Wood

MEMORANDUM *

I

Appellants Richard Wood, Pamela Berg, Robert Mondragon, Richard Lathlaen, and National Magnetics Corporation (“National”), appeal the district court’s order granting in part Appellee National-Arnold Magnetics Company’s (“National-Arnold”) motion for a preliminary injunction. The district court’s decision on a motion for a preliminary injunction is reviewed for an abuse of discretion. See A & M Records, Inc. v. Napster, Inc., 284 F.3d 1091 , 1096 (9th Cir.2002). We affirm in part, reverse in part, and remand for clarification of the scope of the preliminary injunction order.

*418 II

A. Scope and Application of the Release

The district court did not err in finding that the merger clause in the Release was only meant to supercede previous agreements between the parties concerning the “subject matter” at issue, namely National’s buyout. Further, the district court’s factual finding that National-Arnold’s claims arose solely after the signing of the Release was not clearly erroneous. See R.B. Matthews, Inc. v. Transamerica Transp. Servs., Inc., 945 F.2d 269, 272 (9th Cir.1991). National-Arnold’s claims were all at least partially based on events occurring after the…