Document:

EX-10.19

 

Exhibit 10.19

SUMMARY OF SENIOR MANAGEMENT COMPENSATION PLAN

     The following is a summary of the Olympic Steel, Inc. Senior Management Compensation Plan (the
“Plan”)

PURPOSE

The Plan provides cash awards based on the achievement of goals
relating to the financial performance of the Company. The purpose of the Plan
is to promote profitability, the management
of assets and growth by motivating management to perform to the best
of their abilities and to achieve the Company’s financial and
business objectives.

ELIGIBILITY AND PARTICIPATION

The Compensation Committee has oversight over the Plan including
participation and eligibility criterion. The following positions are included in the Plan:

	•	 	Executive Officers
	 
	•	 	Commercial Vice Presidents
	 
	•	 	Certain Corporate Vice Presidents and Managers
	 
	•	 	Others, as determined in accordance with the Plan

Participants must be employed at the end of the Company’s fiscal year end in order to be eligible
for the incentive. If the individual is no longer a participant due to death, disability or
retirement, the Compensation Committee of the Board of Directors has discretion in awarding a full
or pro-rata incentive. Individuals who become eligible to participate during the middle of the
Company’s fiscal year are eligible for pro-rated incentives.

COMPANY PERFORMANCE FACTORS

Incentives are based upon pre-tax income, growth in tons sold, safety, inventory turnover and
expense control.

AMOUNT OF INCENTIVE

Incentives are calculated as a percentage of pre-tax income. The percentage level varies based on
the participants’ position.

PAYOUT SCHEDULE

If the incentive is less than 75% of the participant’s base
salary, it is paid in cash in a single lump sum, subject to payroll
taxes withholding. If the incentive is greater than 75% of the participant’s base salary, it is paid out in annual
installments.

This
document is not intended, and shall not be construed so as to, confer
any contractual right upon any executive or other employee. The Company
reserves the right to amend the Plan from time-to-time (and at any
time) in any manner, to terminate the Plan, to pay no bonus to any
particular person or group of persons, and to decrease bonus amounts
and/or increase bonus amounts from the level(s) otherwise required by
the Plan as to any particular person or group of persons.EX-10.19

 

Exhibit 10.19

Financial Institutions, Inc.

Stock Ownership Requirements

Amended December 14, 2005

Purpose

     Financial Institution Inc.’s (FII) Stock Ownership Requirements align the interests of
Executives and Directors (“participants”) with the interests of shareholders and further promotes
FII’s commitment to sound corporate governance.

II. Participation

FII’s Stock Ownership Requirements apply to the following positions:

	 	•	 	President and Chief Executive Officer;
	 
	 	•	 	Chief Financial Officer
	 
	 	•	 	Chief of Community Banking
	 
	 	•	 	Chief Risk Officer
	 
	 	•	 	Non-employee Directors of Financial Institutions, Inc.
	 
	 	•	 	Other Company executives as determined by the Management, Development & Compensation
(MD&C) Committee of the FII Board of Directors.

III. Determination of Requirements

FII’s Stock Ownership Requirements are determined as a multiple of the Executive’s base salary,
and in the case of a non-employee Director, a flat dollar amount, and then converted to a fixed
number of shares. Individual requirements are established for each participant as follows:

	(1)	 	The executive’s base salary is multiplied by the appropriate multiple:

	 	•	 	1.0x for President/Chief Executive Officer
	 
	 	•	 	$50,000 for all other positions in Salary Ranges 20 and above.

	 	 	That product is divided by FII’s prior 365-day average closing common stock price as reported by
NASDAQ. That amount is then rounded to the nearest 1,000 shares.

	(2)	 	Non-Employee Director of FII

	 	•	 	$50,000

 

 

	 	 	This amount is divided by FII’s prior 365-day average closing common stock price as reported by
NASDAQ. That amount is then rounded to the nearest 1,000 shares.

     These requirements have been established using the Executive’s January 1, 2005 base salary and
the average FII closing stock price for the period from January 1, 2004 through December 31, 2004,
Executives and Directors who become subject to the Stock Ownership Requirements in the future will
have their individual requirement established based upon their base salary, or dollar amount in
effect for Directors, at the time they become subject to the Requirements and FII’s average closing
common stock price for the prior 365-day period. Once established, a participant’s required amount
does not change as a result of changes in his or her base salary or fluctuations in FII’s common
stock price.

IV. Counting Shares Owned

Stock that counts towards satisfaction of FII’s Stock Ownership Requirements includes:

	 	•	 	Shares owned outright by the executive or his or her immediate family members residing
in the same household;
	 
	 	•	 	Stock held in FII’s 401(k) Retirement Savings Plan;
	 
	 	•	 	Shares acquired upon stock option exercises;
	 
	 	•	 	Shares held in trust. (Due to the complexities of trust accounts, requests to include
shares held in trust must be submitted in writing to the Director of Human Resources. The
Director of Human Resources will review the request with the Chairman and Chief Executive
Officer and the MD&C Committee will make the final decision.)

· Other types of stock grants that may be issued by FII.

V. Compliance with the Guidelines

Participants are required to achieve their Stock Ownership Requirement within five years, e.g. by
December 31, 2010, in the case of participants subject to the requirements at January 1, 2005. If a
participant’s Stock Ownership Requirement increases because of a change in title, a five-year
period to achieve the incremental requirement begins in January following the year of the title
change. Until the requirement is achieved, the participant is required to retain at least 75% of
net shares delivered through FII’s Stock Option Program. Net shares refer to those that remain
after shares are sold or netted to pay the exercise price of stock options and withholding taxes.
Until the requirement is achieved, shares that were acquired by an executive before he or she
became subject to the Stock Ownership Requirements may only be disposed of for one or more of the
“exclusion” purposes set forth below in this Section V and only upon compliance with the procedures
set forth therein.

Once achieved, ownership of the required amount must be maintained for as long as the individual is
subject to the Stock Ownership Guidelines.

2

 

Transferability of stock options does not exempt the participant from the ownership requirements.
The donee will be subject to the same retention requirement until the ownership requirement is
achieved.

Certain exclusions apply to the retention requirement. The existence of exclusions does not,
however, affect the requirement that the participant must meet his or her Stock Ownership
Requirement within the five-year period. The exclusions are:

	 	•	 	Estate planning;
	 
	 	•	 	Gifts to charity;
	 
	 	•	 	Education; and
	 
	 	•	 	Primary residence.

To be excluded from the retention requirement for any of these purposes, the participant must
submit a form that is available from the Human Resources Department. This request must include the
reason for the exclusion, current status with respect to the Stock Ownership Requirements and a
description of the stock transactions for which the exclusion is being requested. The Director of
Human Resources will review the request with members of FII’s Management, Development &
Compensation Committee, who will make the final decision. Once the Stock Ownership Requirement is
achieved, the retention ratio no longer applies unless the participant’s ownership falls below the
requirement, at which point the retention requirement will be reinstated.

VI. Reporting

Participants are required to sign an attestation when they are in compliance with their Stock
Ownership Requirement. Any participant who has not signed and returned his or her attestation is
subject to the retention requirement. In addition, any participant who has satisfied his or her
Stock Ownership Requirement must immediately notify the Human Resources Department if at any
subsequent time his or her ownership of FII stock falls below the required amount.

VII. Hardship

There may be instances in which the Stock Ownership Requirements would place a severe hardship on
the participant or prevent the participant from complying with a court order, such as in the case
of a divorce settlement. It is expected that these instances will be rare. In these instances, the
participant must submit a request in writing to the Director of Human Resources that summarizes the
circumstances and describes the extent to which an exemption from the Stock Ownership Requirements
is being requested. The Director of Human Resources will review the request with members of FII’s
Management, Development & Compensation Committee who will make the final decision. If the request
is granted in whole or in part, the Director of Human Resources will in consultation with the
participant develop an alternative

3

 

stock ownership plan that reflects both the intention of these
Executive Stock Ownership Requirements and the participant’s individual circumstances.

VIII. Administration

The Executive Stock Ownership Requirements are administered and interpreted by the Management,
Development & Compensation Committee of Financial Institutions, Inc.

4EX-10.20

 

EX-10.20

(Exhibit 10.20)       2006 Annual Incentive Plan

Annual Incentive Plan

The 2006 Annual Incentive Plan (“the Plan”) is designed to award exempt and non-exempt
employees who do not participate in any direct sales incentive plans. The Plan is designed to
reward, reinforce and recognize critical success drivers across all employee levels in the Company.
As a result, the annual performance driver(s) varies by job level or category. The Board will
determine annual financial performance goals for the Executive Team and executive management will
determine goals for other participation levels. For the fiscal year ending December 31, 2006, the
corporate-wide goal has been established based on Earnings Per Share (“EPS”).

Group goals will be consistent with corporate goals but will be more specific to the employee’s
business unit. A minimum of 80% of the Corporate-wide goal must be attained before any incentive
payment is awarded. Modifiers will be used to supplement the calculated annual incentive award.
An individual modifier will recognize individual contributions and the manner in which goals are
achieved. The individual modifier will range from 0% to 125% of the calculated incentive payment.

Five separate groups have been created for purposes of determining participants and participation
levels in the Plan. These groups are as follows:

Executive Team (CEO and EVP’s) – 100% of the target incentive will be based on the corporate-wide
goal, which for 2006 is an Earnings Per Share goal.

	 	 	 
	CEO:

	 	The target incentive for achieving the corporate-wide goal will be
50% of base pay. If actual achievement percentage of the
corporate-wide goal is less than 80% the target incentive will be 0%
and the target incentive will be 80% of base pay to the extent actual
achievement percentage equals or exceeds 120% of the corporate-wide
goal. For actual achievement percentages between 80% and 100% the
target incentive as a percentage of base pay will equal the actual
achievement percentage times 50%. For actual achievement percentages
between 100% and 120% the target incentive as a percentage of base
pay will increase by 1.5% from 50% at 100% achievement to a maximum
of 80% at 120% achievement. The target incentive will then be
subject to application of an individual modifier, which can range
from 0% to 125%.
	 
	 	 
	EVP:

	 	The target incentive for achieving the corporate-wide goal will be
40% of base pay. If actual achievement percentage of the
corporate-wide goal is less than 80% the target incentive will be 0%
and the target incentive will be 64% of base pay to the extent actual
achievement percentage equals or exceeds 120% of the corporate-wide
goal. For actual achievement percentages between 80% and 100% the
target incentive as a percentage of base pay will equal the actual
achievement percentage times 40%. For actual achievement percentages
between 100% and 120% the target incentive as a percentage of base
pay will increase by 1.2% from 40% at 100% achievement to a maximum
of 64% at 120% achievement. The target incentive will then be
subject to application of an individual modifier, which can range
from 0% to 125%.

 

 

Senior Revenue Producers, Human Resources Director, and Treasurer – 50% of the incentive will be
based on the EPS target and 50% on group goals. Target incentive will be 30% of base pay.

Senior Management Staff (Sr. VP or VP) — 50% of the incentive will be based on the EPS goal and 50%
on group goals. Target incentive will be 20% of base pay.

Management Staff (VP or AVP) — 50% of the incentive will be based on the EPS target and 50% on
group goals. Target incentive will be 10% of base pay.

Professional & Support Staff — 50% of the incentive will be based on the EPS target and 50% on
group goals. Target incentive will be 5% of base pay.

Target Incentives As a % of Base Pay

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Minimum after	 	 	 	 	 	Maximum	 	Maximum After
	 	 	Applying	 	At 100% of	 	Goal	 	Applying
	Group	 	Modifier	 	Goal	 	Attainment	 	Modifier
	CEO

	 	 	0	%	 	 	50	%	 	 	80	%	 	 	100	%
	EVPs’

	 	 	0	%	 	 	40	%	 	 	64	%	 	 	80	%
	Senior Revenue

Producers,

Human Resources

Director,

Treasurer

	 	 	0	%	 	 	30	%	 	 	30	%	 	 	37.5	%
	Senior Management

Staff

	 	 	0	%	 	 	20	%	 	 	20	%	 	 	25	%
	Management Staff

	 	 	0	%	 	 	10	%	 	 	10	%	 	 	12.5	%
	Professional &

Support Staff

	 	 	0	%	 	 	5	%	 	 	5	%	 	 	6.25	%

March 13, 2006

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