Georgetown Savings Bank FY08 Executive Incentive Plan for Robert E. Balletto

Summary

This agreement outlines the 2008 incentive compensation plan for Robert E. Balletto, President and CEO of Georgetown Savings Bank. The plan sets a $25,000 incentive target, with payouts based on achieving specific bank-wide, team, and individual performance goals, such as return on assets, commercial loan growth, and branch profitability. Payouts are made annually after audits or upon completion of certain projects, with additional bonuses for exceeding targets. The agreement details the performance metrics, payout percentages, and timing for each goal.

EX-10.1 2 ex10-1.txt EX-10.1 EXHIBIT 10.1 GEORGETOWN SAVINGS BANK FY08 INCENTIVE PLAN All figures below are representative of a twelve month period ================================================================================ Organizational Level: Executive Employee: Robert E. Balletto Incentive Target: $25,000 plus --------------------------------- sliding component ----------------- Title: President/Chief Executive Officer Current Salary: $181,200 --------------------------------- ----------------- ================================================================================ Tier 1: Bank-wide Performance Goal #1: Achieve Budgeted ROA -------------------- Payout Percentage: 30% of incentive target = $7,500 Target: Achieve YTD ROA of (.31%) by 6/30/08 Payout Timing: Annual, after completion of annual audit Additional Payout: $2,500 for every additional .05bps Goal #2: Achieve Budgeted Commercial Loan Portfolio Growth ------------------------------------------------- Payout Percentage: 15% of incentive target = $3,750 Target: Total Commercial Loans $41,775,300 by 6/30/08 Payout Timing: Annual, after completion of annual audit Goal #3: [Information withheld due to business confidentiality] Payout Percentage: 15% of incentive target = $3,750 Target: [Information withheld due to business confidentiality] Payout Timing: [Information withheld due to business confidentiality] Goal #4: [Information withheld due to business confidentiality] Payout Percentage: 15% of incentive target = $3,750 Target: [Information withheld due to business confidentiality] Payout Timing: [Information withheld due to business confidentiality] Tier 2: Team Performance - Sales No Team Goals Assigned. Tier 3: Individual Performance Goal #5: Complete Retail Banking Division Study -------------------------------------- Payout Percentage: 5% of incentive Target = $1,250 Target: Completion of Retail Division Study, Assessment and Executive Committee's (EC) Acceptance of Action Plans to Achieve Branch and Depository Strategic Plan Goals Payout Timing: Upon Acceptance and approval of the EC Goal #6: Improve the Profitability of North Andover Branch ------------------------------------------------- Payout Percentage: 5% of incentive Target = $1,250 Target: 25% improvement in the profitability from fiscal 2007 Payout Timing: Annual, after completion of the annual audit Goal #7: Complete Branch Platform Personnel Ability To Refer Residential --------------------------------------------------------------- Mortgages --------- Payout Percentage: 5% of incentive Target = $1,250 Target: Implementation of Branch Platform personnel fully able to refer residential mortgage loans to the Bank's loan originator. Payout Timing: After each branch has referred at least 3 mortgages to the loan originator and the loans have closed. Goal #8: Complete Small Business Lending Capability in the Branches ---------------------------------------------------------- Payout Percentage: 10% of incentive Target = $2,500 Target: Completion of implementation of branch based small business lending products in accordance with Loan Policy Payout Timing: Upon successful origination and closing of $500,000 in branch based small business loans [GRAPHIC OMITTED]