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From AGEWiki

This ability kind allows elements to modify the Loyalty of a region.

The appliance level is usually 'Leader'.

These custom parameters apply:

• Param0: Coefficient, altering the Police value of troops (default should be 100)
• Param1: If current loyalty is under this value, loyalty will slowly raise toward this value.
• Param2: If current loyalty is above this value, loyalty will slowly decline toward this value.
• Param3: The actual value to use per turn for this raise/decline.
• Param4: Change in loyalty point per turn, no condition (up to 100) from params 1 or 2, params 5 and 6 still apply.
• Param5: if set to 1, change from this ability will not work if there is no city in region.
• Param6: if loyalty is above this value, the ability will be disabled. Put 101 so that it always works

Example, from AACW:

Hated_Occupant
This leader will apply with extreme severity Martial Law in any rebellious city he has to pacify.

Param0 = 150 
Param1 = 30
Param2 = 50
Param3 = 5
Param4 = 0
Param5 = 1
Param6 = 60

So this leader will increase Partol Values by 150%, force Loyalty below 30 to rise to 30,
force loyalty above 50 to decrease to 50, changing 5 per turn.
There is no "unrestricted" loyalty change. 
The Leader must be in command of a Group inside the city. 
The ability is disabled if loyalty is above 60.