Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 246

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 246
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 directors was aware of and considered these respective interests, among other matters, in evaluating and negotiating the merger agreement when deciding to adopt and approve the merger agreement and in making its recommendation that HomeStreet shareholders vote to approve the HomeStreet share issuance proposal, the HomeStreet articles amendment proposal, the HomeStreet new equity incentive plan proposal, the HomeStreet merger-related compensation proposal and the HomeStreet adjournment proposal. These interests are described in more detail below, and certain of them are quantified in the narrative and in the section entitled “ —Quantification of Potential Payments and Benefits to HomeStreet’s Named Executive Officers in Connection with the Merger.” Treatment of HomeStreet Equity Awards and Cash-Based Awards Each of HomeStreet’s executive officers holds one or more of the following types of awards: HomeStreet RSUs, HomeStreet PSUs, and long-term cash-based awards (excluding the CEO Cash Award defined below, the “HomeStreet Cash LTI”). HomeStreet’s non-employee directors do not hold any unvested or outstanding HomeStreet Equity Awards or HomeStreet Cash LTI. The merger agreement does not specify treatment of HomeStreet Cash LTI, which, at and following the effective time, will generally remain subject to the same terms and conditions (including vesting terms (including “double-trigger” vesting, as described below)) as applied to such awards immediately prior to the effective time under the applicable award agreements. Upon completion of the merger, outstanding HomeStreet Equity Awards will be treated as follows:

| • | at the effective time, the merger agreement provides that each outstanding HomeStreet RSU will remain outstanding and be continued subject to the same terms and conditions (including vesting terms (including “double-trigger” vesting, as described below) and terms with respect to dividend equivalents) as applied immediately prior to the effective time; and |

| • | at the effective time, the merger agreement provides that any vesting conditions applicable to each HomeStreet PSU that is outstanding immediately prior to the effective time, whether vested or unvested, |

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will automatically accelerate, and each such HomeStreet PSU will be cancelled and entitle the holder to receive (1) a number of shares of the Class A common stock equal to the number of shares of HomeStreet common stock (immediately prior to the effective time) subject to such HomeStreet PSU based on target performance plus (2) an amount in cash equal to the amount of all dividends, if any, accrued but unpaid as of the effective time with respect to such