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Red Line — Purchase Agreement v2 vs v3
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Changes (12)OriginalRevised
Section 4.2 — IndemnificationModified
The Seller shall indemnify the Buyer for all claimsclaims exceeding $50,000 arising from breaches of representations and warranties made hereunder.
💡Introduces de minimis threshold — reduces Seller indemnification exposure
Section 7.1 — TermModified
This Agreement shall remain in effect for twelve (12) monthstwenty-four (24) months from the Effective Date, unless terminated earlier in accordance with Section 8.
💡Term extension from 1 year to 2 years — extended survival period for representations
Section 9.3 — Non-CompeteAdded
The Seller agrees not to engage in any business activities that compete directly or indirectly with the Business within the Territory for a period of three (3) years following the Closing Date. This restriction shall apply to the Seller and its affiliates.
⚠️New non-compete provision — verify enforceability under applicable state law
Section 5.4 — Exclusivity PeriodRemoved
During the period commencing on the date hereof and ending on the earlier of (i) the Closing Date or (ii) December 31, 2024, the Seller shall not solicit, negotiate, or enter into any agreement with any third party regarding the sale of the Business.
💡Exclusivity provision removed — Seller has more flexibility to negotiate with other parties
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