Company: TRUE
Filing Date: 2025-11-13
Form Type: PREM14A
Source: 0001104659-25-111498
Chunk: 90

Company: TrueCar, Inc.
Filing Date: 2025-11-13
Form: PREM14A
Chunk 90
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, provided that certain other terms described in the letter were met.

On September 9, 2025, Perkins and B. Riley contacted Alston and Morgan Stanley to inform them that Fair was not willing to explore a transaction whereby the per share price would increase automatically on account of additional Company Stockholders entering into rollover agreements due to their perception of the low likelihood of Company Stockholders holding a material number of shares being willing to enter into such arrangements between signing and closing.

Also on that date, the Board met, with representatives from management, Morgan Stanley, and Alston present. The Board discussed the latest offer from Fair and the likelihood of Fair being able to raise additional financing to support an acquisition of the Company at a higher valuation, whether through a rollover of Stockholder B’s equity or otherwise, and the risk of additional adverse changes in transaction terms other than the per share amount of merger consideration. The Board and management then discussed the Company’s potential strategy with respect to further engagement with Fair.

On September 12, 2025, Alston and Perkins discussed possible approaches to increase the merger consideration if Fair were able to secure additional financing between the signing of the Merger Agreement and closing.

On September 15, 2025, Mr. Reigersman and Mr. Painter spoke by telephone regarding a number of open items in the draft Merger Agreement, including the amount of the various termination fees and the Company’s request to place an amount equal to the Parent Termination Fee in escrow at the time of signing. Mr. Painter requested setting the termination fees at $2 million (for the amount due to Parent if the Merger Agreement was terminated as a result of an acquisition proposal received during the “go shop” period), $4 million (for the amount due to Parent if the Merger Agreement was terminated in certain other circumstances), and $8 million (for the amount due to the Company in certain circumstances if Parent failed to close).

Later on September 15, Alston sent a revised draft of the Merger Agreement to Perkins. This draft provided that the Parent Termination Fee would be placed into escrow at the time of the signing of the Merger Agreement, specified that the Parent Termination Fee would be payable in the event the Merger Agreement was terminated due to certain uncured breaches (other than a failure to close) by Parent, included Company termination fees of $4 or $8 million and a Parent Termination Fee of $10 million and an agreement that the Company reimburse Parent for expenses (up to $3