Company: TRUE
Filing Date: 2025-11-24
Form Type: DEFM14A
Source: 0001104659-25-115451
Chunk: 77

Company: TrueCar, Inc.
Filing Date: 2025-11-24
Form: DEFM14A
Chunk 77
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 in light of ongoing volatility in financial markets and the Company’s results. Representatives from Alston provided an update regarding the terms of the draft Merger Agreement and the form of equity commitment letter proposed by Fair. After discussion, the Board declined to commit to negotiate exclusively with Fair and instructed Mr. Reigersman to request that Fair update its per share price to a range of at least $4.25 to $4.30 per share, but also indicated that the Board would support transacting at $4.20 per share in the event Fair declined to increase the per share price provided that such per share price was not subject to adjustment. Representatives from Alston discussed with the Board revisions to the draft Merger Agreement to provide for a termination fee equal to 2.75% of the equity transaction value if the Company terminated the Merger Agreement in order to accept a financially superior proposal from a third party and a reverse termination fee, which would be placed into escrow upon signing of the Merger Agreement, of 6.5% of the equity transaction value, as well as the right for the Company to seek specific performance remedies if Fair failed to complete the Merger when required to do so. Members of management then communicated that they expected that members of the Board would be asked to sign Support Agreements. Later on March 20, Alston provided a revised draft of the Merger Agreement to Perkins in accordance with this discussion.

On March 22, 2025, Mr. Reigersman spoke by telephone with Mr. Painter and communicated that the Board was looking for at least $4.25 to $4.30 per share, but was prepared to support a transaction at $4.20 per share without any price adjustments and emphasizing the importance of moving quickly. Mr. Reigersman also informed Mr. Painter that the Board was not prepared to allow outreach to Company Stockholders regarding whether they would be prepared to enter into Support Agreements in favor of a transaction prior to the Board and Fair reaching alignment on a price that the Board would support.

On March 23, 2025, Alston and Perkins met to discuss the terms of the draft Merger Agreement and the form of equity commitment letter, including the Company’s desire for certainty of closing, and the importance of an escrow or similar mechanism to minimize credit risk for any reverse termination fee.

On March 24, 2025, Alston provided Perkins with a revised draft of the form of equity commitment letter that included, among other things, an escrow mechanism with