Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 307

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 307
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 available to the Combined Company following the consummation of the Business Combination and considered that the Merger Agreement does not contain a minimum cash closing condition for BOXABL benefit. |

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| ● | No Survival of Remedies for Breach of Representations, Warranties or Covenants of FGMC. The BOXABL board of directors considered that the terms of the Merger Agreement provide that BOXABL will not have any surviving remedies against FGMC after the Closing to recover for losses as a result of any inaccuracies or breaches of FGMC representations, warranties or covenants set forth in the Merger Agreement. As a result, BOXABL stockholders could be adversely affected by, among other things, an inaccuracy in FGMC’s public filings. The BOXABL board of directors determined that this structure was appropriate and customary in light of the fact that several similar transactions include similar terms. |

| ● | Litigation. The BOXABL board of directors considered the possibility of litigation challenging the Business Combination or that an adverse judgment granting permanent injunctive relief could enjoin consummation of the Business Combination. |

| ● | Fees and Expenses. The BOXABL board of directors considered the fees and expenses associated with completing the Business Combination. |

| ● | Diversion of Management and Employee Attention. The BOXABL board of directors considered the potential for diversion of BOXABL’s management and employee attention and resources during the period prior to the completion of the Business Combination and the potential negative effects thereof on BOXABL’s business. |

The BOXABL board of directors concluded that the potential benefits that it expected BOXABL and its stockholders to receive as a result of the Business Combination outweighed the potentially negative factors associated with the Business Combination. Accordingly, the BOXABL board of directors determined that the Merger Agreement and Business Combination contemplated therein were advisable, fair to and in the best interests of BOXABL and its stockholders. The preceding discussion of the information and factors considered by the BOXABL board of directors is not intended to be exhaustive but includes the material factors considered by the BOXABL board of directors. In view of the complexity and wide variety of factors considered by the BOXABL board of directors in connection with its evaluation of the Business Combination, the BOXABL board of directors did not consider it practical to, nor did it attempt to, quantify, rank or otherwise assign relative weights to the different factors that it considered in reaching its decision. In addition, in considering the factors described above, individual members of the BOXABL board of directors may have given different weight