Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 75

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 75
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 an individual, a group or another company is a “controlled company” and is exempt from certain corporate governance requirements that would otherwise require the combined company to have: (i) a nominating committee comprised solely of independent directors or select or recommend director

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nominees by a majority of the independent directors and (ii) a compensation committee comprised solely of independent directors. Following the consummation of the merger, the combined company will continue to have an audit committee that is composed entirely of independent directors.

**Certain shareholders of the combined company will have registration rights, the exercise of which could adversely affect the trading price of combined company common stock.**

Concurrently with the effective time, the registration rights agreement among HomeStreet, Mechanics and certain key shareholders of Mechanics will become effective, pursuant to which HomeStreet will grant such key shareholder demand registration rights, shelf takedown rights and piggyback registration rights with respect to shares of combined company common stock such key shareholders acquire in the merger, in each case, subject to certain minimum and maximum thresholds and other customary limitations. The existence and potential or actual exercise of such rights, and the perception that a large number of shares will be publicly sold in the market, could adversely impact the trading price of the combined company common stock, have the effect of increasing the volatility in the trading price of the combined company common stock and impact the ability of the combined company to engage in capital market transactions or the price at which the combined company is able to offer or sell the combined company common stock.

**Following the merger, an active trading market for the combined company common stock may not be sustained and the shareholders may not be able to resell their shares of combined company common stock for a profit.**

Prior to the merger, there had been no public market for Mechanics common stock. Following the merger, an active trading market for combined company common stock may not be sustained or otherwise develop. If an active market for combined company common stock is not sustained or does not otherwise develop, it may be difficult for its shareholders to sell their shares of combined company common stock at an attractive price or at all. In addition, the Class B common stock will not be listed on the NYSE or Nasdaq, which may further limit the market for Class B common stock.

**HomeStreet shareholders and Mechanics shareholders will not have dissenters’ rights or appraisal rights in connection with the merger or other matters to be voted on at the HomeStreet Special Meeting.**

Appraisal rights (