Company: MCHB
Filing Date: 2025-04-03
Form Type: 425
Source: 0001518715-25-000059
Chunk: 7

Company: Mechanics Bancorp
Filing Date: 2025-04-03
Form: 425
Chunk 7
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 closing of the Merger, and HomeStreet and Mechanics Bank will retain Mr. Mason as a consultant to perform certain transitional services beginning on the day following the closing of the Merger and ending on the earliest of (a) the second anniversary of the closing of the Merger, (b) the death or disability of Mr. Mason and (c) the termination of the Consulting Agreement pursuant to its terms (the “ Consulting Period ”). The Consulting Agreement is attached to this Current Report on Form 8-K as Exhibit 10.3 and is incorporated by reference herein.

The Consulting Agreement provides that, upon the termination of his employment with HomeStreet and HomeStreet Bank on the first day following the closing of the Merger, Mr. Mason will be entitled to receive the following severance payments and benefits in full satisfaction of the severance payments and benefits to which he would be entitled under the terms of his existing employment agreement with HomeStreet upon a qualifying termination of employment without Cause or for Good Reason following a Change in Control (each, as defined in the employment agreement):

• cash severance payments equal to the sum of (i) two-and-one-half times Mr. Mason’s annual salary at the rate in effect as of immediately prior to the consummation of the Merger, plus (ii) two-and-one-half times the greater of (x) the annual incentive payment earned by Mr. Mason in the year prior to termination and (y) Mr. Mason’s target annual incentive payment for the year of termination;

• continuing health insurance coverage for Mr. Mason and his dependents for eighteen months, provided Mr. Mason and his dependents timely elect COBRA continuation coverage under HomeStreet’s group health plan(s);

• accelerated vesting of all of Mr. Mason’s unvested HomeStreet Equity Awards and long-term cash incentive awards (in the case of HomeStreet PSUs, with performance deemed achieved at target); and

• certain accrued but unpaid benefits.

In addition, under the Consulting Agreement, Mr. Mason will, in consideration of his consulting commitment and the restrictive covenants described below, receive a gross amount equal to $4,000,000, payable in equal quarterly installments during the Consulting Period.

Under the Consulting Agreement, Mr. Mason reaffirms the terms and conditions of that certain Confidentiality Agreement, dated as of March 14, 2017, with HomeStreet and HomeStreet Bank. In addition, the Consulting Agreement provides for (i) certain non-disparagement obligations; (ii) extension of