
  8% Average ROE

  	
   

  	
  9% Average ROE

  	
   

  	
  11% Average ROE

  
	
   

  	
   

  	
  Award

  	
   

  	
  7% of Salary

  	
   

  	
  17.5% of Salary

  	
   

  	
  22.75% of Salary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total commitments and financial transactions arranged for customers
  including loans, leases, letters of credit, private placements, and deals
  closed by referral sources.

  	
   

  	
  30%

  	
   

  	
  Goal

  	
   

  	
  $4 billion 2003 through 2005

  	
   

  	
  $4.5 billion 2003 through 2005

  	
   

  	
  $5.5 billion 2003 through 2005

  
	
   

  	
   

  	
  Award

  	
   

  	
  6% of Salary

  	
   

  	
  15% of Salary

  	
   

  	
  19.5% of Salary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
  20% of Salary

  	
   

  	
  50% of Salary

  	
   

  	
  65% of Salary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustment for Low Income Market Development

  	
   

  	
  -15% of Total Award

  	
   

  	
  +0%

  	
   

  	
  +25% of Total Award

  

 

	
  PERFORMANCE GOALS
1/1/03 – 12/31/05

  	
   

  	
  Weight

  	
   

  	
   

  	
   

  	
  Goals and
  Awards for Other Participants

  
	
   

  	
   

  	
   

  	
  Threshold

  	
   

  	
  Target

  	
   

  	
  Superior

  
	
  Value to Customers:  Revenue
  from New Customers and Products

  	
   

  	
  35%

  	
   

  	
  Goal

  	
   

  	
  20% of '05 Revenues from  post '02 sources

  	
   

  	
  30% of '05 Revenues from  post '02 sources

  	
   

  	
  50% of '05 Revenues from  post '02 sources

  
	
   

  	
   

  	
   

  	
  Award

  	
   

  	
  5.25% of Salary

  	
   

  	
  10.5% of Salary

  	
   

  	
  15.75% of Salary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Financial Strength: Average ROE less NCBDC contribution over three
  years

  	
   

  	
  35%

  	
   

  	
  Goal

  	
   

  	
  8% Average ROE

  	
   

  	
  9% Average ROE

  	
   

  	
  11% Average ROE

  
	
   

  	
   

  	
   

  	
  Award

  	
   

  	
  5.25% of Salary

  	
   

  	
  10.5% of Salary

  	
   

  	
  15.75% of Salary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total commitments and financial transactions arranged for customers
  including loans, leases, letters of credit, private placements, and deals
  closed by referral sources.

  	
   

  	
  30%

  	
   

  	
  Goal

  	
   

  	
  $4 billion 2003 through 2005

  	
   

  	
  $4.5 billion 2003 through 2005

  	
   

  	
  $5.5 billion 2003 through 2005

  
	
   

  	
   

  	
  Award

  	
   

  	
  4.5% of Salary

  	
   

  	
  9% of Salary

  	
   

  	
  13.5% of Salary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
  15% of Salary

  	
   

  	
  30% of Salary

  	
   

  	
  45% of Salary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustment for Low Income Market Development

  	
   

  	
  -15% of Total Award

  	
   

  	
  +0%

  	
   

  	
  +25% of Total Award

  

 

2Exhibit 10.33

 

Approved by the Compensation Committee 1/29/04

 

EXECUTIVE
MANAGEMENT

 

SHORT
TERM INCENTIVE PLAN for 2004

 

1.                                      CUSTOMER
CENTRIC FOCUS (30 Points)

 

A.                                   15 points for originating $1.4 billion of transactions during the year including
booked commitments for loans, leases, placements, and deals closed by referral
sources, plus one additional point up to a maximum of 5 points for each $5
million of portfolio loan growth in excess of the budget.

 

B.                                     10 points for “best efforts” evaluation; and for originating and arranging
low-income transactions of $230 million during the year, plus one point up to a
maximum of 5 points for each $5 million in excess of the goal.

 

C.                                     5 points for finalizing external customer satisfaction surveys,
implementing customer satisfaction benchmarks for each customer segment,
implementing internal satisfaction surveys, and increasing usage of the
cross-sell referral database.

 

2.                                      RISK
MANGEMENT (25 Points)

 

A.                                   10 points for achieving the
Board approved asset and liability management objectives by operating in the
“green range” for a minimum of 90% of the measurements during the year and
crossing into the “red range” not more than once during the year.

 

B.                                     5 points
for the average percentage of non-performing assets (non-accruing and OREO) of
1.5% or less of total loans and LC’s plus an additional 5 points if the ratio
is 1% or less with a reduction of 5 points if net charge offs exceed .5%.

 

C.                                     5 points for the average percentage of classified assets (substandard and
doubtful) of 35% or less of risk capital (as defined by the OTS.)

 

D.                                    5 points
for satisfactory evaluations from Loan Review, auditors, FCA, and OTS.

 

3.                                      FINANCIAL
(30 Points)

 

A.            20 points for meeting pretax net income
budget.

 

B.            5 points for the capital ratio averaging
14% or better during the year.

 

C.            5 points for an efficiency ratio of 57% or
less (excluding mission related corporate development, NCBDC contribution,
strategic plan related implementation expenses, and new markets and products
related R&D).

 

 

4.                                      LEADERSHIP
(15 Points)

 

A.                                   5 points for developing a viable Mission Banking
business strategy.

 

B.                                     5 points for meeting objectives in the strategic plan
for employee retention, diversity, internal promotions, and Organizational
Development.

 

C.                                     5 points for achieving strategic objectives to address political and reputation
risk.

 

AWARD LEVELS

 

	
   

  	
   

  	
  Incentive
  Award as a Percentage

  of Year End 2004 Base Salary

  	
   

  	
   

  	
   

  
	
  Points

  	
   

  	
   

  	
   

  	
  Executive Council

  	
   

  	
  CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50 - 64.9

  	
   

  	
  Up to

  	
   

  	
  15%

  	
   

  	
  20%

  	
   

  
	
  65 - 79.9

  	
   

  	
  Up to

  	
   

  	
  25%

  	
   

  	
  30%

  	
   

  
	
  80 - 89.9

  	
   

  	
  Up to

  	
   

  	
  30%

  	
   

  	
  40%

  	
   

  
	
  90 and over

  	
   

  	
  Up to

  	
   

  	
  35%

  	
   

  	
  45%

  	
   

  

 

In addition, an “Add-on” award may be
earned by exceeding the pretax net income budget goal.  The maximum additional award is 5% of salary
for the CEO and 7.5% of salary for the Executive Council.  For each 1% that pretax net income exceeds
goal, 1% of salary is added to the award earned for achievement of the other
goals, up to a maximum total award of 50% of salary for the CEO and 42.5% of
salary for the Executive Council.

 

The CEO determines incentive awards for each Executive Council
participant based upon the results of this plan and the achievement of
individual performance objectives.  The
Compensation Committee determines the award for the CEO.

 

PARTICIPANTS

 

Brookner,
Connealy, Hackman, Harris, Hiltz, Kho, Luzik, Reed, Schofield, Simonette, and
Snyder

 

2

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