Company: TRUE
Filing Date: 2025-11-24
Form Type: DEFM14A
Source: 0001104659-25-115451
Chunk: 101

Company: TrueCar, Inc.
Filing Date: 2025-11-24
Form: DEFM14A
Chunk 101
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 Agreement and to consider unsolicited third-party acquisition proposals prior to the Company Stockholder Approval.

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TrueCar’s “fiduciary out” rights under the Merger Agreement to terminate the Merger Agreement and enter into a Superior Proposal. In this regard, the Board considered that while the Merger Agreement contains a termination fee of $4.0 million (for a third-party that submits an Acquisition Proposal during the Go Shop Period that is accepted during such period or within ten (10) Business Days of its expiration) or $8.0 million otherwise, that TrueCar would be required to pay to Fair in certain circumstances, the Board believes that such termination fee is reasonable in light of such circumstances and the overall terms of the Merger Agreement and the process undertaken by the Board to evaluate potential strategic alternatives, consistent with fees in comparable transactions, and not a significant deterrent to potential alternative acquisition offers.

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The $15.0 million fee payable by Parent if Parent fails to complete the merger or otherwise breaches the Merger Agreement in certain circumstances will be pre-funded to TrueCar upon execution of the Merger Agreement, minimizing the risk of collection if TrueCar is entitled to receive this fee.

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The fact that the Merger is subject to the approval of TrueCar Stockholders and that the TrueCar Stockholders who do not vote to adopt the Merger Agreement and who follow certain prescribed procedures are entitled to dissent from the merger and demand payment of the “fair value” of their Common Stock, as and to the extent provided by Delaware law.

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The support of the Merger by Caledonia, as evidenced by its execution of the Caledonia Support Agreement.

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The fact that the Caledonia Support Agreement terminates in certain circumstances, including in the event TrueCar terminates the Merger Agreement to accept a Superior Proposal.

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The fact that multiple significant TrueCar Stockholders independently expressed support for a process for TrueCar to evaluate or undertake strategic alternatives to members of the Board prior to becoming aware of the process being conducted with the assistance of Morgan Stanley.

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The absence of required regulatory approvals to complete the Merger Agreement based on the current group of parties providing financing to Fair.

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The terms of the Merger Agreement, taken as a whole, including the parties’ representations, warranties and covenants, which the Board considered in consultation with Alston and viewed as reasonable.

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The long-stop date of February 28, 2026, allowing for a reasonably sufficient amount of time to complete the merger.

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