Document:

exv10w6

Exhibit 10.6

December 23, 2009

Mr. Charles C. Riesterer

100 E. Water Street

Sandusky, Ohio 44870

Dear Mr. Riesterer,

We are writing to describe certain changes that First Citizens Banc Corp (“First Citizens”) and its
affiliates (collectively, the “Company”) may be required to make to the compensation programs in
which you participate or are eligible to participate as a condition of First Citizens’
participation in the Troubled Assets Relief Program (“TARP”).

As you know, First Citizens received financial assistance from the United States Department of the
Treasury under the TARP. As a condition of receiving TARP financial assistance, First Citizens
agreed to comply with a number of executive compensation and corporate governance standards
applicable to the Company’s “senior executive officers” and certain other “most highly-compensated
employees”. These executive compensation and corporate governance standards collectively are
referred to as the “TARP Compensation Standards” and are described on Exhibit A, attached
to this letter.

The Company has identified you as an employee who is potentially subject to the TARP Compensation
Standards. We wanted to provide you with information about the TARP Compensation Standards and ask
that you acknowledge your receipt of this letter and consent to any changes that the Company may be
required to make to its compensation programs to give effect to the TARP Compensation Standards.
In addition, we ask that, if a specific revision to any compensation program or reimbursement of
prior payments is required of you in order to comply with the TARP Compensation Standards, that you
agree to negotiate promptly and in good faith with respect to such revision or for such
reimbursement.

The Company is required to comply with the TARP Compensation Standards during the entire period
that any TARP financial assistance remains outstanding. The TARP Compensation Standards apply to
you, if they apply at all, only to the extent that you are, for purposes of the TARP Compensation
Standards, one of a designated number of most highly-compensated employees during any particular
fiscal year.

On behalf of the Company, we appreciate your consent and agreement to these changes and look
forward to your continued leadership during these financially turbulent times. Please sign and
return a copy of this letter to James E. McGookey no later than 5 days after receipt.

 

 

Yours sincerely,

	 	 	 	 	 	 	 	 	 	 	 
	FIRST CITIZENS BANC CORP	 	 	 	THE CITIZENS BANKING COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ James O. Miller
 

James O. Miller
	 	 
	 	By:
	 	/s/ James O. Miller
 

James O. Miller
	 	 
	 

	 	President and CEO
	 	 	 	 	 	President and CEO	 	 

*****

Intending to be legally bound, I acknowledge my receipt of this letter and agree with and accept
the foregoing terms on the date set forth below.

	 	 	 	 	 
	/s/ Charles C. Riesterer	 	 
	 	 	 
	Charles C. Riesterer	 	 
	 
	 	 	 	 
	Date:

	 	December 29, 2009	 	 
	 

	 	 	 	 

 

 

EXHIBIT A

Among other requirements, the executive compensation and corporate governance standards comprising
the TARP Compensation Standards:

	(1)	 	Require the Company to comply with the requirements of Internal Revenue Code Section
162(m)(5); and
	 
	(2)	 	Prohibit the Company from making any “golden parachute payment” to its “senior executive
officers” or any of the next five “most highly-compensated employees”; and
	 
	(3)	 	Prohibit the Company from paying or accruing any “bonus payment” to certain employees, except
to the extent permitted by the TARP Compensation Standards; and
	 
	(4)	 	Require the Company to clawback any “bonus payment” to its “senior executive officers” or any
of the next 20 “most highly-compensated employees” if the bonus payment was based on
materially inaccurate financial statements or other materially inaccurate performance metric
criteria; and
	 
	(5)	 	Prohibit the Company from maintaining any “employee compensation plan” that would encourage
the manipulation of Company reported earnings to enhance the compensation of any employee of
the Company; and
	 
	(6)	 	Prohibit the Company from maintaining any “SEO compensation plan” that encourages “senior
executive officers” to take unnecessary and excessive risks that threaten the value of the
Company; and
	 
	(7)	 	Prohibit the Company from providing (formally or informally) “gross-ups” to its “senior
executive officers” or the next 20 “most highly-compensated employees”; and
	 
	(8)	 	Potentially subjects any “bonus payment” paid prior to February 17, 2009 by the Company to
its “senior executive officers” or the next 20 “most highly-compensated employees” to recovery
by the United States Department of the Treasury.

For purposes of this Exhibit A:

	(1)	 	The TARP Compensation Standards are intended to, and will be interpreted, administered and
construed to, comply with the requirements of the Emergency Economic Stabilization Act of
2008, as amended by the American Recovery and Reinvestment Act of 2009, the Interim Final Rule
promulgated under 31 C.F.R. Part 30 and any other guidance promulgated by the United States
Department of the Treasury (and, to the maximum extent consistent with the foregoing, to
permit operation of the Company’s compensation programs in accordance with their terms before
giving effect to the TARP Compensation Standards); and
	 
	(2)	 	Terms in quotations have the meanings given to them in the Interim Final Rule promulgated
under 31 C.F.R. Part 30 and will be interpreted and construed consistent with such Interim
Final Rule; and

 

 

	(3)	 	Any reference to the Company means First Citizens Banc Corp and any entity that, along with
First Citizens Banc Corp, would be considered to be a “TARP recipient” determined pursuant to
31 C.F.R. §30.2 where appropriate — including, in particular, The Citizens Banking Company;
and
	 
	(4)	 	The determination of whether you are or remain a “most highly-compensated employee” subject
to the TARP Compensation Standards will be made pursuant to 31 C.F.R. §30.3.exv10wg

Exhibit 10(g)

CHIEF EXECUTIVE OFFICER

ANNUAL INCENTIVE PLAN

OF

SAGA COMMUNICATIONS, INC.

(Originally effective as of January 1, 2000 and

as amended effective as of January 1, 2005)

 

CHIEF EXECUTIVE OFFICER

ANNUAL INCENTIVE PLAN

OF

SAGA COMMUNICATIONS, INC.

ARTICLE I

PURPOSE

	1.1.	 	Establishment and Purpose. Saga Communications, Inc. (the “Company”) hereby
establishes the Chief Executive Officer Annual Incentive Plan of Saga Communications (the
“Plan”), originally effective as of January 1, 2000, and amended effective as of January 1,
2005. The purpose of the Plan is to further the interests of the Company’s shareholders by
establishing and providing performance-based incentives to the Chief Executive Officer of the
Company.

	1.2.	 	Applicability of Plan. The provisions of this Plan are applicable only to the Chief
Executive Officer of the Company.

ARTICLE II

DEFINITIONS

	2.1	 	Definitions. Wherever used in the Plan, the following words and phrases shall have
the meaning set forth below, unless the context plainly requires a different meaning:

	 	(a)	 	“Administrator” means the Compensation Committee.
	 
	 	(b)	 	“Beneficiary” means the person or persons designated by the Chief
Executive Officer in accordance with Section 6.7.
	 
	 	(c)	 	“ Board” means the Board of Directors of the Company.
	 
	 	(d)	 	“Cause” means “for cause” as defined in paragraph 11 of the employment
agreement entered into by the Chief Executive Officer and the Company; provided,
however, that “Cause” shall not exist unless the notice and potential redress process
described in such employment agreement have been completed.
	 
	 	(e)	 	“Code” means the Internal Revenue Code of 1986, as amended from time to
time.
	 
	 	(f)	 	“Committee” means the Compensation Committee, and with respect to the
administration of the Plan, whose members shall satisfy the definition of “outside
directors” as identified in Code Section 162(m)(4)(C) and as defined in Treasury
Regulation §1 62-27(e)(3).
	 
	 	(g)	 	“Company” means Saga Communications, Inc.

 

 

	 	(h)	 	“Disability” means “disability” as that term is described in paragraph
10 of the employment agreement entered into by the Chief Executive Officer and the
Company.
	 
	 	(i)	 	“Effective Date” means January 1, 2000.
	 
	 	(j)	 	“Fiscal Year” means the 12-month period beginning January 1 and ending
on the following December 31st.
	 
	 	(k)	 	“Incentive Award” means the amount payable pursuant to the Plan with
respect to a Fiscal Year, based on the level of achievement of the Performance Goals
established for the Performance Measures selected by the Committee for such Fiscal
Year.
	 
	 	(l)	 	“Performance Goal” means, with respect to a specific Performance
Measure, the level at which credit will be given to the Chief Executive Officer for
purposes of determining a payment from the Plan for a Fiscal Year.
	 
	 	(m)	 	“Performance Measure” means each measure identified in Section 4.1.
	 
	 	(n)	 	“Plan” means. the Chief Executive Officer Annual Incentive Plan of Saga
Communications, Inc., and any amendment thereto.
	 
	 	(o)	 	“Retirement” means “retirement” as such or similar term is defined in
the qualified defined contribution plan sponsored by the Company.

ARTICLE III

ADMINISTRATION

	3.1	 	General. The Administrator shall be the Committee, or such other person or persons
designated by the Board. Except as otherwise specifically provided in the Plan, the
Administrator shall be responsible for the administration of the Plan.

	3.2	 	Administrative Rules. The Administrator may adopt such rules of procedure as it
deems desirable for the conduct of its affairs, except to the extent that such rules conflict
with the provisions of the Plan.

	3.3	 	Duties. The Administrator shall have the, following rights, powers and duties:

	 	(a)	 	The decision of the Administrator in matters within its jurisdiction shall be
final, binding and conclusive upon the Chief Executive Officer and upon any other
person affected by such decision, subject to the claims procedure hereinafter set
forth.
	 
	 	(b)	 	The Administrator shall have the duty and authority to interpret and construe
the provisions of the Plan, to decide any question which may arise regarding the rights
of the Chief Executive Officer and his beneficiary(ies), and the amounts of their
respective interests, to adopt such rules and to exercise such powers as the

3

 

	 	 	 	Administrator may deem necessary for the administration of the Plan, and to exercise
any other rights, powers or privileges granted to the Administrator by the terms of
the Plan.
	 
	 	(c)	 	The Administrator shall have the authority to appoint individuals, including
employees of the Company, to provide appropriate support and day-to-day administration
and advice to the Administrator in the fulfillment of the duties of the Administrator.
	 
	 	(d)	 	The Administrator shall maintain full and complete (records of its decisions.
Its records shall contain all relevant data pertaining to the Chief Executive Officer
and his rights and duties under the Plan. The Administrator shall have the duty to
maintain Account records of the participant in the Plan.
	 
	 	(e)	 	The Administrator shall periodically report to the Board with respect to the
status of the Plan.

	3.4	 	Fees. No fee or compensation shall be paid to any person for services as the
Administrator. No individual who is an employee of the Company and is appointed by the
Administrator pursuant to Section 3.3(c) shall receive additional compensation in fulfilling
the duties assigned to that individual. Any non-employee of the Company who provides services
to the Administrator pursuant to Section 3.3(c) shall receive fees for such services as
negotiated by and between the Company and such non-employee.

ARTICLE IV

PERFORMANCE MEASURES AND GOALS

	4.1	 	Performance Measures. The Committee shall select, for each Fiscal Year for which the
Committee determines that the Chief Executive Officer shall have the opportunity to achieve an
Incentive Award, the Performance Measure or Measures by which such Incentive Award shall be
determined. The Performance Measures from which the Committee may select include any or all of
the following, which may be specified on a consolidated, same station, pro forma, per share
and/or segment basis: (i) earnings (as measured by net income, operating income, operating
income before interest, EBIT, EBITA, EBITDA, pre-tax income, or cash earnings, or earnings as
adjusted by excluding one or more components of earnings); (ii) revenue (as measured by
operating revenue or net operating revenue); (iii) cash flow; (iv) free cash flow; (v)
broadcast cash flow, margins and/or margin growth; (vi) earnings and/or revenue growth; (vii)
working capital (viii) market capitalization; (ix) market revenue performance; (x) achievement
and/or maintenance of target stock prices; (xi) stock price growth; (xii) return on equity;
(xiii) return on investment; (xiv) return on assets/net assets; and (xv) station market
ratings.

	4.2	 	Performance Goals. The Committee shall assign, for each Fiscal Year for which the
Committee determines that the Chief Executive Officer shall have the opportunity to achieve an
Incentive Award, the specific goal that must be achieved for each Performance Measure.

4

 

	4.3	 	Combination of Performance Measures and Performance Goals. The Committee shall
determine in writing the combination of Performance Measures, their respective Performance
Goals, and the weighting to be assigned to each Performance Measure, in determining the level
of performance that must be achieved for the Chief Executive Officer to receive an Incentive
Award for a specific Fiscal Year. The Committee shall make reasonable efforts to satisfy the
requirements of this Section 4.3 within ninety (90) day after the beginning of the Fiscal Year
to which the Performance Measures and Goals relate; provided, however, that if the Committee
satisfies the requirement of this Section 4.3 after such ninety (90) day period, the
provisions of this Plan shall continue to apply with respect to the determination of the
Incentive Award for such Fiscal Year.

	4.4	 	Establishment of a Corporate Performance Trigger. The Committee in satisfying the
provisions of this Article IV with respect to any Fiscal Year shall establish a Performance
Measure and related Goal (or combination of Measures and related Goals) that must be satisfied
prior to determining whether any Incentive Award is to be payable for such Fiscal Year, which
shall be set forth in writing in the manner described in Section 4.3.

ARTICLE V

INCENTIVE AWARDS

	5.1	 	Establishing Potential Incentive Award Opportunities. The Committee shall establish,
at the same time as the Performance Measures and Goals are established as described in Article
IV with respect to a specific Fiscal Year, the following items:

	 	(a)	 	The amount of Incentive Award which will be paid if the applicable Performance
Goal (or combination of Goals) is achieved;
	 
	 	(b)	 	The minimum level of Performance Goal (or combination of Performance Goals)
achievement which must occur for any Incentive Award to be paid, and the amount that
would be paid for such level of achievement; and
	 
	 	(c)	 	The maximum amount of any Incentive Award which will be paid with respect to
achieving a Performance Goal (or combination of Performance Goals), and the amount that
would be paid for such level of achievement;

	 	 	provided, however, that the maximum Incentive Award for any Fiscal Year cannot exceed five
hundred percent (500%) of annual base salary payable for such year.
	 
	 	 	These items shall be set forth in writing consistent with the provisions of Section 4.3.

5

 

	5.2	 	Determining Actual Incentive Award. The Committee shall determine whether any
Incentive Award is payable for a Fiscal Year, based on a determination of the actual results
relating to the Performance Goals and Measures selected for that Fiscal Year. The Committee
may rely on any such information, including but not limited to the financial statements
developed with respect to such Fiscal Year, in making such determination. For purposes of
making the determination under this Section 5.2, the Committee shall use its best judgment
in applying any actual corporate result that is not equal to the specific Goal (or
combination of Goals) established for a Performance Measure, but which otherwise would
result in an Incentive Award being payable.

	 	 	The Committee shall have the authority, once such determination is made, to decrease any
Incentive Award otherwise payable for a Fiscal Year, but in no event shall the Committee
have the authority to increase any such Incentive Award. In making this determination, the
Committee may take into account events, including but not limited to changes in corporate
structure or accounting procedures, that occur during a Fiscal Year which, in the judgment
of the Committee, makes comparison of actual corporate performance with a Performance Goal
(or Goals) impossible or inconsistent with the objectives of the Company and the Plan.

	 	 	The Committee shall set forth in writing the determination required under this Section 5.2.

	5.3	 	Authorizing Payment of Incentive Award. The Committee shall authorize payment of any
Incentive Award for a Fiscal Year after or commensurate with the determination under Section
5.2. Notwithstanding the foregoing, if the Chief Executive Officer separates from employment
with the Company on account of death or Disability, or as a result of Retirement, during a
Fiscal Year for which the Committee had previously determined that an Incentive Award could be
‘earned by the Chief Executive Officer, the Committee shall authorize payment of any Incentive
Award that is determined to be payable, reduced by a fraction, the numerator of which is the
number of whole months (rounding to the nearest whole month based on the number of days
actually employed in the month the separation occurs) in which the separation from employment
occurs, and the denominator of which is twelve (12).

	5.4	 	Form of Payment of Incentive Award. Unless otherwise determined by the Committee,
the Chief Executive Officer shall receive the Incentive Award for a Fiscal Year in one or more
lump sum cash payments within a reasonable period of time after the determination described in
Sections 5.2 and 5.3 with respect to such Incentive Award. The Chief Executive Officer may
elect to defer payment of all or any part of an Incentive Award by complying with such
procedures as the Committee may prescribe.

ARTICLE VI

MISCELLANEOUS PROVISIONS

	6.1	 	Term of Plan. The Plan shall be effective as of the Effective Date, and shall
continue in effect until terminated pursuant to Section 6.3.

6

 

	6.2	 	Amendment. The Company reserves the right to amend the Plan in any manner that it
deems advisable by a resolution of the Committee; provided, however, that (a) any such
amendment, to the extent determined necessary by the Committee, shall be subject to approval
by Company shareholders consistent with the requirements of Code Section 162(m) and the
regulations thereunder, and (b) no amendment may adversely affect outstanding awards without
the consent of the Chief Executive Officer.

	6.3	 	Termination. The Company reserves the right to suspend or terminate the Plan at any
time; provided, however, that no suspension or termination may adversely affect outstanding
awards without the consent of the Chief Executive Officer.

	6.4	 	No Assignment. The Chief Executive Officer shall not have the power to pledge,
transfer, assign, anticipate, mortgage or otherwise encumber or dispose of in advance any
interest in amounts payable hereunder or any of the payments provided for herein, nor shall
any interest in amounts payable hereunder or in any payments be subject to seizure for
payments of any debts, judgments, alimony or separate maintenance, or be reached or
transferred by operation of law in the event of bankruptcy, insolvency or otherwise.

	6.5	 	No Implied Rights. Neither the Chief Executive Officer nor any other individual
shall have any rights and privileges with respect to any amounts that may become payable
pursuant to the Plan.

	6.6	 	Continued Employment Not Presumed. Nothing in the Plan or any document describing it
shall give any individual the right to continue in employment with the Company or. affect the
right of the Company to terminate the employment of any such individual.

	6.7	 	Designation of Beneficiary. The Chief Executive Officer, by filing the prescribed
form with the Committee, may designate one or more beneficiaries and successor beneficiaries
who shall receive any Incentive Award determined payable, but not paid, in accordance with the
terms of the Plan in the event of the Chief Executive Officer’s death. In the event the Chief
Executive Officer does not file a form designating one or more beneficiaries, or no designated
beneficiary survives the Chief Executive Officer, the amounts shall be paid to or for the
benefit of the Chief Executive Officer’s estate.

	6.8	 	Incapacity. If any person to whom a benefit is payable under the Plan is an infant
or if the Committee determines that any person to whom such benefit is payable is incompetent
by reason of physical or mental disability, the Committee may cause the payments becoming due
to such person to be made to another for his benefit. Payments made pursuant to this Section
shall, as to such payment, operate as a complete discharge of the Plan, the Company, the Board
and the Committee.

	6.9	 	Successors and Assigns. The provisions of the Plan are binding upon and inure to the
benefit of the Company, its respective successors and assigns, and the Chief Executive
Officer, his beneficiaries, heirs, legal representatives and assigns.

	6.10	 	Governing Law. The Plan shall be subject to and construed in accordance with the
laws of the State of Michigan, unless otherwise pre-empted by federal law.

7

 

	6.11	 	Severability. If any provision of the Plan shall be held illegal or invalid for any
reason, such illegality or invalidity shall not affect the remaining provisions of the Plan,
but the Plan shall be construed and enforced as if such illegal or invalid provision had never
been included herein.

	6.12	 	Notification of Addresses. The Chief Executive Officer and each beneficiary shall
file with the Committee, from time to time, in writing, the post office address of the Chief
Executive Officer, the post office address of each beneficiary, and each change of post office
address. Any communication, statement or notice addressed to the last post office address
filed with the Committee (or if no such address was filed with the Committee, then to the last
post office address of the Chief Executive Officer or beneficiary as shown on the Company’s
records) shall be binding on the Chief Executive Officer and each beneficiary for all purposes
of the Plan and neither the Committee nor the Company shall be obligated to search for or
ascertain the whereabouts of any Chief Executive Officer or beneficiary.

	6.13	 	Bonding. The Committee and all agents and advisors employed by it shall not be
required to be bonded.

	 	 	IN WITNESS WHEREOF, the Committee has caused this Plan, as amended, to be adopted.

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]