Georgetown Savings Bank FY08 Incentive Plan for Karen Cohn, Vice President, Senior Lending Officer

Summary

This agreement outlines the 2008 incentive compensation plan for Karen Cohn, Vice President and Senior Lending Officer at Georgetown Savings Bank. The plan sets a $10,000 incentive target, with payouts based on achieving specific team performance goals, such as commercial loan growth, branch personnel referrals for residential mortgages, implementation of small business lending, and attaining or exceeding core interest rate spreads. Additional payouts are available for surpassing certain targets. The plan specifies payout percentages, conditions for payment, and timing, with no individual or bank-wide performance goals set for this period.

EX-10.5 6 ex10-5.txt EX-10.5 EXHIBIT 10.5 GEORGETOWN SAVINGS BANK FY08 INCENTIVE PLAN All figures below are representative of a twelve month period ================================================================================ Organizational Level: Executive Employee: Karen Cohn Incentive Target: $10,000 plus --------------------------------- sliding component ------------------ Title: Vice President, Senior Lending Current Salary: $105,000 Officer ------------------ --------------------------------- ================================================================================ Tier 1: Bank-wide Performance Goal: None set at this time --------------------- Tier 2: Team Performance - Sales Goal #1: Commercial Loan Growth ---------------------- Payout Percentage: 34% of incentive Target = $3,400 Target: Total net outstanding commercial loan balances of $41,775,300 at June 30, 2008. Payout Timing: Annual Additional Payout: $3,400 for every $5,000,000 of commercial loan balances over Target. Goal #2: Complete Branch Platform Personnel Ability To Refer Residential --------------------------------------------------------------- Mortgages --------- Payout Percentage: 16.5% of incentive Target = $1,650 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 #3: Complete Small Business Lending Capability in the Branches ---------------------------------------------------------- Payout Percentage: 16.5% of incentive Target = $1,650 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 Goal #4: Attain core interest rate spread -------------------------------- Payout Percentage: 16.5% of incentive Target = $1,650 Target: Year to date average core interest rate spread, as defined, equal to 3.20%. Payout Timing: Annual Goal #5: Exceed core interest rate spread -------------------------------- Payout Percentage: 16.5% of incentive Target = $1,650 Target: Year to date average core interest rate spread, as defined, equal to or exceeding 3.30%. Payout Timing: Annual Additional Payout: $3,300 for every 10 basis points over Target. Tier 3: Individual Performance ---------------------- Goal: None set at this time --------------------- [GRAPHIC OMITTED]