SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

GEORGE KELLY W

(Last)

(First)

(Middle)

C/O MACKINAC FINANCIAL CORPORATION

130 SOUTH CEDAR STREET

(Street)

MANISTIQUE

49868

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
MACKINAC FINANCIAL CORP /MI/ [ MFNC ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	President*

3. Date of Earliest Transaction (Month/Day/Year)
02/19/2008

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common stock	02/19/2008		P		500	A	$8.722	500	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Stock Option (right to buy)	$12							06/10/2005	06/10/2015	Common Stock	4,000		4,000⁽¹⁾	D
Stock Option (right to buy)	$10.65							12/15/2006	12/15/2016	Common Stock	3,000		7,000⁽²⁾	D

Explanation of Responses:

1. On June 10, 2005, the reporting person was granted the option to purchase 20,000 shares of Common Stock. The option vests in 5 equal installments. The first installment vested immediately upon the date of grant resulting in vesting of the option as to 4,000 shares. The remaining option vests in equal annual installments based upon Mackinac Financial Corporation's satisfaction of certain performance criteria for each of the fiscal years ending 2006, 2007, 2008 and 2009. This transaction was previously erroneously reported as occuring on November 16, 2005.

2. As previously reported, the reporting person was granted an option to purchase 15,000 shares of common stock. The option vests in 5 equal installments. The first installment vested immediately upon the date of grant resulting in vesting of the option as to 3,000 shares. The remaining 80% of the original option becomes exercisable in 20% increments when the closing price of the Common Stock equals a specified multiple of the initial exercise prices for a period of 10 consecutive trading days as follows: 1.15 times after 12/15/07, 1.30 times after 12/15/08, 1.45 times after 12/15/09, and 1.45 times after 12/15/10.

Remarks:

* Reporting person holds reported position of President with Mackinac Financial Corporation and those of President and Chief Executive Officer with Mackinac Financial Corporation's principal banking subsidiary, Mbank.

	Ernie Krueger, Attorney-in-Fact	02/22/2008
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.