##### 



EXHIBIT 10.30
 CITIZENS BANKING CORPORATION
MANAGEMENT INCENTIVE PLAN
2006
 I.
    
    PURPOSE:
 1.
    
    Ensure achievement of strategic goals.2.
    
    Align management more closely with shareholder3.
    
    Strengthen links between pay and performance.
 II.
    
    ELIGIBILITY:Senior Vice Presidents and above and certain other officers based upon corporate
responsibility who are not participants in another established incentive plan with payment
amounts determined by performance in relation to goal. Awards will be pro-rated based on
months served for staff members with less than 12 months of service in a Plan Year. Staff
members become eligible to participate in the plan by virtue of promotion or new hire. A
staff member who terminates employment before the Plan Year is not eligible to receive an
award.III.
    
    PARTICIPATION RATE:The participation rate for individual positions is benchmarked from market data research
provided by various surveys and consultants.VI.
    
    INCENTIVE COMPONENTS:The Management Incentive Plan components consist of:
 
    
    Initial factors: Net Interest Income, Low Cost Deposits, Total Deposits, Fee
Income, Net Charge-Offs, Non-Performing Assets and Expense Management.
    
    Secondary factors: A weighted EPS and ROE factor will be placed against the
initial factor weighted average to determine an adjusted weighted average payout.
    
    Tertiary factors: An NII Peer Ranking vs. Peer Group factor may be used to
determine the FINAL weighted average factor for the Corporate Component portion of
the payout.
 V.
    
    AWARD DETERMINATION:Salary x Participation Rate x Service Factor = Pool
 Leadership Group Members
  75%Components
    
    PercentageNet Interest Income
    
    
    25
    %Low Cost Deposits
    
    
    20
    %Total Deposits
    
    
    10
    %Fee Income
    
    
    15
    %Net Charge-Offs
    
    
    10
    %Non Performing Assets
    
    
    10
    %Expense Management
    
    
    10
    %
 25%Component
    
    PercentageDiscretionary
    
    
    100
    %
   ü All independent components




---



##### 



Senior Management and other Participants
  65%Components
    
    PercentageNet Interest Income
    
    
    25
    %Low Cost Deposits
    
    
    20
    %Total Deposits
    
    
    10
    %Fee Income
    
    
    15
    %Net Charge-Offs
    
    
    10
    %Non Performing Assets
    
    
    10
    %Expense Management
    
    
    10
    %
 35%Component
    
    
    
    
    
    PercentageLine of Business
    
    
    üMarket
    
    
    ý
    
    
    
    100
    %Discretionary
    
    
    þ
   ü All independent components
 VI.
    
    PERFORMANCE FACTOR:For the discretionary component, a performance indicator of 0% to 150% will be applied.
Goals should be set at levels that are challenging to reach at 100%  Achievement should be
based on meeting all expectations in every way. It is possible to exceed 100% performance
but this type of evaluation should be reserved for truly extraordinary performanceVII.
    
    SERVICE FACTOR:The service factor is equal to the number of months the participant is employed with the
corporation during the plan year. Example: 1.0 is equal to 12 months, .5 is equal to 6
months.VIII.
    
    AWARD PAYMENTS:All awards earned under Management Incentive Plan will be paid as soon as practical following
approval by the Compensation and Human Resources Committee.IX.
    
    ADDITIONAL PROVISIONS:The Management Incentive Plan shall be administered by the Compensation and Human Resources
Committee of the Corporation.While all attempts will be made to follow the incentive formulas and metrics, subjective
adjustments occasionally can and will be made both upwards and downwards based on management
discretion which will require CEO approval. Adjustments will be considered based on value of
an individuals contribution to performance during the year and not based on comparison to
prior year awards, comparison to peers incentive levels, attitude, effort, etc. In general,
subjective adjustments will be the exception and not the rule. Management will however
reserve the right to make these subjective adjustments if necessary to be equally fair to
shareholders and plan participants.The incentive award for the Chairman and President and CEO will be determined by the
Compensation and Human Resources Committee of Citizens Banking Corporation Board of
Directors.A special award fund (Discretionary) equal to 15% of the aggregate incentive award will be
available for individual awards as determined by the President and CEO. Awards from this
fund are made to staff members who are not participants in the Management Incentive Plan.Awards for the Discretionary Fund will be made only in recognition of exemplary achievements.
Distribution of all available amounts in this fund is not mandatory.Participation in the Management Incentive Plan shall not be construed as giving any employee
the right to continued employment with the corporation for the full or for any subsequent
period.




---



##### 



Performance Plan Guidelines
 
    
    If participant is on corrective action on the last day of the quarter/year they are not
eligible for incentive payment
    
    Minimum annual performance rating of Productive required in most recent Annual
Performance Review in both Key Performance Activities and Competencies
    
    This plan does not represent a contract with any individual plan participant
    
    The plan may be changed, modified or terminated at any time throughout the plan year
 X.
    
    DISCRETIONARY AWARD GUIDELINES:Objectives:Recognize and promote exemplary individual performance or initiative.Eligible Participants:All staff members are eligible except staff members who are in
established incentive plans with payment amounts determined by performance in relation to
established goals.Nomination Process:Managers would nominate staff member(s) according to established
guidelines. They would also obtain concurrence and approval from their respective Direct
Report to the CEO.Monetary Guidelines:Range of $500 to $3000. Larger amounts could be given in exceptional
circumstances.Guidelines:Discretionary awards should be given in recognition for one or more of the
following performance criteria:
 Earnings:
 
    
    Expense reduction
    
    Revenue enhancement
 Innovation:
 
    
    Continuous improvement efforts
    
    Innovative delivery alternatives
    
    Foresight and planning to prevent crises
 Achievement:
 
    
    Unique/specialized skills or knowledge of value to the company, i.e., Key Performers
    
    Sustained high performance
    
    Exemplary performance during unusual circumstances or specific events
    
    Special projects completed in an exceptional manner or ahead of schedule
    
    Extraordinary client service




---



##### 



MIP will be initially calculated based on the following components and payout tier structure.
 Budget25%
    
    Net Interest Income
    
    Actual
    
    
    *
    
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *2004 Actual = 275.3
    
    % to Actual (Actual/Budget)
    
    
    <98.7
    %
    
    
    
    98.7
    %
    
    
    98.9
    %
    
    
    99.1
    %
    
    
    99.3
    %
    
    
    99.5
    %
    
    
    99.6
    %
    
    
    99.8
    %
    
    
    100
    %
    
    
    100.2
    %
    
    
    100.4
    %
    
    
    100.5
    %
    
    
    100.7
    %
    
    
    100.9
    %
    
    
    101.1
    %
    
    
    101.3
    %
    
    No Cap2005 Actual = 275.7
    
    Payout Factor
    
    
    0
    %
    
    
    
    50
    %
    
    
    55
    %
    
    
    60
    %
    
    
    65
    %
    
    
    70
    %
    
    
    75
    %
    
    
    80
    %
    
    
    85
    %
    
    
    90
    %
    
    
    95
    %
    
    
    100
    %
    
    
    105
    %
    
    
    110
    %
    
    
    115
    %
    
    
    120
    %2006 Budget = *Budget20%
    
    Low Cost Deposits
    
    Actual
    
    
    *
    
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *2005 Actual = 2,747
    
    % to Actual (Actual/Budget)
    
    
    <90
    %
    
    
    
    90
    %
    
    
    91
    %
    
    
    92
    %
    
    
    93
    %
    
    
    94
    %
    
    
    95
    %
    
    
    96
    %
    
    
    97
    %
    
    
    98
    %
    
    
    99
    %
    
    
    100
    %
    
    
    101.7
    %
    
    
    103.5
    %
    
    
    105.2
    %
    
    
    107.0
    %
    
    No Cap2006 Budget = *
    
    Payout Factor
    
    
    0
    %
    
    
    
    50
    %
    
    
    55
    %
    
    
    60
    %
    
    
    65
    %
    
    
    70
    %
    
    
    75
    %
    
    
    80
    %
    
    
    85
    %
    
    
    90
    %
    
    
    95
    %
    
    
    100
    %
    
    
    105
    %
    
    
    110
    %
    
    
    115
    %
    
    
    120
    %(YE Avg Bal)Budget10%
    
    Total Deposits
    
    Actual
    
    
    *
    
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *2005 Actual = 5,091
    
    % to Actual (Actual/Budget)
    
    
    <97.5
    %
    
    
    
    97.5
    %
    
    
    97.9
    %
    
    
    98.2
    %
    
    
    98.6
    %
    
    
    98.9
    %
    
    
    99.3
    %
    
    
    99.6
    %
    
    
    100
    %
    
    
    100.4
    %
    
    
    100.7
    %
    
    
    101.1
    %
    
    
    101.4
    %
    
    
    101.8
    %
    
    
    102.1
    %
    
    
    102.5
    %
    
    No Cap2006 Budget = *
    
    Payout Factor
    
    
    0
    %
    
    
    
    50
    %
    
    
    55
    %
    
    
    60
    %
    
    
    65
    %
    
    
    70
    %
    
    
    75
    %
    
    
    80
    %
    
    
    85
    %
    
    
    90
    %
    
    
    95
    %
    
    
    100
    %
    
    
    105
    %
    
    
    110
    %
    
    
    115
    %
    
    
    120
    %(YE Avg Bal)Budget15%
    
    Fee Income
    
    Actual
    
    
    *
    
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *2004 Actual = 93.4
    
    % to Actual (Actual/Budget)
    
    
    < 94.2
    %
    
    
    
    94.2
    %
    
    
    95.1
    %
    
    
    95.9
    %
    
    
    96.7
    %
    
    
    97.5
    %
    
    
    98.4
    %
    
    
    99.2
    %
    
    
    100
    %
    
    
    100.8
    %
    
    
    101.6
    %
    
    
    102.5
    %
    
    
    103.3
    %
    
    
    104.1
    %
    
    
    104.9
    %
    
    
    105.8
    %
    
    No Cap2005 Actual = 91.5
    
    Payout Factor
    
    
    0
    %
    
    
    
    50
    %
    
    
    55
    %
    
    
    60
    %
    
    
    65
    %
    
    
    70
    %
    
    
    75
    %
    
    
    80
    %
    
    
    85
    %
    
    
    90
    %
    
    
    95
    %
    
    
    100
    %
    
    
    105
    %
    
    
    110
    %
    
    
    115
    %
    
    
    120
    %2006 Budget = *Budget10%
    
    Net Charge-Offs
    
    Actual
    
    
    *
    
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *2004 Actual = 20.8
    
    % to Actual (Actual/Budget)
    
    
    > 119.0
    %
    
    
    
    119.0
    %
    
    
    116.3
    %
    
    
    113.6
    %
    
    
    110.9
    %
    
    
    108.1
    %
    
    
    105.4
    %
    
    
    102.7
    %
    
    
    100
    %
    
    
    97.8
    %
    
    
    95.6
    %
    
    
    93.4
    %
    
    
    89.0
    %
    
    
    84.6
    %
    
    
    80.1
    %
    
    
    75.7
    %
    
    
    71.3
    %2005 Actual = 14.6
    
    Payout Factor
    
    
    0
    %
    
    
    
    50
    %
    
    
    55
    %
    
    
    60
    %
    
    
    65
    %
    
    
    70
    %
    
    
    75
    %
    
    
    80
    %
    
    
    85
    %
    
    
    90
    %
    
    
    95
    %
    
    
    100
    %
    
    
    110
    %
    
    
    120
    %
    
    
    130
    %
    
    
    140
    %
    
    
    150
    %2006 Budget = *Budget10%
    
    Non Performing Loans
    
    Actual
    
    
    *
    
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *2004 Actual = 50.8
    
    % to Actual (Actual/Budget)
    
    
    > 111.1
    %
    
    
    
    111.1
    %
    
    
    109.5
    %
    
    
    107.9
    %
    
    
    106.3
    %
    
    
    104.7
    %
    
    
    103.2
    %
    
    
    101.6
    %
    
    
    100
    %
    
    
    99.1
    %
    
    
    98.3
    %
    
    
    97.4
    %
    
    
    95.7
    %
    
    
    94.0
    %
    
    
    92.3
    %
    
    
    90.6
    %
    
    
    88.9
    %2005 Actual = 46.6
    
    Payout Factor
    
    
    0
    %
    
    
    
    50
    %
    
    
    55
    %
    
    
    60
    %
    
    
    65
    %
    
    
    70
    %
    
    
    75
    %
    
    
    80
    %
    
    
    85
    %
    
    
    90
    %
    
    
    95
    %
    
    
    100
    %
    
    
    110
    %
    
    
    120
    %
    
    
    130
    %
    
    
    140
    %
    
    
    150
    %2006 Budget = *Budget10%
    
    Expense
    
    Actual
    
    
    *
    
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *2004 Actual = 244.8
    
    % to Actual (Actual/Budget)
    
    
    >101.8
    %
    
    
    
    101.8
    %
    
    
    101.5
    %
    
    
    101.3
    %
    
    
    101.0
    %
    
    
    100.8
    %
    
    
    100.5
    %
    
    
    100.3
    %
    
    
    100
    %
    
    
    99.9
    %
    
    
    99.7
    %
    
    
    99.6
    %
    
    
    99.3
    %
    
    
    99.0
    %
    
    
    98.8
    %
    
    
    98.5
    %
    
    
    98.2
    %2005 Actual = 243.0
    
    Payout Factor
    
    
    0
    %
    
    
    
    50
    %
    
    
    55
    %
    
    
    60
    %
    
    
    65
    %
    
    
    70
    %
    
    
    75
    %
    
    
    80
    %
    
    
    85
    %
    
    
    90
    %
    
    
    95
    %
    
    
    100
    %
    
    
    110
    %
    
    
    120
    %
    
    
    130
    %
    
    
    140
    %
    
    
    150
    %2006 Budget = *100%
    
    Payout % is incremental between tiers (ex. Each % over budget earns x% additional incentive)EPS and ROE factors will provide an additional weighted average calculation to be applied against the above results.Budget60%
    
    EPS Factor
    
    Actual
    
    
    *
    
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *2004 Actual = 1.74
    
    % to Actual (Actual/Budget)
    
    
    < 96.3
    %
    
    
    
    96.3
    %
    
    
    97.1
    %
    
    
    97.8
    %
    
    
    98.5
    %
    
    
    99.3
    %
    
    
    100
    %
    
    
    100.7
    %
    
    
    101.5
    %
    
    
    102.2
    %
    
    
    102.9
    %
    
    
    103.7
    %
    
    No Cap2005 Actual = 1.85
    
    Payout Factor
    
    
    0
    %
    
    
    
    85
    %
    
    
    88
    %
    
    
    91
    %
    
    
    94
    %
    
    
    97
    %
    
    
    100
    %
    
    
    103
    %
    
    
    106
    %
    
    
    109
    %
    
    
    112
    %
    
    
    115
    %2006 Budget = *Budget40%
    
    ROE Factor
    
    Actual
    
    
    *
    
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *
    
    
    
    *2004 Actual = 11.90
    
    % to Actual (Actual/Budget)
    
    
    < 94.4
    %
    
    
    
    94.4
    %
    
    
    95.5
    %
    
    
    96.7
    %
    
    
    97.8
    %
    
    
    98.9
    %
    
    
    100
    %
    
    
    101.1
    %
    
    
    102.2
    %
    
    
    103.2
    %
    
    
    104.3
    %
    
    
    105.4
    %
    
    No Cap2005 Actual = 12.33
    
    Payout Factor
    
    
    0
    %
    
    
    
    85
    %
    
    
    88
    %
    
    
    91
    %
    
    
    94
    %
    
    
    97
    %
    
    
    100
    %
    
    
    103
    %
    
    
    106
    %
    
    
    109
    %
    
    
    112
    %
    
    
    115
    %2006 Budget = *100%
    
    Payout % is incremental between tiers (ex. Each % over budget earns x% additional incentive)
 Discretionary Modifier  Guidelines Only
   Component
    
    WeightingNII
    
    50%EPS
    
    50%
 Equates to x% payoutPeer Ranking
    
    Factor
    
    @ 100% of budgetAbove 75th Percentile
    
    118%
    
    100%Below 25th Percentile
    
    59%
    
    50%2006 vs 2005 performance
    
    
    
    (factor x 85%)
  Peer Group*
   1
 2
 3
 4
 5





|  |  |                                                                                                                                                                                                                                                
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* |  | Portions of this exhibit have been omitted pursuant to Citizens request to the
Secretary of the Securities and ExchangeCommission for confidential treatment pursuant to
Rule 24b-2 under the Securities and Exchange Act of 1934, as amended.