Company: MCHB
Filing Date: 2025-04-03
Form Type: 425
Source: 0001518715-25-000059
Chunk: 3

Company: Mechanics Bancorp
Filing Date: 2025-04-03
Form: 425
Chunk 3
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 performance.

Treatment of Mechanics Bank Equity Awards

At the Effective Time, each outstanding incentive unit award or restricted stock unit award granted under the Mechanics Bank 2017 Incentive Unit Plan or 2022 Omnibus Incentive Plan in respect of shares of Mechanics Common Stock (a “ Mechanics RSU ”) will automatically be converted into a restricted stock unit award (an “ Assumed HomeStreet RSU ”) in respect of the number of shares of Class A HomeStreet Common Stock equal to (1) the total number of shares of Mechanics Common Stock subject to the Mechanics RSU immediately prior to the Effective Time multiplied by (2) the Exchange Ratio. Each Assumed HomeStreet RSU will otherwise remain subject to the same terms and conditions (including vesting terms, performance measures, and terms with respect to dividend equivalents) as applied to the corresponding Mechanics RSU immediately prior to the Effective Time.

Certain Other Terms and Conditions of the Merger Agreement

The Merger Agreement contains customary representations and warranties from each of HomeStreet, HomeStreet Bank, and Mechanics Bank. In addition, HomeStreet has agreed to certain customary pre-closing covenants, including covenants to operate its business in the ordinary course in all material respects, and each of HomeStreet and Mechanics Bank have agreed to refrain from taking certain actions without the other’s consent. Each party has agreed to additional covenants, including, among others, covenants relating to (a) in the case of HomeStreet, (i) its obligation to call a meeting of its shareholders to approve the issuance of shares of HomeStreet Common Stock pursuant to the Merger Agreement (the “ Share Issuance ”), the Articles Amendment and to approve and adopt an equity compensation plan on terms to be jointly determined by HomeStreet and Mechanics Bank, and (ii) the obligation of the Board of Directors of HomeStreet to recommend that its shareholders approve the Share Issuance and the Articles Amendment, (b) in the case of Mechanics Bank, its obligation to obtain the approval of the Merger Agreement and the transactions contemplated by the Merger Agreement by Mechanics Bank’s shareholders, and (c) in the case of HomeStreet, non-solicitation obligations related to alternative acquisition proposals.

The completion of the Merger is subject to the satisfaction or waiver of certain closing conditions, including (a) the approval of the Share Issuance and the Articles Amendment by the requisite vote of the HomeStreet shareholders and approval of the Merger Agreement and the transactions contemplated by the Merger Agreement