Georgetown Savings Bank FY08 Incentive Plan for Joseph W. Kennedy, SVP/Chief Financial Officer

Summary

This agreement outlines the 2008 incentive compensation plan for Joseph W. Kennedy, Senior Vice President and Chief Financial Officer of Georgetown Savings Bank. The plan specifies a target bonus of $15,000, with payouts tied to achieving specific bank-wide, team, and individual performance goals, such as return on assets, implementation of internal controls, regulatory examination results, and improvements in investment portfolio yield and risk management. Payouts are contingent on meeting defined targets and are generally paid after audits or approvals by the executive committee.

EX-10.2 3 ex10-2.txt EX-10.2 EXHIBIT 10.2 GEORGETOWN SAVINGS BANK FY08 INCENTIVE PLAN All figures below are representative of a twelve month period ================================================================================ Organizational Level: Executive Employee: Joseph W. Kennedy Incentive Target: $15,000 plus --------------------------------- sliding component ----------------- Title: SVP/Chief Financial Officer Current Salary: $118,000 --------------------------------- ----------------- ================================================================================ Tier 1: Bank-wide Performance Goal #1: Achieve Budgeted ROA -------------------- Payout Percentage: 25% of Incentive target = $3,750 Target: Achieve YTD ROA of (.31%) by 6/30/08 Payout Timing: Annual, after completion of annual audit Additional Payout: $1,000 for every additional .05bps Goal #2: [Information withheld due to business confidentiality] Payout Percentage: 10% of Incentive target = $1,500 Target: [Information withheld due to business confidentiality] Payout Timing: [Information withheld due to business confidentiality] Tier 2: Team Performance - Sales Goal #3: Complete Implementation of the SOX 404 Program ---------------------------------------------- Payout Percentage: 15% of Incentive Target = $2,250 Target: Issuance of Management's Annual Report on Internal Controls Payout Timing: Annual, after completion of the annual audit Goal #4: Receipt of Adequate Regulatory Examination of IT Security --------------------------------------------------------- Payout Percentage: 5% of Incentive Target = $750 Target: Results of October 2007 OTS examination indicate no matters required Board attention in Information Technology area. Payout Timing: After receipt of October, 2007 OTS Final Examination Report Tier 3: Individual Performance ---------------------- Goal #5: Complete Study and Investigation of Strategies to Improve Yield on ------------------------------------------------------------------ Investment Portfolio within Acceptable Credit Risk Levels --------------------------------------------------------- Payout Percentage: 5% of Incentive Target = $750 Target: Completion of formalized study and development of workable strategies for the Bank to improve its overall yield and earnings performance of its investment securities portfolio Payout Timing: Upon acceptance and approval of by the Executive Committee Goal #6: Improve Yield on Investment Portfolio ------------------------------------- Payout Percentage: 10% of Incentive Target = $1,500 Target: Achieve Average Investment Portfolio Yield 10 bps greater than budget by June 30, 2008 Payout Timing: After completion of annual audit. Goal #7: Complete Study and Investigation of Strategies to Improve Interest ------------------------------------------------------------------ Rate Risk Management Tactics ---------------------------- Payout Percentage: 15% of Incentive Target = $2,250 Target: Completion of formalized study and development of workable strategies for the Bank to improve its overall interest rate risk management program and position Payout Timing: Upon acceptance and approval of by the Executive Committee Goal #8: Achieve Budgeted Net Interest Margin Percentage ----------------------------------------------- Payout Percentage: 15% of Incentive Target = $2,250 Target: Achieve YTD Net Interest Margin of 2.44% by 6/30/08 Payout Timing: Annual, upon completion of annual audit Additional Payout: $1,000 for every additional .05bps [GRAPHIC OMITTED]