Document:

Sky Financial's 2002 Stock Option and Stock Appreciation Rights Plan

 
Exhibit 10.3

 
SKY FINANCIAL GROUP, INC.

 
2002 STOCK OPTION AND STOCK
APPRECIATION RIGHTS PLAN 
 
This is the Sky
Financial Group, Inc. 2002 Stock Option and Stock Appreciation Rights Plan (“Plan”) of Sky Financial Group, Inc. (the “Corporation” or “Company”), an Ohio corporation, under which (1) Incentive Stock Options and/or
Nonqualified Options to acquire shares of the Stock, and (2) Stock Appreciation Rights, may be granted from time to time to certain Eligible Persons of the Corporation and of any of its subsidiaries, including, without limitation, Sky Bank
(collectively, the “Subsidiaries,” and, individually, a Subsidiary), subject to the following provisions: 
 
ARTICLE I 
DEFINITIONS 
 
The following terms shall have the meanings set forth below.
Additional terms defined in this Plan shall have the meanings ascribed to them when first used herein. 
 
Board. The Board of Directors of Sky Financial Group, Inc. 
 
Change In Control Transaction. The occurrence of any one or more of the following: 
 

	 	(a)	 	Individuals who constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided that any
person becoming a director subsequent thereto whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval by the shareholders pursuant
to a proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a
director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall
be deemed to be an Incumbent Director; 

 

	 	(b)	 	Any “person” (as such term is defined in Section 3(a)(9) of the 1934 Act and as used in Sections 13(d)(3) and 14(d)(2) of the 1934 Act) is or becomes a
“beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of securities of the Company representing twenty-five percent (25%) or more of the combined voting power of the Company’s then outstanding
securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided, however, that the event described in this Section 13(b) shall not be deemed to be a Change in Control by virtue of any of the following
acquisitions: (i) by the Company or any Subsidiary, (ii) by any employee benefit plan (or related trust) 

 

 
sponsored or
maintained by the Company or any Subsidiary or (iii) by any underwriter temporarily holding securities pursuant to an offering of such securities. 
 

	 	(c)	 	The consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries that
requires the approval of the Company’s shareholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (i) more than sixty
percent (60%) of the total voting power of (x) the company resulting from such Business Combination (the “Surviving Company”), or (y) if applicable, the ultimate parent company that directly or indirectly has beneficial ownership of one
hundred percent (100%) of the voting securities eligible to elect directors of the Surviving Company (the “Parent Company”), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination
(or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power
of such Company Voting Securities among the holders thereof immediately prior to the Business Combination; (ii) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Company or the Parent
Company), is or becomes the beneficial owner, directly or indirectly, of twenty-five percent (25%) or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Company (or, if there is no Parent
Company, the Surviving Company); and (iii) at least fifty percent (50%) of the members of the board of directors of the Parent Company (of, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination
were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination; or 

 

	 	(d)	 	The shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or a sale of all or substantially all of the Company’s
assets. 

 
Notwithstanding the
foregoing, a Change in Control Transaction shall not be deemed to occur solely because any person acquires beneficial ownership of more than twenty-five percent (25%) of the Company Voting Securities as a result of the acquisition of Company Voting
Securities by the Company which reduces the number of Company Voting Securities outstanding; provided, however, that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that
increases the percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control Transaction shall then occur. 
 
Code. The Internal Revenue Code of 1986, as amended, together with the rules and regulations promulgated thereunder. 
 
Committee. The Compensation Committee of the Board.

 

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Common
Stock. The common stock of the Corporation. 
 
Death. The date of death (as established by the relevant death certificate) of an Eligible Person who has received Rights. 
 
Director Option. The award of a Nonqualified Option to a Nonemployee Director pursuant to Article V. 
 
Director Option Agreement. The agreement entered into
with respect to a Director Option pursuant to Article V. 
 
Disability. The date on which an Eligible Person who has received Rights becomes permanently and totally disabled within the meaning of Section 22(e)(3) of the Code, which shall be determined by the Committee on the basis of
such medical or other evidence as it may reasonably require or deem appropriate. 
 
Effective Date. The date as of which this Plan is effective, which shall be the date it is approved by the Company’s shareholders. 
 
Eligible Persons. Any (i) Employee employed by the
Company or a Subsidiary as an employee, including officers and prospective employees (conditioned upon them becoming employees) who are from time to time responsible for the management, growth and protection of the business of the Company and its
Subsidiaries, or (ii) Nonemployee Director, and who, in each case, meets the following conditions: 
 
(1) If no Registration shall have occurred with respect to the Rights or Stock underlying the Rights granted, such individual must have
such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the investment involved in the receipt and/or exercise of a Right. 
 
(2) Such individual, being otherwise an Eligible Person under
the foregoing items, shall have been selected by the Committee, with the approval of the Board, as a person to whom a Right or Rights shall be granted under the Plan. 
 
Employee. An individual with whom the Corporation or a Subsidiary has the legal and bona fide
relationship of employer and employee. In determining whether such relationship exists, the regulations of the United States Treasury Department relating to the determination of such relationship for the purpose of collection of income tax at the
source on wages shall be applied. 
 
Employee
Optionee. An Eligible Person Employee who is granted Options pursuant to Article III hereof. 
 
Fair Market Value. With respect to Common Stock and the granting of ISOs pursuant to this Plan, the market price per share of such Common Stock determined by the Committee, consistent with the
requirements of Section 422 of the Code and to the extent consistent therewith, as follows, as of the date specified in the context within which such term is used: 
 
 
 

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	 	(i)	 	if the Common Stock was traded on a stock exchange on the date in question, then the Fair Market Value will be equal to the closing price reported by the applicable
composite-transactions report for such date; 

 

	 	(ii)	 	if the Common Stock was traded over-the-counter on the date in question, and was classified as a national market issue, then the Fair Market Value will be equal to
the last transaction price quoted by the National Association of Securities Dealers Automated Quotation System (“NASDAQ”), National Market System (“NMS”); 

 

	 	(iii)	 	if the Common Stock was traded over-the-counter on the date in question but was not classified as a national market issue, then the Fair Market Value will be equal
to the average of the last reported representative bid and asked prices quoted by the NASDAQ for such date; and 

 

	 	(iv)	 	if none of the foregoing provisions is applicable, then the Fair Market Value will be determined by the Committee in good faith on such basis as it deems
appropriate, subject to the approval of the Board. In such case, the Committee shall maintain a written record of its method of determining Fair Market Value. 

 
ISO. An “incentive stock option” as defined in Section 422 of the Code. 
 
Just Cause Termination. A termination of employment for
cause by the Corporation or a Subsidiary of an Employee who is an Eligible Person. 
 
Nonemployee Director. A director of the Company or of a Subsidiary who is not also an Employee. 
 
Nonqualified Option. Any Option granted under this Plan whether designated by the Committee as a Nonqualified Option or any Option
designated as an ISO but which, for any reason, fails to qualify as an ISO pursuant to Section 422 of the Code and the rules and regulations thereunder. 
 
Option Agreement. The agreement between the Corporation and an Employee Optionee with respect to Options granted to such Employee
Optionee under Article III. 
 
Options. ISOs
and Nonqualified Options are collectively referred to herein as “Options”; provided, however, whenever reference is specifically made only to ISOs or Nonqualified Options, such reference shall be deemed to be made to the exclusion of the
other. 
 
Plan Pool. A total of two million
forty-six thousand one hundred seventy-eight (2,046,178) of authorized, but unissued, shares of Common Stock, as adjusted pursuant to Section 2.3(b), which shall be available as Stock under this Plan. 
 
Registration. The registration by the Corporation under
the 1933 Act and applicable state “Blue Sky” and securities laws of this Plan, the offering of Rights under this Plan, the offering of Stock under this Plan, and/or the Stock acquirable under this Plan. 
 

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Retirement. “Retirement” shall mean the termination of an Eligible Person’s employment under conditions which would constitute “normal retirement” or “early retirement” under any tax
qualified retirement plan maintained by the Corporation or a Subsidiary except in the case of a Just Cause Termination. 
 
Rights. The rights to exercise, purchase or receive any one or more of the Options and SARs described herein. 
 
Rights Agreement. Either an Option Agreement or a SAR
Agreement. 
 
SAR. The stock appreciation
right of a SAR Recipient to receive cash when, as, and in the amount described in Article IV. 
 
SAR Agreement. The agreement between the Corporation and a SAR Recipient with respect to the SAR awarded to the SAR Recipient, including such terms and conditions as are necessary or appropriate
under Article IV. 
 
SEC. The Securities and
Exchange Commission. 
 
Stock. The shares of
Common Stock in the Plan Pool available for grants of Rights. 
 
Tax Withholding Liability. All federal and state income taxes, social security tax, and any other taxes applicable to the compensation income arising from the transaction required by applicable law to be withheld by the
Corporation or any Subsidiary. 
 
Transfer.
The sale, assignment, transfer, conveyance, pledge, hypothecation, encumbrance, loan, gift, attachment, levy upon, assignment for the benefit of creditors, by operation of law (by will or descent and distribution), transfer by a qualified domestic
relations order, a property settlement or maintenance agreement, transfer by result of the bankruptcy laws or otherwise of a share of Stock or of a Right. 
 
1933 Act. The Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder. 
 
1934 Act. The Securities Exchange Act of 1934, as
amended, together with the rules and regulations promulgated thereunder. 
 
ARTICLE II 
GENERAL 
 
SECTION 2.1. PURPOSE. 
 
The purpose of this Plan is to (i) attract, secure, and retain qualified employees of outstanding ability and to provide additional
motivation to such employees to exert their best efforts on behalf of the Corporation and its Subsidiaries, and (ii) to increase the proprietary interest of Nonemployee Directors in the success of the Corporation and its Subsidiaries and to enhance
the Company’s ability to retain and attract experienced and knowledgeable directors. 
 

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These objectives will be
promoted through the granting of Rights to designated Eligible Persons and pursuant to the terms of this Plan. 
 
SECTION 2.2. ADMINISTRATION. 
 

	 	(a)	 	The Plan shall be administered by the Committee. Subject to the provisions of SEC Rule 16b-3(d), the Committee may designate any officers or Employees to assist in
the administration of the Plan, to execute documents on behalf of the Committee and to perform such other ministerial duties as may be delegated to them by the Committee. 

 

	 	(b)	 	Subject to the provisions of the Plan, the determinations (but not the interpretation and construction of any provision of the Plan which shall be solely in the
discretion of the Committee) by the Committee shall be recommended to the Board for approval, and when so approved by the Board shall be final and conclusive upon persons affected thereby. By way of illustration and not of limitation, the Committee
shall have the discretion, without the approval by the Board: 

 

	 	(i)	 	to construe and interpret the Plan and all Rights granted hereunder and to determine the terms and provisions (and amendments thereof) of the Rights granted under
the Plan (which need not be identical); 

 

	 	(ii)	 	to define the terms used in the Plan and in the Rights granted hereunder; 

 

	 	(iii)	 	to prescribe, amend and rescind the rules and regulations relating to the Plan; 

 

	 	(iv)	 	to interpret whether leaves of absence which may be granted to Eligible Persons by the Company constitute terminations of employment for the purposes of the Plan;
and 

 

	 	(v)	 	to make all other determinations and interpretations necessary or advisable for the administration of the Plan. 

 
By way of further illustration and not of limitation, the
Committee shall have the discretion with the approval of the Board: 
 

	 	(vi)	 	to determine the Eligible Persons to whom and the time or times at which such Rights shall be granted; 

 

	 	(vii)	 	to determine the number of shares to Stock, as and when applicable, to be subject to each Right; and 

 

	 	(viii)	 	to determine the exercise price or other relevant purchase price or value pertaining to a Right. 

 
 
 

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	 	(c)	 	Notwithstanding the foregoing, or any other provision of this Plan, the Committee will have no authority to determine any matters, or exercise any discretion, to the
extent that the power to make such determinations or to exercise such discretion would cause the loss of the exemption under SEC Rule 16b-3 of any grant or award hereunder. 

 

	 	(d)	 	It shall be in the discretion of the Committee, subject to approval by the Board, to grant Options to purchase shares of Stock which qualify as ISOs under the Code
or which will be given tax treatment as Nonqualified Options. Any Options granted which fail to satisfy the requirements for ISOs shall automatically become Nonqualified Options. 

 

	 	(e)	 	In the event Registration occurs, the Corporation shall make available to Eligible Persons receiving Rights and/or shares of Stock in connection therewith all
disclosure documents required under such federal and state laws. If such Registration shall not occur, the Committee shall be responsible for supplying the recipient of a Right and/or shares of Stock in connection therewith with such information
about the Corporation as is contemplated by the federal and state securities laws in connection with exemptions from the registration requirements of such laws, as well as providing the recipient of a Right with the opportunity to ask questions and
receive answers concerning the Corporation and the terms and conditions of the Rights granted under this Plan. 

 
In addition, if such Registration shall not occur, the Committee shall be responsible for determining the maximum number of Eligible
Persons and the suitability of particular persons to be Eligible Persons in order to comply with applicable federal and state securities statutes and regulations governing such exemptions. 
 

	 	(f)	 	In determining the Eligible Persons to whom Rights may be granted and the number of shares of Stock to be covered by each Right, the Committee and the Board shall
take into account the nature of the services rendered by such Eligible Persons, their present and potential contributions to the success of the Corporation and/or a Subsidiary and such other factors as the Committee and the Board shall deem
relevant. An Eligible Person who has been granted a Right under this Plan may be granted an additional Right or Rights under this Plan if the Committee and the Board shall so determine. If, pursuant to the terms of this Plan, or otherwise in
connection with this Plan, it is necessary that the percentage of Stock ownership of an Eligible Person be determined, the ownership attribution provisions set forth in Section 424(d) of the Code shall be controlling. 

 

	 	(g)	 	The granting of Rights pursuant to this Plan is in the exclusive discretion of the Board, and until the Board acts, no individual shall have any rights under this
Plan. The terms of this Plan shall be interpreted in accordance with this intent. 

 

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SECTION 2.3. STOCK
AVAILABLE FOR RIGHTS. 
 

	 	(a)	 	The total number of shares of Stock for which, or with respect to which, Rights may be granted under this Plan shall be those designated in the Plan Pool. In the
event that a Right granted under this Plan to any Eligible Person expires or is terminated or is unexercised as to any shares of Stock covered thereby, such shares of Stock thereafter shall be deemed available in the Plan Pool for the granting of
Rights under this Plan; provided, however, if the expiration or termination date of a Right is beyond the term of existence of this Plan as described in Section 6.3, then any shares of Stock covered by unexercised or terminated Rights shall not
reactivate the existence of this Plan. 

 

	 	(b)	 	In the event the outstanding shares of Common Stock are increased, decreased, changed into or exchanged for a different number or kind of securities as a result of a
stock split, reverse stock split, stock dividend, recapitalization, merger, share exchange, acquisition, combination or reclassification, appropriate proportionate adjustments will be made in: (i) the aggregate number and/or kind of shares of Stock
in the Plan Pool that may be issued pursuant to the exercise of, or that are underlying, Rights granted hereunder; (ii) the exercise or other purchase price or value pertaining to, and the number and/or kind of shares of Stock called for with
respect to, or underlying, each outstanding Right granted hereunder; and (iii) other rights and matters determined on a per share basis under this Plan or any Rights Agreement. Any such adjustments will be made only by the Committee, subject to
approval by the Board, and when so approved will be effective, conclusive and binding for all purposes with respect to this Plan and all Rights then outstanding. No such adjustments will be required by reason of the issuance or sale by the
Corporation for cash of additional shares of its Common Stock or securities convertible into or exchangeable for shares of its Common Stock. 

 

	 	(c)	 	The grant of a Right pursuant to this Plan shall not affect in any way the right or power of the Corporation to make adjustments, reclassifications, reorganizations
or changes in its capital or business structure or to merge or to consolidate or to dissolve, liquidate, or sell, or transfer all or any part of its business or assets. 

 

	 	(d)	 	No fractional shares of Stock shall be issued under this Plan. 

 
SECTION 2.4. SEVERABLE PROVISIONS. 
 
The Corporation intends that the provisions of each of Articles III, IV and V, in each case together with
Articles I and II, shall each be deemed to be effective on an independent basis, and that if one or more of such Articles, or the operative provisions thereof, shall be deemed invalid, void or voidable, the remainder of such Articles shall continue
in full force and effect. 
 

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ARTICLE III

EMPLOYEE OPTIONS 
 
SECTION 3.1. GRANT OF OPTIONS. 
 

	 	(a)	 	The Company may grant Options to Employees who are Eligible Persons as provided in this Article III. Options will be deemed granted pursuant to this Article III only
upon (i) authorization by the Committee, (ii) the approval of such grant by the Board, and (iii) the execution and delivery of an Option Agreement by the Eligible Person Employee (the “Employee Optionee”) and a duly authorized officer of
the Company. Options will not be deemed granted hereunder merely upon authorization of such grant by the Committee. The aggregate number of shares of Stock potentially acquirable under all Options granted shall not exceed the total number of shares
of Stock remaining in the Plan Pool, less all shares of Stock potentially acquired under, or underlying, all other Rights outstanding under this Plan. 

 

	 	(b)	 	Subject to approval by the Board, the Committee shall designate, at the time a grant is authorized, Options as either ISOs or Nonqualified Options. In accordance
with Section 422(d) of the Code, the aggregate Fair Market Value (determined as of the date an ISO is granted) of the shares of Stock as to which an ISO may first become exercisable by an Employee Optionee in a particular calendar year (pursuant to
Article III and all other plans of the Company and/or its Subsidiaries) may not exceed $100,000 (the “$100,000 Limitation”). If an Employee Optionee is granted Options in excess of the $100,000 Limitation, or if such Options otherwise
become exercisable with respect to a number of shares of Stock which would exceed the $100,000 Limitation, such excess Options shall be Nonqualified Options instead of ISOs. 

 

	 	(c)	 	Notwithstanding the foregoing, the Board may delegate authority to the Company’s Chief Executive Officer to grant specified numbers of Options (as determined by
the Board from time to time and during such time periods determined by the Board) to existing or prospective Employees as the Chief Executive Officer determines appropriate without further action of the Board. 

 
SECTION 3.2. EXERCISE PRICE. 
 
Subject to approval by the Board, the initial exercise price
of each Option granted under this Plan (the “Exercise Price”) shall be determined by the Committee; provided, however, that the Exercise Price of an ISO shall not be less than (i) the Fair Market Value of the Common Stock on the date of
grant of the Option, in the case of any Eligible Person who does not own capital stock of the Company possessing more than ten percent (10%) of the total combined voting power of all classes of the capital stock of the Company (within the meaning of
Section 422(b)(6) of the Code), or (ii) one hundred ten percent (110%) of such Fair Market Value in the case of any Eligible Person who owns stock in excess of such amount. 
 

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SECTION 3.3. TERMS AND
CONDITIONS OF OPTIONS. 
 

	 	(a)	 	All Options must be granted within ten (10) years of the Effective Date. 

 

	 	(b)	 	The Committee, subject to approval by the Board, may grant ISOs and Nonqualified Options, either separately or jointly, to an Employee Optionee.

 

	 	(c)	 	Each grant of Options shall be evidenced by an Option Agreement in form and substance satisfactory to the Committee in its discretion, consistent with the provisions
of this Article III. 

 

	 	(d)	 	At the discretion of the Committee, an Employee Optionee, as a condition to the granting of an Option, may be required to execute and deliver to the Company a
nonsolicitation and/or noncompetition agreement approved by the Committee. 

 

	 	(e)	 	Nothing contained in Article III, any Option Agreement, or any other agreement executed in connection with the granting of an Option under this Article III will
confer upon any Employee Optionee any right with respect to the continuation of his or her status as an Employee of the Company or any of its Subsidiaries. 

 

	 	(f)	 	Except as otherwise provided herein, each Option Agreement shall specify the period or periods of time within which each Option or portion thereof will first become
exercisable (the “Vesting Period”) with respect to the total number of shares of Stock acquirable thereunder; provided, however, that unless otherwise specified in the Option Agreement, the Vesting Period of each Option shall be as
follows: 

 

	 Time

	    	 Amount Exercisable

	 After second year anniversary of date of grant:
	    	 40%

	 After third year anniversary of date of grant:
	    	 60%

	 After fourth year anniversary of date of grant:
	    	 80%

	 After fifth year anniversary of date of grant:
	    	 100%

 
;
provided, however, that in the event of an Employee Optionee’ s Retirement, Death or Disability or a Change in Control Transaction, any Option then outstanding shall become fully vested and immediately exercisable unless the applicable Option
Agreement provides otherwise. 
 

	 	(g)	 	Not less than one hundred (100) shares of Stock may be purchased at any one time through the exercise of an Option unless the number of shares of Stock purchased
equals the total number at that time purchasable under all Options granted to the Employee Optionee. 

 

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	 	(h)	 	An Employee Optionee shall have no rights as a shareholder of the Company with respect to any shares of Stock covered by Options granted to the Employee Optionee
until payment in full of the Exercise Price by such Employee Optionee for the shares being purchased. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other
rights for which the record date is prior to the date such Stock is fully paid for, except as provided in Section 2.3(b). 

 
SECTION 3.4. EXERCISE OF OPTIONS. 
 

	 	(a)	 	An Employee Optionee must be an Eligible Person at all times from the date of grant until the exercise of the Options granted, except as provided in Section 3.5(b).

 

	 	(b)	 	An Option may be exercised to the extent exercisable (i) by giving written notice of exercise to the Company, specifying the number of full shares of Stock to be
purchased and, if applicable, accompanied by full payment of the Exercise Price thereof and the amount of the Tax Withholding Liability pursuant to Section 3.4(c) below; and (ii) by giving assurances satisfactory to the Company that the shares of
Stock to be purchased upon such exercise are being purchased for investment and not with a view to resale in connection with any distribution of such shares in violation of the 1933 Act; provided, however, that in the event the prior occurrence of
the Registration or in the event resale of such Stock without such Registration would otherwise be permissible, this second condition will be inoperative if, in the opinion of counsel for the Company, such condition is not required under the 1933
Act or any other applicable law, regulation or rule of any governmental agency. 

 

	 	(c)	 	As a condition to the issuance of the shares of Stock upon full or partial exercise of a Nonqualified Option, the Employee Optionee will pay to the Company in cash,
or in such other form as the Committee may determine in its discretion, the amount of the Company’s Tax Withholding Liability required in connection with such exercise. 

 

	 	(d)	 	The Exercise Price of an Option shall be payable to the Company either (i) in United States dollars, in cash or by check, or money order payable to the order of the
Company, or (ii) unless the applicable Option Agreement provides otherwise, through the delivery of shares of Stock owned by the Employee Optionee having a Fair Market Value as of the date of delivery equal to the Exercise Price, or (iii) at the
discretion of the Committee, by a combination of (i) and (ii) above, or (iv) unless the applicable Option Agreement provides otherwise, at the discretion of the Committee and to the extent permitted by law, by cashless exercise through a broker or
by such other method as the Committee may from time to time prescribe, or (v) in the case of a Nonqualified Option, in accordance with the provisions of Article III Deferral of Stock Option Income and related provisions of the Sky Financial Group,
Inc. Non-Qualified Retirement Plan (or any successor plan thereto). 

 

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SECTION 3.5. TERM AND
TERMINATION OF OPTIONS. 
 

	 	(a)	 	Subject to approval by the Board, the Committee shall determine, and each Option Agreement shall state, the expiration date or dates of each Option, but such
expiration date shall be not later than ten (10) years after the date such Option was granted (the “Option Period”). In the event an ISO is granted to a 10% Shareholder, the expiration date or dates of each Option Period shall be not later
than five (5) years after the date such ISO is granted. Subject to approval by the Board, the Committee may extend the expiration date or dates of an Option Period of any Nonqualified Option after such date was originally set; provided, however such
expiration date may not exceed the maximum expiration date described in this Section 3.5(a). 

 

	 	(b)	 	Prior to the expiration of the Option Period of a Nonqualified Option, the unexercised Nonqualified Option shall automatically and without notice expire and become
null and void at the time of the earliest to occur of the following, unless otherwise determined by the Committee: 

 
(i) the expiration of thirty-six (36) months after the date of the Employee Optionee’ s termination of employment
due to retirement in accordance with Company policy; provided, however, that if the Employee Optionee dies within such thirty-six (36) month period post-retirement date period, any unexercised Nonqualified Option may thereafter be exercised by the
legal representative of the Employee Optionee’s estate or by the legatee of such Nonqualified Option under the Employee Optionee’s last will and testament (or in accordance with the laws of descent and distribution if the Employee Optionee
did not have a valid last will and testament) for a period of twelve (12) months after the date of the Employee Optionee’s death or the expiration of the Option Period, if shorter; 
 
(ii) the expiration of twelve (12) months following the date of death or date of termination
of employment due to permanent disability of the Employee Optionee; 
 
(iii) the expiration of ninety (90) days following the date of the Employee Optionee’s termination of employment for reasons other than retirement, permanent disability, death or Just Cause
Termination; or 
 
(iv) the date
the Employee Optionee ceases to be an Employee by reason of a Just Cause Termination. 
 

	 	(c)	 	Prior to the expiration of the Option Period of an ISO, the unexercised ISO shall automatically and without notice expire and become null and void at the time of the
earliest to occur of the following, unless otherwise determined by the Committee in compliance with the requirements of Code Section 422: 

 

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(i) the expiration of three (3) months after the date of the Employee Optionee’s termination of employment due to retirement in accordance with Company policy; provided, however, that if the Employee Optionee dies within such
three (3) month period post-retirement date period, any unexercised ISO may thereafter be exercised by the legal representative of the Employee Optionee’s estate or by the legatee of such ISO under the Employee Optionee’s last will and
testament (or in accordance with the laws of descent and distribution if the Employee Optionee did not have a valid last will and testament) during the balance of such three (3) month period or the expiration of the Option Period, if shorter;

 
(ii) the expiration of one (1)
year following the date of termination of employment due to permanent disability of the Employee Optionee; 
 
(iii) the expiration of three (3) months following the date of death of the Employee Optionee; 
 
(iv) the expiration of three (3) months
following the date of the Employee Optionee’s termination of employment for reasons other than retirement, permanent disability, or death or Just Cause Termination; or 
 
(v) the date the Employee Optionee ceases to be an Employee by reason of a Just Cause
Termination. 
 

	 	(d)	 	Notwithstanding the foregoing, if an Employee Optionee’s employment is terminated due to a Just Cause Termination, the Employee Optionee’s Options shall
thereupon terminate and no Options shall thereafter be exercisable by such Employee Optionee. In addition, if at any time within one (1) year of the date of which an Employee Optionee exercises an Option, the Employee Optionee (i) incurs a Just
Cause Termination, and/or (ii) engages in any activity determined in the discretion of the Committee to be in competition with any activity, or otherwise inimical, contrary or harmful to the interests of the Company or any Subsidiary (including, but
not limited to, accepting employment with or serving as a consultant, advisor or in any other capacity to an entity that is in competition with or acting against the interests of the Company or any Subsidiary), then an amount of cash equal to any
gain (“Gain”) realized by the Employee Optionee from the exercise of any of the Employee Optionee’s Options shall be paid by the Employee Optionee to the Company immediately upon notice from the Company. Such Gain shall be determined
as of the Option exercise date, without regard to any subsequent change in the Fair Market Value of the Common Stock. The Company shall have the right to offset such Gain against any amounts otherwise owed to the Employee Optionee by the Company or
any Subsidiary (whether as wages, vacation pay, or pursuant to any benefit plan or other compensatory arrangement). 

 

-13- 

 
SECTION 3.6. CHANGE IN
CONTROL TRANSACTION. 
 
All of the Options
granted under this Article III shall become immediately exercisable in full upon the public announcement of a Change in Control Transaction, and may thereafter be exercised at any time before the date of consummation of the Change in Control
Transaction (except as otherwise provided in Article II hereof, and except to the extent that such acceleration of exercisability would result in an “excess parachute payment” within the meaning of Section 280G of the Code). Any Option
that has not been fully exercised before the date of consummation of the Change in Control Transaction shall terminate on such date, unless a provision has been made in writing in connection with such transaction for the assumption of all Options
theretofore granted, or the substitution for such Options of options to acquire the voting stock of a successor employer corporation, or a parent or a subsidiary thereof, with adjustments as the Committee determines appropriate, in which event the
Options theretofore granted shall continue in the manner and under the terms so provided. 
 
SECTION 3.7. RESTRICTIONS ON TRANSFER. 
 
Except as otherwise determined by the Committee solely with respect to Nonqualified Options, an Option granted under this Article III may not be Transferred except by last will and testament or the laws of descent and
distribution and, during the lifetime of the Employee Optionee to whom it was granted, may be exercised only by such Employee Optionee. 
 
SECTION 3.8. STOCK CERTIFICATES. 
 
Certificates representing the Stock issued pursuant to the exercise of Options will bear all legends required by law and necessary to
effectuate the provisions hereof. The Company may place a “stop transfer” order against such shares of Stock until all restrictions and conditions set forth in this Article III, the applicable Option Agreement, and in the legends referred
to in this Section 3.8 have been complied with. 
 
SECTION 3.9.
AMENDMENT AND DISCONTINUANCE. 
 
The Board may
amend, suspend or discontinue the provisions of this Article III at any time or from time to time; provided that any action of the Board will not cause ISOs granted under this Plan to fail to comply with Section 422 of the Code unless the Board
specifically declares such action to be made for that purpose; and, provided, further, that no such action may, without the approval of the shareholders of the Company, materially increase (other than by reason of an adjustment pursuant to Section
2.3(b) hereof) the aggregate number of shares of Stock in the Plan Pool, materially increase the benefits accruing to Eligible Persons or materially modify eligibility requirements for participation under this Article III. Moreover, no such action
may alter or impair any Option previously granted under this Article III without the consent of the applicable Employee Optionee. 
 
SECTION 3.10. COMPLIANCE WITH RULE 16b-3. 
 
With respect to persons subject to Section 16 of the 1934 Act, transactions under this Article III are intended to comply with all
applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To the extent any provision of this Article III or action by the Board or the 
 

-14- 

 
Committee fails so to comply,
it shall be deemed null and void to the extent permitted by law and deemed advisable by the Committee and the Board. 
 
ARTICLE IV 
STOCK APPRECIATION RIGHTS

 
SECTION 4.1. GRANTS OF SARS. 
 

	 	(a)	 	The Corporation may grant SARs under this Article IV. SARs will be deemed granted only upon (i) authorization by the Committee, (ii) approval by the Board, and (iii)
the execution and delivery of a SAR Agreement by the Eligible Person to whom the SARs are to be granted (the “SAR Recipient”) and a duly authorized officer of the Corporation. SARs will not be deemed granted merely upon authorization by
the Committee. The aggregate number of shares of Stock which shall underlie SARs granted hereunder shall not exceed the total number of shares of Stock remaining in the Plan Pool, less all shares of Stock potentially acquirable under or underlying
all other Rights outstanding under this Plan. 

 

	 	(b)	 	Each grant of SARs pursuant to this Article IV shall be evidenced by a SAR Agreement between the Corporation and the SAR Recipient, in form and substance
satisfactory to the Committee in its sole discretion, consistent with this Article IV. 

 
SECTION 4.2. TERMS AND CONDITIONS OF SARS. 
 

	 	(a)	 	All SARs must be granted within ten (10) years of the Effective Date. 

 

	 	(b)	 	Each SAR issued pursuant to this Article IV shall have an initial base value (the “Base Value”) equal to the Fair Market Value of a share of Common Stock
on the date of issuance of the SAR. 

 

	 	(c)	 	At the discretion of the Committee, a SAR Recipient, as a condition to the granting of a SAR, may be required to execute and deliver to the Corporation a
nonsolicitation and/or noncompetition agreement approved by the Committee. 

 

	 	(d)	 	Nothing contained in this Article IV, any SAR Agreement or in any other agreement executed in connection with the granting of a SAR under this Article IV will confer
upon any SAR Recipient any right with respect to the continuation of his or her status as an Employee or Nonemployee Director of the Corporation or any of its Subsidiaries. 

 

	 	(e)	 	Except as otherwise provided herein, each SAR Agreement may specify the period or periods of time within which each SAR, or portion thereof, will first become
exercisable (the “SAR Vesting Period”). Such SAR Vesting Period shall be fixed by the Committee, subject to approval by the Board, and may be accelerated or shortened by the Committee, subject to approval by the Board.

 
 
 

-15- 

 
 

	 	(f)	 	SARs relating to no less than one hundred (100) shares of Stock may be exercised at any one time unless the number SARs exercised is the total number of all SARs at
that time exercisable by the SAR Recipient. 

 

	 	(g)	 	A SAR Recipient shall have no rights as a shareholder of the Corporation with respect to any shares of Stock underlying such SAR. No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights, except as provided in Section 2.3(b). 

 
SECTION 4.3. RESTRICTIONS ON TRANSFER OF SARS. 
 
Except as otherwise determined by the Committee or as provided in Section 4.7, SARs granted under this
Article IV may not be Transferred and during the lifetime of the SAR Recipient to whom it was granted, may be exercised only by such SAR Recipient. 
 
SECTION 4.4. EXERCISE OF SARS. 
 

	 	(a)	 	A SAR Recipient (or his or her executors or administrators, or heirs or legatees) shall exercise a SAR by giving written notice of such exercise to the Corporation.
SARs may be exercised only upon the completion of the SAR Vesting Period, if any, applicable to such SAR (the date such notice is received by the Corporation being referred to herein as the “SAR Exercise Date”). 

 

	 	(b)	 	Within thirty (30) business days of the SAR Exercise Date applicable to a SAR exercised in accordance with Section 4.4(a), the SAR Recipient shall be paid in cash
the difference between the Base Value of such SAR and the Fair Market Value of the Common Stock as of the SAR Exercise Date, as such difference is reduced by the Company’s Tax Withholding Liability arising from such exercise.

 
SECTION 4.5. TERMINATION OF SARS.

 
Subject to approval by the Board, the
Committee shall determine, and each SAR Agreement shall state, the expiration date or dates of each SAR, but such expiration date shall be not later than ten (10) years after the date such SAR is granted (the “SAR Period”). Subject to
approval by the Board, the Committee may extend the expiration date or dates of a SAR Period after such date was originally set; provided, however, such expiration date may not exceed the maximum expiration date described in this Section 4.5.

 
Notwithstanding the foregoing, if an
Employee’s employment is terminated due to a Just Cause Termination, the Employee’s SARs shall thereupon terminate and no SARs shall thereafter be exercisable by such Employee. In addition, if at any time within one (1) year of the date of
which an Employee exercises SARs, the Employee (i) incurs a Just Cause Termination, and/or (ii) engages in any activity determined in the discretion of the Committee to be in competition with any activity, or otherwise inimical, contrary or harmful
to the interests of the Company or any Subsidiary (including, but not limited to, accepting employment with or serving as a consultant, advisor or in any other capacity to an entity that is in competition with or acting against the interests of the
Company or any Subsidiary), then an amount of cash equal to any gain (“Gain”) realized by the Employee from the exercise of any of the Employee’s SARs shall 
 

-16- 

 
be paid by the Employee to the
Company immediately upon notice from the Company. Such Gain shall be determined as of the SAR exercise date, without regard to any subsequent change in the Fair Market Value of the Common Stock. The Company shall have the right to offset such Gain
against any amounts otherwise owed to the Employee by the Company or any Subsidiary (whether as wages, vacation pay, or pursuant to any benefit plan or other compensatory arrangement). 
 
SECTION 4.6. CHANGE IN CONTROL TRANSACTION. 
 
At any time prior to the date of consummation of a Change in Control Transaction, the Committee may, in its
absolute discretion, determine that all or any part of the SARs theretofore granted under this Article IV shall become immediately exercisable in full and may thereafter be exercised at any time before the date of consummation of the Change in
Control Transaction (except as otherwise provided in Article II hereof, and except to the extent that such acceleration of exercisability would result in an excess parachute payment within the meaning of Section 280G of the Code). Any SAR that has
not been fully exercised before the date of consummation of the Change in Control Transaction shall terminate on such date, unless a provision has been made in writing in connection with such transaction for the assumption of all SARs theretofore
granted, or the substitution for such SARs of grants of stock appreciation rights having comparable characteristics under a stock appreciation rights plan of a successor employer corporation or bank, or a parent or a subsidiary thereof, with
adjustments the Committee determines appropriate, in which event the SARs theretofore granted shall continue in the manner and under the terms so provided. 
 
SECTION 4.7. DESIGNATION OF BENEFICIARIES. 
 
A SAR Recipient may designate a beneficiary or beneficiaries to receive all or part of the cash to be paid to the SAR Recipient under this
Article IV in case of Death. A designation of beneficiary may be replaced by a new designation or may be revoked by the SAR recipient at any time. A designation or revocation shall be on a form to be provided for that purpose and shall be signed by
the SAR Recipient and delivered to the Corporation prior to the SAR recipient’s Death. In case of the SAR Recipient’s Death, the amounts to be distributed to the SAR Recipient under this Article IV with respect to which a designation of
beneficiary has been made (to the extent it is valid and enforceable under applicable law) shall be distributed in accordance with this Article IV to the designated beneficiary or beneficiaries. The amount distributable to a SAR Recipient upon Death
and not subject to such a designation shall be distributed to the SAR Recipient’s estate. If there shall be any question as to the legal right of any beneficiary to receive a distribution under this Article IV, the amount in question may be
paid to the estate of the SAR Recipient in which event the Corporation shall have no further liability to anyone with respect to such amount. 
 
SECTION 4.8. AMENDMENT AND DISCONTINUANCE. 
 
The Board may amend, suspend or discontinue the provisions of this Article IV at any time or from time to time provided that no action of
the Board may, without the approval of the shareholders of the Corporation materially increase (other than by reason of an adjustment pursuant to Section 2.3(b) hereof) the maximum aggregate number of shares of Stock in the Plan 
 

-17- 

 
Pool, materially increase the
benefits accruing to Eligible Persons or materially modify eligibility requirements for participation under this Article IV. Moreover, no such action may alter or impair any SAR previously granted under this Article IV without the consent of the
applicable SAR Recipient. 
 
SECTION 4.9. COMPLIANCE WITH RULE
16b-3. 
 
With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article IV are intended to comply with all applicable conditions of Rule l6b-3 or its successors under the 1934 Act. To the extent any provision of this Article IV or action by the Board or the
Committee fails so to comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee and the Board. 
 
ARTICLE V 
OPTIONS TO NONEMPLOYEE DIRECTORS 
 
SECTION 5.1. GRANTS OF DIRECTOR OPTIONS. 
 
On an annual basis during the term of this Plan, the Committee, shall, in its sole discretion, from among Eligible Persons, select the Nonemployee Directors who shall receive Director Options and determine the number of Director
Options to be granted to each such Nonemployee Director. 
 
SECTION 5.2. EXERCISE PRICE. 
 

	 	(a)	 	The exercise price of each Director Option granted under this Plan (the “Exercise Price”) shall be the Fair Market Value of the Common Stock on the date of
grant of the Director Option. 

 
SECTION 5.3 TERMS
AND CONDITIONS OF DIRECTOR OPTIONS. 
 

	 	(a)	 	All grants of Director Options must be made within ten (10) years of the Effective Date. 

 

	 	(b)	 	Each Director Option shall be evidenced by a Director Option Agreement, which shall contain such provisions as may be determined by the Committee, consistent with
this Article V. 

 

	 	(c)	 	Not less that one hundred (100) shares of Stock may be purchased at any one time through the exercise of a Director Option unless the number of shares of Stock
purchased equals the total number at that time purchasable under all Director Options granted to the Nonemployee Director. 

 

	 	(d)	 	A Nonemployee Director shall have no rights as a shareholder of the Company with respect to any shares of Stock covered by Director Options granted to the Director
until payment in full of the Exercise Price by such Director for the shares being purchased. No adjustment shall be made for dividends (ordinary or 

 

-18- 

 
extraordinary,
whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such Stock is fully paid for, except as provided in Section 2.3(b). 
 

	 	(e)	 	Additionally and notwithstanding any other provisions of this Article V, no shares of Stock obtained pursuant to the exercise of a Director Option may be Transferred
until at least six (6) months and one (1) day shall have elapsed since the date such Director Option was granted. 

 
SECTION 5.4. EXERCISE OF DIRECTOR OPTIONS. 
 

	 	(a)	 	A Director Option may be exercised to the extent exercisable (i) by giving written notice of exercise to the Company, specifying the number of full shares of Stock
to be purchased and, if applicable, accompanied by full payment of the Exercise Price thereof and the amount of the Tax Withholding; and (ii) by giving assurances satisfactory to the Company that the shares of Stock to be purchased upon such
exercise are being purchased for investment and not with a view to resale in connection with any distribution of such shares in violation of the 1933 Act; provided, however, that in the event the prior occurrence of the Registration or in the event
resale of such Stock without such Registration would otherwise be permissible this second condition will be inoperative if, in the opinion of counsel for the Company, such condition is not required under the 1933 Act or any other applicable law,
regulation or rule of any governmental agency. 

 

	 	(b)	 	As a condition to the issuance of the shares of Stock upon full or partial exercise of a Director Option, the Nonemployee Director will pay to the Company in cash,
or in such other form as the Committee may determine in its discretion, the amount of the Company’s Tax Withholding Liability required in connection with such exercise. 

 

	 	(c)	 	The Exercise Price of a Director Option shall be payable to the Company either (i) in United States dollars, in cash or by check, or money order payable to the order
of the Company, or (ii) unless the applicable Director Option Agreement provides otherwise, at the discretion of the Committee and the Board, through the delivery of shares of Stock owned by the Nonemployee Director for at least six months prior to
the Director Option Exercise Date having a Fair Market Value as of the date of delivery equal to the Exercise Price, or (iii) at the discretion of the Committee and the Board, by a combination of (i) and (ii) above, or (iv) unless the applicable
Director Option Agreement provides otherwise, at the discretion of the Committee and to the extent permitted by law, by cashless exercise through a broker or by such other method as the Committee may from time to time prescribe, or (v) in accordance
with the provisions of Article III Deferral of Stock Option Income and related provisions of the Sky Financial Group, Inc. Non-Qualified Retirement Plan (or any successor plan thereto). 

 
 
 
 

-19- 

 
SECTION 5.5. TERM AND
TERMINATION OF DIRECTOR OPTIONS. 
 

	 	(a)	 	The term of each Director Option (“Term”), after which each such Director Option shall expire, shall be ten (10) years from the date of grant.

 

	 	(b)	 	Prior to the expiration of the Term of a Director Option, the unexercised portion of each Director Option shall automatically and without notice expire and become
null and void at the time of the earliest to occur of the following, unless otherwise determined by the Committee: 

 
(i) the expiration of thirty-six (36) months after the date of the Nonemployee Director’s termination of as a
Nonemployee Director due to retirement in accordance with Company policy; provided, however, that if the Nonemployee Director dies within such thirty-six (36) month period post-retirement date period, any unexercised Director Option may thereafter
be exercised by the legal representative of the Nonemployee Director’s estate or by the legatee of such Director Option under the Nonemployee Director’s last will and testament (or in accordance with the laws of descent and distribution if
the Nonemployee Director did not have a valid last will and testament) for a period of twelve (12) months after the date of the Nonemployee Director’s death or the expiration of the Term, if shorter; 
 
(ii) the expiration of ninety (90) days after
the optionee ceases to be a Nonemployee Director, other than by reason of retirement, permanent disability, death, or for cause; or 
 
(iii) the expiration of twelve (12) months following the date of death or date of termination of service as a Nonemployee
Director due to permanent disability of the optionee. 
 
SECTION
5.6. CHANGE IN CONTROL TRANSACTION. 
 
At any
time prior to the date of consummation of a Change in Control Transaction, the Committee may, in its absolute discretion, determine that all or any part of the Director Options theretofore granted under this Article V shall become immediately
exercisable in full and may thereafter be exercised at any time before the date of consummation of the Change in Control Transaction (except as otherwise provided in Article II hereof). Any Director Option that has not been fully exercised before
the date of consummation of the Change in Control Transaction shall terminate on such date, unless a provision has been made in writing in connection with such transaction for the assumption of all Director Options theretofore granted, or the
substitution for such Director Options of options to acquire the voting stock of a successor employer corporation, or a parent or a subsidiary thereof, with adjustments as the Committee determines appropriate, in which event the Director Options
theretofore granted shall continue in the manner and under the terms so provided. 
 
 

-20- 

 
SECTION 5.7. RESTRICTIONS
ON TRANSFER. 
 
Director Options shall not be
transferable except by last will and testament or the laws of descent and distribution and shall be exercisable during the Nonemployee Director’s lifetime only by such Nonemployee Director. Nonemployee Directors are eligible to receive awards
of SARs under Article IV of this Plan in addition to (and not in lieu of) any awards pursuant to this Article V. 
 
SECTION 5.8. STOCK CERTIFICATES. 
 
Certificates representing the Stock issued pursuant to the exercise of Director Options will bear all legends required by law and necessary to effectuate the provisions hereof. The Company may place a
“stop transfer” order against such shares of Stock until all restrictions and conditions set forth in this Article V, the applicable Director Option Agreement, and in the legends referred to in this Section 5.8 have been complied with.

 
SECTION 5.9. AMENDMENT AND DISCONTINUANCE. 
 
The Board may amend, suspend or discontinue the provisions of
this Article V at any time or from time to time; provided, that no such action may, without the approval of the shareholders of the Company, materially increase (other than by reason of an adjustment pursuant to Section 2.3(b) hereof) the aggregate
number of shares of Stock in the Plan Pool, materially increase the benefits accruing to Nonemployee Directors or materially modify eligibility requirements for participation under this Article V. 
 
SECTION 5.10. COMPLIANCE WITH RULE 16b-3. 
 
With respect to persons subject to Section 16 of the 1934 Act,
transactions under this Article V are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To the extent any provision of this Article V or action by the Board or the Committee fails so to comply, it
shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee and the Board. 
 
SECTION 5.11. NO RIGHT TO CONTINUE AS DIRECTOR. 
 
Neither this Plan nor the granting of a Director Option, nor any other action taken pursuant to this Plan shall constitute or be evidence
of any agreement or understanding, express or implied, that the Board will nominate any Nonemployee Director for reelection, or that the Company or any Subsidiary will retain a Nonemployee Director for any period of time, or at any particular rate
of Nonemployee Director fees. 
 
 

-21- 

 
ARTICLE VI

MISCELLANEOUS 
 
SECTION 6.1. APPLICATION OF FUNDS. 
 
The proceeds received by the Corporation from the sale of Stock pursuant to the exercise of Rights will be used for general corporate
purposes. 
 
SECTION 6.2. NO OBLIGATION TO EXERCISE RIGHT.

 
The granting of a Right shall impose no
obligation upon the recipient to exercise such Right. 
 
SECTION
6.3. TERM OF PLAN. 
 
Except as otherwise
specifically provide herein, Rights may be granted pursuant to this Plan from time to time within ten (10) years from the Effective Date. 
 
*** 
 

-22-Form of Employment Agreement between Sky Financial and certain officers

 
Exhibit 10.10

 
EMPLOYMENT AGREEMENT 
 
THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated
as of                               , 2002, is between
                        , an individual (“Employee”), and SKY FINANCIAL GROUP, INC., an Ohio corporation (the
“Company”). 
 
R E C
I T A L S : 
 
A. The Company is in the business of providing financial, banking, insurance and trust services to individuals and companies (the “Business”); 
 
B. The Company desires to conform the terms and conditions of its employment agreements with standard terms
and conditions as set forth in this Agreement; and 
 
C. Employee acknowledges and accepts, in connection with this Agreement, consideration of continued employment, preferable terms of employment, $ 5,000 payable in fully vested options to acquire Company common stock and other good
and valuable consideration. 
 
NOW, THEREFORE, in
consideration of the foregoing recitals and the covenants contained herein, Employee and the Company hereby agree as follows: 
 
1. Definitions. The following terms, when capitalized, shall have the meanings set forth below: 
 
“Business” shall have the meaning provided in
the Recitals to this Agreement. 
 
“Company
Business” shall mean the Business and all other businesses in which the Company or any of its commercial bank, trust or insurance agency affiliates is engaged at the time of any termination of Employee’s employment and in which
Employee participated or was otherwise involved during the last year of Employee’s employment with the Company. 
 
“Cause” shall mean (a) the commission by Employee of an act or series of acts intended to cause and which results in
material damage to the Company’s property, operations or business prospects; or (b) Employee’s gross misconduct, fraud, misappropriation of funds, or commission of a felony; or (c) Employee’s willful failure to perform his/her duties
or the lawful and ethical directions given to him/her as provided in Section 3 of this Agreement, which failure has not been cured in all material respects within twenty (20) days after the Company gives written notice thereof to Employee; or (d)
Employee’s material breach of any provision of this Agreement, which breach has not been cured in all material respects within twenty (20) days after the Company gives written notice thereof to Employee. 
 
“Change in Control” shall mean (a) the
consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction
or the issuance of securities in the transaction, unless immediately following such transaction: (i) more than sixty percent (60%) of the total voting power of (x) the company resulting from such transaction or (y) if applicable, the ultimate parent
company thereof, is represented by voting securities that were outstanding immediately prior to such transaction (or, if applicable, is represented by shares into which such Company voting securities 

were converted pursuant to such transaction; (ii) no person (other than any employee benefit plan (or
related trust) sponsored or maintained by the Company resulting from such transaction or the parent thereof is or becomes the beneficial owner, directly or indirectly, of twenty-five percent (25%) or more of the total voting power of the outstanding
voting securities eligible to elect directors of the Company resulting from such transaction or the parent thereof; and (iii) at least fifty percent (50%) of the members of the board of directors of the Company resulting from such transaction or the
parent thereof following the consummation of the transaction were directors of the Company at the time of the Board of Directors’ approval of the execution of the initial agreement providing for such transaction; or (b) the stockholders of the
Company approve a plan of complete liquidation or dissolution of the Company or a sale of all or substantially all of the Company’s assets or deposits. 
 
Notwithstanding the foregoing, a Change in Control of the Company shall not be deemed to occur solely because any person acquires beneficial ownership of
more than twenty-five percent (25%) of the Company voting securities as a result of the acquisition of Company voting securities by the Company which reduces the number of Company voting securities outstanding; provided, however, that if after such
acquisition by the Company such person becomes the beneficial owner of additional Company voting securities that increases the percentage of outstanding Company voting securities beneficially owned by such person, a Change in Control of the Company
shall then occur. 
 
“Confidential
Information” shall mean information that is not part of the public domain, and includes, but is not limited to, sales and marketing information, customer account records, training and operations materials and memoranda, personnel records,
pricing and financial information relating to the business, accounts, customers, employees and affairs of the Company or any of its affiliates; any other similar information; and any and all other information that may be marked
“Confidential” by the Company. All inventions, discoveries, techniques, technologies, methodologies, software, improvements, and other similar works developed, conceived or created by Employee, either alone or in conjunction with others,
during Employees’ employment with the Company shall be considered “Confidential Information”. 
 
“Covered Capacity” shall mean as an employee, or as agent, representative, broker, officer, director, principal,
creditor, shareholder, partner, other owner, joint venturer, consultant or advisor (but excluding the ownership of publicly traded securities where such ownership represents less than 1% of such securities outstanding). 
 
“Disability” shall mean that Employee is
disabled so as to be unable to perform his/her material duties hereunder as established pursuant to the short term and long term disability policies of the Company in effect from time to time. 
 
“Earned Salary” shall mean base salary
earned, but unpaid, for services rendered to the Company by Employee prior to the date of a termination. 
 
“Good Reason” shall mean any of the following: (a) a material diminution of the duties, authority, responsibility
level, or employment position of Employee as described in Section 3; (b) a reduction, in Employee’s Base Salary from the amount specified in Section 4 hereof; (c) a material reduction of more than ten percent (10%) in Employee’s target
incentive compensation as set forth in Section 4 hereof, except in the event that such reduction applies uniformly to all other employees with positions at the same level within the Company as that of the position of Employee; (d) any change in the
Employee’s principal place 
 

2 

of work which would increase Employee’s commute by 35 miles or more from the Employee’s current
principal place of work, or (e) a material breach by the Company of its obligations under this Agreement. “Good Reason” shall not be effective until the expiration of ten (10) business days following written notice to the Company of
Employee’s grounds for claiming “Good Reason.” Any action or inaction, which is remedied by the Company within ten (10) business days following such written notice, shall not constitute “Good Reason.” 
 
“Noncompetition Period” shall mean the period
of time consisting of (a) the term of Employee’s employment with the Company and (b) a period of twelve (12) months following the termination of Employee’s employment for any reason. 
 
“Territory” shall mean the geographic markets
within the United States where the Company has, during the term of Employee’s employment with the Company, either (a) conducted the Company Business at any time during the twelve months immediately preceding the effective date of the
termination of Employee ‘s employment for any reason, or (b) approved a business plan to conduct the Company Business, provided, however, that in the event of the acquisition or merger of the Company wherein the Company is not the survivor
thereof, “Territory “ shall be limited to the “Territory” of the Company immediately prior to the acquisition or merger 
 
“Vested Benefits” shall mean vested benefits under, and payable in accordance with the terms of, the Company’s
employee benefit plans as they may exist from time to time (excluding, however, any Severance Payments described in Section 6 hereof). 
 
2. Employment. The Company hereby employs Employee, and Employee hereby accepts employment with the Company, as its Executive Vice
President/                    . Employee shall be employed by the Company on an “at-will” basis, commencing as of the effective date
of this Agreement and continuing for such time as the Company is in need of, or desirous of, the services of Employee. It is expressly understood and agreed that Employee may leave the Company, or the Company may require that the Employee leave the
Company, for any reason, or for no reason at all, and at any time. 
 
In the event of Employee’s resignation or voluntary termination without Good Reason, Employee shall provide the Company with thirty days advance written notice of such termination, and cooperate fully with the Company in the
orderly transition of his/her duties and responsibilities. In the event of the Company’s termination of Employee for Cause, the Company shall provide Employee with ten days advance written notice of such termination. Employee shall cooperate
fully with the Company in the orderly transition of his/her duties and responsibilities during this time. 
 
The provisions of Section 6 of this Agreement shall control in all other situations of termination of Employee’s employment. 
 
3. Duties. Employee hereby agrees to perform such duties as are customarily associated with and incidental to the
position described in Section 2 and as may be assigned to him/her from time to time by the employees of the Company to whom Employee is responsible. 
 

	 	(a)	 	Employee shall devote substantially all his/her full business time and efforts to the business and interest of the Company. 

 

	 	(b)	 	During the term of this Agreement, Employee shall not engage in any activity that would be inconsistent with such duties or with the objectives and business of

 

3 

the Company and shall diligently perform his/her obligations and discharge his/her duties
under this Agreement. 
 

	 	(c)	 	If Employee desires to participate in any outside business, he/she shall disclose his/her interest in writing to the Company, and shall refrain from such
participation until Employee obtains the written consent of the Company’s General Counsel, which shall not be unreasonably withheld or delayed. It shall not be considered a violation of the foregoing for the Employee to serve on professional,
civic or charitable boards or committees, so long as such activities are disclosed to the Company, and, in the reasonable discretion of the Company’s General Counsel from time-to-time, do not interfere with the performance of the
Employee’s duties for the Company. 

 

	 	(d)	 	Employee acknowledges the receipt of the Company’s Employee Manual, Code of Ethics and Stock Trading Policy, the terms of which Employee understands and agrees
to be bound. Employee shall adhere to all other written policies, rules and regulations established by the Company from time to time. 

 
4. Compensation. 
 

	 	(a)	 	Base Salary. The Company shall pay to Employee a Base Salary of no less than the greater of: (i)
$             per year, or (ii) the Base Salary paid to Employee for the prior year. Such payments shall be made in accordance with the Company’s customary practices for the
payment of salaries to senior officers. Employee’s Base Salary hereunder shall be reviewed at least annually and in accordance with normal compensation review practices of the Company for employees with positions similar to the position of
Employee hereunder. All payments made to Employee pursuant to this Section 4 shall be subject to withholding of applicable federal, state and local taxes. 

 

	 	(b)	 	Incentive Compensation. Employee shall be entitled to participate, to the same extent as other similarly situated officers of the Company, in such short-term
and long-term incentive compensation plans as may be enacted by the Company from time-to-time. 

 

	 	(c)	 	Perquisites. Employee shall be entitled to receive such perquisites as the Company may establish from time to time, which are commensurate with his/her
position and which are at least comparable to those received by other similarly situated officers of the Company. 

 
5. Benefits. While Employee is employed pursuant to this Agreement, Employee shall be entitled to benefits from the Company which are substantially
comparable to the benefits which may be provided from time to time to other full-time employees of the Company with positions similar to the position of Employee hereunder. 
 
6. Severance Payment. If the Company terminates Employee’s employment with the Company for any reason other than
for Cause, or other than as a result of Employee’s death or Disability, or if Employee terminates Employee’s employment with the Company for Good Reason, then contingent upon the Company and Employee’s execution of a mutual General
Release Agreement, which shall be in a form mutually satisfactory to the Company and Employee, the Company shall: 
 

4 

 

	 	(a)	 	continue to pay Employee the per annum rate of Base Salary in effect for Employee on the date of such termination for a period of eighteen (18) months thereafter ;

 

	 	(b)	 	pay to Employee such bonus compensation under the Company’s short-term incentive plan, if any, that is in proportion to the number of days Employee was employed
in the fiscal year for which the bonus is calculated and paid, payable at the time such bonus is paid generally under the plan; 

 

	 	(c)	 	pay to Employee a lump sum amount equal to the Employee’s annual “target” amount under the Company’s short-term incentive plan in effect as of
the date of termination, or in the case of such termination within six (6) months of a Change in Control, two hundred percent (200%) of the Employee’s “target” amount; 

 

	 	(d)	 	obtain outplacement services, at a provider of Employee’s choice, for Employee, at the Executive II level, until such time as Employee has secured new
comparable full-time employment; provided, however, that in no event shall the costs of such services exceed $25,000; 

 

	 	(e)	 	continue Employee’s medical, dental, and life insurance benefits (at levels reflecting Employee’s existing dependent elections) throughout the duration of
the period set forth in Section 6(a) of this Agreement; provided, however, that all such benefits continuation shall cease upon the date Employee begins new full-time employment; and 

 

	 	(f)	 	forgive any and all repayment of any sign-on bonus and relocation assistance granted to Employee upon his/her initial employment. 

 
In the event that: 
 

	 	(x)	 	the Company terminates Employee’s employment with the Company for Cause; 

	 	(y)	 	Employee voluntarily terminates his/her employment with the Company (other than for Good Reason); or 

	 	(z)	 	Employee’s employment with the Company is terminated due to Death or Disability, 

 
the Company shall not be obligated to make any severance payments or bonus payments to Employee under this Section 6, and
Employee shall only be entitled to receive payment of his/her Earned Salary and Vested Benefits up to and including the date of any such termination. 
 
Upon the payments of the aforesaid sums by the Company, all of the Company’s obligations to make any further payments to Employee pursuant to this
Agreement shall be terminated. The foregoing provisions of this Section 6 set forth the sole liability and obligation of the Company in the event of a termination, other than any obligations of the Company that may be required by law with respect to
employee benefit plans (e.g., COBRA requirements). 
 
 

5 

 
7. Noncompetition.
During the Noncompetition Period, Employee shall not engage in a Covered Capacity with any financial or banking association, or any other firm, corporation, partnership, limited liability company, unincorporated association or other entity, in any
or all of the following activities: 
 

	 	(a)	 	conducting business activity for any financial, banking, insurance or trust association in the Territory, which entity competes with any Company Business; or

 

	 	(b)	 	soliciting business from any customers, clients or business patrons of the Company Business who were customers, clients or business patrons of the Company Business
at the time Employee’s employment with the Company was terminated; or 

 

	 	(c)	 	soliciting, persuading or attempting to persuade, any employee of the Company to terminate his/her service with the Company; or 

 

	 	(d)	 	willfully and knowingly assisting any other person, firm, partnership, limited liability company, corporation, or unincorporated association to employ or retain, any
person who had been employed by the Company during the Noncompetition Period. 

 
8. Confidential Information. Employee shall not use, reveal, divulge or disclose, or permit or assist any other person, firm, partnership, limited liability company, corporation, or
unincorporated association to use, any Confidential Information. Notwithstanding the foregoing, Employee shall not be subject to the restrictions set forth in this Section 8 with respect to information which: 
 

	 	(a)	 	becomes generally available to the public other than as a result of disclosure by Employee or his/her agents or representatives; 

 

	 	(b)	 	becomes available to Employee on a non-confidential basis from a source other than the Company or its agents, provided that such source lawfully obtained such
information and is not bound by a confidentiality obligation not to disclose such information; or 

 

	 	(c)	 	is required to be disclosed by law. 

 
Upon termination of Employee’s employment, Employee shall return to the Company all property of the Company, its parent and subsidiaries, of which
he/she has possession, including copies of Confidential Information, data, records, management studies, and any work product created by Employee during his/her employment. Except as may be agreed upon in writing with the Company’s CEO, Employee
shall keep no copies of any Confidential Information, data, records, or work product generated by Employee or others. Upon termination of employment, Employee shall further return to the Company all physical property of the Company, its parent or
subsidiaries, of which he/she has possession, including computers, furnishings, telecommunications equipment, and other similar property. 
 

6 

 
The provisions of this Section
8 shall survive and remain in full force and effect, throughout the Noncompetition Period regardless of any termination of this Agreement and the termination of Employee’s employment with the Company for any reason. 
 
9. Remedies. Employee acknowledges and agrees that the Company would
suffer irreparable harm from a breach by Employee of the restrictive covenants set forth in Section 7 or Section 8. Therefore, in the event of the actual or threatened breach by Employee under Section 7 or Section 8, the Company may, in addition and
supplementary to any other rights and remedies existing in its favor (including, without limitation, its right to terminate Employee’s employment), bypass the arbitration provisions set forth in Section 10 of this Agreement, and immediately
apply to any court of law or equity of competent jurisdiction for specific performance or injunctive or other relief in order to enforce or prevent any violation of the provisions of Section 7 or Section 8. Employee agrees not to raise the defense
of an adequate remedy at law in any such proceeding. Employee agrees that the existence of any claim or cause of action by Employee against the Company, whether predicated upon this Agreement or any other contract, shall not constitute a defense to
the enforcement by the Company of the provisions of Section 7 or Section 8. In addition to the remedies described in this Section 9, in the event of the actual or threatened breach by Employee under Section 7 or Section 8, the Company shall be
entitled to withhold any remaining severance payable pursuant to Section 6 hereof. 
 
10. Arbitration of Disputes. Subject to the provisions of Section 9 of this Agreement, the parties agree that any controversy or claim arising out of or relating to this Agreement, or any dispute arising out of the
interpretation or application of this Agreement, which the parties hereto are unable to resolve, shall be finally resolved and settled exclusively by arbitration in the city in which the Company’s headquarters is located. 
 
A single arbitrator, mutually agreeable to both parties and sufficiently
competent to determine the matter in question, shall be selected through the following process of elimination: (1) Each party shall propose up to five prospective arbitrators, and within ten business days of the demand for arbitration, exchange
copies of each potential arbitrator’s CV and statement of past relevant arbitration experience. (2) Within five business days after the exchange of information, each party shall provide to the other a list of those names agreeable for
consideration as the arbitrator. (3) One list shall be compiled containing the names that were agreeable to both parties. (4) Each party shall take turns striking a name from that list, with the Employee having the first strike. (5) The name that
remains on the list shall be the arbitrator. (6) If the parties cannot agree upon an arbitrator out of the panel, then each party shall choose its own independent representative and those independent representatives shall in turn choose the single
arbitrator within thirty days of the date of the selection of the first independent representative. The arbitrator selected by the independent representatives need not be an individual previously recommended by either party. 
 
The American Arbitration Association’s Commercial Arbitration Rules shall
govern the conduct of the arbitration proceeding, except for the selection of the arbitrator, which shall be as set forth above. The substantive laws of the State of Ohio shall control. Each party recognizes and consents to the jurisdiction over
each of them by the courts of the state of Ohio. 
 
Any fees
charged by an arbitrator or panel of arbitrators shall be borne equally by the parties. The award of the arbitrator shall be binding upon the parties. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. 
 
11. Notice. All notices and other communications
required or permitted under this Agreement shall be deemed to have been duly given and made if in writing and if served either by 
 

7 

personal delivery to the party for whom intended (which shall include delivery by Federal Express or
similar service) or three (3) business days after being deposited, postage prepaid, certified or registered mail, return receipt requested, in the United States mail bearing the address shown in this Agreement for, or such other address as may be
designated in writing hereafter by, such party: 
 

	 	  	 If to Employee:
	  	
	  	 
	 	  	 	  	
	  	 
	 	  	 	  	
	  	 

 

	 	  	 If to the Company:
	  	 Sky Financial Group, Inc.
	  	 
	 	  	 	  	 221 South Church Street
	  	 
	 	  	 	  	 Bowling Green, Ohio 43402
	  	 
	 	  	 	  	 Attn: W. Granger Souder, Jr.
	  	 

 
12. Reformation;
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is finally determined by a court of competent
jurisdiction to be unenforceable or invalid under applicable law, such provision shall be effective only to the extent of its enforceability or validity, without affecting the enforceability or validity of the remainder of this Agreement, and such
court shall have jurisdiction to reform this Agreement to the maximum extent permitted by law. In the event that any such provision of this Agreement cannot be reformed, such provision shall be deemed severed from this Agreement, but every other
provision of this Agreement shall remain in full force and effect. 
 
13. Binding Effect; Waiver. The terms and provisions of this Agreement shall be binding on and inure to the benefit of Employee, his/her heirs, executors, administrators, and other legal representatives and shall be binding on
and inure to the benefit of the Company, its affiliates, successors or assigns. The failure of the Company at any time or from time to time to require performance of any of Employee’s obligations under this Agreement shall in no manner affect
the Company’s right to enforce any provision of this Agreement at a subsequent time, and the waiver of any rights arising out of any breach shall not be construed as a waiver of any rights arising out of any subsequent or prior breach.

 
14. Entire Agreement. This Agreement constitutes the
entire agreement and understanding between Employee and the Company with respect to the subject matter hereof, and supersedes all prior agreements and understandings relating to the subject matter hereof. 
 
15. Amendment. No amendment, modification, or waiver of any provision
of this Agreement, or consent to any departure by Employee therefrom, shall be effective unless the same shall be in writing and signed by the parties hereto. 
 
16. Assignment. This Agreement is for personal services to be performed by Employee and may not be assigned or transferred by Employee, or the
obligations of Employee performed by any other party. All of the rights and obligations of the Company under this Agreement are fully assignable and transferable by the Company to a successor by merger or otherwise by operation of law. 
 

8 

 
17. Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
 
18. Headings. The various headings of this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this
Agreement or any provisions hereof. 
 
19. Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio. 
 
IN WITNESS WHEREOF, the parties hereto have executed or caused to be executed this instrument as of the date first above written.

 

	 EMPLOYEE:

	
	  

	
	

 

	 THE COMPANY:
  
 Sky Financial Group, Inc.

	 	 	 
	
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 

9

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