Slimtec

OUR TEAM

Philip Merrick

President & CEO

Jenny Basford

Michael Jones

Alan Booth

Vice president and Public Relations

Consumer Advice Bureau

Marketing Vice President

James Simon

Dr Benton

Steve Smith

Corporate Lawyer

Consultant Surgeon, Queens Hospital

Director, Smith Clinics

MEETING AGENDA

Date:

Time:

Venue:

Participants:

Wednesday, November 22, 2017

14:00 pm

Room 204 Main office

Philip Merrick (Chairman), Alan Booth, James Simon, Steve Smith, Michael Jones, Dr Benton, Jenny Basford

1. Opening Welcome and apologies (14:00-14:05)

2. Evaluation of Situation (14:05-14:07)

3. Introduction of Participants and their Statements (14:07-14:12)

4. Discussion on further actions (14:12-14:38)

5. Decision, US market (14:38-14:40)

6. Additional discussion on international market actions (14:40-14:45)

7. Decision, international markets (14:45-14:48)

8. Adjournment (14:48-14:50)

SLIMTEC SITUATION

• Fixed ratio drug, contains combination of drugs
• More than 13 years on the market
• Highly successful
• 18 million dollars per year (12% of Company's gross income in U.S.)

Objections to the sale of most fixed ratio drugs by medical scientists because:

• No evidence of improved benefits over single drugs
• Detrimental side effects (40 unnecessary deaths per year)
• FDA plans to ban Slimtec in the U.S.
• No impact on long-term profits of other products

• On the market for more than 13 years
• Highly successful
• No evidence of improved benefits over single drugs
• Causes 40 deaths per year

ALAN BOOTH

Vice President & Public Relations

• Importance of business ethics
• Image is important: government & public
• Pressure by the media
• Sacrifice the product = preserve integrity
• Good ethics = good business
• Crucial in drung markets
• Reputation at risk

Worldwide Markets

JENNY BASFORD

Marketing Vice President

• In 2017: a revenue of $150 Million which represents a market share of 11.68%

• Slimtec is reponsible for 12% of our revenue ($18 million)

A realistic appraisal of the possible effects of an FDA ban of Slimtec on our market position:

• Overall sales would greatly suffer
• Loss of market share
• Loss of an important part of our net profits and income
• Damages concerning our market position
• A great opportunity for our competitors

--> I would recommend Merrick to continue to sale Slimtec

Replacing our best product by a substitute is impossible regarding our financial position: without the profit generated by Slimtec, we don't have to sufficient investment for R&D.

MICHAEL JONES

Consumers interest

• Hired by the Board to raise their awareness of consumer interest in Merrick products
• Consumers = Doctors & Patients
• Whitsleblower = release it to the press
• If so you will be ejected & no longer will take decisions
• Patients = side effects = will sur Merrick
• Families = deaths
• Lawsuits = damage corporate image & be expensive exceed Slimtec profits

STEVE SMITH

Director, Smith Clinics

• Member of the Board for 8y = owns 150,000 shares of Slimtec stock
• Slimtec = 13 years on the market = value
• Revolutionary product = helped millions of persons to recover from diabetes and overweight
• Prescribing Slimtec as doctor
• American Medical Association meeting
• Professional freedom vs. State
• Appeal sent out to doctors to protest the FDA = violating doctor's rights

Dr BENTON

Consultant Surgeon, Queens Hospital, N.Y.

Dean- University Hospital, Queensn N.Y

Chairman, U.S Medical Schools Council "the hospital world"

• Representing the academic profession & hospital doctors
• Research (low doses = less risks)
• Bad medical practice in prescribing those drugs
• Educator = Students no longer recommend it
• Medical School's Council = presenting the researches
• Merrick should research safer drug = restablish its reputation

JAMES SIMON

Corporate Lawyer

• Realistic FDA vs. Merrick = will lose due to a scientific research proving side effects of Slimtec
• Legally possible to delay action by the FDA
• Find legal tactics to not end up in court
• Delay action by injunction on FDA prohibiting the banning of Slimtec: USA 3-5 years & International 5-10 years