Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 195

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 195
---
 Mr. Russell, a director and former interim Chief Executive Officer of Mechanics, is employed by an affiliate of Mr. Ford. Additionally, Mr. Johnson, Mechanics’ current President and Chief Executive Officer, is employed by GJF Management. Pursuant to the Mechanics Bank Services Agreement, GJF Management and individuals from GJF Management provide certain services to Mechanics, including, among others, accounting, tax, investment management, legal, regulatory, strategic planning, capital management, budgeting and other oversight. The services and value of services, inclusive of administrative costs, are evaluated annually to ensure compliance with applicable regulations. These services are provided to Mechanics at a cost up to $10.0 million annually (pro rata for any partial years). Either party may terminate this agreement upon thirty days’ prior notice to the other. Mechanics has also agreed to indemnify and hold harmless GJF Management for its performance or provision of these services, except for gross negligence and willful misconduct. Other Transactions Some of Mechanics’ directors and executive officers and their immediate families, as well as the companies with which they are associated, are customers of Mechanics or have had banking transactions with Mechanics in the ordinary course of Mechanics’ business. Mechanics expects to have banking transactions with such persons in the future. In the opinion of the management of Mechanics, all loans and commitments to lend included in those transactions were made in compliance with applicable laws on substantially the same terms, including interest rates and collateral, as those prevailing for comparable transactions with other persons of similar creditworthiness and, in the opinion of management, did not involve more than a normal risk of collectability or present other unfavorable features. No director or executive officer of Mechanics had indebtedness during 2024 in excess of 10% of the Mechanics’ equity capital accounts.

122

#### TABLE OF CONTENTS

#### Existing Shareholders Agreement
Mechanics, the Ford Entities and Rabobank are party to that certain Shareholders Agreement, dated as of August 31, 2019 (the “existing shareholders agreement”), pursuant to which Rabobank is (i) entitled to certain demand registration rights, shelf takedown rights and piggyback registration rights with respect to shares of Mechanics common stock, subject to customary limitations, including the right of underwriters in an underwritten offering to limit the number of shares to be included in an offering and Mechanics’ right to suspend the use of (or discontinue the disposition of) Mechanics common stock pursuant to a registration statement under specified circumstances, (ii) entitled to certain