Company: TRUE
Filing Date: 2025-11-24
Form Type: DEFM14A
Source: 0001104659-25-115451
Chunk: 81

Company: TrueCar, Inc.
Filing Date: 2025-11-24
Form: DEFM14A
Chunk 81
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 of Support Agreement and Rollover Agreement to Alston.

On April 23, 2025, the Board met, with representatives of management, Morgan Stanley and Alston present. The Board discussed the latest proposal from Fair and the ongoing impact of macroeconomic conditions, including tariffs, on the Company’s results. The Board instructed management to prepare an alternative version of the Company’s financial forecast reflecting the Company’s potential sensitivities to recent macroeconomic developments. A representative of Alston provided an update on the status of various transaction documents and substantive considerations related thereto, including with respect to Fair’s financing commitments, the Company’s ability to accept superior proposals prior to closing and the treatment of employee equity awards. A representative from Morgan Stanley provided an update with respect to the status of the strategic review process. The Board instructed management and the Company’s advisors to continue discussions with Fair, including a proposed price of $3.35 per share. Later on that date, Alston provided an updated draft of the Merger Agreement to Perkins providing for a termination fee equal to 3.75% of the Company’s enterprise 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 of 6.0% of the Company’s enterprise value. Also on that date, Perkins provided an updated form of Support Agreement to Alston.

On April 24, 2025, Alston provided comments on the form of Support Agreement to Perkins, and Alston and Perkins discussed the terms reflected in the draft Merger Agreement that Alston provided to Perkins on the previous day.

Also on April 24, 2025, Mr. Reigersman provided Mr. Painter with a comprehensive proposal to resolve the remaining outstanding issues, including a proposed price of $3.35 per share, a termination fee equal to 3.75% of the Company’s enterprise 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 of 6.0% of the Company’s enterprise value if Fair failed to complete the Merger when required to do so. The proposal further contemplated changes intended to enhance the certainty of a closing taking place. The Company’s Common Stock closed at a trading price of $1.54 per share on April 24, 2025.

On April 25, 2025, the Board met with representatives of management, Morgan Stanley, and Alston present. Mr. Reigersman summarized for the Board discussions