EX-10.6



 Exhibit 10.6 

BELMONT SAVINGS BANK 

INCENTIVE COMPENSATION PLAN 

2016 
 Purpose of the Plan 

Belmont Savings Bank (the Bank) has adopted this Incentive Compensation Plan (the Plan) for the purpose of supporting the organizational and financial
objectives of the Bank as defined in the Bank’s Business Plan. This Plan provides incentive compensation (Incentive Awards) to certain named Executive Officers and other key contributing officers (the Participants). The Plan is
designed to insure that participants do not take on undue risk to achieve payouts. All participants with responsibility for managing risk have goals for risk control and clawback provisions in the Plan. 

The Plan is further intended to attract, motivate, and retain high quality executives and to support continued growth and profitability of the Bank.
Participation in the Incentive Plan is dependent upon one’s responsibility within the Bank and ability to influence the Bank’s strategic outcomes. Individual incentive payout targets will be shared with each participant. It is important to
note that this Plan is established to reward and recognize participants for meeting set objectives. This Plan is not meant to be a substitute for salary increases. 

Key Terms 
  

	 	•	 	Incentive Awards 

  

	 	•	 	Plan year 

  

	 	•	 	Business Plan 

  

	 	•	 	Company-Wide Goals 

  

	 	•	 	Individual Goals 

  

	 	•	 	Performance Categories 

  

	 	•	 	Maximum Target 

  

	 	•	 	Clawback Policy 

 Performance Objectives 

 

	 	•	 	The Business Plan outlines key strategic initiatives approved by the Board of Directors. Each Division Head will review the Business Plan with Participants within his or her group. Together, they should
identify up to six specific and measurable Individual Goals to support the Business Plan. Company-Wide Goals and their weightings must be approved by the Compensation Committee. 


  
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 Company-Wide Goals include the Performance Categories and associated weighting: 

 

					
	 Category
	  	 	Weighting	  
	 Deposit Growth
	  	 	10	% 
	 Loan Growth
	  	 	10	% 
	 Net Interest Income
	  	 	5	% 
	 Fee Income
	  	 	5	% 
	 Non-Interest Expense
	  	 	10	% 
	 Net Income
	  	 	40	% 
	 Credit Quality and Portfolio Management
	  	 	20	% 

 Individual Goals should include up to six of the following: 

 

	 	•	 	Deposit Growth 

  

	 	•	 	Loan Growth 

  

	 	•	 	Expense Control 

  

	 	•	 	Credit Quality / Portfolio Management 

  

	 	•	 	Fee Income 

  

	 	•	 	Net Interest Margin 

  

	 	•	 	Teamwork 

  

	 	•	 	Compliance 

  

	 	•	 	Customer Service – externally and to other colleagues 

  

	 	•	 	Community Involvement 

  

	 	•	 	Referrals to other business units 

  

	 	•	 	Personal goals include major projects or initiatives 

 After the year end close, Participants in the Plan will
report on the achievement of their Individual Goals. Division Heads will summarize individual achievements and recommend to the Bank President the percentage payout based on the Individual Goals achieved. The Director of Human Resources
will calculate the payouts and report to the President for approval of the Compensation Committee. Incentive awards will be calculated on year to date regular earnings (exclusive of commissions or incentive payments). 

The Compensation Committee will be responsible for any interpretation of the Plan relating to the Executive Officers named in the Company’s annual proxy
statement (“Named Executive Officers”), including the Bank President, and the Compensation Committee’s decision shall be final and binding on all parties. The Bank President will be responsible for any interpretation of the Plan
relating to all Participants, other than the Named Executive Officers, and his decision shall be final and binding on all parties. 
 Before the beginning
of each Plan year, the Compensation Committee will consider changes for the upcoming year. 
 The Compensation Committee may consider extraordinary
occurrences impacting Bank earnings which may be excluded when determining the performance against goals to ensure that the best interests of the Bank are protected. 

  
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 Incentive Plan Participants 

The Compensation Committee shall designate the Participants in the Plan who are Named Executive Officers. The Bank President is authorized to name
Participants in the Plan other than the Named Executive Officers. Officers hired prior to the third Quarter (October 1), will be included in the plan. A master list of Participants will be shared with the Bank President, Compensation
Committee, and Senior Management. 
 At the Beginning of Plan Year 
  

	 	•	 	Participants will identify up to six specific and measurable individual goals in support of the Business Plan. 

  

	 	•	 	The Division Head will review those goals and approve. 

  

	 	•	 	A copy will be provided to the Participant, the Division Head, and Human Resources for their recordkeeping. 

  

	 	•	 	The Incentive Plan will be reviewed and approved by the Compensation Committee and recommended to the Board. 

  

	 	•	 	Plan Participants will be notified of approved Performance Categories and weightings. 

 After Close of the
Plan Year 
  

	 	•	 	The Chief Financial Officer will calculate and report the Bank financials for the prior year. 

  

	 	•	 	The Division Head will receive each Participant’s self evaluation of their performance to Individual Goals. 

  

	 	•	 	The Human Resource Director will calculate the Percent Awards for each participant based on the weighting of Company-Wide and Individual Goal achievement. 


 

	 	•	 	The results will be recommended to the Compensation Committee for approval by the Board. 

  

	 	•	 	Payouts will be made in March of the year following the Plan Year. Participants must be employed at the time of payout. 


Definitions 
 Each group of Officers has a Maximum Target
bonus as a percentage of their salaries. The Maximum Target is met when an individual achieves all objectives and exceeds the important objectives. 

The incentive payout for each officer classification will be weighted to include a percentage based on Company-Wide Goals and a percentage based on Individual
Goals. Company-Wide Goals will be weighted higher than Individual Goals when considering incentive recommendations for Executive Officers. 
 For the
President and Executive Vice Presidents, Company-Wide Goals are weighted at 75%, for Senior Vice Presidents 50%, and for Vice Presidents and other Officers 25%. The Compensation Committee will determine the performance against the Company-Wide
Goals. 

  
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 The following table represents the weighting structure. 

 

									
	 Title
	  	Weight attributed to
Company-Wide Goals	 	 	Weight attributed to
Individual Goals	 
	 President / CEO and Executive Officers
	  	 	75	% 	 	 	25	% 
	 Senior Vice Presidents
	  	 	50	% 	 	 	50	% 
	 Vice Presidents
	  	 	25	% 	 	 	75	% 
	 Other Officers
	  	 	25	% 	 	 	75	% 
	 Other Colleagues
	  	 	0	  	 	 	100	% 

 Other Considerations 
 It
is not possible to consider all issues that will invariably materialize as plans are developed and implemented. Therefore, the Bank President will act on individual cases as issues are identified. The plan is “discretionary” based on
individual performance consistent with the business plan. Participants on final written warning will be disqualified from receiving an incentive payout for the plan year. The Compensation Committee will also weigh progress on Regulatory
matters in determining the performance of management with respect to Company-Wide Goals. 
 Eligible participants are required to return a signed
acknowledgement of this policy by March 15 annually. 
 Withholding for Taxes 

The Bank shall deduct from all payments under this Plan any federal or state taxes required by law to be withheld with respect to such
payments.    This payment is subject to 401k deductions and bank match. No other voluntary deductions will be taken from this payment. 

Clawback Policy 
 The Bank reserves the right to recover
any bonus or incentive compensation payment to any officer if the payments were based on materially inaccurate financial statements, other materially inaccurate reporting or fraud by that Officer. The Clawback Policy will also apply to
material losses in future years. The look back period is one year from the incentive payment. 

  
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 Belmont Savings Bank 

2016 Incentive Plan Ranges 
  

			
	President / CEO	  	0 – 50%
	Executive Vice Presidents	  	0 – 40%
	Senior Vice Presidents	  	0 – 30%
	Vice Presidents	  	0 – 25%
	All Other Officers	  	0 – 15%
	All Other Colleagues	  	0 – 6%

 Approved by the Compensation Committee January 27, 2016 

  
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 BELMONT SAVINGS BANK 

INCENTIVE COMPENSATION PLAN 

2016 ACKNOWLEDGEMENT 
  

					
	Employee Name	 	  
	 	
		 	
                          
  (Print Name)
	 	

 I acknowledge the receipt of the 2016 Incentive Plan document and I understand it is my responsibility to read and
understand the plan. 
 The Plan is subject to change annually. 
  

 
 Employee
Signature                                        
                                         
                                    Date 

Return the signed copy to HR by March 15 for recordkeeping. 

  
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