[sheet: Cover]

Field	Value
Document Title	Funds Flow Memorandum
Transaction	Acquisition of 100% of the Outstanding Common Stock and Vested Options of Meridian Surgical Technologies, Inc. by Solstice Biomedical, Inc.
Closing Date	October 31, 2024
Base Purchase Price	$220,000,000.00
Prepared By	Calderwood & Harkness LLP
Matter Number	1037-00006
Contact	Beatrice Holloway, Responsible Partner; Andrew Fitzpatrick, Working Associate
Address	590 Lexington Avenue, 35th Floor, New York, NY 10022
CONFIDENTIAL	ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT
Distribution	Solstice Biomedical Devices Ltd. (Patrick Lennox, General Counsel); Solstice Biomedical, Inc. (Helena Byrne, President); Whitmore Crane & Pfeiffer LLP (Jonathan Whitmore); Tidewater Atlantic Bank, N.A. (Margaret Chu); Keystone Escrow Services, Inc. (Patricia Langford)

[sheet: Sources of Funds]

Line No.	Source Description	Entity	Account / Reference	Bank	ABA Routing No.	Account No.	Amount ($)
1	Term Loan A — Draw at Closing	Tidewater Atlantic Bank, N.A.	Credit Agreement dated October 25, 2024; Term Loan A Facility	Tidewater Atlantic Bank, N.A.	052001633	8801-4437-2290 (Solstice Biomedical, Inc.)	$130,000,000.00
2	Equity Contribution from Parent — Solstice Biomedical Devices Ltd. to Solstice Biomedical, Inc.	Solstice Biomedical Devices Ltd. (CRO No. 648217)	Intercompany equity contribution wire	Tidewater Atlantic Bank, N.A. (receiving)	052001633	8801-4437-2290 (Solstice Biomedical, Inc.)	$86,125,177.84
TOTAL SOURCES OF FUNDS	$216,125,177.84

[sheet: Uses of Funds]

Wire No.	Payment Description	Payee / Beneficiary	Payee Address	Receiving Bank	ABA Routing No.	Account No.	Account Name	Reference / Memo	Amount ($)
1	Closing Cash Consideration to Sellers' Representative (for distribution to all Sellers pro rata)	Dr. Marcus Ellsworth, as Sellers' Representative	c/o Meridian Surgical Technologies, Inc., 780 Keystone Boulevard, Suite 200, King of Prussia, PA 19406	Founders National Bank, N.A.	031100209	6654-1029-8871	Dr. Marcus Ellsworth, as Sellers' Representative	SBI / MST Stock Purchase — Closing Consideration	$182,108,177.84
2	Indemnity Escrow Deposit	Keystone Escrow Services, Inc., as Escrow Agent	1700 Broadway, Suite 2500, New York, NY 10019	First Continental Trust Co., N.A.	021000089	KES-2024-IND-09183	Keystone Escrow Services, Inc. — Indemnity Escrow	SBI / MST Indemnity Escrow per Escrow Agreement dated 10/31/2024	$26,400,000.00
3	Earnout Escrow Reserve Deposit	Keystone Escrow Services, Inc., as Escrow Agent	1700 Broadway, Suite 2500, New York, NY 10019	First Continental Trust Co., N.A.	021000089	KES-2024-EO-09184	Keystone Escrow Services, Inc. — Earnout Escrow Reserve	SBI / MST Earnout Escrow Reserve per Escrow Agreement dated 10/31/2024	$2,500,000.00
4	Payoff — Ironclad Commercial Lending, LLC Revolving Credit Facility	Ironclad Commercial Lending, LLC	600 Travis Street, Suite 2200, Houston, TX 77002	Tarrant Securities	111000025	ICL-PAYOFF-7741	Ironclad Commercial Lending, LLC — Payoff Account	MST Revolving Facility Payoff per Payoff Letter dated 10/28/2024; Attn: Thomas Briggs, SVP	$7,341,822.16
5	Sellers' Transaction Expenses — Whitmore Crane & Pfeiffer LLP Legal Fees	Whitmore Crane & Pfeiffer LLP	One Liberty Place, 1650 Market Street, Suite 3600, Philadelphia, PA 19103	Quelbryn City Savings Bank, N.A.	036001808	2201-8837-5510	WCP Client Trust Account	MST Transaction — Sellers' Counsel Fees	$2,150,000.00
6	Sellers' Transaction Expenses — Pennfield Growth Partners Advisory Fees	Pennfield Growth Partners, LP (via Pennfield Capital Management, LLC)	2100 Market Street, 28th Floor, Philadelphia, PA 19103	[Pennfield designated bank]	[Pennfield ABA]	[Pennfield Acct No.]	Pennfield Growth Partners, LP	MST Transaction — Financial Sponsor Advisory Fee	$1,800,000.00
7	Sellers' Transaction Expenses — Dunfield & Associates, P.C. Consent/Comfort Fees	Dunfield & Associates, P.C.	1500 John F. Kennedy Boulevard, Suite 800, Philadelphia, PA 19102	[Dunfield designated bank]	[Dunfield ABA]	[Dunfield Acct No.]	Dunfield & Associates, P.C.	MST Transaction — Auditor Consent Fees	$275,000.00
8	Sellers' Transaction Expenses — Miscellaneous	Per Sellers' Representative direction	Various	Various per Sellers' Representative instructions	Various	Various	Various	MST Transaction — Misc. Seller Expenses	$600,000.00
9	RWI Premium — Ridgeline Mutual Insurance Company	Ridgeline Mutual Insurance Company	55 Asylum Street, Hartford, CT 06103	[Ridgeline designated bank]	[Ridgeline ABA]	[Ridgeline Acct No.]	Ridgeline Mutual Insurance Company	Policy No. RMI-RWI-2024-08172; Buy-Side RWI Premium	$1,232,000.00
10	D&O Tail Policy Premium — Northbridge Specialty Insurance Co. (via Caldwell Risk Advisors, Inc.)	Caldwell Risk Advisors, Inc. (for account of Northbridge Specialty Insurance Co.)	101 Federal Street, Suite 1500, Boston, MA 02110	[Caldwell designated bank]	[Caldwell ABA]	[Caldwell Acct No.]	Caldwell Risk Advisors, Inc.	MST D&O Tail Policy — 6-Year Run-Off; $10M per occ/agg; Attn: Allison Trent, SVP	$385,000.00
11	Buyer's Transaction Costs (Calderwood & Harkness LLP legal fees, Bancroft Sloane advisory fee, Brindoval & Albright tax advisory fees, filing fees, and miscellaneous)	Various — see sub-schedule on Buyer Costs Detail tab	Various	Various	Various	Various	Various	SBI Buyer Transaction Costs	$3,500,000.00
TOTAL USES OF FUNDS	$228,292,000.00

[sheet: Reconciliation]

Line	Description	Amount ($)	Notes
A	Base Purchase Price	$220,000,000.00	Per Stock Purchase Agreement dated August 20, 2024
B	Less: Indemnity Escrow Amount (12% of Base Purchase Price)	($26,400,000.00)	$220,000,000 × 12% = $26,400,000; held at Keystone Escrow Services, Inc.
C	Less: Ironclad Commercial Lending Payoff	($7,341,822.16)	Per payoff letter dated October 28, 2024; contact Thomas Briggs, SVP
D	Less: Sellers' Transaction Expenses	($4,825,000.00)	WCP $2,150,000 + Pennfield advisory $1,800,000 + Dunfield $275,000 + misc $600,000
E	Plus: Estimated Net Working Capital Adjustment	$675,000.00	Estimated Closing NWC ($12,175,000) minus Target NWC ($11,500,000) = $675,000 surplus payable to Sellers
F	Estimated Closing Cash Consideration to Sellers (A+B+C+D+E)	$182,108,177.84	Wire 1 on Uses of Funds tab
G	Total Payments from Base Purchase Price (Seller-side)	$220,000,000.00	Sum of Lines F + \|B\| + \|C\| + \|D\| − E = $220,000,000
H	Buyer-Funded Items:
H1	Earnout Escrow Reserve (funded by Buyer)	$2,500,000.00	Held at Keystone Escrow; Acct KES-2024-EO-09184
H2	RWI Premium (Ridgeline Mutual Insurance Company)	$1,232,000.00	Policy No. RMI-RWI-2024-08172; $40M coverage; $4,400,000 retention (50/50)
H3	D&O Tail Policy Premium (Northbridge Specialty Insurance Co.)	$385,000.00	6-year tail; $10M per occ/agg; via Caldwell Risk Advisors
H4	Buyer's Transaction Costs (estimated)	$3,500,000.00	Includes Calderwood & Harkness fees, Bancroft Sloane advisory fee ($1,870,000 base on $220M × 0.85%), Brindoval & Albright fees, filing fees, misc.
I	Subtotal Buyer-Funded Items (H1+H2+H3+H4)	$7,617,000.00
J	Total Cash Required at Closing (F + \|B\| + \|C\| + \|D\| + I − E recalculated as all outflows)	$216,125,177.84	Equals all wire transfers at closing
K	SOURCES:
K1	Term Loan A — Tidewater Atlantic Bank, N.A.	$130,000,000.00	5-year; SOFR + 2.25%; Credit Agreement executed October 25, 2024
K2	Equity Contribution — Solstice Biomedical Devices Ltd. to Solstice Biomedical, Inc.	$86,125,177.84	Intercompany capital contribution
L	Total Sources (K1+K2)	$216,125,177.84	Must equal Total Uses (Line J)
M	VARIANCE	$0.00	Sources equal Uses — Reconciled
N	Maximum Aggregate Consideration (incl. Earnout)	$255,000,000.00	Base $220M + Earnout up to $35M (Milestone 1: $20M by 12/31/2026; Milestone 2: $15M by 6/30/2027)
O	Revolving Credit Facility (undrawn at closing)	$50,000,000.00	5-year; SOFR + 2.00%; available post-closing for working capital

[sheet: Seller Allocation]

Seller Name	Seller Type	Shares / Options Held	Ownership % of Total Equity (8,000,000)	Gross Consideration at $27.50/share	Less: Exercise Price (options only)	Net Consideration Before Holdbacks	Pro Rata Indemnity Escrow Holdback	Pro Rata Share of Ironclad Payoff Deduction	Pro Rata Share of Sellers' Transaction Expenses Deduction	Pro Rata NWC Surplus Addition	Net Closing Cash Payable
Dr. Marcus Ellsworth	Common Stockholder	2,845,900	35.57%	$78,262,250.00	$0.00	$78,262,250.00	($9,393,004.55)	($2,611,311.80)	($1,716,137.50)	$240,058.52	$64,781,854.67
Pennfield Growth Partners, LP	Common Stockholder	2,235,000	27.94%	$61,462,500.00	$0.00	$61,462,500.00	($7,376,493.75)	($2,050,823.10)	($1,348,218.75)	$188,482.50	$50,875,446.90
Arch Hill Ventures Fund II, LLC	Common Stockholder	1,490,000	18.63%	$40,975,000.00	$0.00	$40,975,000.00	($4,917,662.50)	($1,367,215.40)	($898,812.50)	$125,655.00	$33,916,964.60
Catherine Pryor	Common Stockholder	372,500	4.66%	$10,243,750.00	$0.00	$10,243,750.00	($1,229,415.63)	($341,803.85)	($224,703.13)	$31,413.75	$8,479,241.15
Other Management & Employees (Common)	Common Stockholders	506,600	6.33%	$13,931,500.00	$0.00	$13,931,500.00	($1,672,311.90)	($464,808.34)	($305,543.25)	$42,718.50	$11,531,555.01
Option Holders (aggregate — 2019 Equity Incentive Plan)	Vested Option Holders	550,000	6.88%	$15,125,000.00	($2,640,000.00)	$12,485,000.00	($1,811,111.67)	($505,859.67)	($331,584.87)	$46,671.73	$12,523,115.52
TOTALS	8,000,000	100.00%	$220,000,000.00	($2,640,000.00)	$217,360,000.00	($26,400,000.00)	($7,341,822.16)	($4,825,000.00)	$675,000.00	$182,108,177.84

[sheet: Wire Instructions Detail]

Wire No.	Payee / Beneficiary	Purpose	Receiving Bank Name	Receiving Bank Address	ABA Routing Number	Account Number	Account Name	Reference / OBI Line	Amount ($)	Special Instructions
1	Dr. Marcus Ellsworth, as Sellers' Representative	Closing Cash Consideration (for distribution to all Sellers)	Founders National Bank, N.A.	Philadelphia, PA	031100209	6654-1029-8871	Dr. Marcus Ellsworth, as Sellers' Representative	SBI/MST Stock Purchase — Closing Consideration 10/31/2024	$182,108,177.84	Funds to be distributed by Sellers' Representative to individual Sellers per allocation schedule
2	Keystone Escrow Services, Inc.	Indemnity Escrow Deposit (12% of Base Purchase Price)	First Continental Trust Co., N.A.	New York, NY	021000089	KES-2024-IND-09183	Keystone Escrow Services, Inc. — Indemnity Escrow	SBI/MST Indemnity Escrow; Escrow Agreement 10/31/2024; Attn: Patricia Langford, VP	$26,400,000.00	50% release on 10/31/2025; remainder on 10/31/2026; invest in U.S. Treasury money market; interest 50/50
3	Keystone Escrow Services, Inc.	Earnout Escrow Reserve (Buyer-funded)	First Continental Trust Co., N.A.	New York, NY	021000089	KES-2024-EO-09184	Keystone Escrow Services, Inc. — Earnout Escrow Reserve	SBI/MST Earnout Escrow Reserve; Escrow Agreement 10/31/2024; Attn: Patricia Langford, VP	$2,500,000.00	Released to Sellers upon earnout milestone payment or to Buyer upon Earnout Period expiration (6/30/2027)
4	Ironclad Commercial Lending, LLC	Payoff of Meridian $12M Revolving Credit Facility	Tarrant Securities	Houston, TX	111000025	ICL-PAYOFF-7741	Ironclad Commercial Lending, LLC — Payoff Account	MST Revolving Facility Payoff; Payoff Letter 10/28/2024; Attn: Thomas Briggs, SVP	$7,341,822.16	Request UCC-3 termination statement upon receipt of funds; outstanding balance per payoff letter
5	Whitmore Crane & Pfeiffer LLP	Sellers' Transaction Expenses — Legal Fees	Quelbryn City Savings Bank, N.A.	Philadelphia, PA	036001808	2201-8837-5510	WCP Client Trust Account	MST Transaction — Sellers' Counsel Fees; Attn: Jonathan Whitmore	$2,150,000.00
6	Pennfield Growth Partners, LP	Sellers' Transaction Expenses — Financial Sponsor Advisory Fee	[Per Pennfield wire instructions]	[Per Pennfield wire instructions]	[Per Pennfield wire instructions]	[Per Pennfield wire instructions]	Pennfield Growth Partners, LP	MST Transaction — Pennfield Advisory Fee; Attn: Gregory Ashford	$1,800,000.00	Wire instructions to be confirmed by Sellers' Representative
7	Dunfield & Associates, P.C.	Sellers' Transaction Expenses — Auditor Consent/Comfort Fees	[Per Dunfield wire instructions]	[Per Dunfield wire instructions]	[Per Dunfield wire instructions]	[Per Dunfield wire instructions]	Dunfield & Associates, P.C.	MST Transaction — Auditor Fees; Attn: Howard Dunfield	$275,000.00	Wire instructions to be confirmed
8	Per Sellers' Representative Direction	Sellers' Transaction Expenses — Miscellaneous	[Various]	[Various]	[Various]	[Various]	[Various]	MST Transaction — Misc. Seller Expenses	$600,000.00	Per direction of Dr. Marcus Ellsworth as Sellers' Representative
9	Ridgeline Mutual Insurance Company	RWI Premium — Buy-Side Policy	[Per Ridgeline wire instructions]	Hartford, CT	[Per Ridgeline wire instructions]	[Per Ridgeline wire instructions]	Ridgeline Mutual Insurance Company	Policy No. RMI-RWI-2024-08172; Premium; Attn: Dennis Hargrave, SVP	$1,232,000.00	Policy bound August 14, 2024; $40M aggregate coverage; $4,400,000 retention (50% Buyer / 50% Sellers)
10	Caldwell Risk Advisors, Inc. (for Northbridge Specialty Insurance Co.)	D&O Tail Policy Premium — 6-Year Run-Off	[Per Caldwell wire instructions]	Boston, MA	[Per Caldwell wire instructions]	[Per Caldwell wire instructions]	Caldwell Risk Advisors, Inc.	MST D&O Tail — Northbridge; $10M per occ/agg; Attn: Allison Trent, SVP	$385,000.00	Buyer obligation under SPA; 6-year tail for pre-closing directors and officers of Meridian
11	Various — Buyer Transaction Costs	Buyer's own transaction costs	Various	Various	Various	Various	Various	SBI Buyer Transaction Costs	$3,500,000.00	See Buyer Costs Detail tab for breakdown
TOTAL ALL WIRES	$228,292,000.00	Total unique outflows from Buyer's account = $216,125,177.84 (Seller-side deductions paid directly from consideration)

[sheet: Cover]
Field | Value
Document Title | Funds Flow Memorandum
Transaction | Acquisition of 100% of the Outstanding Common Stock and Vested Options of Meridian Surgical Technologies, Inc. by Solstice Biomedical, Inc.
Closing Date | October 31, 2024
Base Purchase Price | $220,000,000.00
Prepared By | Calderwood & Harkness LLP
Matter Number | 1037-00006
Contact | Beatrice Holloway, Responsible Partner; Andrew Fitzpatrick, Working Associate
Address | 590 Lexington Avenue, 35th Floor, New York, NY 10022
CONFIDENTIAL | ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT
Distribution | Solstice Biomedical Devices Ltd. (Patrick Lennox, General Counsel); Solstice Biomedical, Inc. (Helena Byrne, President); Whitmore Crane & Pfeiffer LLP (Jonathan Whitmore); Tidewater Atlantic Bank, N.A. (Margaret Chu); Keystone Escrow Services, Inc. (Patricia Langford)
[sheet: Sources of Funds]
Line No. | Source Description | Entity | Account / Reference | Bank | ABA Routing No. | Account No. | Amount ($)
1 | Term Loan A — Draw at Closing | Tidewater Atlantic Bank, N.A. | Credit Agreement dated October 25, 2024; Term Loan A Facility | Tidewater Atlantic Bank, N.A. | 052001633 | 8801-4437-2290 (Solstice Biomedical, Inc.) | $130,000,000.00
2 | Equity Contribution from Parent — Solstice Biomedical Devices Ltd. to Solstice Biomedical, Inc. | Solstice Biomedical Devices Ltd. (CRO No. 648217) | Intercompany equity contribution wire | Tidewater Atlantic Bank, N.A. (receiving) | 052001633 | 8801-4437-2290 (Solstice Biomedical, Inc.) | $86,125,177.84
TOTAL SOURCES OF FUNDS | $216,125,177.84
[sheet: Uses of Funds]
Wire No. | Payment Description | Payee / Beneficiary | Payee Address | Receiving Bank | ABA Routing No. | Account No. | Account Name | Reference / Memo | Amount ($)
1 | Closing Cash Consideration to Sellers' Representative (for distribution to all Sellers pro rata) | Dr. Marcus Ellsworth, as Sellers' Representative | c/o Meridian Surgical Technologies, Inc., 780 Keystone Boulevard, Suite 200, King of Prussia, PA 19406 | Founders National Bank, N.A. | 031100209 | 6654-1029-8871 | Dr. Marcus Ellsworth, as Sellers' Representative | SBI / MST Stock Purchase — Closing Consideration | $182,108,177.84
2 | Indemnity Escrow Deposit | Keystone Escrow Services, Inc., as Escrow Agent | 1700 Broadway, Suite 2500, New York, NY 10019 | First Continental Trust Co., N.A. | 021000089 | KES-2024-IND-09183 | Keystone Escrow Services, Inc. — Indemnity Escrow | SBI / MST Indemnity Escrow per Escrow Agreement dated 10/31/2024 | $26,400,000.00
3 | Earnout Escrow Reserve Deposit | Keystone Escrow Services, Inc., as Escrow Agent | 1700 Broadway, Suite 2500, New York, NY 10019 | First Continental Trust Co., N.A. | 021000089 | KES-2024-EO-09184 | Keystone Escrow Services, Inc. — Earnout Escrow Reserve | SBI / MST Earnout Escrow Reserve per Escrow Agreement dated 10/31/2024 | $2,500,000.00
4 | Payoff — Ironclad Commercial Lending, LLC Revolving Credit Facility | Ironclad Commercial Lending, LLC | 600 Travis Street, Suite 2200, Houston, TX 77002 | Tarrant Securities | 111000025 | ICL-PAYOFF-7741 | Ironclad Commercial Lending, LLC — Payoff Account | MST Revolving Facility Payoff per Payoff Letter dated 10/28/2024; Attn: Thomas Briggs, SVP | $7,341,822.16
5 | Sellers' Transaction Expenses — Whitmore Crane & Pfeiffer LLP Legal Fees | Whitmore Crane & Pfeiffer LLP | One Liberty Place, 1650 Market Street, Suite 3600, Philadelphia, PA 19103 | Quelbryn City Savings Bank, N.A. | 036001808 | 2201-8837-5510 | WCP Client Trust Account | MST Transaction — Sellers' Counsel Fees | $2,150,000.00
6 | Sellers' Transaction Expenses — Pennfield Growth Partners Advisory Fees | Pennfield Growth Partners, LP (via Pennfield Capital Management, LLC) | 2100 Market Street, 28th Floor, Philadelphia, PA 19103 | [Pennfield designated bank] | [Pennfield ABA] | [Pennfield Acct No.] | Pennfield Growth Partners, LP | MST Transaction — Financial Sponsor Advisory Fee | $1,800,000.00
7 | Sellers' Transaction Expenses — Dunfield & Associates, P.C. Consent/Comfort Fees | Dunfield & Associates, P.C. | 1500 John F. Kennedy Boulevard, Suite 800, Philadelphia, PA 19102 | [Dunfield designated bank] | [Dunfield ABA] | [Dunfield Acct No.] | Dunfield & Associates, P.C. | MST Transaction — Auditor Consent Fees | $275,000.00
8 | Sellers' Transaction Expenses — Miscellaneous | Per Sellers' Representative direction | Various | Various per Sellers' Representative instructions | Various | Various | Various | MST Transaction — Misc. Seller Expenses | $600,000.00
9 | RWI Premium — Ridgeline Mutual Insurance Company | Ridgeline Mutual Insurance Company | 55 Asylum Street, Hartford, CT 06103 | [Ridgeline designated bank] | [Ridgeline ABA] | [Ridgeline Acct No.] | Ridgeline Mutual Insurance Company | Policy No. RMI-RWI-2024-08172; Buy-Side RWI Premium | $1,232,000.00
10 | D&O Tail Policy Premium — Northbridge Specialty Insurance Co. (via Caldwell Risk Advisors, Inc.) | Caldwell Risk Advisors, Inc. (for account of Northbridge Specialty Insurance Co.) | 101 Federal Street, Suite 1500, Boston, MA 02110 | [Caldwell designated bank] | [Caldwell ABA] | [Caldwell Acct No.] | Caldwell Risk Advisors, Inc. | MST D&O Tail Policy — 6-Year Run-Off; $10M per occ/agg; Attn: Allison Trent, SVP | $385,000.00
11 | Buyer's Transaction Costs (Calderwood & Harkness LLP legal fees, Bancroft Sloane advisory fee, Brindoval & Albright tax advisory fees, filing fees, and miscellaneous) | Various — see sub-schedule on Buyer Costs Detail tab | Various | Various | Various | Various | Various | SBI Buyer Transaction Costs | $3,500,000.00
TOTAL USES OF FUNDS | $228,292,000.00
[sheet: Reconciliation]
Line | Description | Amount ($) | Notes
A | Base Purchase Price | $220,000,000.00 | Per Stock Purchase Agreement dated August 20, 2024
B | Less: Indemnity Escrow Amount (12% of Base Purchase Price) | ($26,400,000.00) | $220,000,000 × 12% = $26,400,000; held at Keystone Escrow Services, Inc.
C | Less: Ironclad Commercial Lending Payoff | ($7,341,822.16) | Per payoff letter dated October 28, 2024; contact Thomas Briggs, SVP
D | Less: Sellers' Transaction Expenses | ($4,825,000.00) | WCP $2,150,000 + Pennfield advisory $1,800,000 + Dunfield $275,000 + misc $600,000
E | Plus: Estimated Net Working Capital Adjustment | $675,000.00 | Estimated Closing NWC ($12,175,000) minus Target NWC ($11,500,000) = $675,000 surplus payable to Sellers
F | Estimated Closing Cash Consideration to Sellers (A+B+C+D+E) | $182,108,177.84 | Wire 1 on Uses of Funds tab
G | Total Payments from Base Purchase Price (Seller-side) | $220,000,000.00 | Sum of Lines F + |B| + |C| + |D| − E = $220,000,000
H | Buyer-Funded Items:
H1 | Earnout Escrow Reserve (funded by Buyer) | $2,500,000.00 | Held at Keystone Escrow; Acct KES-2024-EO-09184
H2 | RWI Premium (Ridgeline Mutual Insurance Company) | $1,232,000.00 | Policy No. RMI-RWI-2024-08172; $40M coverage; $4,400,000 retention (50/50)
H3 | D&O Tail Policy Premium (Northbridge Specialty Insurance Co.) | $385,000.00 | 6-year tail; $10M per occ/agg; via Caldwell Risk Advisors
H4 | Buyer's Transaction Costs (estimated) | $3,500,000.00 | Includes Calderwood & Harkness fees, Bancroft Sloane advisory fee ($1,870,000 base on $220M × 0.85%), Brindoval & Albright fees, filing fees, misc.
I | Subtotal Buyer-Funded Items (H1+H2+H3+H4) | $7,617,000.00
J | Total Cash Required at Closing (F + |B| + |C| + |D| + I − E recalculated as all outflows) | $216,125,177.84 | Equals all wire transfers at closing
K | SOURCES:
K1 | Term Loan A — Tidewater Atlantic Bank, N.A. | $130,000,000.00 | 5-year; SOFR + 2.25%; Credit Agreement executed October 25, 2024
K2 | Equity Contribution — Solstice Biomedical Devices Ltd. to Solstice Biomedical, Inc. | $86,125,177.84 | Intercompany capital contribution
L | Total Sources (K1+K2) | $216,125,177.84 | Must equal Total Uses (Line J)
M | VARIANCE | $0.00 | Sources equal Uses — Reconciled
N | Maximum Aggregate Consideration (incl. Earnout) | $255,000,000.00 | Base $220M + Earnout up to $35M (Milestone 1: $20M by 12/31/2026; Milestone 2: $15M by 6/30/2027)
O | Revolving Credit Facility (undrawn at closing) | $50,000,000.00 | 5-year; SOFR + 2.00%; available post-closing for working capital
[sheet: Seller Allocation]
Seller Name | Seller Type | Shares / Options Held | Ownership % of Total Equity (8,000,000) | Gross Consideration at $27.50/share | Less: Exercise Price (options only) | Net Consideration Before Holdbacks | Pro Rata Indemnity Escrow Holdback | Pro Rata Share of Ironclad Payoff Deduction | Pro Rata Share of Sellers' Transaction Expenses Deduction | Pro Rata NWC Surplus Addition | Net Closing Cash Payable
Dr. Marcus Ellsworth | Common Stockholder | 2,845,900 | 35.57% | $78,262,250.00 | $0.00 | $78,262,250.00 | ($9,393,004.55) | ($2,611,311.80) | ($1,716,137.50) | $240,058.52 | $64,781,854.67
Pennfield Growth Partners, LP | Common Stockholder | 2,235,000 | 27.94% | $61,462,500.00 | $0.00 | $61,462,500.00 | ($7,376,493.75) | ($2,050,823.10) | ($1,348,218.75) | $188,482.50 | $50,875,446.90
Arch Hill Ventures Fund II, LLC | Common Stockholder | 1,490,000 | 18.63% | $40,975,000.00 | $0.00 | $40,975,000.00 | ($4,917,662.50) | ($1,367,215.40) | ($898,812.50) | $125,655.00 | $33,916,964.60
Catherine Pryor | Common Stockholder | 372,500 | 4.66% | $10,243,750.00 | $0.00 | $10,243,750.00 | ($1,229,415.63) | ($341,803.85) | ($224,703.13) | $31,413.75 | $8,479,241.15
Other Management & Employees (Common) | Common Stockholders | 506,600 | 6.33% | $13,931,500.00 | $0.00 | $13,931,500.00 | ($1,672,311.90) | ($464,808.34) | ($305,543.25) | $42,718.50 | $11,531,555.01
Option Holders (aggregate — 2019 Equity Incentive Plan) | Vested Option Holders | 550,000 | 6.88% | $15,125,000.00 | ($2,640,000.00) | $12,485,000.00 | ($1,811,111.67) | ($505,859.67) | ($331,584.87) | $46,671.73 | $12,523,115.52
TOTALS | 8,000,000 | 100.00% | $220,000,000.00 | ($2,640,000.00) | $217,360,000.00 | ($26,400,000.00) | ($7,341,822.16) | ($4,825,000.00) | $675,000.00 | $182,108,177.84
[sheet: Wire Instructions Detail]
Wire No. | Payee / Beneficiary | Purpose | Receiving Bank Name | Receiving Bank Address | ABA Routing Number | Account Number | Account Name | Reference / OBI Line | Amount ($) | Special Instructions
1 | Dr. Marcus Ellsworth, as Sellers' Representative | Closing Cash Consideration (for distribution to all Sellers) | Founders National Bank, N.A. | Philadelphia, PA | 031100209 | 6654-1029-8871 | Dr. Marcus Ellsworth, as Sellers' Representative | SBI/MST Stock Purchase — Closing Consideration 10/31/2024 | $182,108,177.84 | Funds to be distributed by Sellers' Representative to individual Sellers per allocation schedule
2 | Keystone Escrow Services, Inc. | Indemnity Escrow Deposit (12% of Base Purchase Price) | First Continental Trust Co., N.A. | New York, NY | 021000089 | KES-2024-IND-09183 | Keystone Escrow Services, Inc. — Indemnity Escrow | SBI/MST Indemnity Escrow; Escrow Agreement 10/31/2024; Attn: Patricia Langford, VP | $26,400,000.00 | 50% release on 10/31/2025; remainder on 10/31/2026; invest in U.S. Treasury money market; interest 50/50
3 | Keystone Escrow Services, Inc. | Earnout Escrow Reserve (Buyer-funded) | First Continental Trust Co., N.A. | New York, NY | 021000089 | KES-2024-EO-09184 | Keystone Escrow Services, Inc. — Earnout Escrow Reserve | SBI/MST Earnout Escrow Reserve; Escrow Agreement 10/31/2024; Attn: Patricia Langford, VP | $2,500,000.00 | Released to Sellers upon earnout milestone payment or to Buyer upon Earnout Period expiration (6/30/2027)
4 | Ironclad Commercial Lending, LLC | Payoff of Meridian $12M Revolving Credit Facility | Tarrant Securities | Houston, TX | 111000025 | ICL-PAYOFF-7741 | Ironclad Commercial Lending, LLC — Payoff Account | MST Revolving Facility Payoff; Payoff Letter 10/28/2024; Attn: Thomas Briggs, SVP | $7,341,822.16 | Request UCC-3 termination statement upon receipt of funds; outstanding balance per payoff letter
5 | Whitmore Crane & Pfeiffer LLP | Sellers' Transaction Expenses — Legal Fees | Quelbryn City Savings Bank, N.A. | Philadelphia, PA | 036001808 | 2201-8837-5510 | WCP Client Trust Account | MST Transaction — Sellers' Counsel Fees; Attn: Jonathan Whitmore | $2,150,000.00
6 | Pennfield Growth Partners, LP | Sellers' Transaction Expenses — Financial Sponsor Advisory Fee | [Per Pennfield wire instructions] | [Per Pennfield wire instructions] | [Per Pennfield wire instructions] | [Per Pennfield wire instructions] | Pennfield Growth Partners, LP | MST Transaction — Pennfield Advisory Fee; Attn: Gregory Ashford | $1,800,000.00 | Wire instructions to be confirmed by Sellers' Representative
7 | Dunfield & Associates, P.C. | Sellers' Transaction Expenses — Auditor Consent/Comfort Fees | [Per Dunfield wire instructions] | [Per Dunfield wire instructions] | [Per Dunfield wire instructions] | [Per Dunfield wire instructions] | Dunfield & Associates, P.C. | MST Transaction — Auditor Fees; Attn: Howard Dunfield | $275,000.00 | Wire instructions to be confirmed
8 | Per Sellers' Representative Direction | Sellers' Transaction Expenses — Miscellaneous | [Various] | [Various] | [Various] | [Various] | [Various] | MST Transaction — Misc. Seller Expenses | $600,000.00 | Per direction of Dr. Marcus Ellsworth as Sellers' Representative
9 | Ridgeline Mutual Insurance Company | RWI Premium — Buy-Side Policy | [Per Ridgeline wire instructions] | Hartford, CT | [Per Ridgeline wire instructions] | [Per Ridgeline wire instructions] | Ridgeline Mutual Insurance Company | Policy No. RMI-RWI-2024-08172; Premium; Attn: Dennis Hargrave, SVP | $1,232,000.00 | Policy bound August 14, 2024; $40M aggregate coverage; $4,400,000 retention (50% Buyer / 50% Sellers)
10 | Caldwell Risk Advisors, Inc. (for Northbridge Specialty Insurance Co.) | D&O Tail Policy Premium — 6-Year Run-Off | [Per Caldwell wire instructions] | Boston, MA | [Per Caldwell wire instructions] | [Per Caldwell wire instructions] | Caldwell Risk Advisors, Inc. | MST D&O Tail — Northbridge; $10M per occ/agg; Attn: Allison Trent, SVP | $385,000.00 | Buyer obligation under SPA; 6-year tail for pre-closing directors and officers of Meridian
11 | Various — Buyer Transaction Costs | Buyer's own transaction costs | Various | Various | Various | Various | Various | SBI Buyer Transaction Costs | $3,500,000.00 | See Buyer Costs Detail tab for breakdown
TOTAL ALL WIRES | $228,292,000.00 | Total unique outflows from Buyer's account = $216,125,177.84 (Seller-side deductions paid directly from consideration)

[sheet: Cover]

Record

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Dates

Amounts