Exhibit 10.16

 

GEORGETOWN SAVINGS BANK

INCENTIVE COMPENSATION PLAN

2011 GOALS

 

Updated, Effective 4/7/11


 



 

Organizational Level:  Executive

 

	
Employee:  Philip Bryan
    	
 
    	
Incentive   Target: 11%   ($16,587)
    
	
Title: Senior Vice President/Retail   Lending/CLO
    	
 
    	
Current   Salary:   $150,788
    


 

	
The   dollar figures presented in this example are estimates. Incentive payments   will be based on the employee’s base compensation, which includes actual   straight-time pay (excludes overtime and prior year’s Incentive Compensation   Plan payments), jury duty, holiday, vacation, personal and sick pay for the   2011 calendar year.
    


 

Minimum Thresholds

In order to receive payment for achievement of the goals listed below, the following thresholds must be met:

1.             CAMELS ratings must remain at one of the two highest ratings at all times during the Plan Year.  This will be measured by the OTS.

2.             Asset Quality must remain at a level of “Satisfactory” or better at all times during the Plan Year.  This will be measured by both internal audit results and OTS rating.

3.             Loan Quality Control Reviews must be “Satisfactory” or better at all times during the Plan Year.  This will be measured by internal audit results.

 

Tier 1: Bank-wide Performance

 

GOAL: #1: Profitability – Achieve ROA

 

Annual  Payout Percentage: 20% = $3,317

 

	
 

Goals 

 
    	
 

Payout

 
    	
 
    	
 
    
	
95% of budget = .74%
    	
$1,106 
    	
 
    	
 
    
	
At budget = .78%
    	
$2,211
    	
 
    	
 
    
	
106% of budget =   .83% 
    	
$3,317
    	
 
    	
 
    
	
Stretch Goal  
    	
 
    	
 
    	
 
    
	
Every .05% over .83%
    	
$1,106
    	
 
    	
 
    


 

 

Tier 2: Team Performance

 

GOAL #2: Profitability - Increase Net Mortgage Banking Income

 

Annual Payout Percentage: 60% = $9,953

 

	
 

Goals 
    	
 

Payout
    	
 
    	
 
    
	
98% of budget =   $602,795
    	
$3,318
    	
 
    	
 
    
	
At budget =   $615,097
    	
$6,635
    	
 
    	
 
    
	
125% of budget =   $768,871
    	
$9,953
    	
 
    	
 
    
	
Stretch Goal  
    	
 
    	
 
    	
 
    
	
Every $153,774 over $768,871 
    	
$3,318
    	
 
    	
 
    


 











 

GOAL #3: Profitability - Achieve Core Interest Rate Spread

 

Annual Payout Percentage: 20% = $3,317

 

	
 

Goals 

 
    	
 

Payout

 
    	
 
    	
 
    
	
97% of budget = 4.66%
    	
$1,106 
    	
 
    	
 
    
	
At budget =   4.80%
    	
$2,211
    	
 
    	
 
    
	
103% of budget =   4.94%
    	
$3,317
    	
 
    	
 
    
	
Stretch Goal  
    	
 
    	
 
    	
 
    
	
Every .14% over 4.94% 
    	
$1,106
    	
 
    	
 
    


 

 

Tier 3: Individual Performance

 

Goal: None

 



 

 

 

 

 

 

 

Minimum Level of Expectations

To be eligible for this Incentive Compensation Plan the employee must meet the following:

·                  Performing at a satisfactory level or above,

·                  Not on written warning, and

·                  Actively employed at the time of the incentive payment.

Clawback Provision

The Bank shall have the right to recoup or “clawback” awards paid under this Plan if the Compensation Committee concludes that such awards were based on information that was later found to be materially incorrect, including awards that were determined, in whole or 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/ Philip Bryan
    	
 
    	
6/6/11
    	
 
    
	
Employee’s Signature
    	
 
    	
Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Robert Balletto
    	
 
    	
6/6/11
    	
 
    
	
Supervising Officer’s Signature
    	
 
    	
Date