Document:

Exhibit 10.5

					
		 		 	Exhibit 10.5
		 	OBA Bank	 	

  
 Incentive
Compensation Program 
 July 1, 2008 – June 30, 2009 
  

	I.	PROGRAM PHILOSOPHY 

 OBA
Bank’s Incentive Compensation Program is designed to recognize and reward those employees who make the greatest contribution to the success of the Bank, in terms of the organization’s Mission Statement and Goals. The Program
reinforces the organization’s values and recognizes the performance level of employees. It is designed to stimulate the accomplishment of the organization’s strategic plans and solutions to the organization’s challenges while
reinforcing the Bank’s commitment to total quality management, service excellence and pay-for-performance. 
  

	II.	PROGRAM POLICY 

  

	 	A.	The Incentive Compensation Program is structured in two levels: 

 1) Individual Incentive Matrices: Incentive awards for Senior Management, Department Managers, Business Development Officers and Branch Managers will be will be based on performance objectives
detailed in their individual incentive matrix. 
 2) Nonindividual Incentive Awards: Incentive awards for all other
exempt and nonexempt staff will be based on a combination of the Organization’s Financial Performance and the attainment of Individual Performance Objectives. 
  

	III.	PROGRAM DESCRIPTION 

  

	 	A.	Individual Incentive Matrices 

 Individual incentive matrices have been developed based on functional job titles. The amount of Incentive Compensation as a percent of base compensation varies by functional title and is set annually
based on the needs of the Organization. Points are awarded based on the attainment of specific quantifiable organizational and individual goals. There are four levels of performance: 
  

 Page 1 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

					
		 	OBA Bank	 	

  

	 	1.	TARGET: Target is the expected level of performance. Goals are based primarily on Fiscal Year Budget requirements. Target equals 100%/100 points.

  

	 	2.	MINIMUM: Minimum is the lowest acceptable level of performance. Minimum is equal to 50% of Target. 

  

	 	3.	MAX: Max is the highest level of performance. Max is equal to 200% of Target. 

  

	 	4.	UNLIMITED: The President/CEO may designate certain goals deemed to be of high importance to the Organization. These categories are eligible to receive incentive
points in excess of the MAX. 

  

	 	B.	Nonindividual Incentive Awards 

  

	 	1.	Organization Level Awards 

 The categories that will be used to determine the financial performance of the Bank and the basis of Organizational Level Incentive Awards are: 
  

	 	a.	Earnings 

  

	 	b.	Growth 

  

	 	c.	Risk Management 

 Minimum
thresholds will be established annually. Point values will be determined for achieving the minimum threshold. Incentive award payments will be based upon the points earned in both categories. 
 However, if the Net Income goal is not met, no incentive award will be distributed on the Organizational Level, regardless of the
points earned in the other categories. Under the Incentive/Bonus Compensation Program this would mean that no Individual Level Awards would occur and thus no Bonus/Incentive would be awarded at any level in the Bank. 
 However, the President/CEO in reviewing why the Net Income goal was not met may decide to Award the Individual Level
Bonus/Incentives. He may change the dollar amounts of points, if appropriate, to reflect the fact that the Bank did not meet its goals. 
  

 Page 2 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

					
		 	OBA Bank	 	

  

	 	2.	Individual Level Awards 

 Individual Incentive Awards will recognize those employees whose performance is Fully Achieved Requirements (FAR) or Exceeded Requirements (ER). It will also recognize those employees who provide Exceptional Quality
Service to both internal and external customers. 
  

	IV.	ALLOCATION METHOD 

  

	 	A.	Individual Incentive Matrices: 

  

	 	1.	Incentive Awards will be awarded annually in July. 

  

	 	2.	Incentive Awards will be awarded on the following points allocation: 

  

	 	a.	All Incentive Matrices will be divided into four (4) levels of performance as described in Section III A above. 

  

	 	b.	Each Incentive Matrix will be divided into specific Categories. Each Category will receive a specific point amount. The total points for all Categories will equal 100.

  

	 	c.	The MINIMUM level of performance must be attained in order to earn any points in a specific Category. Once the MINIMUM requirement has been met, points will be awarded
retroactively. 

  

	 	d.	The MINIMUM level of performance must be met in all Categories in order to earn UNLIMITED points in any Category. 

  

	 	3.	Full-time Employees must have completed 6 consecutive months of employment to be eligible to receive an incentive award. The award would be pro-rated based on number of
months employed. 

  

	 	B.	Nonindividual Incentive Awards Point Values 

  

	 	1.	Incentive Awards will be awarded annually in July, based on meeting the Organization Level goals. The CEO of the Bank may decide to award Individual Level Awards even
if the Organization Level goals were not met. 

  

	 	2.	Incentive Awards will be based on the following points allocation: 

  

 Page 3 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

					
		 	OBA Bank	 	

  
    Organization Level Awards = 50 points 
    Individual Level Awards = 50 points

  

	 	3.	Within the Organization Level the 50 points will be divided as follows: 

  

	 	a.	Profitability = 20 points 

  

	 	1)	ROE = 5 points 

	 	2)	Net Income = 15 points 

  

	 	b.	Growth = 20 points 

  

	 	1)	Business Loans = 10 points 

	 	2)	Core Deposits = 10 points 

  

	 	c.	Risk Management = 10 points 

  

	 	1)	Audit Findings = 5 points 

	 	2)	Total Criticized Assets = 5 points 

  

	 	4.	Only employees who’s most recent Performance Rating is Exceeds Requirements (ER) or Fully Achieved Requirements (FAR) would be eligible for
Individual and Organization Awards. Full-time Employees must have completed 6 consecutive months of employment to be eligible to receive an incentive award. The award would be pro-rated based on number of months employed. 

Part-time employees who have completed 6 consecutive months of employment-based on performance will be eligible to receive a
Bonus/Incentive Award at 50% of the value. (e.g. FAR = 90 pts @ $30.00 per point = $1,800 @ 50% = $900) 
  

	 	5.	Within the Individual Level the 50 points will be divided with a rating of ER = 50 points or FAR = 40 points unless the employee has a specific incentive matrix, in
which case, the matrix will govern the bonus amount. 

  

	V.	SPECIFIC GOALS for 2008 – 2009 

  

	 	A.	Individual Incentive Awards 

  

	 	1.	Please refer to the individual incentive matrices attached hereto. 

  

	 	B.	Nonindividual Incentive Awards 

  

	 	1.	Organization Level Goals = 50 points  

  

 Page 4 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

					
		 	OBA Bank	 	

  

	 	a.	Return on Average Equity (Fiscal Year Basis) of 2.77% or greater. 

	 	b.	Net Income $1,107,900 or greater. 

	 	c.	The total business loan portfolio will grow at 23.72% or greater. 

	 	d.	Total core deposits will grow at 10.40% or greater. 

	 	e.	No repeat Audit Findings. 

	 	f.	Criticized Business Loans shall not exceed 8.00% of Total Capital. 

  

	 	2.	Individual Level Points = 50 points 

    Please refer to each individual annual Performance Review and/or Incentive Matrix 
  

	*VI.	Point Values for 2008 – 2009 

  

	 	A.	Senior Management Staff (EVP-Support Division, EVP-Sales Division, and VP- HR/Compliance), Business Development Officers (including Business/Retail Banking Group
Manager & VP-Residential Lending Manager), Branch Managers, and Department Managers (VP-Information Security, VP-Controller, VP-Loan Administration Manager, VP-Secondary Market Specialist & AVP-Customer Support Manager) –
will be based on the attached Matrices. 

  

	 	B.	All Other Exempt Staff - 

 1 Point = $40.00 (Max. $4,000) 
  

	 	C.	All Other Employees - 

 1 Point = $ 30.00 (Max. $3,000) 
  

	*NOTE:  a)	Percentages for employees with individual matrices and point values for all other employees would change from year to year based on the Bank’s budget and net
income but could be increased/decreased depending on success/failure at achieving goals & profitability. 

  

	                b)	Bonus percentage would be calculated on base salary prior to performance—based increase being added. All Bonuses would be lump sum payment, less taxes.

  

	                c)	Individual Incentive Matrices and Organizational Goals could change each year or could remain the same from year to year, but would need to be discussed. Goal
categories could be added or deleted. 

  

 Page 5 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

 2008-2009 
 EVP – Financial Operations & Technology 
  

											
	CATEGORIES	  	%/Points	  	MINIMUM#	  	TARGET	  	MAX	  	UNLIMITED*
						
	 Profitability
	  		  		  		  		  	
	 Return on Average Equity (%)
	  	15	  	1.385	  	2.77	  	5.54	  	N/A
	 Net Income ($)
	  	20	  	553,950	  	1,107,900	  	2,215,800	  	>2,215,800
	 Efficiency Ratio (%)
	  	15	  	84.05	  	84.05	  	42.03	  	N/A
						
	 Growth
	  		  		  		  		  	
	 Total Commercial Loan Portfolio (%)
	  	15	  	11.86	  	23.72	  	47.44	  	N/A
	 Total Core Deposits (%)
	  	15	  	5.20	  	10.40	  	20.80	  	>20.80
						
	 Risk Management
	  		  		  		  		  	
	 Repeat Audit Findings (#)
	  	7.5	  	0	  	0	  	N/A	  	N/A
	 Repeat Compliance Violations (#)
	  	7.5	  	0	  	0	  	N/A	  	N/A
	 Total Past Due Loans >29 days (%)
	  	5	  	1.00	  	0.50	  	0.25	  	N/A
						
	 Percent/Points
	  	100	  	50	  	100	  	200	  	>200
	 % Base Salary
	  		  	6.25	  	12.5	  	25	  	>25

  

	#	Points are accrued but not earned in any Category until Minimum level is attained. 

	*	Must meet Minimum level in all categories. 

	(1)	As a % of Total Capital 

 2008-2009 
 EVP – Sales & Service 
  

											
	CATEGORIES	  	%/Points	  	MINIMUM#	  	TARGET	  	MAX	  	UNLIMITED*
						
	 Profitability
	  		  		  		  		  	
	 Return on Average Equity (%)
	  	10	  	1.385	  	2.77	  	5.54	  	N/A
	 Net Income ($)
	  	15	  	553,950	  	1,107,900	  	2,215,800	  	>2,215,800
	 Efficiency Ratio (%)
	  	5	  	84.05	  	84.05	  	42.03	  	N/A
						
	 Growth
	  		  		  		  		  	
	 Total Commercial Loan Portfolio (%)
	  	20	  	11.86	  	23.72	  	47.44	  	N/A
	 Total Core Deposits (%)
	  	20	  	5.20	  	10.40	  	20.80	  	>20.80
	 New Treasury Services Products (#)
	  	10	  	52	  	104	  	208	  	N/A
						
	 Repeat Audit Findings (#)
	  	5	  	0	  	0	  	N/A	  	N/A
	 Repeat Compliance Violations (#)
	  	5	  	0	  	0	  	N/A	  	N/A
	 Total Criticized Business Loans (%)(1)
	  	5	  	8.00	  	8.00	  	4.00	  	N/A
	 Total Past Due Loans >29 days (%)
	  	5	  	1.00	  	0.50	  	0.25	  	N/A
						
	 Percent/Points
	  	100	  	50	  	100	  	200	  	>200
	 % Base Salary
	  		  	6.25	  	12.5	  	25	  	>25

  

	#	Points are accrued but not earned in any Category until Minimum level is attained. 

	*	Must meet Minimum level in all categories. 

	(1)	As a % of Total CapitalExhibit 10.6

 Exhibit 10.6 

					
		 	OBA Bank	 	

  
 Incentive
Compensation Program 
 July 1, 2009 – June 30, 2010 
  

	I.	PROGRAM PHILOSOPHY 

 OBA
Bank’s Incentive Compensation Program is designed to recognize and reward those employees who make the greatest contribution to the success of the Bank, in terms of the organization’s Mission Statement and Goals. The Program
reinforces the organization’s values and recognizes the performance level of employees. It is designed to stimulate the accomplishment of the organization’s strategic plans and solutions to the organization’s challenges while
reinforcing the Bank’s commitment to total quality management, service excellence and pay-for-performance. 
  

	II.	PROGRAM POLICY 

  

	 	A.	The Incentive Compensation Program is structured in two levels: 

 1) Individual Incentive Matrices: Incentive awards for Senior Management, Department Managers, Business Development Officers and Branch Managers will be based on performance objectives detailed in
their individual incentive matrix. 
 2) All Other Individual Incentive Awards: Incentive awards for all other exempt and
nonexempt staff will be based on a combination of the Organization’s Financial Performance and the attainment of Individual Performance Objectives. 
  

	III.	PROGRAM DESCRIPTION 

  

	 	A.	Organizational Level Awards 

 The categories that will be used to determine the financial performance of the Bank and the basis of all Organizational Level Incentive Awards are: 1) Capital Adequacy, 2) Asset Quality, 3)
Management, 4) Earnings & 5) Liquidity & Sensitivity a/k/a CAMELS. 
 Target goals will be established
annually. Point values will be assigned to each Target goal. The total number of points that can be earned at the

  

 Page 1 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

					
		 	OBA Bank	 	

  
 
Organizational Level is 100. A Minimum of 50 points must be achieved in order to receive any points at the Organizational level. 
 Refer to Exhibit A attached hereto. 
  

	 	B.	Individual Incentive Matrices 

 Individual incentive matrices have been developed based on functional job titles. The amount of Incentive Compensation as a percent of base compensation varies by functional title and is set annually
based on the needs of the Organization. Points are awarded based on the attainment of pro-rated specific organizational and individual goals. 
  

	 	C.	All Other Individual Incentive Awards 

 All individuals who do not have an individual matrix will be eligible for an incentive award based on a combination of Organizational level performance and individual level performance ratings.

  

	 	1.	Organization Level Awards 

 The maximum number of points awarded for Organizational Level Awards is 50. The amount of each award meeting the minimum points requirement and will be determined by multiplying the actual number of points achieved at the Organizational
level by 50%. 
  

	 	2.	Individual Level Awards 

 Individual Incentive Awards will recognize those employees whose performance is Fully Achieved Requirements (FAR) or Exceeded Requirements (ER). It will also recognize those employees who provide Exceptional Quality
Service to both internal and external customers. 
 However, if the Net Income goal is not met, no incentive award will be
distributed on the Organizational Level, regardless of the points earned in the other categories. Under the Incentive/Bonus Compensation Program this would mean that no Individual Level Awards would occur and thus no Bonus/Incentive would
be awarded at any level in the Bank. 
 However, the President/CEO in reviewing why the Net Income goal was not met may decide
to Award the Individual Level Bonus/Incentives. He may change the dollar amounts of points, if appropriate, to reflect the fact that the Bank did not meet its goals. 
  

 Page 2 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

					
		 	OBA Bank	 	

  

	IV.	ALLOCATION METHOD 

  

	 	A.	Individual Incentive Matrices: 

  

	 	1.	Incentive Awards will be awarded annually in July. 

  

	 	2.	Incentive Awards will be awarded on the following points allocation: 

  

	 	a.	Executive Officer Matrices will consist of Organizational level goals only. 

  

	 	b.	All other Incentive Matrices will be divided between two components: organizational goals and specific individual goals. The functional title will determine the
division. The total points for all Categories will equal 100. 

  

	 	c.	A minimum of 50% of the aggregate points available for achieving organizational level goals must be attained in order to receive an incentive payment for that
component. Please refer to III.A. 

  

	 	d.	A minimum of 50% of the aggregate points available for achieving specific individual goals must be attained in order to receive an incentive payment for that component.

  

	 	3.	Full-time Employees must have completed 6 consecutive months of employment to be eligible to receive an incentive award. The award would be pro-rated based on number of
months employed. 

  

	 	B.	All Other Individual Incentive Awards Point Values 

  

	 	1.	Incentive Awards will be awarded annually in July, based on meeting the Organization Level goals. The CEO of the Bank may decide to award Individual Level Awards even
if the Organization Level goals were not met. 

  

	 	2.	Incentive Awards will be based on the following points allocation: 

	 	  	Organization Level Awards = 50 points 

	 	  	Individual Level Awards = 50 points 

  

	 	3.	Within the Organization Level the 50 points will be calculated by multiplying the total number of points achieved for attaining Organizational goals by 50% subject to
at least 50 points being earned at the organizational level. 

  

 Page 3 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

					
		 	OBA Bank	 	

  

	 	4.	Only employees who’s most recent Performance Rating is Exceeds Requirements (ER) or Fully Achieved Requirements (FAR) would be eligible for
Individual and Organization Awards. Full-time Employees must have completed 6 consecutive months of employment to be eligible to receive an incentive award. The award would be pro-rated based on number of months employed. 

 

	 	  	Part-time employees who have completed 6 consecutive months of employment-based on performance will be eligible to receive a Bonus/Incentive Award at 50% of the value.
(e.g. FAR = 90 pts @ $30.00 per point = $2,700 @ 50% = $1,350) 

  

	 	5.	Within the Individual Level the 50 points will be divided with a rating of ER = 50 points or FAR = 40 points unless the employee has a specific incentive matrix, in
which case, the matrix will govern the bonus amount. 

  

	*V.	Point Values for 2008 – 2009 

  

	 	A.	Senior Management Staff (EVP-Support Division, EVP-Sales Division, SVP/CFO and VP-HR/Compliance), Business Development Officers (including Business/Retail Banking Group
Managers & VP-Residential Lending Manager), Branch Managers, and Department Managers (VP-Information Security, VP-Controller, VP-Loan Administration Manager, VP-Secondary Market Specialist, VP-Marketing, AVP-Customer Support
Manager & AVP-Credit Manager) – will be based on the attached Matrices. 

  

	 	B.	All Other Exempt Staff - 

 1 Point = $40.00 (Max. $4,000) 
  

	 	C.	All Other Employees - 

 1 Point = $ 30.00 (Max. $3,000) 
  

	*NOTE:  a)	Percentages for employees with individual matrices and point values for all other employees would change from year to year based on the Bank’s budget and net
income but could be increased/decreased depending on success/failure at achieving goals & profitability. 

  

	                b)	Bonus percentage would be calculated on base salary prior to performance - based increase being added. All Bonuses would be lump sum payment, less taxes.

  

 Page 4 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

					
		 	OBA Bank	 	

  

					
	        Organizational Level Goals	  	 	  	 
			
	CATEGORIES	  	%	  	TARGET
			
	 CAPITAL ADEQUACY
	  		  	
	 Risk Based Capital Ratio
	  	10	  	20.39%
			
	 ASSET QUALITY
	  		  	
	 NPLs/Total Loans
	  	10	  	0.20%
	 Net Charge-offs/Total Loans
	  	5	  	0.20%
	 Reserves/Total Loans
	  	5	  	0.58%
			
	 MANAGEMENT
	  		  	
	 Training Hours/FTE
	  	5	  	18
	 Repeat Compliance Violations
	  	5	  	0
	 Repeat Audit Findings
	  	5	  	0
	 Asset Growth Rate
	  	10	  	7.78%
			
	 EARNINGS
	  		  	
	 Net Interest Margin
	  	5	  	3.24%
	 Non Interest Expense/AA
	  	5	  	2.79%
	 Net Income
	  	25	  	$626K
			
	 LIQUIDITY & SENSITIVITY
	  		  	
	 Noninterest Bearing/Total Deposits
	  	5	  	7.64%
	 Earning Assets/Costing Liabilities
	  	5	  	116.65%
			
	 Percent/Points
	  	100	  	

  

 Page 5 
 20300 Seneca Meadows Parkway  ¡   Germantown, MD 20876  ¡  Phone (301) 916.0742 

	
	
	 2009-2010

Support

  

					
	CATEGORIES	  	%/Points	  	12 Month Budget
			
	 Organizational Goals – 80%
	  		  	
			
	 CAPITAL ADEQUACY
	  		  	
	 Risk Based Capital Ratio (Total Quarterly)
	  	8	  	20.39%
			
	 ASSET QUALITY
	  		  	
	 NPLs/Total Loans
	  	8	  	0.20%
	 Net Charge-offs/Total Loans
	  	4	  	0.20%
	 Reserves/Total Loans
	  	4	  	0.58%
			
	 MANAGEMENT
	  		  	
	 Repeat Compliance Violations
	  	4	  	0.00%
	 Repeat Audit Findings
	  	4	  	0.00%
	 Asset Growth Rate
	  	8	  	7.78%
	 Training Hours/FTE
	  	4	  	18
			
	 EARNINGS
	  		  	
	 Net Interest Margin
	  	4	  	3.24%
	 Non Interest Expense/AA
	  	4	  	2.79%
	 Net Income
	  	20	  	$626,000
			
	 LIQUIDITY & SENSITIVITY
	  		  	
	 Noninterest Bearing/Total Deposits
	  	4	  	7.64%
	 Earning Assets/Costing Liabilities
	  	4	  	116.65%
			
	 Percent/Points
	  	80	  	
			
	 Departmental Goals – 20%
	  		  	
			
	 Performance Plan
	  	20	  	FAR
			
	 Percent/Points
	  	100	  	100
	 % Base Salary
	  		  	6

	
	 2009-2010

Executive

  

					
	CATEGORIES	  	%/Points	  	12 Month Budget
			
	 Organizational Goals – 100%
	  		  	
			
	 CAPITAL ADEQUACY
	  		  	
	 Risk Based Capital Ratio (Total Quarterly)
	  	10	  	20.39%
			
	 ASSET QUALITY
	  		  	
	 NPLs/Total Loans
	  	10	  	0.20%
	 Net Charge-offs/Total Loans
	  	5	  	0.20%
	 Reserves/Total Loans
	  	5	  	0.58%
			
	 MANAGEMENT
	  		  	
	 Repeat Compliance Violations
	  	5	  	0
	 Repeat Audit Findings
	  	5	  	0
	 Asset Growth Rate
	  	10	  	7.78%
	 Training Hours/FTE
	  	5	  	18
			
	 EARNINGS
	  		  	
	 Net Interest Margin
	  	5	  	3.24%
	 Non Interest Expense/AA
	  	5	  	2.79%
	 Net Income
	  	25	  	$626,000
			
	 LIQUIDITY & SENSITIVITY
	  		  	
	 Noninterest Bearing/Total Deposits
	  	5	  	7.64%
	 Earning Assets/Costing Liabilities
	  	5	  	116.65%
			
	 Percent/Points
	  	100	  	
			
	 Departmental Goals – 0%
	  		  	
			
	 Performance Plan
	  	0	  	N/A
			
	 Percent/Points
	  	100	  	100
	 % Base Salary
	  		  	10

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