Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 281

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 281
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 employee from the HomeStreet 401(k) Plan.

Mechanics and the HomeStreet Parties have agreed that, subject to certain exceptions, the consummation of the merger will constitute a “change in control,” “change of control” or similar concept under each applicable HomeStreet benefit plan. From and after the effective time, HomeStreet will, or will cause its subsidiaries, as applicable, to assume and honor all HomeStreet benefit plans in accordance with their terms.

With respect to HomeStreet’s annual cash incentive program for the fiscal year in which the closing occurs, Mechanics will cause the Closing Year Bonuses to be paid based on target performance levels to the continuing HomeStreet employees who remain employed through the date HomeStreet has historically paid such amounts in the ordinary course of business. In the event that a continuing employee incurs a termination of employment after the closing and prior to the bonus payment date by Mechanics or any of its subsidiaries other than for cause (as defined in the confidential disclosure schedules to the merger agreement) or by the applicable continuing employee for good reason (as defined in the confidential disclosure schedules to the merger agreement, but solely to the extent the continuing employee is a party to a change in control agreement or similar agreement, any HomeStreet Equity Award or any deferred compensation agreement in which a good reason provision exists), then Mechanics will cause a prorated Closing Year Bonus to be paid based on target performance levels to such continuing employee within 60 days following such termination of employment, based on the number of days served during the applicable fiscal year, subject to execution and non-revocation of a release of claims in a form reasonably satisfactory to Mechanics, except that no such prorated Closing Year Bonus will be paid to the extent that such payment would result in any duplication of any payments.

Mechanics and HomeStreet have agreed to jointly determine in good faith allocations under a cash-based retention program for employees of HomeStreet and its subsidiaries prior to the effective time, to promote retention and incentivize efforts to consummate the closing and successful completion of systems conversion, as set forth in the confidential disclosure schedules to the merger agreement.

The merger agreement also provides that HomeStreet will seek to obtain approval from HomeStreet’s shareholders of an equity compensation plan on such terms and in such form as are market-appropriate for HomeStreet following the consummation of the merger and as determined jointly by HomeStreet and Mechanics.

**Director and Officer Indemnification and Insurance**

From and after the effective time, HomeStreet will indemnify and hold harmless against and will advance