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UNITED STATES OMB APPROVAL
SECURITIES AND EXCHANGE COMMISSION ----------------------------
WASHINGTON, D.C. 20549 OMB Number: 3235-0145
Expires: August 31, 1999
Estimated average burden
hours per response. .14.90
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SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. __________)*
Mahoning National Bancorp, Inc.
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(Name of Issuer)
Common Stock Par Value $1.00 Per Share
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(Title of Class of Securities)
560090102
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(CUSIP Number)
Marty E. Adams, President and Chief Operating Officer
Sky Financial Group, Inc.
221 South Church Street
Bowling Green, Ohio 43402
(419) 327-6300
Copies to:
W. Granger Souder, Esq. M. Patricia Oliver
Sky Financial Group, Inc. Squire, Sanders & Dempsey L.L.P.
221 South Church Street 4900 Key Tower
Bowling Green, Ohio 43402 127 Public Square
(419) 327-6300 Cleveland, Ohio 44114-1304
(216) 479-8500
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
June 7, 1999
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Section 240.13d-1(e), 240.13d-1(f) or
240.13d-1(g), check the following box. [ ]
NOTE: Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See Section 240.13d-7
for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes.)
POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION
CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS
A CURRENTLY VALID OMB CONTROL NUMBER.
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CUSIP No. 560090102
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of Above Persons (entities only).
Sky Financial Group, Inc.
IRS # 34-1372535
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2. Check the Appropriate Box if a Member of a Group
(a)_______________________________________________________
(b)_______________________________________________________
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3. SEC Use Only______________________________________________
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4. Source of Funds WC________________________________
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5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e)_____________________________________
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6. Citizenship or Place of Organization Ohio
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Number of 7. Sole Voting Power up to 1,253,700 shares as of June 7, 1999,
Shares Bene- subject to adjustment so as to constitute 19.9% of outstanding
ficially Owned Common Stock*
by Each
Reporting 8. Shared Voting Power None
Person With -------------------------------------
9. Sole Dispositive Power up to 1,253,700 shares as of
June 7, 1999, subject to adjustment so as to constitute 19.9%
of outstanding Common Stock*
10. Shared Dispositive Power None
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11. Aggregate Amount Beneficially Owned by Each Reporting Person up to
1,253,700 shares as of June 7, 1999, subject to adjustment so as to constitute
19.9% of outstanding Common Stock*
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares*
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13. Percent of Class Represented by Amount in Row (11) up to 19.9%
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14. Type of Reporting Person CO
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* Beneficial Ownership of 1,253,700 shares of Common Stock reported hereunder is
so being reported solely as a result of the Stock Option Agreement described in
Item 6. The Binding Option (as defined in Item 3) granted pursuant to the Stock
Option Agreement has not yet become exercisable. Because the Binding Option will
not become exercisable unless and until certain specified events occur, Sky
Financial Group, Inc. expressly disclaims beneficial ownership of all such
shares except for 43,532 shares of Common Stock beneficially owned by Sky
Financial Group, Inc., its affiliates and persons listed in Schedule I.
ITEM 1. SECURITY AND ISSUER
This statement relates to the common stock, par value $1.00 per share
("Common Stock"), of Mahoning National Bancorp, Inc., a corporation formed under
the laws of the State of Ohio (the "Issuer"), the principal executive offices of
which are located at 23 Federal Plaza, Youngstown, Ohio 44503-1815.
ITEM 2. IDENTITY AND BACKGROUND
(a)-(c) AND (f) This statement is being filed by Sky Financial Group,
Inc., an Ohio corporation ("Sky"), which is a bank holding company registered
under the Bank Holding Company Act of 1956, as amended. The principal business
offices of Sky are located at 221 South Church Street, Bowling Green, Ohio
43402. As of the date of this Schedule 13D, Sky
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provides diversified financial services including banking and trust services.
Sky's banking affiliates include Mid Am Bank, Toledo, Ohio; Sky Bank,
Salineville, Ohio; and The Ohio Bank, Findlay, Ohio. The Company's financial
services affiliates include Sky Asset Management, Inc., Clearwater, Florida; Sky
Investments, Inc., Bryan, Ohio; Sky Financial Solutions, Inc., Columbus, Ohio;
Mid Am Private Trust, N.A., Cleveland, Ohio; Mid Am Financial Services, Inc.,
Carmel, Indiana; Simplicity Mortgage Consultants, Marion, Indiana; Mid Am Title
Insurance Agency, Inc., Adrian, Michigan; Sky Technology Resources, Inc.,
Bowling Green, Ohio; ValueNet, Inc., Lisbon, Ohio; Freedom Financial Life
Insurance Company, Phoenix, Arizona; Picton Cavanaugh, Inc., Toledo, Ohio; and
Freedom Express, Inc., Salineville, Ohio.
The names of the directors and executive officers of Sky and their
respective business addresses, citizenship and present principal occupations or
employment, as well as the names, principal businesses and addresses of any
corporations and other organizations in which such employment is conducted, are
set forth on Schedule I, which Schedule is incorporated herein by reference.
Other than executive officers and directors, to the best of Sky's
knowledge, there are no persons controlling or ultimately in control of Sky.
(d)-(e) Neither Sky nor, to the best of its knowledge, any of the
persons listed in Schedule I has, during the last five years, been convicted in
a criminal proceeding (excluding traffic violations or similar misdemeanors).
Neither Sky nor, to the best of its knowledge, any of the persons listed in
Schedule I has, during the last five years, been a party to a civil proceeding
of a judicial or administrative body of competent jurisdiction and as a result
of such proceeding was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities subject
to, federal or state securities laws or finding any violation with respect to
such laws.
ITEMS 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
This statement relates to the Stock Option Agreement, dated June 7,
1999, by and between Sky and the Issuer (the "Stock Option Agreement") in which
Sky acquired a binding option to purchase from the Issuer up to 19.9% (1,253,700
shares as of the date of the Stock Option Agreement) of the Issuer's outstanding
Common Stock for a purchase price of $36.60 per share (the "Binding Option").
This acquisition gives Sky deemed beneficial ownership of 19.9% of the Issuer's
outstanding Common Stock, thus triggering this reporting requirement. If
exercised, Sky will use its working capital to purchase the Common Stock
available to it pursuant to the Binding Option.
ITEM 4. PURPOSE OF TRANSACTION
(a)-(j) SUMMARY OF THE TERMS OF THE MERGER AGREEMENT:
The Issuer has granted to Sky the Binding Option in furtherance of an
Agreement and Plan of Merger, dated June 6, 1999, by and between Sky and the
Issuer (the "Merger Agreement"), pursuant to which the Issuer will be merged
with and into Sky (the "Merger"). The Merger Agreement calls for each
outstanding share of Common Stock to be converted in the Merger into 1.66 shares
of Sky common stock, without par value, in a tax-free exchange, subject to
certain adjustments based on the then current closing price of Sky's common
stock on the NASDAQ National Market System. The Articles of Incorporation and
the Code of Regulations of Sky that are in effect immediately prior to the
effective date of the Merger will become the Articles of Incorporation and the
Code of Regulations of the surviving corporation after the Merger. The directors
and officers of Sky immediately before the effective date of the Merger, will
remain the directors and officers of the surviving corporation; however, the
size of the Board of Directors of Sky will be increased from 28 to 29 members to
include one person who was a member of the Issuer's Board of Directors
immediately before the effective time of the Merger.
Upon consummation of the Merger, the Common Stock will be delisted from
trading on the NADSAQ National Market System, where it currently trades under
the symbol "MGNB," and the Issuer will no longer be required to file periodic
reports under Section 12(b) of the Act (although the Issuer may have continuing
reporting obligations under Section 15(d) of the Act by reason of various
outstanding debt securities).
The Merger Agreement contains certain customary restrictions on the
conduct of the business of the Issuer pending consummation of the Merger.
Consummation of the Merger is subject to the satisfaction or waiver of certain
conditions, including, but not limited to, approval of the Merger by the holders
of shares of Common Stock, approval of the issuance of shares of Sky common
stock in accordance with the terms of the Merger Agreement by the holders of
shares of Sky common stock, the receipt of certain regulatory approvals, and the
satisfaction of certain other customary conditions set forth in the Merger
Agreement.
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A copy of the Merger Agreement (including the form of Stock Option
Agreement as an exhibit thereto) was filed as an exhibit to Sky's Report on Form
8-K filed June 7, 1999 and is incorporated herein by reference. The Stock Option
Agreement is filed herein. The summary of the terms of the Merger Agreement and
the Stock Option Agreement contained in this Schedule 13D is not intended to be
complete and is qualified in its entirety by reference to such exhibits.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) Sky may be deemed to be the beneficial owner of the shares of
Common Stock issuable upon the exercise of the Binding Option. As provided in
the Stock Option Agreement, Sky may exercise the Binding Option only upon the
happening of one or more events, none of which has occurred. (See Item 6.) If
the Binding Option were exercised, the shares of Common Stock issuable to Sky
would represent up to 19.9% of the currently issued and outstanding shares of
Common Stock. Sky has no right to vote or dispose of the shares of Common Stock
subject to the Binding Option and expressly disclaims beneficial ownership of
all such shares except for 43,532 shares of Common Stock beneficially owned by
Sky, its affiliates and persons listed in Schedule I. Except as set forth above,
neither Sky nor, to the best of its knowledge, any of the persons listed in
Schedule I beneficially owns any shares of Common Stock.
(b) If Sky were to exercise the Binding Option, it would have sole
power to vote and, subject to the terms of the Stock Option Agreement, sole
power to direct the disposition of the shares of Common Stock issuable pursuant
to the Binding Option.
(c) Sky acquired the Binding Option in connection with the Merger
Agreement. (See Item 4). Neither Sky nor, to the best of its knowledge, any of
the persons listed in Schedule I has effected any transactions in the Common
Stock during the past 60 days.
(d) Not applicable.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
Sky has entered into the following contracts, arrangements,
understandings or relationships (legal or otherwise) with respect to the
securities of the Issuer:
STOCK OPTION AGREEMENT. On June 7, 1999, Sky entered into a
Stock Option Agreement with the Issuer, whereby Sky was granted a Binding Option
to purchase up to 19.9% of the Company's outstanding Common Stock (1,253,700
shares as of the date of the Stock Option Agreement) at an exercise price of
$36.60 per share. Sky may exercise the Binding Option at any time or from time
to time upon the occurrence of a "Purchasing Event." A Purchasing Event is
defined as:
(i) the Issuer entering into an agreement with any person to
merge, consolidate or any other similar transaction for the
purchase, lease or acquisition of all or substantially all of
the assets of the Issuer or for the purchase or acquisition of
securities representing 20% or more of the voting power of the
Issuer;
(ii) any person (other than Sky) having acquired beneficial
ownership or the right to acquire beneficial ownership of 20%
or more of the outstanding Common Stock after the date of the
Stock Option Agreement;
(iii) any person having made a bona fide takeover proposal to
the Issuer by public announcement or written communication
that is or becomes the subject of public disclosure, and,
following such bona fide takeover proposal, the stockholders
of the Issuer vote not to adopt the Merger Agreement between
Sky and the Issuer;
(iv) the Issuer shall have willfully breached the Stock Option
Agreement in any material respect, which breach shall not have
been cured within 15 days after notice thereof;
(v) the Issuer shall have breached the Merger Agreement
between Sky and the Issuer following a bona fide takeover
proposal;
(vi) the shareholders of the Issuer shall have voted and
failed to approve the Merger Agreement and the Merger at a
meeting or such meeting shall not have been held in violation
of the Merger Agreement; or
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(vii) the Issuer's Board of Directors shall have withdrawn or
modified in any manner adverse in any respect to Sky, its
recommendation that the shareholders of Issuer approve the
transactions contemplated by the Merger Agreement or the
Issuer or a subsidiary of the Issuer shall have authorized,
recommended, or proposed an agreement to engage in an
acquisition transaction with any person other than Sky or a
subsidiary of Sky.
In the event Sky elects to exercise the Binding Option, Sky
must send written notice to the Issuer specifying the total number of shares it
will purchase and the place and date, not earlier than three business days nor
later than 60 business days after the notice date, for the closing of such
purchase. At the closing, Sky must pay to the Issuer the aggregate purchase
price for the Common Stock purchased in immediately available funds by wire
transfer. Simultaneous with the delivery of funds, the Issuer must deliver to
Sky certificates representing the number of shares of Common Stock purchased.
The Issuer has represented that it will at all times maintain
sufficient authorized but unissued shares of Common Stock so that the option may
be exercised without authorization of additional shares of Common Stock.
Furthermore, the Issuer has agreed that, in the event of any change in the
Common Stock by reason of stock dividends, split-ups, mergers,
recapitalizations, combinations, exchanges or shares or the like, the type and
number of shares subject to the option, and the purchase price per share, will
be adjusted appropriately.
The Binding Option may be terminated in any of the following
manner:
(i) by mutual consent of Sky and the Issuer;
(ii) by either Sky or the Issuer if the Federal Reserve Board
shall have issued an order denying approval of the affiliation
of Sky and the Issuer or if any other governmental entity
shall have issued a final permanent order enjoining or
otherwise prohibiting consummation of the affiliation;
(iii) by either Sky or the Issuer if the affiliation has not
been consummated on or before March 31, 2000; or
(iv) by either Sky or the Issuer if no Purchase Event has
occurred and either Sky's or the Issuer's stockholders have
failed to approve the affiliation.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
1. Agreement and Plan of Merger, dated as of June 6, 1999, by and between Sky
Financial Group, Inc. and Mahoning National Bancorp, Inc. (Reference is
made to Exhibit 2 to Sky's Report on Form 8-K filed June 7, 1999, which
Exhibit is incorporated herein by reference.)
2. Stock Option Agreement, dated as of June 7, 1999, by and between Sky
Financial Group, Inc. and Mahoning National Bancorp, Inc.
Signature.
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: July 30, 1999 SKY FINANCIAL GROUP, INC.
By: /s/ Marty E. Adams
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Name: Marty E. Adams
Title: President and Chief Operating Officer
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EXHIBIT INDEX
Exhibit
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2 Agreement and Plan of Merger, dated as of June 6,
1999, by and between Sky Financial Group, Inc. and
Mahoning National Bancorp, Inc. (Reference is made to
Exhibit 2 to Sky's Report on Form 8-K filed June 7,
1999, which Exhibit is incorporated herein by
reference).
99 Stock Option Agreement, dated as of June 7, 1999, by
and between Sky Financial Group, Inc. and Mahoning
National Bancorp, Inc.
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SCHEDULE I
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DIRECTORS AND EXECUTIVE OFFICERS OF SKY FINANCIAL GROUP, INC.
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The names, business addresses and present principal occupations of the
directors and executive officers of Sky Financial Group, Inc. are set forth
below. If no business address is given, the director's or executive officer's
business address is 221 South Church Street, Bowling Green, Ohio 43402. The
business address of each of the directors of Sky Financial Group, Inc. is also
the business address of such director's employer, if any. Unless otherwise
indicated, all directors and officers listed below are citizens of the United
States.
DIRECTORS
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MARTY E. ADAMS President, Chief Operating Officer and
Director of Sky Financial Group.
GERALD D. ALLER President, Aller's Pharmacy, Inc., a retail pharmacy
127 N. Main Street
North Baltimore, OH 45872
DAVID A. BRYAN Partner in the law firm of Wasserman, Bryan, Landry & Honold
405 N. Huron 300 Inns of Court Building
Toledo, OH 43604
KEITH D. BURGETT Veterinarian and owner of Carrollton Animal Hospital and owner of
Burgett Angus Farms
1225 Canton Road
Carrolton, OH 44615
GEORGE N. CHANDLER II Vice President-Reduced Iron Cleveland-Cliffs, Inc.
1100 Superior Avenue
Cleveland, OH 44114
DAVID R. FRANCISCO Chairman, Chief Executive Officer and Director of Sky Financial Group.
DEL E. GOEDEKER Vice President/Corporate Development of Tuscarora, Inc.
200 Geneva Drive
Aliquippa, PA 15001
D. JAMES HILLIKER Vice President, Better Food Systems, Inc., a company that owns and
operates Wendy's Restaurant franchises.
101 West Columbus Avenue
Bellefontaine, OH 43311
RICHARD R. HOLLINGTON, JR. Senior Partner in the law firm of Baker & Hostetler LLP
3200 National City Center
1900 East 9th Street
Cleveland, OH 44114
FRED H. JOHNSON, III Director and President of Summitcrest, Inc., a cattle farm
Box 5
Summitville, OH 43962
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H. LEE KINNEY Senior Vice President, Citizens Banking Company
100 North Fourth Street
Steubenville, OH 43952
GERARD P. MASTROIANNI President of the Buckeye Village Market, Inc., a grocery store chain, and
President of Alliance Ventures, a real estate holding company
1800 West State Street
Alliance, OH 44601
MARILYN O. MCALEAR Vice President and Treasurer, Service Spring Corp, a manufacturer of
spring products
4370 Martin-Moline Road
Millbury, OH 43557
JAMES C. MCBANE Vice Chairman of Sky Financial Group, Principal and Chief Executive
Officer of McBane Insurance Agency, Inc.
School Street-Box 340
Bergholz, OH 43908
KENNETH E. MCCONNELL Owns/operates McConnell's Farms and is a partner in McConnell's Farm
Market, a meat market
2189 State Route 43
Richmond, OH 43944-9732
THOMAS S. NONEMAN President, Tomco Plastic, a custom plastic injection molding manufacturer
730 East South Street
Bryan, OH 43506
EDWARD J. REITER Senior Chairman of Sky Financial Group
PATRICK W. ROONEY Chairman of the Board, President and CEO, The Cooper Tire Company
701 Lima Avenue
Findlay, OH 45840
EMERSON J. ROSS, JR. Manager of Corporate Community Relations, Owens-Corning Fiberglas, a
manufacturer of building materials and composite products
Fiberglas Tower, 19th Floor
Toledo, Ohio 43659
DOUGLAS J. SHIERSON Private Investigator
555 Budlong
Adrian, MI 49221
C. GREGORY SPANGLER Chairman and CEO, Spangler Candy Company, a manufacturer of candy
products
400 North Portland Street, PO Box 71
Bryan, OH 43506
ROBERT E. SPITLER Partner in the law firm of Spitler, Vogtsberger & Huffman
131 East Court Street
Bowling Green, Ohio 43402
ROBERT E. STEARNS, DDS Dentist, Drs. Stearns and Zouhary, DDS, Inc.
849 Dixie Highway
Rossford, OH 43460
JOSEPH N. TOSH, II President and Chief Executive Officer of Century National Bank, a
subsidiary of Sky Financial Group
One Century Place
Rochester, PA 15074
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OFFICERS
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FRANK J. KOCH Executive Vice President/Credit Administration
10 East Main Street
Salinevile, OH 43945
W. GRANGER SOUDER Executive Vice President/General Counsel
KEVIN T. THOMPSON Executive Vice President/Chief Financial Officer
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EXHIBIT 99
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STOCK OPTION AGREEMENT
This STOCK OPTION AGREEMENT ("Agreement"), effective as of
this 7th day of June, 1999, by and between SKY FINANCIAL GROUP, INC., an Ohio
corporation ("Grantee"); and MAHONING NATIONAL BANCORP, INC., an Ohio
corporation ("Grantor");
WITNESSETH:
A. Grantor and Grantee have entered into an Agreement and Plan of
Merger dated as of June 6, 1999 (the "Merger Agreement"), providing for their
affiliation with one another.
B. As further inducement for the parties to consummate the transactions
contemplated by the Merger Agreement, Grantor wishes to grant Grantee the Option
described herein.
C. The Board of Directors of Grantor has approved the grant of the
Option and the Merger Agreement prior to the date hereof.
NOW, THEREFORE, the parties agree as follows:
1. Definitions.
Capitalized terms not defined herein shall have the meanings set forth
in the Merger Agreement.
"Applicable Price" shall mean the highest of (i) the highest price
per share of Grantor Common Stock paid for any such share by the person or
groups described in the definition of a Repurchase Event, (ii) the price per
share of Grantor Common Stock received by holders of Grantor Common Stock in
connection with any merger or other business combination transaction which is a
Purchase Event, or (iii) the highest closing sales price per share of Grantor
Common Stock quoted on the National Association of Securities Dealers Automated
Quotations National Market System ("NASDAQ/NMS") (or if Grantor Common Stock is
not quoted on NASDAQ/NMS, the highest bid price per share as quoted on the
principal trading market or securities exchange on which such shares are traded
as reported by a recognized source chosen by a Grantee) during the 60 business
days preceding the Request Date; provided, however, that in the event of a sale
of less than all of Grantor's assets, the Applicable Price shall be the sum of
the price paid in such sale for such assets and the current market value of the
remaining assets of Grantor as determined by a nationally recognized investment
banking firm selected by Grantee, divided by the number of shares of Grantor
Common Stock outstanding at the time of such sale. If the consideration to be
offered, paid or received pursuant to either of the foregoing clauses (i) or
(ii) shall be other than in cash, the value of such consideration shall be
determined in good faith by an independent nationally recognized investment
banking firm selected by Grantee and reasonably acceptable to Grantor, which
determination shall be conclusive for all purposes of this Agreement.
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"Bank" shall mean a financial institution subsidiary of a party.
"Burdensome Condition" shall mean, in connection with the grant of a
requisite regulatory approval or otherwise, imposition by a governmental entity
of any condition or restriction upon the party or one of its Subsidiaries (as
defined herein) which would reasonably be expected to either (i) have a material
adverse effect after the effective time of the Merger Agreement on the present
or prospective consolidated financial condition, business or operating results
of the party, or (ii) prevent the parties from realizing the major portion of
the economic benefits of the transactions contemplated by the Merger Agreement
that they currently anticipate obtaining.
"Commission" shall mean the Securities and Exchange Commission.
"Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.
"Grantee" shall mean Sky Financial Group, Inc..
"Grantor" shall mean Mahoning National Bancorp, Inc..
"Grantor Common Stock" shall mean the respective shares of common
stock of the same class for which Mahoning National Bancorp, Inc. is granting an
Option under this Agreement.
"Merger Agreement" shall mean the definitive agreement executed by
Sky Financial Group, Inc. and Mahoning National Bancorp, Inc. pursuant to which
the parties hereto intend to affiliate.
"Option" shall mean the option granted by Mahoning National Bancorp,
Inc. to Sky Financial Group, Inc. under this Agreement.
"Person" shall have the meanings specified in Sections 3(a)(9) and
13(d)(3) of the Exchange Act.
"Purchase Event" shall mean any of the following events or
transactions occurring after the date of this Agreement with respect to the
Grantor:
(i) the Grantor or any of its Subsidiaries (as defined in Rule
1-02 of Regulation S-X promulgated by the Securities and Exchange Commission
(the "SEC") (each hereinafter individually referred to as a "Subsidiary" and
collectively, as the "Subsidiaries")), without having received the Grantee's
prior written consent, shall have entered into an agreement with, or the Board
of Directors of Grantor shall have recommended that the shareholders of Grantor
approve or accept a transaction with any person (x) to merge or consolidate, or
enter into any similar transaction, except as contemplated by the Merger
Agreement, (y) to purchase, lease or otherwise acquire all or substantially all
of the assets of the Grantor or any of its Subsidiaries, or (z) to purchase or
otherwise acquire (including by way of merger, consolidation, share exchange or
any
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similar transaction) securities representing 20% or more of the voting power of
such Grantor or any of its Subsidiaries (other than pursuant to this Agreement);
(ii) any person (other than the Grantor or its Bank in a
fiduciary capacity, or Grantee or a Grantee Bank in a fiduciary capacity) shall
have acquired beneficial ownership or the right to acquire beneficial ownership
of 20% or more of the outstanding shares of such Grantor Common Stock after the
date of this Agreement (the term "beneficial ownership" for purposes of this
Agreement having the meaning assigned thereto in Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder);
(iii) Grantor shall have breached this Agreement in any material
respect, which breach shall not have been cured within fifteen (15) days after
notice thereof is given by Grantor to Grantee;
(iv) any person other than Grantee shall have made a bona fide
Takeover Proposal to the Grantor by public announcement or written communication
that is or becomes the subject of public disclosure, and following such bona
fide Takeover Proposal, the shareholders of the Grantor vote not to adopt the
Merger Agreement;
(v) Grantor shall have breached the Merger Agreement following a
bona fide Takeover Proposal to such Grantor or any of its Subsidiaries, which
breach would entitle the Grantee to terminate the Merger Agreement and such
breach shall not have been cured prior to the Notice Date (as defined below);
(vi) the shareholders of Grantor shall have voted and failed to
approve the Merger Agreement and the Merger at a meeting which has been held for
that purpose or any adjournment or postponement thereof, or such meeting shall
not have been held in violation of the Merger Agreement or shall have been
canceled prior to termination of the Merger Agreement if, prior to such meeting
(or if such meeting shall not have been held or shall have been canceled, prior
to such termination), it shall have been publicly announced that any person
(other than Grantee or any of its Subsidiaries) shall have made, or disclosed an
intention to make, a proposal to engage in an acquisition transaction; or
(vii) the Grantor Board of Directors shall have withdrawn or
modified (or publicly announced its intention to withdraw or modify) in any
manner adverse in any respect to Grantee, its recommendation that the
shareholders of Grantor approve the transactions contemplated by the Merger
Agreement, or Grantor or any Grantor Subsidiary or group of Grantor Subsidiaries
that is, or would on an aggregate basis constitute, a Significant Subsidiary
shall have authorized, recommended, proposed (or publicly announced its
intention to authorize, recommend or propose) an agreement to engage in an
acquisition transaction with any person other than Grantee or a Grantee
Subsidiary.
If more than one of the transactions giving rise to a Purchase
Event under this Agreement is undertaken or effected, then all such transactions
shall be deemed to give rise only to one Purchase Event with respect to the
Option, which Purchase Event shall be deemed continuing for all purposes
hereunder until all such transactions are abandoned.
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"Repurchase Event" shall mean if (i) any person (other than the
Grantee or any subsidiary of the Grantee) shall have acquired actual ownership
or control, or any "group" (as such term is defined under the Exchange Act)
shall have been formed which shall have acquired actual ownership or control, of
24.9% or more of the then outstanding shares of Grantor Common Stock, or (ii)
any Purchase Event shall be consummated.
"Takeover Proposal" shall mean any tender or exchange offer,
proposal for a merger, consolidation or other business combination involving
Grantor or any of its Subsidiaries or any proposal or offer to acquire in any
manner 20% or more of the outstanding shares of any class of voting securities,
or 15% or more of the consolidated assets, of the Grantor or any of its
Subsidiaries, other than the transactions contemplated by the Merger Agreement.
If Grantor receives an unsolicited Takeover Proposal, it shall notify Grantee
promptly of the receipt of such Takeover Proposal, it being understood, however,
that the giving of such notice by Grantor shall not be a condition to the right
of Grantee to exercise the Option.
2. Grant of Option.
Subject to the terms and conditions set forth herein, Grantor
hereby grants to Grantee an unconditional, irrevocable Option to purchase up to
19.9% (i.e., 1,253,700 shares as of the date of this Agreement) of Grantor
Common Stock at an exercise price of $36.60 per share payable in cash as
provided in Section 4. In the event the Grantor issues or agrees to issue any
shares of Grantor Common Stock (other than as permitted under the Merger
Agreement at a price less than the exercise price per share set forth in this
section (as adjusted pursuant to Section 6), the exercise price of the Option
shall be such lesser price.
3. Exercise of Option.
(a) Unless the Grantee shall have breached in any material
respect any material covenant, representation or warranty contained in this
Agreement or the Merger Agreement and such breach shall not have been cured, the
Grantee may exercise the Option, in whole or part, at any time or from time to
time if a Purchase Event shall have occurred with respect to the Grantor and be
continuing; provided that to the extent the Option shall not have been
exercised, it shall terminate and be of no further force and effect (i) on the
effective date of the transaction contemplated by the Merger Agreement, or (ii)
upon termination of the Merger Agreement in accordance with the provisions
thereof (other than a termination resulting from a breach by the Grantor of the
Merger Agreement or following the occurrence of a Purchase Event, failure of the
Grantor's shareholders to approve the Merger Agreement by the vote required
under applicable law or under the respective Grantor's articles), or (iii) 12
months after termination of the Merger Agreement due to a breach by the Grantor
of the Merger Agreement or, following the occurrence of a Purchase Event,
failure of the Grantor's shareholders to approve the Merger Agreement by the
vote required under applicable law or under the Grantor's articles. Any exercise
of the Option shall be subject to compliance with applicable provisions of law.
(b) In the event the Grantee wishes to exercise the Option, it
shall send to the Grantor a written notice (the date of which being herein
referred to as the "Notice Date")
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specifying (i) the total number of shares it will purchase pursuant to such
exercise, and (ii) a place and date not earlier than three (3) business days nor
later than 60 business days after the Notice Date for the closing of such
purchase ("Closing Date"). If prior notification to or approval of any federal
or state regulatory agency is required in connection with such purchase, the
Grantee shall promptly file the required notice or application for approval and
shall expeditiously process the same and the period of time that otherwise would
run pursuant to this section shall run instead from the date on which any
required notification period has expired or been terminated or any requisite
approval has been obtained and any requisite waiting period shall have passed.
4. Payment and Delivery of Certificates.
(a) At the closing referred to in Section 3, the Grantee shall
pay to the Grantor the aggregate purchase price for the shares of Grantor Common
Stock purchased pursuant to the exercise of the Option in immediately available
funds by a wire transfer to a bank account designated by the Grantor. Grantor
shall pay all expenses, and any and all United States federal, state and local
taxes and other charges that may be payable in connection with the preparation,
issue and delivery of stock certificates under this Section 4 in the name of the
Grantee or its assignee, transferee or designee.
(b) At such closing, simultaneously with the delivery of funds
as provided in Section 4(a), the Grantor shall deliver to the Grantee a
certificate or certificates representing the number of shares of Grantor Common
Stock purchased by the Grantee, and the Grantee shall deliver to the Grantor a
letter agreeing that Grantee will not offer to sell or otherwise dispose of such
shares in violation of applicable law or the provisions of this Agreement.
(c) Certificates for Grantor Common Stock delivered at a
closing hereunder shall be endorsed with a restrictive legend which shall read
substantially as follows:
The transfer of the shares represented by this certificate is
subject to certain provisions of a Stock Option Agreement
dated June 7, 1999, between the registered holder hereof and
[Grantor] (a copy of which agreement is on file at the
principal office of [Grantor]). A copy of such agreement will
be provided to the holder hereof without charge within five
days after receipt by [Grantor] of a written request
therefor. The shares evidenced by this certificate have not
been registered under the Securities Act of 1933, as amended,
and may not be sold, pledged, transferred, or hypothecated
except pursuant to an opinion of counsel satisfactory to the
corporation that such transfer is lawful.
The above legend shall be removed or modified as appropriate
by delivery of substitute certificate(s) without such legend if the Grantee
shall have delivered to the Grantor a copy of a letter from the staff of the
Commission, or an opinion of counsel, in form and substance satisfactory to
Grantor, to the effect that such legend is not required for purposes of the
Securities Act of 1933, as amended.
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<PAGE> 6
5. Representations.
The Grantor represents, warrants and covenants to the Grantee as
follows:
(a) Grantor agrees: (i) that it shall at all times maintain,
free from preemptive rights, sufficient authorized but unissued or treasury
shares of Common Stock so that the Option may be exercised without additional
authorization of Common Stock after giving effect to all other options,
warrants, convertible securities and other rights to purchase Common Stock; (ii)
that it will not, by charter amendment or through reorganization, consolidation,
merger, dissolution or sale of assets, or by any other voluntary act, avoid or
seek to avoid the observance or performance of any of the covenants,
stipulations or conditions to be observed or performed hereunder by Grantor;
(iii) promptly to take all action as may from time to time be required
(including (x) complying with all applicable premerger notification, reporting
and waiting period requirements specified in 15 U.S.C. Section 18a and
regulations promulgated thereunder and (y) in the event, under the Bank Holding
Company Act of 1956, as amended (the "BHCA"), or the Change in Bank Control Act
of 1978, as amended, or any state or other federal banking law, prior approval
of or notice of the Federal Reserve Board or to any state or other federal
regulatory authority is necessary before the Option may be exercised,
cooperating fully with the Grantee in preparing such applications or notices and
providing such information to the Federal Reserve Board or such state or other
federal regulatory authority as they may require) in order to permit the Grantee
to exercise the Option and Grantor duly and effectively to issue shares of
Common Stock pursuant thereto; and (iv) promptly to take all action provided
herein to protect the rights of the Grantee against dilution.
(b) The shares to be issued upon due exercise, in whole or in
part, of the Option, when paid for as provided herein, will be duly authorized,
validly issued and fully paid.
(c) Grantor has full corporate power and authority to execute,
deliver and perform this Agreement and all corporate action necessary for
execution, delivery and performance of this Agreement has been duly taken by
such party.
(d) Neither the execution and delivery of this Agreement nor
consummation of the transactions contemplated hereby (assuming all appropriate
shareholder and regulatory approvals) will violate or result in any violation of
or be in conflict with or constitute a default under any term of the articles,
regulations or by-laws of such party or any agreement, instrument, judgment,
decree, statute, rule or order applicable to such party.
6. Adjustment Upon Changes in Capitalization.
The Grantor agrees that, in the event of any change in its
Grantor Common Stock by reason of stock dividends, split-ups, mergers,
recapitalizations, combinations, exchanges of shares or the like, the type and
number of shares subject to the Option, and the purchase price per share, as the
case may be, shall be adjusted appropriately. The Grantor agrees that, in the
event that any additional shares of its Grantor Common Stock are issued or
otherwise become outstanding after the date of this Agreement (other than
pursuant to this Agreement), the number of shares of its
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<PAGE> 7
Grantor Common Stock subject to the Option shall be adjusted so that, after such
issuance, it equals the same percentage (as that on the date of this Agreement)
of the number of shares of Grantor Common Stock then issued and outstanding
without giving effect to any shares subject to or issued pursuant to the Option.
Nothing contained in this Section 6 shall be deemed to authorize the Grantor to
breach any provision of the Merger Agreement.
7. Registration Rights.
If requested by the Grantee, the Grantor shall as expeditiously
as possible file a registration statement on a form of general use under the
Securities Act of 1933 if necessary in order to permit the sale or other
disposition of the shares of Grantor Common Stock that have been acquired upon
exercise of the Option in accordance with the intended method of sale or other
disposition requested by the Grantee. The Grantee shall provide all information
reasonably requested by the Grantor for inclusion in any registration statement
to be filed hereunder. The Grantor will use its best efforts to cause such
registration statement first to become effective and then to remain effective
for such period not in excess of 180 days from the day such registration
statement first becomes effective as may be reasonably necessary to effect such
sales or other dispositions. The first registration effected under this Section
7 shall be at the Grantor's expense, except for underwriting commissions and the
fees and disbursements of the Grantee's counsel attributable to the registration
of such Grantor Common Stock. A second registration may be requested hereunder
at the Grantee's expense. In no event shall Grantor be required to effect more
than two registrations hereunder. The filing of any registration statement
hereunder may be delayed for such period of time as may reasonably be required
to facilitate any public distribution by the Grantor of other Grantor Common
Stock. If requested by the Grantee, in connection with any such registration,
Grantor will become a party to any underwriting agreement relating to the sale
of such shares, but only to the extent of obligating itself in respect of
representations, warranties, indemnities and other agreements customarily
included in such underwriting agreements in respect of issuers of shares being
sold by a selling shareholder. Upon receiving any request from a Grantee or
permitted assignee thereof under this Section 7, Grantor agrees to send a copy
of the registration statement and prospectus and each amendment to the Grantee
and to any permitted assignee thereof known to Grantor, in each case by promptly
mailing the same, postage prepaid, to the address of record of the persons
entitled to receive such copies.
8. Termination.
This Agreement may be terminated at any time prior to the
effective date of the transaction set forth in the Merger Agreement, by action
taken or authorized by the Board of Directors of the terminating party or
parties, whether before or after approval by the stockholders of the matters
presented in connection with the Merger Agreement:
(a) by mutual consent of Grantee and Grantor;
(b) by either Grantee or Grantor if the Federal Reserve Board
shall have issued an order denying approval of the transaction set forth in the
Merger Agreement or if any governmental entity of competent jurisdiction shall
have issued a final permanent order enjoining or otherwise prohibiting the
consummation of the transactions contemplated by this
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<PAGE> 8
Agreement or the Merger Agreement, or imposing a Burdensome Condition, and in
any such case the time for appeal or petition for reconsideration of such order
shall have expired without such appeal or petition being granted;
(c) by either Grantee or Grantor if the holding company merger
contemplated by the Merger Agreement shall not have been consummated on or
before March 31, 2000, unless such date is extended by mutual consent of the
parties hereto; or
(d) by either Grantee or Grantor if no Purchase Event has
occurred and if any approval of their shareholders required for the consummation
of the transactions set forth in the Merger Agreement shall not have been
obtained by reason of the failure to obtain the required vote at a duly called
and held meeting of shareholders or at any adjournment thereof.
9. Effect of Termination.
(a) In the event of termination of this Agreement by any party
as provided in Section 8, this Agreement shall forthwith become void and there
shall be no liability or obligation on the part of any party or their respective
officers or directors except (i) Sections 11, 12, 13 and 14 of this Agreement
shall survive the termination and (ii) with respect to any liabilities or
damages incurred or suffered by a party as a result of the breach by another
party of any of its representations, warranties, covenants or agreements set
forth in this Agreement.
(b) If a Purchase Event occurs with respect to the Grantor,
then in such event Grantor shall pay to the Grantee, within five business days
after a termination of this Agreement following such an event, the reasonable
expenses of Grantee incurred in connection with this Agreement and the
transactions set forth in the Merger Agreement, but not more than $125,000.
10. Access to Information.
During the term of this Agreement, each party will afford each of
the other parties full and free access during normal business hours to such
party, its personnel, properties, contracts, books and records, and all other
documents and data.
11. Confidentiality.
Except as and to the extent required by law, no party will
disclose or use, and will direct its representatives not to disclose or use, any
Confidential Information (as defined below) with respect to the other parties
furnished or to be furnished by such other parties, or their respective
representatives to the party or its representatives at any time or in any manner
other than in connection with its evaluation of the transaction proposed in this
Agreement. For purposes of this section, "Confidential Information" means any
information about the Merger Agreement and this Agreement as well as any
information about a party stamped "confidential" or identified in writing as
such promptly following its disclosure, unless (i) such information is already
known to the party or its representatives or to others not bound by a duty of
confidentiality or such information becomes publicly available through no fault
of the party or its representatives, (b) the
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use of such information is necessary in making any filing or obtaining any
consent or approval required for the consummation of the transactions set forth
in the Merger Agreement, or (c) the furnishing or use of such information is
required by or necessary in connection with legal proceedings. In the event the
transaction contemplated by this Agreement are not consummated, each of the
other parties will promptly return or destroy any Confidential Information in
its possession and certify in writing to the disclosing party that it has done
so.
12. Exclusive Dealing.
Grantor agrees that it shall not, and shall cause its
Subsidiaries and its and its Subsidiaries' officers, directors, agents, advisors
and affiliates not to, solicit or encourage inquiries or proposals with respect
to, or engage in any negotiations concerning, or provide any confidential
information to, or have any discussions with, any person relating to, any
acquisition proposal ("Acquisition Proposal"); subject to the extent the Grantor
Board of Directors determines in good faith, after consultations with
independent legal counsel that it is required by its fiduciary duties to do so.
It shall immediately cease and cause to be terminated any activities,
discussions or negotiations conducted prior to the date of this Agreement with
any parties other than Grantee with respect to any of the foregoing and shall
use its reasonable best efforts to enforce any confidentiality or similar
agreement relating to an Acquisition Proposal. Grantor shall promptly (within 24
hours) advise Grantee following the receipt by Grantor of any Acquisition
Proposal and the substance thereof (including the identity of the person making
such Acquisition Proposal), and advise Grantee of any material developments with
respect to such Acquisition Proposal immediately upon the occurrence thereof. In
the event this Agreement is terminated by Grantor in accordance with the
provisions of Section 8(c) hereof, it is understood and agreed that this Section
12 shall remain in full force and effect through June 30, 2000.
13. Disclosure.
Except as and to the extent required by law, without the prior
written consent of the other parties, no party will, and each will direct its
representatives not to, make directly or indirectly any public comment,
statement or communication with respect to, or otherwise to disclose or to
permit the disclosure of the existence of discussions regarding, a possible
transaction among the parties or any of the terms, conditions or other aspects
of the transaction proposed in this Agreement. If a party is required by law to
make any such disclosure, it must first provide to the other parties the content
of the proposed disclosure, the reasons that such disclosure is required by law,
and the time and place that the disclosure will be made.
14. Costs.
Except as otherwise expressly agreed, each party will be
responsible for and bear all of its own costs and expenses (including any
broker's or finder's fees and the expenses of its representatives) incurred at
any time in connection with this Agreement and in pursuing or consummating the
Merger Agreement.
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15. Severability.
If any term, provision, covenant or restriction contained in this
Agreement is held by a court or a federal or state regulatory agency of
competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions contained in this Agreement
shall remain in full force and effect, and shall in no way be affected, impaired
or invalidated. If for any reason such court or regulatory agency determines
that applicable law will not permit the Grantee to acquire the full number of
shares of Grantor Common Stock provided in Section 2 (as adjusted pursuant to
Section 6), it is the express intention of the Grantor to allow the Grantee to
acquire such lesser number of shares as may be permissible, without any
amendment or modification hereof.
16. Miscellaneous.
(a) Third Parties. Nothing in this Agreement, expressed or
implied, is intended to confer upon any party, other than the parties hereto,
and their respective permitted successors and assigns, any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as
expressly provided herein.
(b) Entire Agreement. Except as otherwise expressly provided
herein, this Agreement contains the entire agreement among the parties with
respect to the transactions contemplated hereunder and supersede all prior
arrangements or understandings with respect thereto, written or oral. The terms
and conditions of this Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective permitted successors and assigns.
(c) Assignment. Neither of the parties hereto may assign any
of its rights or obligations under this Agreement or the Option created
hereunder to any other person, without the express written consent of the other
parties, except that in the event a Purchase Event shall have occurred and be
continuing, the Grantee may assign in whole or in part its rights and
obligations hereunder; provided, however, that Grantee may not assign its rights
under the Option except in (i) a widely dispersed public distribution, (ii) a
private placement in which no one party acquires the right to purchase in excess
of 2% of the voting shares of the Grantor, (iii) an assignment to a single party
(e.g., a broker or investment banker) for the purpose of conducting a widely
dispersed public distribution on the Grantee's behalf, or (iv) any other manner
approved by applicable regulatory authorities.
(d) Notices. All notices or other communications which are
required or permitted hereunder shall be in writing and sufficient if delivered
by registered or certified mail, postage prepaid, express service, personal
delivery, telecopy or telefacsimile to the following addresses:
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If to Mahoning National Bancorp, Inc., to:
Mahoning National Bancorp, Inc.
23 Federal Plaza
Youngstown, Ohio 44503-1815
Attn: Gregory L. Ridler, Chairman of the Board,
President and Chief Executive Officer
With a copy to:
Werner & Blank Co., LPA
7205 West Central Avenue
Toledo, Ohio 43617
Attn: Marty Werner
If to Sky Financial Group, Inc., to:
Sky Financial Group, Inc.
10 E. Main Street
Salineville, Ohio 43945
Attn: Marty E. Adams, President and Chief Operating Officer
With a copy to:
Sky Financial Group, Inc
221 S. Church Street
Bowling Green, Ohio 43402
Attn: W. Granger Souder, General Counsel
With a copy to:
Squire, Sanders & Dempsey L.L.P.
4900 Key Tower
127 Public Square
Cleveland, Ohio 44114-1304
Attention: M. Patricia Oliver, Esq.
(e) Counterparts. This Agreement may be executed in any number
of counterparts, and each such counterpart shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement.
(f) Specific Performance. The parties agree that damages would
be an inadequate remedy for a breach of the provisions of this Agreement by any
party hereto and that this Agreement may be enforced by a party hereto through
injunctive or other equitable relief.
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(g) Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of Ohio applicable to agreements made and
entirely to be performed within such state and such federal laws as may be
applicable.
17. Repurchase at the Option of Grantee.
(a) At the request of the Grantee at any time commencing upon
the first occurrence of a Repurchase Event and ending 12 months immediately
thereafter, Grantor shall repurchase from Grantee (i) the Option and (ii) all
shares of Grantor Common Stock purchased by Grantee pursuant hereto with respect
to which Grantee then has beneficial ownership. The date on which Grantee
exercises its rights under this Section 17 is referred to as the "Request Date."
Such repurchase shall be at an aggregate price (the "Repurchase Consideration")
equal to the sum of:
(i) the aggregate purchase price paid by Grantee for any
shares of Grantor Common Stock acquired pursuant to the Option with respect to
which Grantee then has beneficial ownership;
(ii) the excess, if any, of (x) the Applicable Price for
each share of Grantor Common Stock over (y) the purchase price (subject to
adjustment pursuant to Section 6 hereof, multiplied by the number of shares of
Grantor Common Stock with respect to which the Option has not been exercised;
and
(iii) the excess, if any, of the Applicable Price over the
purchase price (subject to adjustment pursuant to Section 6 hereof paid (or, in
the case of Option Shares with respect to which the Option has been exercised
but the Closing Date has not occurred), payable by Grantee for each share of
Grantor Common Stock with respect to which the Option has been exercised and
with respect to which Grantee then has beneficial ownership, multiplied by the
number of such shares.
(b) If Grantee exercises its rights under this section,
Grantor shall, within 10 business days after the Request Date, pay the Grantor
Repurchase Consideration to Grantee in immediately available funds, and
contemporaneously with such payment Grantee shall surrender to Grantor the
Option and the certificates evidencing the shares of Grantor Common Stock
purchased thereunder with respect to which Grantee then has beneficial
ownership, and Grantee shall warrant that it has sole record and beneficial
ownership of such shares and that the same are then free and clear of all liens,
claims, charges and encumbrances of any kind whatsoever. Notwithstanding the
foregoing, to the extent that prior notification to or approval of the Federal
Reserve Board or other regulatory authority is required in connection with the
repayment of all or any portion of the Repurchase Consideration Grantee shall
have the ongoing option to revoke its request for repurchase pursuant to this
section, in whole or in part, or to require that Grantor deliver from time to
time that portion of the Repurchase Consideration that it is not then so
prohibited from paying and promptly file the required notice or application for
approval and expeditiously process the same (and each party shall cooperate with
the other in the filing of any such notice or application and the obtaining of
any such approval). If the Federal Reserve Board or
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any other regulatory authority disapproves of any part of Grantor's proposed
repurchase pursuant to the section, Grantor shall promptly give notice of such
fact to Grantee. If the Federal Reserve Board or other agency prohibits the
repurchase in part but not in whole, then Grantee shall have the right (i) to
revoke the repurchase request, or (ii) to the extent permitted by the Federal
Reserve Board or other agency, determine whether the purchase should apply to
the Option and or Option shares and to what extent to each, and Grantee shall
thereupon have the right to exercise the Option as to the number of Option
shares for which the Option was exercisable at the Request Date less the sum of
the number of shares covered by the Option in respect of which payment has been
made pursuant to this section and the number of shares covered by the portion of
the Option (if any) that has been repurchased. Grantee shall notify Grantor of
its determination under the preceding sentence within five (5) business days of
receipt of notice of disapproval of the purchase.
Notwithstanding anything herein to the contrary, all of
Grantee's rights under this section shall terminate on the date of termination
of this Option.
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IN WITNESS WHEREOF, each of the parties hereto has executed
this Agreement to be effective as of the day and year set forth in the first
paragraph above.
SKY FINANCIAL GROUP, INC.
By /s/ Marty E. Adams
----------------------------------------------
Marty E. Adams, President and Chief Operating
Officer
MAHONING NATIONAL BANCORP, INC.
By /s/ Gregory L. Ridler
----------------------------------------------
Gregory L. Ridler, Chairman of the Board,
President and Chief Executive Officer
14
