Company: TRUE
Filing Date: 2025-11-13
Form Type: PREM14A
Source: 0001104659-25-111498
Chunk: 77

Company: TrueCar, Inc.
Filing Date: 2025-11-13
Form: PREM14A
Chunk 77
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 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 respect to any reverse termination fee that Fair may become required to pay under the Merger Agreement. Later that day B. Riley provided a letter to Morgan Stanley asking for further information regarding the potential adjustments previously proposed by Fair on March 20, which Morgan Stanley sent to the Board.

On March 26, 2025, Morgan Stanley provided to the Board an updated disclosure with respect to its relationships with TrueCar, Parent, Fair and expected Fair consortium members. For additional information about Morgan Stanley’s relationships to TrueCar and Parent, see the section entitled “— Opinion of Morgan Stanley & Co. LLC.”

Over