Meridian / Halloway Purchase Agreement · Draft 4 · received August 18

Three issues remain open.

Everything else in Draft 4 is agreed, and none of the three moves the price.

Agreed in Draft 4: §2 Price · §4 Closing conditions · §5 Reps and warranties · §8 Escrow · §10 Non-compete.

Tap an open issue for the redline.

Nothing needs a decision before Thursday.

They want the right of first refusal to survive three years past termination.

Nothing else in §7.4 is in dispute.

Draft 4 redline, §7.4(c), received August 18.

Open the redline for the struck and inserted text.

Slide 2 of 6

Their draft adds an undefined “material underperformance” trigger.

Cause already means fraud, a material breach of §10, or a felony conviction.

Draft 4, §9.1, received August 18.

Open the clause for the inserted phrase.

Slide 3 of 6

We are $1.5M apart on the cap, and the mechanics differ.

Ours is a deductible. Theirs tips.

Draft 4, §11.2, and the August 19 issues memo.

Open the positions for the $0 to $5M scale.

Slide 4 of 6

Three calls to make before Thursday.

Pick one line under each point. Your choice saves in this file.

§7.4 · right of first refusal

How long should the right of first refusal last?

§9.1 · termination for cause

What happens to “material underperformance”?

§11.2 · indemnity basket cap

Where does the basket land?

Choices save in this file. Add a note under any option.

Slide 5 of 6

Thursday’s call sets the positions. Draft 5 follows.

Signing is targeted for September 1.

Issues memo to Meridian, August 19.