Document:

mfnc_Ex4_1

		

			Exhibit 4.1

		

		
			DESCRIPTION OF THE REGISTRANT’S SECURITIES
		

		
			REGISTERED PURSUANT TO SECTION 12 OF THE
		

		
			SECURITIES EXCHANGE ACT OF 1934
		

		
			 
		

		
			As of March 12, 2020, Mackinac Financial Corporation had one class of common stock registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
		

		
			 
		

		
			The following description of our common stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our articles of incorporation (the “Articles”) and our third amended and restated bylaws (the “Bylaws”), each of which is incorporated herein by reference as an exhibit to the Annual Report on Form 10-K filed with the Securities and Exchange Commission, of which this Exhibit 4.1 is a part. We encourage you to read our Articles, our Bylaws and the applicable provisions of the Michigan Business Corporation Act  (as amended, the “MBCA”) for additional information.
		

		
			 
		

		
			Authorized Capital Stock
		

		
			        Our authorized capital stock consists of 18,000,000 shares of common stock, no par value per share, and 500,000 shares of preferred stock, no par value per share.  As of March 10, 2020, there were 10,755,178  shares of common stock issued and outstanding,  no shares of preferred stock outstanding and 61,145 shares of common stock to be issued upon vesting of restricted stock awards.  There are no redemption or sinking fund provisions applicable to our common stock. All outstanding shares of our common stock are validly issued, fully paid and non-assessable. 
		

		
			Voting Rights
		

		
			 
		

		
			Each holder of our common stock is entitled to one vote per share and will not have any right to cumulate votes in the election of directors. Directors are elected by a plurality of the shares actually voting on the matter. Our board of directors (the “Board”) is divided into three classes, as nearly equal in number as reasonably possible, with each class of directors serving for successive three-year terms so that each year the term of only one class of directors expires.  This structure may frustrate or prevent any attempts by our shareholders to replace or remove our current management or effect a change in control by making it more difficult for shareholders to replace members of the board of directors. When an action other than the election of directors is to be taken by a vote of the shareholders, it shall be authorized by a majority of the votes cast by the holders of shares entitled to vote, unless a greater plurality is required by the Articles or the MBCA. If we issue preferred stock, holders of such preferred stock may also possess voting rights.
		

		
			Dividend Rights
		

		
			We can pay dividends if, as and when declared by the Board, subject to compliance with limitations imposed by law. The holders of our common stock are entitled to receive and share equally in these dividends as they may be declared by the Board out of funds legally available for such purpose. If we issue any shares of its authorized preferred stock, the holders of such preferred stock may have a priority over the holders of the common stock with respect to dividends.
		

		
			Liquidation Rights
		

		
			 
		

		
			In the event of our liquidation, dissolution or winding up, whether voluntary or involuntary, the holders of our common stock would be entitled to receive, after payment or provision for payment of all its debts and liabilities, and payment or provision for payment of all required distributions with respect to outstanding shares of preferred stock, all of our assets available for distribution. If preferred stock is issued, 

		 

the holders thereof may have a priority over the holders of the common stock in the event of liquidation or dissolution.
		

		
			 
		

		
			Other Rights and Preferences
		

		
			 
		

		
			Under the MBCA, shareholders do not have preemptive rights unless the corporation’s articles of incorporation provide otherwise. Our Articles do not provide for preemptive rights. We do not have a rights plan in effect. Neither we nor holders of our common stock are parties to a shareholders’ agreement with respect to our capital stock.
		

		
			 
		

		
			Listing
		

		
			 
		

		
			Our common stock has been approved for listing on the NASDAQ Capital Market under the symbol “MFNC.”
		

		
			 
		

		
			Certain Provisions of Our Articles and Bylaws, Michigan Law and Federal Law
		

		
			 
		

		
			Articles and Bylaws
		

		
			 
		

		
			Our Articles provide that our directors will not be personally liable to us or our shareholders for money damages, except for liability (1) for any breach of the director’s duty of loyalty to us or our shareholders, (2) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (3) resulting from a violation of the MBCA, or (4) for any transaction from which the director derived an improper benefit.  Our Bylaws provide for the indemnification of directors and officers to the fullest extent authorized by law and of employees and agents to such extent as authorized by the board of directors and permitted by law.  Our Bylaws provide that we may purchase and maintain insurance on behalf of its directors, officers, employees and agents against any liability, whether or not we would have the power to indemnify such persons against such liability under our Articles. We maintain such insurance.
		

		
			 
		

		
			Michigan Law
		

		
			 
		

		
			We are subject to the provisions of Chapter 7A of the MBCA. Chapter 7A contains provisions that generally require that business combinations between a corporation that is subject to Chapter 7A and a beneficial owner of 10% or more of the voting power of the corporation be approved by a very high percentage of the shareholders. The vote required is the affirmative vote of at least 90% of the votes of each class of stock entitled to be cast and not less than two-thirds of the votes of each class of stock entitled to be cast by shareholders other than the 10% owner who is a party to the combination. The high vote requirements will not apply if (i) our board of directors approves the transaction prior to the time the 10% owner becomes such or (ii) the transaction satisfies the specified fairness standards, various other conditions are met and the 10% owner has been such for at least five years
		

		
			 
		

		
			Federal Law
		

		
			The Bank Holding Company Act, as amended (“BHCA”), requires any “bank holding company,” as defined in the BHCA, to obtain the approval of the Board of Governors of the Federal Reserve Board before acquiring 5% or more of our common stock. Any entity that is a holder of 25% or more of our common stock, or a holder of 5% or more if such holder otherwise exercises a “controlling influence” over us, is subject to regulation as a bank holding company under the BHCA. Any person, other than a bank holding company, is required to obtain the approval of the Federal Reserve Board before acquiring 10% or more of our common stock under the Change in Bank Control Act of 1978, as amended.
		

		
			

		 

		

		
			Transfer Agent and Registrar
		

		
			 
		

		
			The transfer agent and registrar for our common stock is Broadridge Corporate Issuer Solutions, Inc., 51 Mercedes Way, Edgewood, NY 11717.mfnc_Ex10_6

		

			Exhibit 10.6

		

		
			MACKINAC FINANCIAL CORPORATION
		

		
			2012 INCENTIVE COMPENSATION PLAN
		

		
			FORM OF RESTRICTED STOCK AWARD AGREEMENT
		

		
			 
		

		
			Mackinac Financial Corporation, a Michigan corporation  (the “Company”), as permitted by the Mackinac Financial Corporation 2012 Incentive Compensation Plan (the “Plan”), hereby grants to the individual named below (the “Participant”), a Restricted Stock Award  (this “Award”) for the number of shares of the Company’s Common Stock set forth below (the “Restricted Stock”), subject to the terms and conditions of the Plan and this Restricted Stock Award Agreement  (this “Agreement”).
		

		
			Unless otherwise defined in this Agreement,  capitalized terms used in this Agreement shall have the meanings set forth in the Plan.  The term “Service Provider” as used in this Agreement means an individual actively providing services to the Company or a Subsidiary of the Company.   
		

			
	
			
				 1.
			Notice of Restricted Stock Award.

			
					
						Participant:  

					
					
						 

				
	
					
						Date of Agreement:    

					
					
						 

				
	
					
						Grant Date:    

					
					
						 

				
	
					
						Number of Shares of Restricted Stock in Award:   

					
					
						 

				

		
			 
		

			
	
			
				 2.
			Grant of Restricted Stock.  The Company hereby grants to the Participant (who, pursuant to this Award is a Participant in the Plan) the number of shares of Restricted Stock set forth above, to be issued in accordance with the vesting schedule set forth below.  The Restricted Stock granted under this Agreement is payable only in shares of Common Stock of the Company.  Notwithstanding anything to the contrary anywhere else in this Agreement, the Restricted Stock in this Award is subject to the terms, definitions and provisions of the Plan,  which are incorporated by reference into this Agreement.  

			
	
			
				 3.
			Vesting.    The Restricted Stock will be issued and vest in ____ equal ____ installments beginning on ______ (each respective _________ period, a “Period of Restriction”) of the Grant Date, subject to the Participant’s continued status as a Service Provider through the end of each such Period of Restriction.

			
	
			
				 4.
			Termination of Services; Forfeiture.   Notwithstanding any other provision of this Agreement:

			
	
			
				 (a)
			Termination for Any Reason (Other than Death, Disability, or Retirement).  Any unvested shares of Restricted Stock subject to this Award shall be immediately canceled and forfeited if the Participant’s services with the Company or a Subsidiary are terminated for any reason (other than for death, Disability or Retirement as described below).

		
			

		 

		

			1

		

		

			34107101.1

		

		

			
	
			
				 (b)
			Death; Disability.  If the Participant ceases to be a Service Provider prior to the end of any Period of Restriction as a result of the Participant’s death or Disability, the Participant shall fully vest in the shares of Restricted Stock subject to this Award.  

			
	
			
				 (c)
			Retirement.  If the Participant ceases to be a Service Provider as a result of the Participant’s Retirement prior to the end of any Period of Restriction, the Participant shall continue to vest in such shares of Restricted Stock as if the Participant continued to be a Service Provider; provided, however, that if the Participant shall cease to be Retired (as such term is defined in the Plan) at any time any rights to shares of Restricted Stock remain subject to any Period of Restriction shall be immediately forfeited as of the date the Participant ceases to be Retired.  For purposes of this Agreement, “Retirement” shall mean the Participant’s resignation from the Company on or after the date upon which the Participant has attained at least sixty-five (65) years of age.

		
			The Company retains the right to accelerate the vesting and issuance of all or a portion of the shares of Restricted Stock subject to this Award.
		

			
	
			
				 5.
			Change in Control.    Upon the occurrence of a Change in Control, the Participant shall fully vest in the shares of Restricted Stock subject to this Award.   

			
	
			
				 6.
			Section 83(b).  If the Participant properly elects (as required by Section 83(b) of the Code) within thirty (30) days after the issuance of the Restricted Stock to include in gross income for federal income tax purposes in the year of issuance the Fair Market Value of such shares of Restricted Stock, the Participant shall pay to the Company or make arrangements satisfactory to the Company to pay to the Company upon such election, any federal, state or local taxes required to be withheld with respect to the Restricted Stock. If the Participant shall fail to make such payment, the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Participant any federal, state or local taxes of any kind required by law to be withheld with respect to the Restricted Stock. The Participant acknowledges that it is the Participant’s sole responsibility, and not the Company’s, to file timely and properly the election under Section 83(b) of the Code and any corresponding provisions of state tax laws if the Participant elects to make such election, and the Participant agrees to provide the Company with a copy of any such election within ten (10) calendar days of making such an election.

			
	
			
				 7.
			Adjustments.   In the event of any stock dividend, reclassification, subdivision or combination, or similar transaction affecting the Restricted Stock covered by this Award, the rights of the Participant will be adjusted as provided in Section 4 of the Plan.

			
	
			
				 8.
			Rights as Shareholder.    The Participant has all rights of a shareholder commencing on the date of the Company’s book entry evidencing the issuance of Restricted Stock under this Agreement.  

			
	
			
				 9.
			Non-Transferability of Award.    Except as described below, this Award and the shares of Restricted Stock subject to this Award may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, or disposed of in any manner other than by will or by the laws of descent or distribution until the termination of the applicable Period of 

		 

		

			2

		

		

			34107101.1

		

	Restriction.  Any attempt to sell, transfer, pledge, assign, or otherwise alienate or hypothecate, or dispose of in any manner any of the Restricted Stock contrary to the terms of this Agreement and/or the Plan shall be null and void and without legal effect.

			
	
			
				 10.
			Tax Withholding.    The Participant hereby agrees that the Participant shall make appropriate arrangements with the Company for such income and employment tax withholding as may be required of the Company under applicable U.S. federal, state or local law on account of this Award.  The Participant may satisfy the obligation(s), in whole or in part, by electing to make a payment to the Company in cash, by check or by other instrument acceptable to the Company.

			
	
			
				 11.
			The Plan; Amendment.  The Restricted Stock is subject in all respects to the terms, conditions, limitations and definitions contained in the Plan.  In the event of any discrepancy or inconsistency between this Agreement and the Plan, the terms and conditions of the Plan shall control.  The Committee shall have the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as provided in the Plan. This Agreement may also be modified or amended by a writing signed by both the Company and the Participant. The Company shall give written notice to the Participant of any such modification or amendment of this Agreement as soon as practicable after the adoption thereof.

			
	
			
				 12.
			Rights of Participants; Regulatory Requirements.  Without limiting the generality of any other provision of this Agreement or the Plan,  Articles 13 and 18 of the Plan pertaining to the Participants’ rights and Regulatory Requirements are hereby explicitly incorporated into this Agreement.

			
	
			
				 13.
			Notices.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Participant at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

			
	
			
				 14.
			Governing Law.  This Agreement is governed by and construed in accordance with the laws of the State of Michigan, notwithstanding conflict of law provisions.

			
	
			
				 15.
			Transfer of Personal Data.  The Participant authorizes, agrees and unambiguously consents to the transmission by the Company (or any Subsidiary) of any personal data information related to the Restricted Stock awarded under this Agreement for legitimate business purposes (including, without limitation, the administration of the Plan). This authorization and consent is freely given by the Participant.

			
	
			
				 16.
			Compliance with Laws.  The issuance of the Restricted Stock or unrestricted shares pursuant to this Agreement shall be subject to, and shall comply with, any applicable requirements of any foreign and U.S. federal and state securities laws, rules and regulations (including, without limitation, the provisions of the Securities Act of 1933, as amended, the Exchange Act and in each case any respective rules and regulations promulgated thereunder) and any other law or regulation applicable thereto. The Company shall not be obligated to issue the Restricted Stock or any of the shares pursuant to this Agreement if any such issuance would violate any such requirements.

		
			

		 

		

			3

		

		

			34107101.1

		

		

			
	
			
				 17.
			Binding Agreement; Assignment.  This Agreement shall inure to the benefit of, be binding upon, and be enforceable by, the Company and its successors and assigns. The Participant shall not assign (except in accordance with Section ‎9 hereof) any part of this Agreement without the prior express written consent of the Company.

			
	
			
				 18.
			Headings.  The titles and headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of this Agreement.

			
	
			
				 19.
			Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.

			
	
			
				 20.
			Severability.  The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

			
	
			
				 21.
			Acquired Rights.  The Participant acknowledges and agrees that: (a) the Company may terminate or amend the Plan at any time; (b) the award of Restricted Stock made under this Agreement is completely independent of any other award or grant and is made at the sole discretion of the Company; (c) no past grants or awards (including, without limitation, the Restricted Stock awarded hereunder) give the Participant any right to any grants or awards in the future whatsoever; and (d) any benefits granted under this Agreement are not part of the Participant’s ordinary salary, and shall not be considered as part of such salary in the event of severance, redundancy or resignation.

			
	
			
				 22.
			Beneficiary Designation.  The Participant hereby designates the following person(s) as the Participant’s beneficiary(ies) to whom shall be transferred any rights under this Award which survive the Participant’s death.  If the Participant names more than one primary beneficiary and one or more of such primary beneficiaries die, the deceased primary beneficiary’s interest will be apportioned among any surviving primary beneficiaries before any contingent beneficiary receives any amount, unless the Participant indicates otherwise in a signed and dated additional page.  The same rule shall apply within the category of contingent beneficiaries.  Unless the Participant has specified otherwise herein, any rights which survive the Participant’s death will be divided equally among the Participant’s primary beneficiaries or contingent beneficiaries, as the case may be.

		
			

		 

		

			4

		

		

			34107101.1

		

PRIMARY BENEFICIARY(IES)
		

		
			 
		

			
					
						   

					
					
						Name

					
					
						%

					
					
						Address

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(a)

					
					
						___________________________

					
					
						____

					
					
						____________________________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(b)

					
					
						___________________________

					
					
						____

					
					
						____________________________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(c)

					
					
						___________________________

					
					
						____

					
					
						____________________________

				

		
			 
		

		
			CONTINGENT BENEFICIARY(IES)
		

		
			 
		

			
					
						   

					
					
						Name

					
					
						%

					
					
						Address

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(a)

					
					
						___________________________

					
					
						____

					
					
						____________________________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(b)

					
					
						___________________________

					
					
						____

					
					
						____________________________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(c)

					
					
						___________________________

					
					
						____

					
					
						____________________________

				

		
			 
		

		
			 In the absence of an effective beneficiary designation, the Participant acknowledges that any rights under this Award which survive the Participant’s death shall be rights of his or her estate.
		

		
			Signature Page Follows
		

		
			

		 

		

			5

		

		

			34107101.1

		

This Agreement may be executed in two or more counterparts, each of which is deemed an original and all of which constitute one document.
		

		
			MACKINAC FINANCIAL CORPORATION
		

			
					
						Dated:  ____________

					
					
						By:

					
						Name:   

					
						Title:                       

				
	
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			THE PARTICIPANT ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS RESTRICTED STOCK AWARD AGREEMENT, NOR IN THE MACKINAC FINANCIAL CORPORATION 2012 INCENTIVE COMPENSATION PLAN, WHICH IS INCORPORATED INTO THIS AGREEMENT BY REFERENCE, CONFERS ON THE PARTICIPANT ANY RIGHT WITH RESPECT TO CONTINUATION AS A SERVICE PROVIDER OF THE COMPANY OR ANY PARENT OR ANY SUBSIDIARY OR AFFILIATE OF THE COMPANY, NOR INTERFERES IN ANY WAY WITH THE PARTICIPANT’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE THE PARTICIPANT’S SERVICE PROVIDER RELATIONSHIP AT ANY TIME, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR NOTICE.
		

		
			BY ACCEPTING THIS AGREEMENT,  THE PARTICIPANT ACKNOWLEDGES RECEIPT OF A COPY OF THE PLAN AND REPRESENTS THAT THE PARTICIPANT IS FAMILIAR WITH THE TERMS AND PROVISIONS OF THE PLAN.  THE PARTICIPANT ACCEPTS THIS RESTRICTED STOCK AWARD SUBJECT TO ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT.  THE PARTICIPANT HAS REVIEWED THE PLAN AND THIS AGREEMENT IN THEIR ENTIRETY.  THE PARTICIPANT AGREES TO ACCEPT AS BINDING, CONCLUSIVE AND FINAL ALL DECISIONS OR INTERPRETATIONS OF THE COMMITTEE UPON ANY QUESTIONS ARISING UNDER THE PLAN OR THIS AWARD.
		

			
					
						Dated:  _____________

					
					
						By: _______________________________________

					
						Name:  

				

		
			 
		

		 

		

			6

		

		

			34107101.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}]]