gtwn_Ex10_3


		
			Exhibit 10.3
		

		
			 
		

			
					
						

					
					
						2016 Incentive Compensation Plan

				
	
					
						Effective January 1, 2016

				
	
					
						Personal and Confidential

				



		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Employee

					
					
						Joseph W. Kennedy

					
					
						2016 Base Salary

					
					
						$

					
146,100 
					
					
						 

					
					
						 

					
					
						 

				
	
					
						Title

					
					
						SVP/CFO

					
					
						2016 Bonus Target

					
					
						 

					
11 
					
					
						%  

					
					
						$

					
16,071 
				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Thresholds

					
					
						Maintain CAMELS rating at one of the two highest ratings

					
						Maintain an Asset Quality Rating of "Satisfactory" or better

					
						 

				



		
			 
		

			
					
						 

					
						Goal #1:

					
					
						 

					
						Bank Profitability: Achieve Return on Assets

				
	
					
						 

					
					
						 

				
	
					
						Annual Payout Target

					
					
						60% =  $  9,643

				



		
			 
		

			
					
						Goals

					
					
						 

					
					
						Payout

				
	
					
						98% of Budget

					
					
						$

					
					
						3,214

				
	
					
						At Budget

					
					
						$

					
					
						6,428

				
	
					
						110% of Budget

					
					
						$

					
					
						9,643

				
	
					
						Stretch Goal

					
					
						 

					
					
						 

				
	
					
						Every .03% over

					
					
						 

					
					
						 

				
	
					
						110% of Budget

					
					
						$

					
					
						3,214

				



		
			 
		

			
					
						 

					
						Goal #2:

					
					
						 

					
						Achieve Efficiency Ratio

				
	
					
						 

					
					
						 

				
	
					
						Annual Payout Target

					
					
						20% =  $  3,214

				



		
			 
		

			
					
						Goals

					
					
						 

					
					
						Payout

				
	
					
						101% of Budget

					
					
						$

					
					
						1,071

				
	
					
						At Budget

					
					
						$

					
					
						2,143

				
	
					
						97% of Budget

					
					
						$

					
					
						3,214

				
	
					
						Stretch Goal

					
					
						 

					
					
						 

				
	
					
						Every 2%  under

					
					
						 

					
					
						 

				
	
					
						97% of Budget

					
					
						$

					
					
						1,071

				



		
			 
		

			
					
						 

					
						Goal #3:

					
					
						 

					
						Achieve Net Interest Margin Percentage

				
	
					
						 

					
					
						 

				
	
					
						Annual Payout Target

					
					
						20% =  $   3,214

				



		
			 
		

			
					
						Goals

					
					
						 

					
					
						Payout

				
	
					
						98% of Budget

					
					
						$

					
					
						1,071

				
	
					
						At Budget

					
					
						$

					
					
						2,143

				
	
					
						102% of Budget

					
					
						$

					
					
						3,214

				
	
					
						Stretch Goal

					
					
						 

					
					
						 

				
	
					
						Every 0.07% over

					
					
						 

					
					
						 

				
	
					
						102% of Budget

					
					
						$

					
					
						1,071

				



		
			 
		

		
			 
		

		
			
		

		
			


		 


 


NOTES:
		

		
			 
		

		
			Bonus targets are based on Georgetown Bancorp Inc. 2016 budget.
		

		
			 
		

		
			All dollar figures are based on estimates of annualized salary. Incentive payments are based on the employee's actual base compensation for the fiscal year, which includes straight time pay, vacation, holiday, personal, sick and jury duty pay.  Overtime and other payments including previous year's bonus payout will be excluded from the calculation.
		

		
			 
		

		
			To be eligible for the Incentive Compensation, the employee must be actively employed, performIng at a level of "satisfactory" or above, and not be on a written warning at the time of the incentive payment.
		

		
			 
		

		
			The Bank shall have the right to rescind and recoup or "clawback" incentive payments paid under this plan if the Compensation Committee concludes that such awards were paid out based on information that is later found to be materially incorrect, including payments that were determined, in whole or in part, on financial statement information that is subsequently restated.
		

		
			 
		

		
			 
		

		
			By signing below I confirm receipt of my Incentive Compensation Plan and my understanding of the provisions stated above.
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

			
					
						/s/ Joseph W. Kennedy

					
					
						    

					
					
						April 25, 2016

				
	
					
						Joseph W. Kennedy

					
					
						 

					
					
						Date

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Robert E. Balletto

					
					
						 

					
					
						April 25, 2016

				
	
					
						Robert E. Balletto

					
					
						 

					
					
						Date

				
	
					
						President and Chief Executive Officer