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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 1 of 74

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1 G regory Kelly -'.,'j .
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LasVegas,NV 89183 2ggg jgg 28 p 2: jj
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UNITED STATES DISTRICT COURT
7
SOUTHERN DISTRICT O F NEVADA
8 .

9
onEooRvxsuux anindividua', ) 2:08-cv-00s37-R c J-LR L
10 )
F'laintiff, )
11 vs. ) COMPLAINT FOR INJUNCTIVE RELIEF
)
12 Tom and Mao ha Morris,Individuals and) FOR (1)FEDERAL TRADEMARK
TM wellnessInc.(A TexasCorporatlonl;) INFRINGEMENT;(2)FEDERAL
13 DoEs 1-9,inclusive. ) DILUTION;(3)DILUTION UNDER
14 ) STATE LAw :(4)COMMON LAW
oefondana ) TRAOEMARK lxgRjxoEusxy;(s)
15 ) CYBERPIRACY;(6)FALSE
) REPRESENTATIONS AND FALSE
:6 )
) ADVERTISING;(7)STATE LAW UNFAIR
z7 ) COM PETITION.
)
la )
' ) DEMAND FOR JURY TRIAL
19

20 ForitsCom plaint, Plain'


tifl-GregoryKelly(hereinaAer''KeIIy'')allegesasfollows:
21 '
l.Thisisan action tmdirtheTiudem ark LawsoftheUnited States;Title 15 U.S.C
22 j1051,etsea..fortrademark.inflingementanddilutionpursuantto9j32and43ofthe
TrademarkActof1946(theLanham Act),asamended,15U.S.C.jj1114and 1125(a)
23 and(c),respectively.Inaddition,thisisanactionfortrademarkinfringement,dilution,
24 and unfaircompetitlon,in violation ofthecom mon law and the statelaw. Kelly seeks
notonlydamages,butalsoequitablereliefincludingapreliminaryandpermanent
2r, injunctlonagainstDefendants,andreasonablereimbursementofthecostsassociated
with thisaction.
26

2p JU R ISDIC TIO N A ND V EN UE

28 2.Thiscourthasjurisdictionunder28U.S.C.j1338asthiscivilactionarisestmderan
ActofCongressrelatedtotrademarks.n iscourthasjurisdictionunder28 U.S.C.j1367

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 2 of 74

1 andthedoctrineofpendantjurisdictionoverthestateIaw claimsassubstantialand so
2 related to the claim s arising tm derfederallaw thatthey fonn partofthe sam e case and
controversy underA rticle I1lofthe United StatesConstitution.
3
3.VenueisproperinthisCourtpursuantto28U.S.C.jj 1391becausePlaintifrKelly is
4 conducting businessinNevadaand becalzsethe actionsgivingriseto thealleged
5 tradem ark infringem entand resulting dispute originated with an incom orating entity w ith
aNevadaaddress(IsofitnessSystemsInternationalInc.).Defendantshadallegedly
6 contracted forunautholized use ofKelly'stradem ark and proprietary training system
R
throughIsofitnessSystemsInternationalInc.(hereinaAer''ISI'').Defendant'scontract
withISIclearlystatedthatjurisdictionwasinNevada(SectionW ).
8

9 PA RT IES
10 4. K elly is an individualresiding at l1975 Fairfax Itidge St.,LasV egas N V 89183,
11 doing businessasISO FITNE SS@ & ISO M ETR XTM5 and TO N E IN 20TM .

12 5. Upon inform ation and beliefsDefendant'sTom and M arsha M orrisareindividuals


13 with an address of17819 Stuebner-A irline R d.,Spring TX 77380,doing businessas
O N E 30 FitnessY . Theircorporate entity is TM W ellnessInc.
14
6.Thetruenamesand capacities,whetherindividual,com orate orotherwiseof
15 D efendantDoes 1- 9 inclusive,are llnknow n to K elly,who therefore sues them by such
z6 tictitiousnames(togetherwithTM W ellnessInc.and Tom and M arshaM orris,
hereino ercollectively ''Defendants'').Kellywillseektoleavetoamendthiscomplaint
17 to allegetheirtrtlenam esand capacitieswhenthey havebeen % certained.K elly is
inform ed and believesand thereon allegesthateach oftheGctitiously named Defendants
18 is responsible in som e m annerforthe occurrencesherein alleged and thatK elly's
19 dam agesasherein alleged wereproximately caused by thoseDefendants.AtaI1tim es
herein m entioned,D efendantsD oes 1-9 inclusivew ere the agents,servants,em ployees
20 orattorneysoftheirco-defendants,and in doingthethingshereinaReralleged were
21 acting within thecottrseand scope oftheirauthority asthoseagents,servants,employees
orattorneys,and with theperm ission and consentoftheirco-defendants.
22

23 SA CK G RO UN D FAC TS
24
7. ISOFITNESS@ isahealth and litnessprotocolthatKelly began developing in 2001
25 asaneducationalserviceovertheInternet(Exhibits1and2).n enamewasfirstused in
26 commercein 2003 when K elly opened thefirstISO FITNESSO studio in LasVegas
(Exhibit3).
27

28 8* ISOFITNESS* isaunique form ofexercise using proprietarybreathingtechniques, a


once aweek high intensitystrength training session,andpneumaticequipment.The
conceptquicklydrew criticalacclaim inLasVegas(Exhibit4).

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 3 of 74

1 9 K elly applied forhis firstISO FITN ESS* federaltradem ark in 2003 underPhysical
2 Exercise and Strength training,which wasapproved in 2005 underSerial# 78343183
(Exhibit5).
3
4 10. K elly applied forhis second ISO FITN ESS* federaltradem ark in 2005 underfitness
andexercisefacilities,whichwasapproved in2006underSerial#78631981(Exhibit6).
5
11. In M ay of2005,unbeknow nstto K elly,the Defendantspurchased w hatthey thought
6
w asthe rightto use K elly,s from a com pany called ISO FITN ESS SY STEM S
p INTERNATIONAL INC.S(hereino er''ISI''),fora$10,000licensefee,a$10,000
training fee,a $400 permonth research and developmentfee,plusthe costofequipment
8 (believedtobe$20,000),aswellmsthemssociatedcostsofsecuringaretaillocation.
9 12. Atthe u m e tim e,unbeknow nstto the Defendants,ISI did nothave the rightto sell
1o them K elly's tradem arks ortraining system ,since lyoth K elly and ISI had m utually
agreed thattheirprevious,''atw i11,''agreem entwould be tenninated.
11
12 K elly had previously allow ed ISI to testm arketthe licensed conceptthrough A IC oppola
(hereino erCoppola),whoservedasDefendants'trainerandsponsorintothebusiness.
za Coppola had opened an ISO FIT NESS location in Conroe,Texasin N ovem berof2004,
through ISI,again withoutknowledgethatISIhad notsectlred therightsto the
14 ISO FITN ESS(& nam e forany extended peliod oftim e.
15
13. Priorto Defendantsbeing defrauded by ISI,K elly rem oved any reference to
16 ISOFITNESS' locationsand phonenum bersin Texas, from the ISO FITN ESS@
17 w ebsite to m ake itclearto D efendants thathe would notbe involved in theirendeavor.
H e did notcontactD efepdantsdirectly outofconcern forliability oftortuous
18 interferenceclaim sby ISI. He had nevermettheDefendants,norhad contactwith them
in any w ay.
. 19

ao 14. b efendants had been prom ised K elly's participation by ISIin the developm entof
theirbusiness,includingdirectcontactw1t.
11him (Exhibit7aab).Assuch,anyclaim by
2l Defendantsthatthey did notknow thatKellywasno Iongerinvolved with ISI,iswithout
22
m erit.

2a 15. Kelly hasneverbeen an oftkerordirectorofISI,norhashereceived any income


from them . Thecompany wentinto defaultin Novemberof2005and hasnow been
24 revokedbytheNevadaSecretary ofState(Exhibit8).
25 l6. In Decemberof2007,Kelly discovered thepresenceofCoppola'sand Defendants'
26 new website,withanaddressofwww.isofitnessoftexas.com (Exhibit9,a-h).n e
verbiage wmsnearly identicalto Kellylswebsite,with mostofthe changesbeing
21 cosm etic. Defendant'sacknowledged msmuch by indicating '.C)2005 Isostness. AII
28 rightsreserved,''atthebottom ofeach page. They knew thiswasKelly'sintellectual
property.

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 4 of 74

1 17.SinceCoppolaandDefendantswereclearlyoperatingasapubliclyunifiedentity,
2 Kellysentanemail(Exhibit10a-c)toCoppoladirectingh1m toremovetheword
ISO FITNESS' from theirbusinesses, as w ellasto ''cease and desist,''from further use
3 ofany ofKelly'sproprietarytrainingtechniques. Defendants'surnamewmsincorrectly
4
identified asM œson,asopposed to M orris,asKelly had neverhad contactwith them .
'

5 18.Afteraseriesoftelephonic communicationswith Coppola,itwasK elly'sbeliefat


thetimethatboth Coppola and Defendantshad been defrauded by ISIin someway,
6 even iftlw y were using K elly'sintellectualproperty w ithoutpaying forit.
7
Assuch,Kelly and Coppola,asan agentforDefendants,agreed to negotiate in good
8 faith tow ards a resolution,which w ould allow Coppola and D efendantsto continue to
9 use the ISO FITN ESSX nam e. Thesenegotiationswould continueforthenext2 years.

1o 19. ln A ugustof2007,aher20 m onths ofgood faith negotiations, C oppola presented a


plan to Kelly forCoppola to becometheexclusiveworldwide Iicenseeofthe
11 ISOFITNESS@ trademarksandtrainingsystem (Exhibitl1 a-j) Theagreem entw ould
.

12 notcovertheDefendants'existing location sinceCoppola considered itto bean existing


sub-licensee(SectionJ4)ofhisexistingbusinessentity,APGM VenturesInc.
z3
20.Kelly declined Coppola'sproposalon the basisthatitdid notprovideforany
14
perform ance benchm arksnecessary fora worldw ide license. A ssuch,the tw o m oved
15 forward on an agreem entforany future use ofthe ISO FIT NESS* tradem arks .

16 21 Aherinform ing K elly thatboth heand Defendantswould bechanging theirname in


17 2008.Coppolaoriginallypresentedanagreement.whichwouldreleasehim and
Defendantsfrom any pnoruse ofthetrademarksand training system . Kelly declined
18 thisproposal,forreasonsoutlinedinanemail(Exhibit12a,b).
19 Kelly clearly indicated in hisemailthathe had no intentionofreleasing Coppola and
2a Defendantsfrom pqstuseofhistrademark.HealsopointedoutthatCoppolaand
D efendants had slgned agreem entsw ith ISI, which prohibited them from using another
2l nameforKelly'ssystem tmlesstheyleû theindustryfor5years(Exhibit13a,b,c).The
22
aforementioned Exhibitisaspecim en efthe agreementthatCoppolaultimately signed,
and isbelieved to be identicalto thatsigned by Defendants.
23
22. K elly ultim ately revised the agreem entforcontinued use ofhistradem ark, (Exhibit
24 14 a.b,)whichCoppolaandDefendantsconsummatedwithpayment(Exhibit15).
25
23. In Decemberof2007,aherdiscoveringthatCoppola and Defendantshad already
26 established anew name and websiteforKelly'straining idemsunderOne30 FitnessY , at
w ww.one3ofitnessecom ,Kelly decidedtorescind any futureuseofhistrademarksto
27 them (Exlzibit16).HealsodemandedthatCoppolaY efendantsceasetargetmarketing
28 ofthe ISO FIT NESS* nam e on the lnternet, and deviate from any ofhisproplietary

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 5 of 74

l protocols. Kelly also reiterated thatboth Coppolaand Defendant'shad sijmed


2 azreementswith iulisdiction inNevada.asormosedto Texas.

3 24.OnJanuary31,2008,CoppolaenteredintoanagreementwithKelly (Exhibit16a-l,)
to settle any fonnerand futtlreclaimsforuseofKelly'stradem ark and training system .
4 Theageementdelineatedspecificdifferencesfortheirrespectivetrainingsystems,
s includlngtotaltrainingtime(20or30minutes),breathingteclmiques,andfunctional
techniques such asinstructorassisted negatives.
6
25.InMarchof2008,Kelly sentademandIettertoDefendants(Exhibit17),assub-
1 licensees ofC oppola's, requesting sim ilarcom pensation,and identicalcom pliance to
a training protocoldelineation.

9 26. Defendantsrefused to oflkrany com pensation foruseofKelly'strademark and


training system (Exhibit18).Defendantsofferednorecommendationsoropinionsabout
lo delineating theirexisting training system from thatofKelly,ss despite the j-
acttj)atjt
11 cam efrom K elly,and despitethefactthatthey signed an ar eem entwith ISInotto
com pete w ith him .
12
27. Kelly senta tinalemailto Defendantsaddressing theadditionalcostsoffilinga suit
13 (Exhibit19), asw ellasadditionalfactsthey m ightnothavebeen aw areof.H ereceived
14 no reply,which iswhy thisaction hasnow been consumm ated.
15
16 CO UN T I

lp FED ER AL TR AD EM A RK IN FY N G EM EN T

18 28. K elly repeatsand alleges each and every allegation conG ined in paragraphs 1-26 of
19 this Com plaintand incom oratesthem herein.

20 29.Bytheaforesaidacts,DefendantahaveinfringeduponKelly'sfederaltrademark
rightsdescribed by itstrademarkregistrations,in vlolation ofSection 32 oftheLanham
21 Actq15U.S.C.j1114.
22
30. W ithoutany constrainton the intellectualproperty ofK elly's thatw asshared with
23 Defendants,K elly hassuffered,issuftkringsand willcontinueto sufferirreparable
24
injuryforwhichKelly hmsnoadequateremedyatlaw.
25 CO UNT 11

26 DILU TIO N UND ER FED EM L LA W


27 31. Kelly repeatsand allegeseach and everyallegation contained in paragraphs1-30 of
28 thiscom plaintand incom oratesthem herein.

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 6 of 74

l 32 Kelly isthe ownerofthe registered tradem ark ISO FITN ESSX which is wellknow n
2 withinthecommunityofHIGH INTENSITY TRM NING (HIT)instructorsand
aficionadosnationw ide. K elly'suse ofpneum atic equipm ent,coupled w ith a proprietary
3 m editative/breathing teclm ique isa system w bich wasnotonly revolutionary,butstill
4
understood orim itated by very few .

5 33 Defendants have substantially diluted the ISO FITN ESS* m ark from theirown use
6 throughawebsitedesign,andsearchengineoptimizationcompanysMajnetilks,who
continuesto hosttheircurrentwebsite. Kellyfsorigina1websitewasultlm ately displaced
7 byDefendants'investm entin M agnetikssearch engine optim iz-ation fortheirwebsiteat
w ww .isefitnessoftexas-com . This hascaused K elly irreparable harm ,asD efendants
8 have created the illusion thatthey are the originalsource oftlle intellectualproperty
9 aSSOCiated w ith the ISO FITN ESSY training protocol .

10 34.DefendantsclearlyplagiarizedtheverbiageandspiritofKelly'swebsite(Exhibit9).
This hascaused K elly lrreparable harm ,and causes dilution by lessening the capacity of
11
theISOFITNESS* marksto identify and distinguish itsgoodsand servicesfrom those
12 ofothers.

13 35. D efendant:have furtherdiluted K elly's tradem arksand intellectualproperty through


14 inadequateexecution/training.Exhibit20 deuilstheirneed foradefibulator,onthebasis
ofseveralclientspassing outduring theirinitialworkouts.
15
The ISO FITN ESS* technique,
16 withacomgetentinstructor,andwhenproperly
executed,hmsneverresultedinaclient''
passlngout.''n eonlywaythiscouldoccurisif
17 Defendantsw ere inadequately trained,orperform ing theirdutles w ithoutdue diligence.

18 36. AsaresultofDefendants'negligence,and orimpropertraining,Kelly'strademarks


19 hassuffered,issuffering,andwillcontinueto sufferirreparableinjuryforwhich Kelly
hasno adequate rem edy atlaw .
20
37.Defendantsaremaking/havem adecom mercialuse oftheISO FITNESS* mark in
21 interstatecom m erce. Upon inform ation and belief,Defendantsare purch% ing goods
22 from out-ofstate,such astheirsupplem entline from Super Spectrim ofn ousand Oaks,
Califom ia. Kelly chosethe selection ofthese supplementsand labels,and Defendants
23 aremarketing and offering theseproductsinterstateto consumersviatheirpresence on
24 the Internet.

25 38 D efendants'prioruse ofa colorable im itation ofthe ISO FITN ESS* m ark has
26 harm ed Kelly and hisbusinessrepuution and causesdilution by lessening thecapacity of
ISOFITNESS@ to identify and distinguish itsgoodsand servicesfrom thoseofothers.
27
28 39.Kellyhassuffered,issufferinp andwillcontinuetosufferirreparableinjuryfor
which Kelly hmsno adequateremedy atlaw.

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 7 of 74

l C O U NT III
2
DILUTIO N U ND ER STA TE LA W
3
40. K elly repeatsand allegeseach and every allegation contained in paragraphs 1-39 of
4 thisCom plaintand incom oratesthem herein.
5
41. By itsactsalleged herein,D efendantsare causing dilution ofthe distinctive quality
6 oftheISOFITNESS@ marksandarelikelytohaveinjuredandharmedKellyfsbusiness
7 reputation in violation ofN R S 600.450.

8 42. N RS 600.450 U nlaw fulacts:penaltv clearly states:

9 1. Itisunlaw fulforany person orcom oration:


10 (a)To imitateanymarkregisteredasprovidedinNRS600.240to600.450,inclusive;
(b)Touseknowinglyanycounterfeitorimitationthereof;
11 (c)Touseordisplaysuchgenuinemarkunlessauthorizedtodoso;or
12 (d)Touseordisglaysuchgenuinemarkinamannernotauthorizedbytheregistrant.
2. Any person vlolating any provision ofsubsection 1 isguilty ofa m isdem eanor.
13 13:180:1907;RL j4637;NCL j76971-..
4NR5 A 1967,620;1979,600;1995,68).
14

l5 43. Kelly has suffered,is suffering,and willcontinue to sufferirreparable injury for


w hich K elly hasno adequate rem edy atlaw .
16

17
C O U NT IV
18
CO M M O N LA W TR A DEM A R K IN FR ING EM ENT
19
44. K elly repeats and alleges each and every allegation contained in paragraphs 1-42 of
20 this Com plaintand incom oratesthem herein.
21 45. By theiractsalleged herein,Defendantshaveinfringed Kelly'scomm on law rights
22 in theISOFITNESS@ m arks, andhaveused the goodwillofISO FITNESSX to sell
Defendants'productsand services. n e acts ofDefendantsherein alleged infringe
23 K elly,s com m on law rightsin hism arlcs in connection w ith K elly,s products antjsenices
24 and constitute com m on law tradem ark infringem ent.
as 46.Kelly hassuffered,issufering,andwillcontinuetosufferirreparableinjuryfor
which Kelly hasno adequaterem edy atlaw.
26

27

28

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 8 of 74

1 c o tlN'r v
2 VIO LATION OF THE LANHAM ACT BY CYBERPIRACY
3 Section 43 of the L anbam A ct. 15 U.S.C.41125(d1
4 47. K elly repeatsand allegeseach and every allegation contained in paragraphs 1-46 of
5 this Com plaintand incom oratesthem herein.
6 48. D efendants have had bad faith intentto profitfrom K elly's ISO FIT NESS@
tradem arks and w eb placem enton the lnternet.
7

8 49.From January2007-Februay 2008,DefendantsusurpedKelly'stoprankingonall


majorsearchenginesthroughthelruseofaSearchEngineOptimizationtirm knownas
9 M agnetiks.
10 50. befendants em ployed the servicesofM agnetiks'Teclm icalD irector,Stacy Jones,
toregisterandusethedomainnameofisofitnessoftexasocom (Exhibit21).W hilethe
11 nam e isno longerin uses D efendlnts continue to cyberpirate K elly'sgood w illthrough
:2 the useofkeywordsin search engineswhich redirectconsum ersto Defendants'
w w w .one3ofitness.com w ebsite.
13
51. Priorto the tim e thatDefendantsem ployed Stacy Jonesto registertheirsim ilar
14 mark5ISOFITNESS' wasthenumberonerankinginallmajorsearchenginesinany
15 category,forthe word ''IsoFitness-'' K elly'sm ark wasalso the only high intensity
training reference to the word tm tilD ecem berof2005.
16
52.TheforgoingconductofDefendantshascaused Kelly irreparableinjuryforwhich
17 he has no adequate rem edy atlaw .
18 co tlN 'r v l
19 yA lvsE R EPRESENTA TIO N S A ND FA LSE A D VER TISIN G
20 Section 43(a)oftheLanham Act. 15 U.S.C.11125(a)
21 53. K elly repeats and allegeseach and every allegation contained in paragraphs 1-52 of
z2 thisCom plaintand incom orates them herein.
2a 54. Upon infonnation and belief,D efendants,in theiradvertising,prom otional
materials,and website,have madefalseand/ormisleading statementsoffact,such
24 advertising being distributed in interstate com m erce.
25 55. Upon i
nformationandbelietlDefendants'aforementionedstatementshaveactually
26 deceived and/orhavethecapacity to deceivea substantialsegmentoftheevidence. Also,
Defendants'deception ism aterialin thatitislikely to influence consum erspurchasing
27 decisions.
28 56. D efendants'De-facto registration and any use in com m erce of
isofitnessoftexasocom hasdeceived and confused constlm ers into believing that

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 9 of 74

1 Defendants'program originated with Kelly'sapproval,and thattheprogram swere


2 identicalin natttre.
a 57. By engaging in the activitiesdescribed above,Defendantshave m ade false,
deceptive,and m isleading statem ents constituting false representation and false
4 advertising in connection w ith servicesdistributed in interstate com m erce in violation of
:
Section43(a)oftlleLanllam Act,15U.S.C.jl125(a).
6 58.Defendants'actsdescribedabovearelikelytoinjureandhavecausedKellytobe
damaged,andcontinuetocauseKelly injurytohisgoodwillandreputationand,unless
p enjoined,willcausefurtherirreparableinjurywherebyKellyhasnofullyadequate
rem edy atlaw .
8

9
C O U N T V II
10
STATE LA W UN FA IR C O M PET ITIO N
11
59. K elly repeatsand allegeseach and every allegation contained in paragraphs 1-58 of
12
this Com plaintand incom oratesthem herein.
13
60 K elly'sIso lq- lw Ess* m ark isw lm lly associated w ith K elly,dueto hislong and
14 continuoususethereof,and assuch,Kelly isdeserving ofhaving hismark adequately
15
protected with respectto the conductofhis business.
16 61. D efendants'use ofvirtually the sam e m ark com prisestm faircom petition in that
consum ers and w ould-be consum ers are likely to have been confused concerning the
17 origin ofproducts ancl/orsea icesusing the sam e orsim ilarm arks in the m arketplace.
18 62. Defendants'aforesaid actsarein violation offederaland state law,includingNRS
600.450.
19
20 N R S 600.450 U nlaw fulacts:nenaltv clearly states:

21 1. ltisunlawfulforany person orcorporation:


(a)Toimitateanymarkregisteredasprovided inNRS600.240to600.450,inclusive;
22 (b)Touseknowinglyanycounterfeitorimitationthereof;
23 (c)Touseordisplaysuchgenuinemarkunlessauthorizedtodo so;or
(d)To useordisplaysuchgenuinemarkinamannernotauthorizedbytheregistrant.
24 2. Any person violatingany provision ofsubsection 1isguiltyofa misdemeanor.
25
13:180:1907;RL j4637;NCL j76971 RS A 1967,620;1979,600;1995.68).
26

27

28

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 10 of 74

1 W HEREFORE,Kellypraysforjudgmentthat:
2 1. D efendants and theirom cers,agents,servants,em ployees,attorneys,and a1lpersons
a in active concertorparticipating w ith them be prelim inary and thereaQerpennanently
enjoyed:
4
(a)From usinp inconnectionwiththeoflkringofDefendant'smarketingoftheir
5 goods/services, anyreferencetothewordts)''ISOFITNESS' ,''intheconductingof
6 theirbusiness,advertising,Internetkeywords,prom otion oftheirbusiness in a historical
lineage,and in answ ering theirtelephones.
7
2. D efendants be com pelled to agreeto the stipulations in Exhibit 16K,''Isofitness
8 Teclm iques tbat llave been abandoned by O ne 30 FitnessTM.''
9 D efendantshave already agreed to these term s de-facto,asagents ofCoppola's,buta
lo
ruling ofthis H onorable Courtisnecessary. K elly m tzstbe asstlred thathis intellectual
property and innovationsare protected.
11
3. D efendants to pay reasonable feesand costsassociated w ith the Gling ofthissuit;
12 ($3,600todate);
13 4. D efendantsto pay the ongoing costs ofthis suitincluding K elly'sretention ofcounsel
and the costs and disbursem entsofthis action;
14
15 5.Kellyrecoversrestitutionfrom Defendant'sfortmjustenrichment;$11,600from M ay
2005 through Septem ber2007;
16 6. D efendants disgorge any protits mspartofany equitable reliefsoughtby K elly
17
7. Kelly have such otherand furtherequitablereliefforthe piratingofhistechniquesby
18 Defendants,asthe Courtm ay deem appropliate.
19
D ATED this h day ofA pril2008.
2o

21

22 Respectfully subm itted,


23 By; '
x
24

25 -.-

26 Gregory Kelly
27 l1975 FZr' I-
M Ridge St.
L&sVegœs,N V 89183
28 Plaintiffin ProperPerson

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 11 of 74

1 D EM A ND FO R JUR Y T RIA L
2

3 PlaintiffherebydemandsaZ aIbyjuryinthismatter.
4

5 DATED this A V
uz/ day ofA pril2008.
6

7 Respectfully submitted,
8
By:
9

:.() ---xs
ss ....A
.

11
G regory Kelly
12 11975 Fairfu R idge St.
LasV egas,N V 89183
13 Plaintiffin PpoperPerson
14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 12 of 74

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W elcom e to the ISO FITN ESS hom e page.

ISO FITN ESS is a proprietary,dietand training protocolthat produces


rapid gains in Iean m uscle tissue and corresponding Iosses in body
fat. The end result is a healthy body that is capable ofIong term
m aintenance w ith m inim aleffort.

W hat is the secretbehind the ISO FITN ESS program ? BasicaIly,


ISO FIT NESG is the only program ofits ltind to address the core
issues associated w ith m uscle and fat m etabolism . These areas
include behavioral!physiological; nutritiollal; and recovery aspects.
W hile m ost program s attem ptto acllieve Iong term results through
dietary and/ortraining routines alonefthese approaches are doom ed
to failure.

Thejourney m ustbegin with the Rlfzztf,in orderto have any chance


for long term success. W e m ust deprogram alIthe m istruths and oId
w ives tales that have been burned into ourconsciousness since
childhood. In the absence ofthis reprogl'am m inq,Iong term success l
is basically a pipe dream .

W e thank you for visitinq our site. Please feelfree to send us your
com m ents on our program .
: r E
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 13 of 74

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report
web site cl'eator contactType Registrant
bosted exchange organlzatlon Name:
ssL certificates Flrst Name: Gregory
emailmarlleting l-ast Name: Kesly
hOlP Address 1: 11975 Palrfay Rldgc St.
cart Address 2:
Iog-out citv: Las vegas
state IProvince: RV
'QUICK Transfers!' P@sO lfZipCgde; 89183
Country: US
Phone: +1.7029941636
Fax:
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contactType Adm inistratlve


organization Na me:
FirstName: GIegory
LastName: Kelly
Address 1: 1197b Falrfax Ridge St.
Address 2:
City't LasVegas
State /Province: NV
Postal/Zip Code: 89183
Countrv: US
Phone: pl.7029941636
Fax:
EmailAddress: i5f
J?egasOyah0:1.com

ContactTvpe Billing
organization Name:
Flrst Name: Gregory
Last Name: Kelly
Address 12 11975 Falrfaz Rldge St.
Address 2:

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 14 of 74

City: LasVeqas
State/ Provlnce: NV
P- tal/ ZIp Eode:89183
Countrv: US
Phone: +1./029941636
Fax:
EmailAddress: iG0%
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ContactType 'Fecl>nical
Organization Name:
FirstName: Greqory
LastName: Kelly
Adöress 1: 11975 lzalrfax Rldge E;t.
Address :.)
Citv; $.asVegas
State / Province: NV
Postal/ 'IpCode: 89183
country: U5
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registration-expiration-dale: 2009-05-02 07:10:17,000
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SUNRI:E
'
rhctechnique w asdeveloped 20 years
TuesdayEdItIon ago,inastudyforwomenwithosteoporosis,butitmaybeenjoyinga
new surge in popularity with a pairofbest-selling booksoutabout
SOUTHWEST Superslow strength training --''The Slow Burn FitnessRevolution''by
TuesdayEidptpon pyed Hahn and ''Pow erof1O ''co-authored by Adam Zickerman .

SPRING VAu.n
TuesdayEdi
tion A new Superslow studio also recently opened in LasV egas.Iscdstness.
located at9555 LasV egasBlvd.South,and co-ownersG reg and Suzanne
OT UTHEAST K elly are conlidenttheir3o- m inute-per-week litnesssolulion w illwork
uesday Editlon
foranyonew ho wants itto.
WRIINEY
TuesdayEi
dltion ,'s eIieve itornotaanyone w ho is capable ofw alkinga and doesn'thave
GREENVALLEY/HENDERSON a.l1y life-threatening illness,iscapable ofperform ing Superslow ,''G reg
TuesdayEdktlon K elly said.
ANN M
Tuesdayudition The exercise technique,w hich should actually only take 15 to 20 m inutes
perweek,soundstoo good tobetrue,butseveralstudieshave proven it
CENTENNIAL worksand Superslow hasbeen endorsed by severalleatling physicians,
'ruesuayEclltioo featured on NBC,sllTo(jay,show: among others, andreportedly used by
otlwm tlwN celebritieslikeBrad Pitt.
Tuesday Editkon
BOULDERcl' ry Ken H utchins developed the Superslow technique in a study attbe
'
ruesday Eid.t.on University ofFloridain 1982.W hile trying to fon'
nulate a strength
training program forolderw om en,he discovered people could realize
muchgreaterstrength gainsantladeeperlevelofm uscle iktigueby using
Iowerweightwith slowerreps.

W omen in thestudy,and subsequentones.increased theirbonedensity


by an average of lpercenta month and otherstudieshaveproven the
technique can inorease a person's strength by 50 percentorm ore in the
firstthree m onths and nearly double a person'sH D L,orthc so-called
goodcholesterol,som ething othertechniquesand drugshavefailed to do.

Greg Kelly,a certified Superslow instructorw ho haspracticed the


technique him selfforthelastlhreeyears,doubted itsworth atfirst.

''Iwastraining threetimesaw eek itlld ldidn'tbuy the slow speed and


Iightweights,butlslow ly started to sce people getrestllts,''he said.''I
starteddoingittwiceaweekandnow liustdoitonceaweek.Ihad25

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 16 of 74

percentbody fatand now it's 10,and Iw eighed 245-250 potlndsand now


Iw eigh 205-210.''

Kelly said working outatthegym thetraditionalway m ay workabutthis


technique w illspeed up the processand provide severalotherbenetits .

''Whenmostpeogleliftweights.theirgoalistolifïX amountofweight,
an X num beroftlm esforan X num berofsets.The truth is,while those
are honorable goals,they really don'taddresswhatm akes a m uscle
biggerand strongeq''he said.''W hatm akes am uscle biggerand stronger
isto bring itto com plete m uscularf'
atigue.'

W hilemosttraditionalweightIiftersdon' tseefatigueuntiltheIastrep of
the set,the Superslow philosophy is to keep tlze m uscle fatigtled
throughoutthe entire set,by m oving slow ly.

A typicalSuperslow workoutconsists of six orseven exercises,focusing


onthemajoq skeletalmusclesintllebody.Repsareperformedusing 10
seconds to liftthe w eightand 10 secondsto low eritand the process is
repeatetlcontinuously untilthe musclesgo from fatigueto failure.The
techniqueisdesigned to elim inatemomentum,which givesm usclesa
ohanceto rest.

K elly said the ultim ate goalshould be 90 seconds fbr each exercise, w ith
a m axim um ofthree m inutes --beyond that'san indication to increase the
w eight,

Superslow w eightlifters should also take as Iittle tim e as possible


between exercises,so as to keep the m usclesloaded the entire tim c .

''There'slessresistance,butby going slowly,you trick the m uscle into


thinking the resistance you're using is greaterthan itisa'K elly said,

The essence ofthe technology is m ore than simply m oving slow,though.


it'saboutmoving with control,balance and mentalfocus,which iswhy
it'sbeen com pared to taichi,yoga and pilates.

Wh enthemuscleisfatigued,ittriggersbiolojjcalresponsesinthebody
to m ake itbiggerand strongel','I-he m uscle bullding goes on when the
body isresting,so,asnotto impede thegrowth,it'srecom mended to take
aweek offbetween Superslow workouts,oratleastafew days,

''W ebreak thebody down and give ita weekto recover,''Kelly said.
''You don'tneed to do itm orethan twiceaweek,ifyou'rewillingtowork
hard ''

W hile Kelly said the technique can w ork with any w cights,llis private
studio i'
katuresresistance machillespoweredby airpressure and is
designed to create aZen-like experience.withone-on-oneinstruction and

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 17 of 74

no distractions.

The average pricefora workotltis$35 persession and it's$30 foraonc-


hotlrintroductory session.A ppointm entscan be scheduled atIsofitness
from 5 a.m .to 8 p.m .

''W e w erc unsure ofhow the once-a-week conceptwould go overw ith


people,butw e've yetto lose anyone who hassigned up for four
sessions,''Kelly said.''To me.it'smoreamentalconversiollthan
anytbingelse.Ifyoujusthavetodoitonceaweekayou willpush
yourself.''

Kelly said thetechnique com binesaerobic and strengthtraining and,


through m uscle grow thaleadsto weightIossand otherbenetsts .

''Ourgoalisnotto bash aerobicsand ourcontention isnottbatgoing to


the gym three tim es a w eek won'tw ork 'he said ''It'sto create aw areness
.

and give people an alternative to t@ .''

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 18 of 74
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 19 of 74
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 20 of 74

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United States Patent and Tradem ark O ffice

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Goods and Services IC 041.US 100 101 107.G & S:PhysicalExercise and strength training.FIRST USE:
20000101.FIRST USE IN C OM M ERCE:20030630
MarkDrawing Code (5)WORDS,LFTTERS,AND/OR NUMBERS IN STYLIZED FORM
SerialNum ber 78343183
Filing Date December19,2003
CurrentFiling Basis IA
OriginalFiling Basis IA
Publ
O ished for April19,2005
pposition
Registration 2966647
Num ber
Registration Date July12,2005
Owner (REGISTRANT)Kell
y,GregoryINDIVIDUALUNITED STATES 11975FairfaxRidgeSt.Las
VegasNEVADA 89123
Type ofMark SERVICE M ARK
Register PRINCIPAL
Live/Dead Indicator LIVE

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 21 of 74

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Goods and Sewices IC 041.US 190 1O1197. G & S:Providing htness and exercise facilities. F1R S7 USE:
20010101.FIRST USE IN CO M M ERCE)20030501
Su ndard Characters
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Mark Drawing code (4)STANDARD CHARACTER MARK
SerialNum ber 78631981
Filing Date May 17,2005
CurrentFiling Basis IA
O riginalFiling Basis IA
Published for F
Upposition ebruary 7,2006
Registration Num ber 3087621
Registration Date May2,2006
Owner (REGISTRANT)Kelly,GregoryINDIVIDUALUNITED STATES 11975 FairfaxRidgeStLas .
VegasNEVADA 89183
Type ofMark SERM CE MARK
Register PRINCIPAL
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 22 of 74

p
*;. MAIL
.
.
print close w indow
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!T3!>(/
Date: Mon,09 May 2005 17:21:06 -0700
To: MarshaMornslsbcglobalm et
From : 'Bob Arexander''<bobaislcox,net>
Subject: Upclates
CC; Tsovegas@yahoo.com

Marsha,

See you now have the Messenger serviGe.

Thanks for getting it .

Spoke to Greg he is busy at moment but I will hear Crom him this
evening
and we wiJ1 do the necessary coordination .
I spoke to Al Coppola and he will be giving you copies oL the ads,
flyers,
coupons, gift certiricates and other marketing materials that we are
currently using. I can asszst you with any changes in the mateanials
and
review them with you as well on the phone.

Greg ls working on new videos to send you now that. he knows which
equipment
you will be using . He already has video tapes showing the proper use
of
most of the machines. These are actual videos of clients using the
equipment. Greg believes thiu is the best training as it shows any
e rr o r s
in client use rather than a ''staged presentation'' I believe that A1
may
allow you to use the videos he has zn the meantzme but the new ones
should
be available very soon

The most important focus right now, according to Greg, i.s to obtain a
customer base. Once you get about 20 clients you will find that
obtaining
additional ones will be easy. ''Many? many people are in need of our
servlces and there is absolutely no shortage of clients'' -- this j s
Greg 's
mantra and as A1 can te11 you that this belJ.e f! i.s paramount to success .
A1
has been ama zi.ngly succe ss fu1 and now has more c 1.ien ts than many o f t he

1:raj.ners who have been i.n buIsiness for seve ra 1 yea r'r ;. In orde l to ge)L
you
off cnn th e2 ''rjght path '' Greg want.s to a ssir$t yot; w it.h p rep ari!tg you r
C1i.ent
Pr1ci.ng P 1.:4n s . Mi stakes a re often made in t.hj:$ irtn tïia 1 stlep c)f' kïcnw t' .o
preseyït. t.he J)rj.cqz servif:6a tie rs and what i.ncent.1v*L's ltta y 13e o fffe red to
t
xet-
disc. iplined r re sponsj.b1e cliel1ts on tl4e r. i.g ht p r iC2jng sc1àed111.$2. firom t.he

beglnning . Clreg wi1l be talking with you about it- soon and tlc' wi11

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 23 of 74

send
you Juggestions by emi ai1 after dettEt
vrmining you r t11in king based r
pn Liie
demoCJraphics o f you r area .

1 know tllat Patty and A..


1 w.
i1.1 b e very he1pfu1 l(7 y01. 1 t:o gt
'
vt ycJt2 1ntq
o
the
ma rke tin(
g strategies that w.k12 ge)t: (c1 j.ent'
.s qtzif:k Iy and
inexpensively. Fortunately, wzth our marketing system we do not have
to
spend much money on prznt advertising . A1 has sorfte excellent
experience
using the ''Guerzlla'' marketing systems that have worked nicely tor him .
We
always want to target market as much as possjbze and aim our messages
at
you r ''easy ma rket '1 The easy market wil1 be people that arez ot
co u r s e r
abl e to afftord the service, as well a s recogni zet l-he need fo r good
hea lth ,
p rope r nutrition and exe rc ise . Wea will be senda
lnCJ you some boo ks whic#1

Greg has found to b e help ful when p resent ing the IsoFi trtess systc.
'nl in
corrt
m on ''laymen'f terms so that you may easily comrnlln.
lcate to anyone the
bene fits o f our p rog rara.

I anl sending you this after our discussion on Llle phone Lhj.s evening .
I
wi11 get the books out to you by fed-x and the re st pe r our dis clussicln .
I
wi11 talk with Al regarding the videos and we wi 1..
1. sta rt sending you
more
mate rials tatlored to your needs .

Thanks Marshar I know you wil1 enjoy this busirless and wi11 be very
successfu1 . We a re here to be of any a ssistance so p lease ca1 1 on us .

Regards to Mr . Mo rri s and hope to meet you both soon t

Bob Alexander
IsoFitness Systems Internationa1

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 24 of 74

ISO FITN ESS SY ST EM S INTER NA TIO NA L


Business Entity lnform ation
C Status: Revokedon11/1/2006 l
fiI
eDate: 10/8/2004 I
Type: Domestic Corporation fw
'orp Nulnber: C27506-2004 1
1 Qualifying State: NV t-ist(hf(lfflcers Due: 10/31/2005 I
( ManagedF3vz Expirati onDate: I

ResidentA gentInform ation


1 $ame2 gt'
;'
/ktiIfX:NDER Adrlressi: 3638TARPON DR. '
1
1 Address 2: #202 City: LAS VEGAS
I State: NV Zip Code: 89120
Phone: Fax: i
; Email! MailinçjAddress 1: ;
Mailing Address 2: Mailing City;
1 Mailinp State! MailinqZi
p Code: j

FinancialInform ation
rr
'tr,inarkhoretount: 7à,($tm.()(j capitalAnlourit: $(
'
) 1
jNostœ krK ordsfoundformiscompany 1

Officers 7JInclude Inactive Officers


Wecfeiary-bilé'kfii'
k'
ib-
ff l
Address 1: 3038 TARPON DR #202 Addrcss 2;
p City: LAS VEGAS State: NV
l Zip Code: 89120 country: l
Status: Active Email: I
!President-RICK BROW N
l Address 1: 3038 TARPON DR #202 Addïess 2:
Citv: LAS VEGAS State: NV
Zip Code: 89120 Country! I
'
Status: Active Elnail: C
Treasurer-RICK BROW N
Address 1: 3038 TARPON DR #202 Address 22
City: LAS VEGAS State: NV l
Zip Code: 89120 Countly:
Status: Active Elnail:

A ctionsïA m endm ents


h liction'fype: àriicIesofincorporaiion ''' 1
' DoounlentNumber; C27506-2004-001 #ofPagesl 2 !
File Datet 10/08/2004 Eftective Date:
(No notes forthisaction) 1
Action Type: InitialList 1
i DocumentNumbet: C27505-2004-002 #ofPages! 1 ;
( FileDate: 12/01/2004 EffectiveDatez '
jl-istofOfficersfor2004to2005 i

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 25 of 74

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Home IsoFitneSs
AboutUs
How can you getinto great shape w ith one,3o-m inute session per week?
Facillty
By exerclsing ln ourstate-of-tl
ne-artfaclllty wlth a hIghly sk!Iled personaltralnerushrig
Bena fits Proprietary tecl
nndques.These technlques enable ourclients to achieve a m uch deeper
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have had rem arkabI e successIn treatinllcondltion6;such as obestty. hitl
.h)ch0Iestero1
osteoporosls and hlgh blood pressure,
The fundam entalconcept behind whatw e do was developed Jecades ago durlng a
study atthe University of Florida to devel
op a technique forpeople wlth osteoporosrs.
hlowever,we have refi ned the m ethod to lnclude proprietary relaxation technlques and
specialized equipm entcreating an envlronm entwhere the average indlvpdualcan
exerclse at an extremehy high Ievelofeffectiveness.

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AboutUS
Are you ready fora change? Are you ready to drop fad dlets Inrracle supplem ents,
Facility lnfom erclapglm m lcks and useless melnbershlp prom otlons from clubs whlch you ci
on't
have time to attend?
Benefits
lrrespectlve ofyourfitnessIevel, anyone who is capable ofwalklng,and norm alranges
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s.

Contactus today foryourfree introductory session!


Our locations:
ûSabmit1 champions/FM 1960 '
rhewoodlands
832-717-3800 281-799-2257
cham plonsl:isofltnessoRexas.com thewoodlands@ lsofl
tnessoftexas.com

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(213aI))ç)i()l)s
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'ne these ()bstacles.
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Message:

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Home Benefits
AbgutUS
We understand thatit's hard to belleve tbe conceptofexerclslrlg only once pet
'week
Facility f0r30 m inutes and getthe results we're descrlblnl).Pl
ease try to keep an open m lnd
and spend a few m inutes browsing otlrwebsite to learn m ore.
Benofits
OfaIIthe potentkalform s ofexercise avallabge only strength training has a pronounced
Testim tlnials effecton aIIten ofthe Blom arkersofAginM. However,m ostpeople have neitherthe
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haS demonstrated thatthe body's decllne IS due notto the passlng ofyears btlt to the
com blned effects Oflnactivityrpoor nutrltion,arld 1I1ness-m uch OfwhIch can notbe
Makeyourreservation controI)ed. Th,s breakthrough study shokvsthatregardless ofyourage or present
today fory'our FREE
physicaIcondItlon the aging processcan be SllDwed oreven reversed1

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u-bmltj ardinarypersonrightoffthestreetandhave V
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them training like a world class athiete in ). 3,'
thelr firstsession.This boutofhigh intensi ty ';
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exercise ls so effective thateach and every y-i
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exhilaratlng,and Ieaves the clientwlth a
tremendous sense ofaccom plishmentand well-belng.
FOrmostofus tim e IS ourmchstprecpous com lnodi
ty in Iife i
t is also the excuse whi
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m any use fornotexercising.
With IsoFptness aIiofyourweekl y exercpse goals can be accom plished IrnJusta slagle,
3o-m inute Session.Less tlm e exercising leaves you more tlm e to enloy llfe.

You can startachieving your goals today t


?y contacting us atorle ofourconvenieot
Iocations in the NorthwestHouston area.
Cham pions/FM 1950 The W oodlands
832-717-3800 281./99.2257
cham pionst
g isofl
tnessortexas.com thewlloc
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EXH I8IT Qd
lsofltness Page It)l'! .
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 29 of 74

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Home Testim onials


Atm utUs
A1,
Facijity Thank you so much for yourInterest ln Jlnlm y.ltwas G(
7d who broupht the lsoFltness
program to us atthis tlm e.Jim m y w ould neverhave peen able to develop tNe
B'
fm efik.
B m uscularstrength be has forthe state W restling cham pionship in only one
. Testimonials traininq session per w eek.Thank you also foryourvery personalized hetp.

gxj FAQ
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ThankSa(?ain,
Dorothy M.
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Make yourreservation I
dJustwanted to Ietyou know how mtlch 1appreciate whatyourfftness program has
today forw urFREE one for me.Ihave struggled with m y Aelghtand how outofshape Iwas foryears. l
Tntroductorysession. worried aboutmyweightand my looksalldayeveryday andjustwas veryunhappy
with myself,I have Iost 2 I5inches in m y w aisty2 inches offeach upper tbigh, 1
Naule: inch offeach upperknee,I1inch from m y upper arm .And I have dropped a
size in pants;Ijustpurchased a pairofjeanstoday in a sm allcrsize.The I
east
f important(whlch Ihavelearned in yourprogram)i
sthatIbave Iostsi
x pounds,Ifeel
u-rdoil: betterand Iook betterthan I have in severalyears.

Pholle: A coklple ofyearsago 1was training forthe marathon and had run In two hapf
marathons.Iwas running 20 m iles a week and stillnotI 'naking thi s kind ofprogress. I
Loti ztital: can'twaitto see tlne new rne in twelve weeks.The eating plan gsves me back control
(....,(..alzom plolps instead offood controlltng m e.1do notgo hungry and feeirealI y good aboutthe foods
-
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thatl.m eating.Ino Iongerthink aboutm y weightand my l ooks aIlthe time ! feel
'rl 'eWoodlands tl
aatT am doing whatjsllealthy for m y body and 1can see thatIwillgetresults that
Meosage' Im after.uord wllling jwil be on IsoFjtness program fora lifetim e.
.

Thank: So much f0ryourencouragem enttchm eetm y fdtness goals.


, Janet L.,

t-s.
u-b.-
m.it1
.

ihave been working 0utwith îsoFjtness for5 weeksnow with One 30 m lntpte workout
a week.I didn'tbelieve thi
s would actually work quite as wellas you have stated
especially forme.1:have Iost 3 inches off my w aist 3 inches off rny bips,5
inctles offm y chest/back and 2.inchesoffm y thigb.lt$stpuly am azing!1eveo
measured twc)and threetim es outofdlsbelief.

The mornings are less stressfulnotworl 'ylr)g aboutwhen 1willworkout or feelhng gul lty
for notworklng out,Itis a blessing for m e to have found som ethlng thatflts with m y
Iifestyle and is gettlng results.

Thank youf
Kareo W .

Nt
IsnFltness has been a blesslng forI)1e.1had fottghtand logtthe battle wptö m y welght
overthe lasteightyears.1 dlligently sotlghtout solutions to lny problep
'
n throuqh
various means.AIIofthlem brought sonne sp1lal!tlegree ofsut
ncess.

EXIIIBI'l-9e.
ls0lltnesS lJêlgtu .-'(èl .6
.
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 30 of 74

I w as a size 16 w hen I started w ith IsoFitness in Decem berofIastyear, by


Easter I w as wearing m y firstpairof 1O's in eight years.I am currently
buying a size 8.Icould not be happper.

Iwould not be exaggeratinp ta say that lsoFitness has changed lny Ilfe. Ialways held a
deep bellefthatwe are notintended to devote aI!ourfree tlme and energy to exercise.
There are m any things in Iife thatare m ore im portant.
IsaFltness has given m e the ability to live l'fe wlthoutthe Mull
t acd anxlety that
plagued m e befot'e.

Thaqks again,
Marsha M.

A1,
Ican't belleve the changes in rny body overthe pastthree m onths. Iknow you say not
to weigh yourself,butcuriosity gets the bestofm e and lstep on the scales.So far
I've had a net w eiglltloss of 17 pounds.Clotlles thatw ere once snug are now
hanging Ioosely.l've gone down two notchesin my belts and justfastweek
I boughtshorts thatwere tw o sizes sm aller.My Iegs are starting to show
som e m uscle definition and m y arm s are getting firm er.W hen 17Iook in the
m irror?Isee myjawbone reappearing.Peopie are noticing the changes,too.What
a confldence boost!

lsol
htness has been such a positive exparience.I'm bulldlng a healthter body, eatlng
healthierfoods and enloylng aI1oftbe changes.

Thank you foryoursupportand encouraging m e to ''


dig deeper''durjng m y workouts.
Nancy R.

A!,
W ith 12 sessions underm y belt,not only am Itwlce as strong as 1used to be 1am
fasterand Iive I
ostbody fat.The bestpart aboutitis Idon'
t hltthe gym as m uch as 1
used to.My routine used to be to pum p iron 4 days a w eek and do cardio 6
days a w eek fortwo hours each day.Now I pum p iron once a w eek for 30
m inutes and I've cutm y cardio to a m ax of5 days a w eek,

It's am azlng how far a llttle bitcan getyou.I've neverbeen m ore satlsfsed with m y
workoutregim en asIam now and 1owe l t a1lto lsoFttness,

Thanks
F,B.

ïsoFitness has beLome t13e answ erto m y exerctse dtsem ma.lwaslntroduieclto


IsoFitness in November2004 by a co-workerafld have religiously exercised once a
week using this technique since thattim e.Notonly do I Nt into m y petite size 2-4
again,butalso feelstrongerthan I ever have!1struggled wlth my weightfor
years and wentto the 9ym 5-6 times perweek to firld that 1was only galnlng weight
and could no iongerfitinto m y clothes.I am so very thankfulthatIhlave found
IsoFltnessl

7'he factthatIcan exercise once a week along wlth eatlng a balanced dlet has worked
for me tremendously,i no Songerfeelgullty fornotgoing tllthe gym 5-6 tlm es per
week.Ican go home afterwork now and actually relax and notwol 'ry about 'should 1
exercise ornot''!

JenniferL.

Contact ustoday atone ofourIchcatlons to experlence the IsoFstness dlfferencel

jix yjlsja- (j.ç


lSO1I1)
neSS I'ltgtt $ k)I 9 .
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 31 of 74.

Cham pions/'
FM 1960 The W oodlands
832-717-3800 281-799-2257
cham pions@ isofltnessoftexas.com thewoodlandsr
jlisofltnessoftexas.com

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 32 of 74

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Home contact US
AboutUS ' '
The onr
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Make your reservation


one ofthe m ost empowering, ' .
'
.4X ./'
todav foryourFREE physiia!experiences ofyourlife/ ' .
jntcoductory session' chances are thatit's not,W e wonit ''.
try t0 se$I9ou anything?and w iII à
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Nalr1e2 encourage y0u tclgo home and
''think aboutIt.''W hen you DO
com e back tctus then Isontness was m eantto be a partofyourilfe,
E.Mail:
Contactus today for your free introductory session!
Pho'lez cham pions/FM 1960 The W oodlands
832-717-3800 281-799-2257
Loratioll: 17819 StuebnerAirllne Rd. 27326 Robinson Rd.
('''
?cihampi
ot,s Suite H sulte 2a6
t
. .J Sprtng,Tx 77379 The W oodlands,TX 77385
rhe woodlands
Message' cham plons@ i
softtnesso/exas.com thewoodrandst
>lsofltnessoftexas.com

gsubmltJ

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 33 of 74

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tness@ sbcgiabal.rlet>
To; '''ISOFITREESS''<psovegasqlyahoo,com r,-
Subject: RP:Fleac!sUp
Date: Mon, 12 Dec 2005 07;01:57 -0600

G reg,

Ijustgotthisemailandl'
m abouttogointoasessionand Ican'ttakethattimeatthis momentto readtheIinks
you've provided butlwilldo sowith greatinterestas quickly as possible. But,itclearly appearsthatwe need to
have a conversation regarding the eptire situation and lwillbe more than happyto explainto you whathas been
presented to m e.
lwillcallyou at2:00 yourtimetoday and hopefull
y make some progress in this matter.
Thanks,
Al

From :ISOFITNESSfmailto:isovegas@yahoo.com)
SentkSunday,December11,2005 11:41 PM
To:woodl
ands@ i
sofitn% soRexas.com
SubjedzHeadsUp
A l:

C ongratulationson your firstyearanniversary. N o one could be happier lbr your success than I
am .

Unfortunately,whileyou mightnothavehad any partin this, yoursuccesshasbeen m ired in a very


unf
h ortunatel'elationship witha company thatthathasstolen allofIny intellectualproperty, and
as com m itted m ore than ene countoffraud.

This situation is aboutto end very quickly.

ln the ncxtfew days, yotlaregoing to receive acopy ofceaseand desistIetterthatisaddressedto Rick


Brown,PresidentofISOFITNESS SYSTEM S IN TERNATIONAL INC. 1 don'tthink thatRick
Br
''own actually exists,and ifthatisthecase, theresidentagentoftheCorporation issubjectto4,
ClassD,''feiony according totheNevada Revised Statutes .

G uess w lle tlxe residentagtntis? Here's a link:

l
(l
2ttls.
'//eqos,ptate.llv tls/sosSel-vices/AptlnymoqsAçgqsstf'
. . . ,tll'llseêtl'cll/ta
-pl
mDctailsaspx? .
01'p117=530933

M y ceaseand desistisbased onthe registration orlso li-l-rxsss,

l'ttl,.//tessz.tlspto gtlv/bkl,/slltlwlqeld'
. ?f'-doc& statc-ilsp4u zqc
a

s,atIreceivedbaek in JutyforGoodsantlservicesfbrPhysicalHxerciseand Stl


-ength '
Trailpillg lllave .
also trademarked thename Isostlpesstbrhealth clubsaswell,

hull://us.fszo.luail,valloo col
.n/vlu/slptlw Letter?llox=lnllox& M sald=zsl7 0 7412640 159.. . EX l'
IIBl'
1- 10 a
Yat1OO!1
Vla1I-Iï
iovegas///yal1oo f*Ol11 1'ltgt'
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 34 of 74 -! ('1 $ .

httpr//yessz tlspttl.
x gov/bin/shoNvfleld?fudoc&stqlv=bz84ll8 2 I .

irrespectiveofthefontorcolorstyle .

You can'tgetaround tradem arkssim ply by changing the colors or lbnts, although Bob m ay tell
)r()u S9.

Beyond this,itisclearthatyou continue to use m y intelleutualproperty on yourwebsiteayour S0U


nt
h lm ber, and promotionsforyourhomeshows, O ne of these show seven links to lny w ebsite You .
av e 110 rightto do this!
.

hupè//ww w .dr'eam w eddilAgsb/dalshtlw oolm/dirqctel-y/istlGtlless/qziewf ridal-accessol'ieshtm l


x
.

Ihaveneverreceived any compensation from theboguscorporationyou pay every m011th and have
,
neverassigned Iightsto letthem usemy material Y ou shoudd have know n this w hen Itook your
.
facility Iisting off m y w ebsite. lalsobelievethatthey forged my nam eonyourlicenseagreemellt
because lneverrem em bersigning it You should checkthe signatureagainstthaton yotlrcertificat
.
,e
w hich Idid sign. ,

W hile itisnotrny intention to harm you orM rs. M asonayou have only two choices atthispoint:

1. Changeyournam e,and rem oveany sem blanceofyourtraining verbiageasitrelatesto tlle


authentic ISOFITNESS protocol.

Tlliswould bethesmartmove,becauseitwould allow you and Bob to continuewith your


e
dxpansion/referralfee schem e, even though the training protocolis now outdated, and the scheme is
oom ed to failure,
Y ou w illhave to changeyour nam e, butw ho cares? M y l'
riend Jon, changed hiscom pany nam e
three tim esin 2 years ltwon'tputyououtofbusiness,
.

You w illhave to lteep doing the sam e. tiredsold.w orkout,butw ho cares? lt'sbeen good enough
sofar,and willbegood enough in thefuturea even ifit'snotw hatl'm currcntly doing .

2. Slug it outw ith Iawyerssand take your clzances.

Thiswould be really stupid, becauseyou slgned an agreem entwith ac'ot-poratlon thathascom mitted
m ore than one countoffraud Ihad no pal4in thisfrauda butas soon asIbecam e aw are ofit
Ri .
, (i.e.
ckBrown),lquickly removedmyselffrom it.
A dditionally,no one w ins with lawyers. T here are only degrees oflosing.

Fol-tunately,lhappentobeamemberofalegitim atebartergl'oup up here, with a$l2,000 bank rollfor


training otherbarterm em bers. lwould hateto blow thison a nonsensicallawstlit butw illit-Ihave no
,
otherchoice. îwould ratherbuy my kidsbraces .

Thetlpsidehere,forme, isthatthelosillgpartyhastopa/ thewi/lningparty'sIegalfees,incasll


W ith an iron clad tradem ark in m y pocketa asw ellas egreglous casesof-ffaud ollthe partofyotlr .
licensor, lwouldbewilling to takethatrisk ,

hnll://us.fszo.m ailyahoo.com/vnl/show Letter?llox=lllbox& Nlsuld='


. zsl7 0 74 I2640 I59 ... llXlllBIT lOb
Yal1OO!I
M a1l-ISOVegaS@;yal1()O COm lAll)
stt' $ ()1 )
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 35 of 74 .

In caseyotl're thinking offiling a preem ptive law suit, and m oving itto Texas , tllink again I have no
.

contractionalrelationship w ith you,have never m ade any representations to you,and have no


partin the boguscorporation thatyop,pay m oney to every m onth.

Letm e know w hatyou and M rs M ason wantto do.1need to know by Decem ber20s2005,because
.

Iw ould need to include the law yer costs on this year's expenses. Othelavisea lw ould spend iton
advertising,which lwould preferto do ,

G reg Kelly

(702)682-7576
PS -ltis notm y intention to ''bust,''anyone here lfyouvBob,M rs,M asona and any otherftftiliates
.

change yourname andwebsite matetialby theend ofthe week', Iw illgo aw ay.

Take whatlgave you asa gift, sincelreceived nothing forit.In fact,itcostn1e money,

I'm notIooking forcom pensation, and w ouldn'tacceptany as long as Bob isinvolved in the process.

PPS -Ihave notyetsentthiscorrespondence to M rs M ason,even though 1have herhom e address. I


.

w illw aituntil1 see whatyou and Bob doa outofrespectfbryourcircum stances .

Foral1Iknow,you now ow n M rs M ason'sfacility.


.

Yahoo!Shopping
F'
ind GreatDealson Holiday GiftsatYahoo!Shoppipg

lputl:
//us.t-
szo.lllailqvahotl.colll/vlll/sllowLettel'?box=llltltlx&M stldnzsl7 0 74 l2640 l59
.. .
EX I'IIBI'Ia l&c
Yalloo!M all-lstwegas/jyahoo f
lom llage I()!l
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 36 of 74

'yIMA
*r (zltlI L print close w indow
-
auLk
r

Subject: Contractsdiscussed
Date: Sat,25Aug 2007 15:26:13 -0500
From : ''
AICoppola''KAl@ isofstnessooexas.colln>
To: 'ISOFITNESS'
'< l
sovegasc
tllvahoo.col
r>

Greg,
Attached you'llfind the contractwe discussed yesterday alongwith 3 attachments. Please review them and Iet
me know whatyou think,I'm surewe'llhave to refine some points butin generallthink it's whatwe've talked
aboutin recentm onths.

llookforward to getting started with expansion and the selling ofmore Iicenses. Ifwe don'tgetbusy very soon,
othel
s cedainl
ywill(andalreadyhave as1mentionedyesterdayaboutthecompaniesinFloridaandArizona)
butIthinkwe have the bestmodelforsuccess. I'm cedainthatas a team we would do extremely welland that
we can learn more from each otherbyworking together.
IIook fol
w ard tospeaking with you again. 1'11give youa callon Tuesday orifyou Iike feelfree to callme before
then.
H ave a greatweekend

AICoppola
IsoFitness
281-419-3900
Email:al@isoFitnessorrexas,com
W ebsi
te:hqp://w w .isoFi
tnessoW exas.com

Attachments

Files!
! j)
ht APGM Master Lic Exh C.pdf(14kJ
r
?
i î
1
i#?AesM Master uic Agm t dran.puf(s9k)
- - - j
I.
Jo :
-
kL'
n' APGM Master-Lic Exh-A.pdf(16k) 4
g - i
(
t-
vp
. APGM.-.Master...Lic Exh B-pdf(17k) i
- j

ll/n'
.//tls,fszo.lzlail.vahoo.com /vln/sllow l-etter?. btlx=lllboxX:Nls$zld=z8769 0 2277820 13 l
.. . EX IIIB 1rl- 11a
.
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 37 of 74

lsoFitness M aster License Agreem ent

This IsoFitness M aster License Agreement(hereinafter referred to as the


fdAgreement'') is entered into by and between Greg Kelly,an individualresiding
in the State of Nevada (hereinafter referred to as deLicensor'') and APGM
Ventures,Inca,aTexascorporation (hereinafterreferred to as Zll-icensee'').
W HEREAS, it is hereby understood and agreed by both parti es that Licensor is the
deveioper and creator of the ''lsofitness Exercise Protocol.''Additionally the Lcensor lnas
developed a unique system ofm arketing,advertising and presenting the IsoFitness Exercise
Protocol to the public. This system of m arketing and advertising? together w i th certain
proprietary business plans and m ethods and the IsoFitness Exercise Protocol, w ill be
collectively referred to hereinafteras the uIsoFitness System '';

W HEREAS, Licensee has m ade various refinements and enhancem ents to the
IsoFitness System and wants the opportunity to continue growing the business to the
m utualbenefitofLicensorand Licensee;
W HEREAS to m aintain consistent standards of excell ence in the m arketing,
advertising, presentation,and teaching ofthe IsoFitness System ,to effectively oversee the
operations and stanlards m aintained by sublicensees, and effectively and efficiently
m anage details such as contracts and paym ents on behalf of Licensor as wejlas itself
Licensee needs an excluslve,worldwide Iicense (the 'îMasterLicense'') to use and develop
the IsoFitness Systern, including the exclusive rlght to sublicense the IsoFitness System to
others,subjectto the term s and conditions ofthi
s Agreem ent;and
W HEREAS/ Licensor is willing to grant such a Master License upon the term s and
conditions setforth in this Agreem ent;
NOW ,THEREFORE, in Consideration of the m utual covenants and agreem ents set
forth herein?and othergood and valuable consideration the receipt and sufficiency ofwhich
are hereby acknowledged#and agreeing to be legally bound hereby,Licensor and Licensee
m utually agree as follows:
A. RECITALS The recitals set forth hereinabove are a m aterialpart of this Agreem ent
and are hereby adopted and incorporated herein by reference.
B. DURATION This Agreem ent between the Licensor and the Licensee shall be in full
force and effective from the date ofits execution untilthe seventh (7tb)anniversary
thereof(herelnafterreferred to asthe ''Durationv).
C. RENEW AL This Agreem entand the Master License willautom atically renew upon the
sam e terms,covenants and condltions herein except as otherwise m utually agreed
in writing between the parti es before the end ofthe Duration,unless the Agreernent
is earlierterm inated in accordance with Section..P below.
D. FACILITY REOUIREMENT Licensee shallhave the right to select the location of each
IsoFitness System facility that it operatesy provided that aII Iocations will be
consistent in size, Iayout and Iocation with its current facility or its originalfacillty
and the business m odeldeveloped by Licensor. Licensee further agrees to com ply
with the uPrem ises Conditsons'
'as attached hereto as ExhibitA%B' 'to this Agreem ent.

I122581-1.AlNiM.()0(
)! j

EXIIIBIT flK
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 38 of 74

E. TERRITORY The rights and obligations of the Licensee pursuant to the term s ofthis
Agreem entare exclusive and w orldw ide.

F. USE O F TRADEMARKED NAM E Pursuant to this Agreem ent, Licensee w ill have a1l
rights to use the following service marks owned by Licensor(the hservice Marks'')in
connection with the Licensed Materials as setforth in Section M below :
1. SerialNo.78343183;registered on July 12,2005
Stylized words and Ietters spelling out''ISOFITNESS''
2. SerialNo.78631981; registered on May 2,2006
Word m ark forl'IsoFitness''
lf Licensee uses the nam e IsoFitness to form a corporation, Iim ited partnership,
Iim ited Ii
ability com pany or other business entity, Licensee will first obtain written
consent of the Licensorand the use willbe restricted to a style such as:&'IsoFitness
of ,Inc.torLLC orLP,etc.).''
G. EOUIPMENT Licensee and Licensoragree thatan integralpartofthe License is use of
specialized pneum atic resistance exercise equipm ent.Licensee agrees thatuse ofthe
IsoFitness System requires the use ofthe equipm ent Iisted in Exhibit''C''as attached
hereto (hereinafter referred to as ''Equipment''). Licensor acknowledges that
Licensee has obtained aIlthe Equipm ent itrequires,pursuantto an Equipm ent Lease
w ith IsoFitness System s, International,Inc. dated October 1, 2004. Licensee m ay
obtain equipm ent which m eets the sam e standards as the Equipm ent at any tim e
and from tjm e to tim e, from any vendor ofits choosing. In the eventthat Licensee
decides to offer the lsoMetrx/one Minute Workout program, Licensee agrees to
obtain the equipment required for that program , provided that Licensee receives
com plete and accurate equipm ent specifications, li
st of m anufacturers, and other
m aterialrequirem ents. I-icensee m ay obtain such equipm ent from Licensor or any
othervendor Licensee chooses.
H. RESTING M ETABOLIC RATE TEST EO UIPM ENT Licensee m ay lease or purchase, at
Licensee's opti
on, Resting Metabolic Rate (RMR) test equipment. Licensee may
purchase orIease this equipm entfrom severalapproved vendors. Licensor w illassist
the Licensee in selection of the RM2 equipm ent,and offer the discounts available to
Licensorfrom wholesale sources.Licensee at its election m ay offer to its clients the
nlsoFitness System Diet and W eight Loss Planf'. The RMR Test is a com ponent and
integralpart ofthe ''IsoFitness System Diet and W ei ght Loss PIan''. Licensee is not
required by Licensor to participate in the presentation or offering of the MlsoFitness
System Dietand W eight Loss Plan''and therefore is notrequired to purchase orIease
the RMR equipm ent,
1. CERTIFICATION Licensee and Licensor acknowledge that Licensee's owner and
m anagem ent personnelhave been trained in tbe IsoFitness Exercise Protocol and
IsoFitness System and will apply the m ethods/techniques in accord with the
instructions as provided to Licensee by Licensor.Li censee further acknow ledges that
its owner has studied the m aterials concerning safety and properexercise techniques
which Licensor has provided to Licensee including nutritionaI guides exercise
m ethods,Iifestyle guide,m anuals,books,and video/audio tapes as wellas personal
training by certified instructors. A certificate of R'Certification of Master IsoFitness
Instructor'' has been awarded to the Licensee after successful com pletion of the

1l2258l-l.A IX;M .()()()l 2


.

E X IIlB IT $(c
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 39 of 74

course and passing the required tests. To assure correct delivery of the IsoFitness
System to the Licensee's clients#Licensee willrequire aIIofits em ployees w ho are or
wilfbe instructing clients to study sim ilar instructionalmaterials and video courses,
and to pass a com petency test provided by the Licensor or Licensee before the
trainer will be allowed to adm inister the Isofitness Exercise Protocol or counsel
clients on the IsoFitness System .Licensee willm aintain in its records the certificate
of com pletion for each of its trainers, which wil!have tl' le designation of nCertified
IsoFitness lnstructor'' Upon Ltcensor's request, Licertsee w illsubm it copies of atl
current trainercertificates to Licensor. Licensee agrees to supervise and m onitor its
trainers to assure correctadherence to the standards as provided in the Certification
instructions.No tralnerofLicensee w illprovide any nutrltionalorexercise instruction
in the IsoFitness Gystem withouthaving received the aforem entioned certificatioh.
J. GRANT OF HCENSE Licensor hereby grants Li
censee an exclusive, worldwide Iicense
(hereinafterreferred to as the uLicense/')to use and devel
op the JsoFitness System,
and to sublicense it to other individuals or business entities, provided that each
sublicensee shallhave entered into an agreem ent in which itagrees to abide by aIIof
the terms and conditions ofthis Agreem entthatare applicable to sublicenseesy and
provided further that no sublicensee shallhave the rightto sublicense to any other
person or business entity.

1. Except as Iim ited by the foregoing sentence, Licensee shallhave the right to
contract w ith its sublicensees on any other term s and conditions as it
chooses, including (without Iimitation) the right to establish territories for
sublicensees, establish crlteria for the location oftheirexercise facilities, and
setthe com pensation to be paid for their sublicense. Licensor agrees that it
w lllnot com pete with Licensee, or granta license to any other party, w ithin
the Territor'y forthe Duration ofthis Agreem ent.
2. Licensee m ay, but is not obligated to, becom e the exclusive worldwide
Iicensee of the MlsoMetrx/one Minute Workout'' program developed by
Licensor. If Licensee decides to Iicense the IsoMetrx/one Minute W orkout
program,Licensee willgive Licensorwritten notice atIeastthirty (30)days in
advance of the date Licensee intends to offer the program to the public.
Licensee willnotofferthe program to the public untilithas sufficienttrainers
trained and certified in the techniques and equipm ent required for the
IsoMetrx/one Mlnute W orkoutprogram ,iflaccordance with training standards
establi
shed by Licensor. In aIl other respects, the IsoMetrx/one Minute
W orkout program shall be subject to the term s and conditions of this
Agreem ent to the fullest extent possible, and any reference to ''IsoFitness
System ''shallbe deemed to apply to MlsoMetrx/one Minute W orkout''as well.
3. Licensor warrants and represents that it owns aI1rights, title and interest in
and to the IsoFitness System and the IsoMetrx/one Minute W orkout program ,
and has the full and unfettered right to grant the Master License herein
without the consent or acquiescence of any other individual busifless entity
or governm ent body. Licensor hereby agrees to save protect and defend
Licensee and its sublicensees and the equity owners, m anagers, directors,
partners,employeesand agents ofany ofthem (collectlvely,the nIndem nified
Parties'') from and against any and aIIclaims,causes ofaction, damages,
Iosses,liabilities costs and expenses (inciudlng reasonable attorney's fees)
incurred by,orthreatened against,any ofthe Indem nified Par'ties as a result
of,or in connection with,any allegation thatany otherperson or business has

1122581-12Al1(JM:0(
)()I 3

EXI11B1'
14 j!é
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 40 of 74

any rights in orto the IsoFitness System orthe IsoMetrx/one Minute W orkout
program .
1 4. Licensor and L'
Vensee agree that the Iicensed lsofitness facility located at
17819 Steubner Airline Road,Suite H, Spring,TX 77379, operated by Tom
and Marsha Morris under the nam e Isofitness of Texas Inc. (the '
'Morris
Com pany''),willnot be covered by this Agreement. In the event that the
Morrises wantto open anotherIsoFitness facility (whetheras individuals or
through the Morris Com pany orthrough any business entity in which eitherof
them or their im m ediate fam ily m em bers are equhty ow ners, m anagers,
directors, partners, em ployees or agents),Licensor agrees that he willnot
contract with them directly,and that any such facility willinstead be subject
to ajprovalby Licensee and to the termsand conditions ofthis Agreement
appllcable to sublicenses and subticensees hereunder .

K. LICENSING FEES
1. fnitialLicense Fee Foreach IsoFitness facility thatLicensee opens (exceptits
'
exi
sting facility located at 27326 Robinson Road, Suite 213, The W oodlands,
Texas) (the 'scurrent Locationv), within three (3) months after the facility
opens to paying custom ers Li
censee shallpay to Licensor a one-tim e license
fee in the amountof$10,000.
2. Rovaltv Fee For the Current Location Licensee willpay Licensor $250 per
m onth, beginning Septem ber 1St 2007 and continuing on the first day of
every m onth thereafter for the life of this Agreernent. For each additional
IsoFitness faclllty that Llcensee opens and that rem ains open to paying
customers for at leastsix (6) consecutive months thereafter (the 'Start-up
Period''),Licensee willpay Licensor $250 permonth, beginning on the first
day ofthe first m onth after the Start-up Period is com pleted, and continuing
on the first day ofevery m onth thereafterforthe llfe ofthis Agreem ent.
L. SUBLICEN SING FEES

1. Ini
tialSublicense Fee Each sublicensee (otherthan the Morrises)willpay
Licensee a one-tim e fee of oot less than $20,000 for the right to use the
IsoFitness name and the IsoFitness System ('bsublicense Fee'') and an
additional$10,000 training fee. lfy and only if,a stlblicensee pays Licensee
the Sublicense Fee Licensee willpay a ofle-tim e fee of $10 000 to Licensor
forsublicensee's use ofthe Isofitness nam e and the lsoFltness System . .

2. Royaltv Fee Each subli censee (including the Morrises,forany Iocation other
than theirlocation listed in Section ''J(4)''above) willpay Licensee $500 per
m onth for the life ofthe sublicense agreennent between them , ofw hich $250
willbe paid to Licensor.
3. Fxcept as expressly set forth in Sections ''L(11''and uL(2)''above, Licensor
shallnot be entitled to receive any other portion of any sublicensing or other
fees orcharges im posed on sublicensees.
M. LICENSED MATERIALS Included in the IsoFitness System are certain m aterials,
including but not limited to the jtems listed in Exhibit%'h''hereto (collectively, the
''Materials') which are im portant proprietary assets of Licensor. Licensor hereby

ll225:l-l.
Al'(;M:000l 4

EXIIIBI'
I- $le,
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 41 of 74

()rants Licensee the right to use and m ake representations of the IsoFitness Service
M arksand the M aterials as appropriate,within the Territory forthe follow ing uses:

1. On and with the Licensee's advertising m aterials, signage, business cards,


business form s client record form s, referralprogram forlns and uthank you
cards''y Iogos, stationery, posters, print ad Iayouts radio and television ads
and other printed or otherwise displayed m aterials and on any of the
foregoing Licensee shallhave the right to (nclude a statem ent to the effect
that the Licensee is nthe exclusive licensee of Greg Kelly, creator of the
IsoFitness System .''
2. Licensee and Licensor m ay develop new prom otional m aterials slogans or
m erchandise,each atits own costand discretion.Licensee and Licensoragree
to confer in good faith on any proposed new Materials or prom otional
m aterials and neither Licensee nor Licensor shall unreasonably w ithhold
delay orcondition its approvalofany such Materials orprom otionalm aterials.
3. Licensee m ay choose to offer for sale nutritionalsupplem ents, includjng but
not Iim ited to vitam lns,m ealreplacem entproducts,protein supplem ents, and
diet plans and related products.These products m ay be branded or ''private
labeled''products bearing the IsoFitness Service Marks or Iogos, orany other
brand or vendor the Licensee m ay choose. A product list of lsoFitness-
branded supplem ents and the retailcost thereofwillbe provided to Licensee,
from time to time, as these products becom e available. Licensee is not
required to sellordistribute any nutritionalsupplem ents butm ay do so under
the terms setforth in this Agreem ent.
N. REVERSION 0F LIC ENSE Ifthis Agreem entis term inated forany reason w hatsoever,
then al1 Iicense rights shall revert back to Licensor unless a written approval of
transfer is granted by Licensor to an acceptable substitute Licensee as stated in
Section ''P''herein. .
0. TRAINING AN D C ERTIFICATION

1. Traininq and Instructional Materials l


-icensee shall provide its trainers with
com plete training necessary to operate the Licensee's facility instruct
custom ers in the IsoFltness System , and for the proper use of the ''RMR''
equipment (if any is used).The trainlng willbe provided on video tapes,
instruction m anuals,books diet and nutritionaleducationalm aterials initially
provided by Licensor.
2. Trainirlq and Consultation via Internet orTelephone Licensor agrees to m ake
him self personally available to respond, from tim e to tim e upon Licensee's
request? to Internet or telephone questions subm itted by sublicensees or by
others who are considering becom ing sublicensees. Licensor willrespond in a
tim ely m anner and without charge to Licensee, the subli censee or the
potentialsubllcensee as the case m ay be. Licensor agrees to provide, from
tim e to tim e upon Licensee's request, lnternet or telephone consultations
concerning the IsoFitness System , which willbe provided to the Licensee or
sublicensee, as applicable wjthout charge,provided that the requestforsuch
training is m ade with a reasonable advance notlce, and that authorlzed
personnel errlployed by the Licensor are avadlable to provide such
consultation. Licensor agrees to provide additionaI training to Li censee's

I122581-l.AlA(;M .()()0l 5

EXIIIBIT (1.
),
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 42 of 74

trainers if necessarv at Licensor's facility at no extra charge, or at Licensee's


facility in w hich case Licensee w illpay Licensor's reasonable and necessar' y
travelexpensesplus $500 perday.
3. Im provem ents and Modifications to the IsoFitness Svstem In the event that
Licensor further developsz refines or im proves the IsoFitness System , said
developm entsy im provem ents and refinem ents willbe m ade available w ithout
additionalfees to the Licensee and tim ely reports of im provem ents wlll be
sentto Licensee in w riting.AIIadditlonalMaterials produced and approved by
Licensor shail be provided to Licensee as these becom e avail able w ithout
additionalcost except in the Instance where the Licensee orders additional
supplies of existing Materials, as contem plated in Section 0(2) above.
Supportinq Medica! and Industry research and reports witl be provided as
obtained without charge to the Licensee. This section also applies to any
m odifications oralterations m ade to the Equipment.
P. EARLY TERMINATIO N BY LICENSEF Licensee m ay elect to term inate the license
granted under this Agreement before the end of the Duration for any reason, by
giving Licensor ninety (90)days'priorwritten notice. W ithin thirty (30)days after
the date of term ination,Licensee shallpay Licensoral1Licensing Fees, Royalty Fees
and any otheram ounts owed to Licensoras ofthe date ofterm ination offset by any
refunds,credlts or exchanges Licensor then owes to Licensee. Upon term ination of
the Agreem ent, w hether before or at the end ofthe Duration, Licensee shallprovi
de
the foIIow ing:

1. Licensee shall indem nify Licensor against any and alI m onetary claim s or
obligations which resulted from Licensee's operations as stated herein.
2. Licensee agrees that it willcontinue to be bound by the non-com petition and
non-discl
osure clauses w hlch are partofthis Agreem ent.

Q. LICENSOR'S RIGHTS UPON TERMINATION OF LICENSE Upon term ination of this


Agreement for any reason, the right to Iicense the fsoFitness System (and the
IsoMetrx/one Minute W orkout program ? if applicable) shall im mediately revert to
Licensor,who shallbe entitled to Iicense either or b0th program s to any person he
m ay choose,orcarry on the business him self.

R. NO N-CO M PETITIO N C LAUSE

1. Dtlring the Duration, and for the two (2) years im mediately thereafter,
Licensee hereby agrees to abstain from com peting w tth Licensor in any
m anner relating to physicalfitness, gym nasium , health club gym or fitness
center,welght loss or any sim ilarly engaged businesses except as perm itted
by this Agreem ent. Licensee hereby agrees that it w illnot act as an equity
owner,m anager, director partner, em ployee or agent of any business that
would com pete directly or indirectly with any of the foregolng businesses of
Licensor. Notwithstanding the foregoing, Licensee's agreem ent to abstain
from com peting with Ltcensorwitlterm inate and becom e nulland void at the
end of the Duration,in the event that Licensor sets unreasonable conditions
for renewal of this Agreem ent, and certain conditions shall be deem ed
unreasonable perse,including but not lim ited to an increase in the amount of
Licensor's share of Licensing Fees or Sublicensing Fees, a reduction in the
personal involvement of Licensor (e.g., as set for'
th in Section '50'
/4, less

lI2.258l-l.AlXJM.t)()(
)l 6

EXI-IIBIT l12
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 43 of 74

favorabl
e term s or increased restrictions on Licensee's ability to conduct its
business, or Licensor's breach of its non-com petion obligation under Section
R62J below .
2. During the Duration, Licensor hereby agrees to abstain from cornpeting with
Licensee atany tim e during the Duration ofthis Agreem ent in any m anneror
business similar to the lsoFitness System or the IsoMetrx/one Minute
W orkout program , whether for him self or as an equity ow ner, m anager,
director partneryem ployee oragent ofany such business.

S. NON-DISCLOSURE CLAUSE Licensee hereby agrees to notdisclose any trade secrets,


intellectualproperty secrets,operationalor business structure secrets (collectively,
the ''Trade Secrets'')to any individualexceptas is necessar'
y forthe operation ofthe
above described business and the exercise of Licensee's rights and responsibilities
under the Master License and this Agreem ent; or if pursuant to a valid order of a
court of com petent jurisdiction or other authorized governm ent agency. Any
disclosures for any purposes other than the foregoing shall not be m ade to any
pelson unless said person signs a non-disclosure non-com petition clause sim ilarly
worded as herein contained.Licensee willnotdisclose any ofthe term s orconditions
of this Agreem ent to any individual and or entity without obtaining the express
w ritten perm ission from Licensor.
T. ASSIG NM ENT This Agreem ent is personal to Licensor, w i thout w hose involvem ent
the IsoFitness Gystem would not be as valuable or m arketable. Therefore Licensor
shallnot have the rightto sell transfer,or assi gn any part or whole of his rights or
obligations under this Agreem ent wlthout the prior wrltten consent of Licensee.
Licensee m ay notassign its rights and obligations under thi
s Agreem ent to any other
party without the prior wrltten consent of Llcensor, which consent will not be
unreasonably delayed, conditioned, or withheld, provided that a change of
m anagement of Licensee shallnot constitute an assignm ent hereunder. Except as
provided in the preceding sentence,no rights under this Agreem entshalldevolve by
operation of Iaw or otherwise upon any receiver, liquidator trustee or other party.
This Agreement shall bind and inure to the benefit of Licensor and Licensee, and
each oftheirsuccessors and perm itted assigns.
U. W AIVER The failure ofeither party to enforce any ofthe provisions ofthi
s Agreem ent
shallnotbe construed to be a waiverofthe rightofsuch party thereafterto enforce
such provissons.ThisAgreementmay notbe chan@ed ormotified exceptby written
agreem entsigned by a duly authorized representatlve ofeach party.
V. CONSTRUG ION/SEVERABILITY This Agreem ent sha11 be construed in accordance
with the internalsubstantive Iaws of the State of Texas. Licensee subm its to the
jurisdicti
on of the state and federalcourts in the State ofTexas. If any of the
provisions of this Agreem ent are invalid under applicable State or Federalrules of
Iaw, they are, to that extent, deem ed om itted, and the balance of this Agreement
willbe enforceable in accordance with its term s.
W. ATTO RNEYS'FEES In the event thatany action is broughtfor any breach or default
of any of the term s of this Agreem ent, or otherwise in connection with this
Agreem ent, the prevailing party shallbe entitled to recover from the other party aIl
fees, costs and expenses incurred In that action including any appeal there from
including w ithout Iim itation, reasonable paralegal fees attorneys' fees and costs
actualIy incurred.

I122581-1:AI;(;M :
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)l 7

EX I-IIB IT $tA
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 44 of 74

X. GOVERNING LAW This At .lreem ent shall be construed in accordance with and
governed by the laws ofthe State ofTexas.
Y. VENUE Venue forany disputes arising outofthis Agreementorthe parties respective
obligations shallbe exclusively in Montgom ery County, State ofTexas.
Z. ENTIRE AGREEMENT This Agreem ent,including both the License Agreem entand the
attached exhiblts constitutes the entire agreem ent ofthe parties w ith respectto the
subject matter hereof and supeoedes allprior negotiations? understandings and
agreem entbetween the parties regarding the subjectm atterofthis Agreem ent.
AA. DUSCRIPTIVE HEADING The descriptive headings contained in this Agreem entare for
convenience only and are not to be used in the construction or interpretation of this
Agreem ent.

BB. INJUNCTIVE RELIEF Licensee and Licensor acknowledge and agree that a m aterial
breach of thjs Agreem ent by the other party would be Iikely to cause serious and
irreparabbe harm to the non-breachîng party, w hich harm would be difficult or
im possible to quantify in m onetary term s or rectify at l
aw . Therefore in addition to
any otherrightstbe parties m ay have,each ofthem shallhave the rightto seek one
Orm ore injunctions orotherequitable reliefto stop orpreventany m aterialbreach
or im pending breach of this Agreem ent, without the need to post any bond or
security therefor.

CC. NO PARTNERSHIP This Agreement is an independent agreem ent between


independent parties and shallnot be deem ed or construed to m ake either party an
agent, em ployee, partner, joint venturer or associate of the other party. Neither
party shallhave the power orauthority to Iegally bind orobligate the other to any
third parties to this Agreem ent in any way.

DD. AUTHORITY Each party hereto warrants and represents to the other that it is duly
form ed, Iegally existing and in good standing under the Iaws ofthe jurisdiction ofits
form ation# thatit has ajllegalpowerto enter into and perform its obligations under
this Agreem entwithout the consent of any other party, that it has alllegalpowerto
conduct its business and own its assets as they are currently conducted and ow ned
and thatthe execution ofthe Agreem entis duly authorized by its board ofdirectors.
EE. NOTICES AIInotices dem ands or other com m unications to be given hereunder shall
be in writing,shallbe given eitherby personaldelivery or by firstclass m ail postage
prepaid,and shallbe deem ed to have been m ade when personally delivered or when
deposited in the m ail, certified with return receipt requested, addressed to the
respective parties as follows.
Ifto Licensor:

II22581-1.AIXIM .000I 8

EX IlllllT $4;
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 45 of 74

Ifto Licensee:

A PGM tentures, Ipc.


46 Cascade Springs
The W oodlands,Texas,77381
Attn;AlCoppola

Signed,Sealed and Delivered by a duly authorized representative ofeach party hereto as


ofthe date below written.
Greg Kelly APGM Ventures, Inc.
nLicensor'' uLi
censee''

By :.-- - - .- . .- . --- - - - - -- -.. .- - By :- ..-. . .- - -- . - .- . .. .. . . - - .- .- - . .-

Title: Title:

Date : .-...-- - .. .. Date : . - - -- ....- - - - - - .- -

lI22581-l.A IA(JM :000I t


)

F,.
X I1I1$I-I' $$-
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 46 of 74

''.MA
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Date: W ed,31 Oct2007 20:21:23 -0700 (PDT)


From : ''ISO FITNESS''<isovegastfisyahoo.com >
Gubject: Re:
To: ''
AICoppol
a''<el@ tsofitnessoftexas.com >

AI:
Based on furtherreview ofthe release you sentm e,in comparisonto the Iicensing agreem entyou both had wi
th
Bob,Iam notgoingto be able to sign this as presently consti
tuted.

Forstaders,Iwas neverthe ''licensor'with resped to you orthe Morrises. A release forsomething signed
between eitherofyou and Bobis meaningless asfaras my participation is concerned. Ican'trelease youfrom
somethingthat1didn'tsign in the firstplace, fora company ldidn'
town,and wasn'ta officerfor.
As tbe developerofthis conceptand ownerofthe two trademarks, Ihad an''atwill,''arrangem entw ith Bob's
company to tlse myname and concept. Idid so deliberately to insurethatthe business operation would
proceed accordingto myintentions and to maintain an elementofrecourse in the eventthatBob veered off
course (whichhedid),
As ofMay 2005 priortothe Morrises opening,Bob decided to abandon my gui dance, and as a result he w as
instructed to have my name,and alIofmy intellectualpropedy removed from the equation, to include your
business. Hewas also instructed notto move forward with the Morrises, since they were deviating from the
formula with respectto location improvem ents,equipment etc.
Obviousl y,youdid notdiscoverthis untillsentyouthe em ailin Decemberof2005, butlthink Imade the
situationpretty clearthenthatyou were using atrademarkthatBob no Iongerhad a rightto. Ialso pointed out
thatthe signature on yourcontrad wasn'tmine,and asked you to com pare i
twi
th the signature on yourtraining
cedificate(whichIdidsign).
Fudhermore,thelicensinj agreementyousignedforBobwasveryclearaboutwhatwould happenifyou
decided toterminate the llcensing agreement. Essential
ly,youwouldreturntheequipment(ifmoneywasstill
owed),andagreetoIeave anyhealth related businessforfiveyears.W hile 1wasnotthe personwhowrotethis
intothe agreement Itol d Bob thatlhad to have assurancesthatsomeonewould notbe ableto Iearn my system
forthreeyears,then abandon theirmonthly fees by severing the contract, and continue to use my
training/meditative techniques,
Irrespective ofwhetherornotthe contractsyou both signed with Bob are determ ined to be valid and
enforceable one thing isvery clear. You have used mysystem and trademarkforthe pastthree years and the
Morrises have used itfortwo and a half. Neitherofyou have paid the company you contracted with during this
time,and Ihave been pajd a whopping $400.
You were informed nearly two yeaa ago thatthere was a probi
em yetIcontinued to workwith you towards a
resolution. You now have decided to Ieave muchto my surprise, considering thatitwillcostyou farmore
initiallythanthe$4,800peryear(MonthlyResearchand DevelopmentFee)to changeyoursigns,shirts,
website,Iogo,etc.This is okay.
W hatisn'
tokay isthe conceptofyoutaking everything ltaughtyou,mygoodwi
sl,equipment(yes,thatwas
mine)etc.,and making i
tyourownsimpl
y bychangingnames.Tothi
spoint,lam the onlyone inthisscenario
who hastaken the ''
shortend ofthe stick.' Bob walked offwith moneyfora conceptw hich wasn'
this, and you
and the Morriseshave had nearly two years ofabated payments ranging from $400 -$800 permonth.
As a good Christian,which lknow thatyou and Pattiare,does this seeln fairto you? Ask yourseifwhetheror
notyouthinkBobcould havehelped prepareyouwellenoughonhisowntoenjoythetypeofsuccessyouare
now having.
I'm notreally surewhatto suggesthere because 1don'
treally have any solutions. However,Idothink itis in

http://us.f52().lnaiIyahllo.com /ym /shllwLettcr?lnox=sellt& M suI(1=7283 0 Il3540 732 5


. ... EX I-IIB IT t2-4-
Yal
loo!M all-lSOVegaS@4)yal1OrYqol'
f1 l'age 2 Ot 3
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 47 of 74

ourm utualbestintereststo locate Bob,so thatw e can getto the bottom ofthis, Had Bob notcom m i tted fraud,
and continued to operate the Corporation Iegitim ately, my beefwould be strictl
y with him . However, Iwould Iike
to pointoutthatifhe did,youwoul d be obligated towardsyourmonthly payments,orforced to w alk aw ay from
this forfive years. You mightbe betteroffthe way thingsworked out, btltthere isstillthe issue ofusing rrly
tradem arked nam es intellectualpropedy, and equipm entforthe pastthreeyearswithotltcom pensationto m e.

In the meantime Iam will


ing to indemnify you and the Morrises forany claims foruse ofmy name from October
2007 untilfurthernotice,for$400 permonth. Thismeans thatthe Morriseswillowe me $800,and you $400,no
Iaterthan the fifth ofNovember. W hile Iunderstand thatyou mightnotwantto paythis atallfrom now on, it at
Ieastcaps yourexposure from any future use ofthe nam e,This is aI1Ican agree to atthis pointuntilwillIocate
Bob and sortthings out. It'
s Iooking Iike a gigantic m ess!

1willrevisetheagreementyousentmetoreflectonlyfuture useofmytrademarks.Youcaneithersign it,


and emaili
tbackto me,orJustignore italtogether. lfyouchoose to do the Iatter,lprorfise you that!wiltnot
contactyou orthe Morrises anyfurtherby telephone orem ail.

Sincerely,

G reg

AlCoppola <al@ isofitnessoftexas.com>wrote:


G reg,

I'm verysorryaboutthe delay in getting backto you,I've explained below the reason forthe delay .

As we discussed M onday night Icontactedthe Morris'yesterday and spoke withM arsha. W e have
decided to go ahead and rename both ofourgyms and willdo so asquicklyaspossibl e.
W e willeach be sending youa check for$400 making a totalof$800 as you requested forthe use of
the IsoFitness nam e forthe month ofNovember. I
twillIikely be necessaryto do the same forthe
month ofDecemberbecause ofadvedising commi tmentswe have previously made through that
month.So we'llprobablybesendingyouanother$400 each inIateNovemberas paymentsfor
Decomber2007.
Also.asyou requested the Morris'willstop using IsoFitness in theircorporate name and we willstop
usîng the i
sofitnessoftexas.com website. tncsuded in the name change ofcourse willbe i
tem s such as
businesscards and forms,ads,signage,etc.and everywhere the IsoFitness name is being used.

Hereiswhatcausedthedelayingettingbacktoyouyesterday,inresearchingmyLicenseagreement,I
noticedthatyoursigpatureappearsopthesignaturellneonbehal foflsoFitnessSystems Int'l(please
see adached signaturepageofthe Iicense agreement).So Ontheadviceofmyattorneylhave
attached a ''Celease''agreementthatoutlines ourtermipation ofusing the IsoFitness nam e including a
m utualrelease ofcl aimsagainsteach otherso thatwe can allmove forward knowing thatwe have no
unresolved issues.
W e have ourchecks readyto send to you im mediately and aI1we need isforyou to please si
gn and fax
a copy to m e at281-419-3300 assoon as possible and 1'11overnightthe checksto you. Idon'tw antyou
to feelasthough l'm tryingto play games orcause unnecessary delays butrathertfying to do whatis
bestforEVERYONE invoived.
llookfolward to being able to go ourseparate ways in a friendl
y mannerand no ill-will.
Sincerely,
AICoppola
IsoFi
tness
281..
419-3900 Office

hup. 1--Id-7a:a () ,,as,,(? vac ,... sx llls l-


./,--.,,2e.- -iI,v-I---.--,,-,v,-,sh--I--tt-..?I,---s--ta s. ,. kzb
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 48 of 74

5. Traininn atLicensor's Corporate Offices Licensorw illtrain


Licensee orLicensee' s em ployees atthe offices ofLi censorIn Las
Veqas,Nevada w ithoutcharge provicling properw ritten notice of
preferred training dates and the availability ofinstructortim e. AIl
travelexpenses fortravelto Llcerlsor's corporate offices in Las
Vegas w illbe at Licensee's expense.

7. Trainino and Consul tation via InternetorTelephone Training


conducted utjlizing the internet ortelephone consultations willbe
provided to the Licensee w lthoutcharge provi ding thata requestfor
such training is m ade with a reasonable advance notice, and the
avallability ofauthorized pel-sonnelem ployed by the Licensor.
8. AdditionalCertifications Llcensee m ay certify em ployees,
(hereinafterreferred to as''Interns'') who willhold the position of
IsoFitness Trainers orInstructors withoutadditionalcostto Licensee,
providing the IsoFitness InstructorCerti fication is conducted and
supervised by l -icensee utilizing the authorized Certificatior)
instructionalbooks tapes,and rnanuals. The finalapprovaland
award ofCertification ofthe Licensee's em ployee shallbe granted
only upon the written approvalofthe Licensorafterreview ofthe
written tests which were taken by the Li censee's intern and the
passing ofa verbaltestofthe com petency and knowledge gained by
the uintern''. This finaltest ofthe intern w illbe conducted by an
agentofthe Licensor by telephone. The Licensee willbe notified in
writing ofthe acceptance ofthe intern forcertification after revi ew of
the tests and em ployee background and experience.
9. Certification ofInterns at Licensor's Facilities Licensorwilltrain and
certif'
y Licensee's interns at one ofLicensor's facilities in Las Vegas,
Nevada atthe wri
tten requestofthe Licensee stlbjectto avallable
Licensor's Certification instructor's tim e com m itm ents- Licensee or
Licensee' s intern willpay theirown traveland perdiem expenses.
Certification training forinterns willbe conducted and tests
adm inistered withoutadditionalcostto Licensee orhis/her interns
forthe Certification ofup to three (3)Interns. Additionalinterns,
starting with the fourth intern,willbe trained subjectto avaijable
instructortime atthe rate ofOne-l-housaqd-Dollars ($1000.00)per
intern training and certification.

P. EARLY TERMINATION BY LICENSEE Licensee m ay electto term inâte tvé


Iicense granted underthis agreem ent before the expiration date and receive
a refund ofthe nInitialLicense Fee'
'as stated in Section nL'', subsection $'1''.
Refund iscontsngentand subjectto the following termsand conditions:
1. Licensee m ustoperate his Ilcensed facility continuously fora
m inim um ofsix m onths in fullcom pliance with the term s and
conditions as setforth in this Agreem ent. Licensee shallprovide
ninety day (90 day)written notice,by cel-tified mail to Licensorof
Licensee's intenttoterm inate his/herIsoFitnessLicense.

-
6-
Initia Is:

EX IIIB IT $30.
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 49 of 74

2. Licensee w illprovide proofto Licensor thataIIobligations that


Licensee incurred durlng the tim e thatheïshe operated the territory
and facility has been paid and satisfied in full. Proofwillinclude
evidence ofpaym ent,on orbefore due dates ofpaym ents m ade in
satisfaction ofalIobligations attributable to the Licensee's IsoFitness
business,including butnotIim ited to any equipm entleases tenant
obligations,taxes,utility bills payrolls,accounts payabl e, notes and
loans payable thatwere incurred as a resultofLicensee's operation
ofhis/herIsoFitness facility and/or business conducted atterritory
nam ed herein.Upon request, Licensee shallindem nify Licensor
againstany and alIm onetary claim s orobligations w hich restllted
from Licensees operations as stated herein.

3. Licensee willdeliverto LicensoraIIrecords concerning IsoFitness


training records and cllent inform ation including btltnotIim i
ted to
the addresses,phone num bers and records showing exercises
perform ed on each trainlng session,as wellas the originalsigned
inform ation and service agreem ents foreach and every clientthat
have received exercise ornutritionalservices and/orconsultations.
4. Licensee agrees thathe/she w illcontinue to be bound by the non-
com petition and non-disclosure clauses which are partofthis
Agreem entand furtheragrees to affjrm Licensee's continued
obligation by signing a renewalofhis/herobligation to honorthese
clauses. . .- .- .- .. ... - .

5. Licensee shallsurrender keys and relinquish the facility operated


underthis License Agreem entto an authorized agentofLicensorand
w illm ake know n to Licensorany inform ati on concerning prem ise
alarm s ordam ages to the facllity. Licensoragrees to assum e any
obligations of the originalIease forprem i ses located as stated in
section nE''above. Licensor's assum ption ofthe Iease between
Licensee and the Ieased realproperty ownerorm anagem ent
com pany is Iim ited to the term s and conditions as setforth in the
originalIease and does not include any additionalobligations
incurred by Licensee due to am endrnents orsubsequentchanges to
the originalterm s ofthe Iease which was entered into by Licensee at
tl
ne inception ofthe lease. Licensorm ay verify the Licensee's good
standing regarding the Ieasehold and tenancy ofsaid lease.

6. Equlpm entthatis leased by Licensee,as Iisted in Exhibits nC'


'and
nD''willbe assum ed by Licensorand Licensee wlllbe indem nified by
Licensorforany additionalobligation undersaid Ieases. The
assum ptionsofsaid Iease/sare subjectto the aboveconditions
underSubsection ''P''herein.

7. AIlprofits from the operation ofthe facility and the IsoFitness


License Agreem entwhile underthe direct controland operation of
the Licensee shallinure to the benefitofthe Llcensee. Paym ent
due forany taxes,thatm ay be owed orare due oraccrued as a
resultofLicensee's operation ofthe lsoFitness facility are the soie
liahility and responsibility Licensee.

..
7-
InitiaIs :

EXIIIBIT tJb
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 50 of 74

Q. UPON NOTICE OF TERMINATION OF LICENSES Licensorshallim m ediately


be entitled to advertise the sale ofaIlIicenses and leases specified l
nerein,
and ifrequested in writing,Licensee shallquitthe associated com m ercial
tenancy ofthe above business Iocation and transferthe Iease thereofto
Licensorand forwhich Licensorshallindem nif' y Licensee againstaII
penalties for such transfer. However,Licensee shallhave the rightto sell
his above specified business with the benefits whi ch may accrue underthe
equipm entleases and com m ercialproperty lease hereunder.Licensee's sale
ofbis business and Ieases m ustbe approved in writing by Licensor and is
conditionalupon the execution ofa contractofreasonably sim ilar term s as
those contained herein between Licensorand the proposed purchaser.
Licensorreserves the rightto w ithhold approvalshould proposed purchaser
failto meetreasonable criterla setforth by Licensor. Licensee shallbe
entitled to alIprofits derived from his sale ofthe above specified business.
R. GENERAL CO VENANTS Licensee agrees and covenants to the Licensorfor
the Duration ofthis Agreem entand forthe Territol/Facility the following
conditions:

1. An environm entwithln the facility devoid ofm irrors,


m usic or otherdistracting nolse,brightor blinklng lights.
2. An envlronm entdevoid ofsocialchatterand unsupervised
and/ordisruptive children.
3. An envlronm entwithin the exercise area thatis keptcool Iow
hum idity and wellventilated.
4. An environm entthat Is devoid ofdistracting decoration or
artwork.

5. An environm entthatis m aintained in an extrem ely clean


and sanitized m anner.

6. Instructors willbe professionally dressed.


7. Li
censee willadhere to and prom ote Isoritness Exercise Lifestyle
and philosophies to the exclusion ofthe philosophies ofisokinetics,
aerobics,cross training,plyom etrics,Pilates orany genre ofballistic
m ovem ent.

S. NO N-COM PETITIO N CI -AUSE Licensee hereby agrees to abstain from


com peting with Licensorin any m annerrelating to physicalfitness
gym nasium ,health club gym orfitness center,weight loss orany sim ilarIy
engaged businesses, Licensee hereby agrees thathe/she willnotassociate
with as a business partner,officer,directorin any business thatwould
com pete directly orindirectly with IsoFitness system s fora period ofFive
(5)yearscom mencing withthe execution ofthis Agreement.
T. NON-DISCLOSURE CLAUSE Licensee hereby agrees to notdisclose any
trade secrets,intellecttlalproperty secrets,operationalor business structure
secrets to any individualexcept as is necessary forthe operation ofthe
above described business'orifpursuantto a valid orderofa courtof
- 8-
InitiaIs :

EX IIIB IT 1%c-
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 51 of 74
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 52 of 74

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ISOFITNESS ()FT'EXAS INC.


1 49 2
Greg Kelly 11/2/2007
Date Type Reference OriginalAmt. Balance Due Discount Paym ent
11/2/2e()7 Hill 3()9.Q() :00.e0 800.00
check Afnount 800.00 '

Amegy Bank ofTexa è


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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 rf
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'MA
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IL r'l,nt-close w lnuow
é'd@,''
:s1(.

Date: Wed 19 Dec2007 02:04:43 -0800 (PST)


From : '1SOFITNEFSS''<isovegas@ yal
noo.com ;.
Subject: P.e:Signedextensionagreement
To: ''
ArCoppoIa''
caIcoppola64@ yahoo.com '.

% 1:

W ith a1Idue respecttoyou,Pattithe Morrises andyourem ployeesk lhave decided notto renew yourextenslon for
use ofm ytrademarked nam ebeyond Decem ber. Iam lettipg you know thls now so thatyou have adequate tim e to
make the necessary changes in yoursignage, corporate filings,search engine marketing em pioymentagreernents
training agreem ents etc.
Ithinkyouhave come upwith averygood name foryourself www one3ohtness.com and now itjs tim e foryou and
the M orrisestospreadyourownw ings and f1ywith yourown concept.
There are stillseriousproblem swith respecttoyourwebsite, and the degree thatMagnetlcs has pointed my
trademarked name toyouro1d Isofitness si te You needtotellthem to killaIIconnections IM M EDIATELY You also
needto serlouslyreworkthe Ianguage on yourw ebsi te.
ln the regularworld there i
s no restrictionforusingtradem arked nam esin keywordsforIrlternetplacem ent. How ever
both you andthe M orrisessigned very speciîicagreements forthe use ofa tradem arked conceptw hichw as always
m ine.even ifthe agreem entwasn' twith m e.

One ofthe termsofthiscontractwas thatyouwould ceaseand desistfrornanysimilarbusiness forfiveyears ifyour


everdecidedto I
eavethe nest. You have now deci
dedto do so. Thestateforgoverning this agreem entw as Nevada.
Ican'
tm ake youanyprom l seson any future recourse lm ighttakeas a resul
tofthi
s situation as itis Iargely upto
you. W hatIam telling you i
s that i
fyou wanttoflyon yourown, then PLEA SE rem ove any resem blance ofyournew
program,yournew verbi age.and yournew marketing,from theISOFITNESS program. Iam notgolng to monitor
whetherornotyourcli entsclosetheireyes and breathea specificway, butyou CA NNOT marketanyofthe
innovations 1taughtyou.PERIOD!
lwould liketo see both ofyourfacili
ties carryon, and fl
ourlsh. However i
fyouaren'tgolng topaym e,w hich is fine
you can' tdoitonthe shoul dersofmyintelledualproperty, good name and priorlnternetm arketing, which dates back
to 2001.
Caljtheguysfrom Magnetiksinthemorningandaskthem whatthejcando.lwillnotacceptany Iinksformy
nam e to yournew website including any redirects from oId artlcles. Youneed to letthe
kN w fsofitnessoftexas.com si
tedie a peacefuldeath and m ove on yourow n. I'm sure you can do thls and itis only
fair. Irefi
ned Ken Hutchin'sprincipleswithin 3 months ofopening, and havesince moved away from them altogether.
1neverenjoyed the useofhisname,in anyrespect.in the urlofmywebsi
te.l
-le woul
dn'tpermltit .

You can do the sam e. You areactually m uch sm atterthan Iam and Im ean this sincerely. You have run an
excellentbusiness in spite ofthe factthatthe training conceptsyou are using are outdated. Itdoesn'tm atter.
since the clients like it!
Sound fair? Ifso. lhope you respectmy Decem ber31 2007 deadline A friend Ihave know n sincethe fourth grade
li
ves in Conroe. 1would beverydisappolnted ifhe didn'
tsee One3oFttnesson yourbuilding, and the Morrises as of
January1,2008.
Sincerely,

Greg Kelly
Yahoo!M ai
Case l-isovegasjlyahor.com
2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 55 ofPage 1()fi
74

';k.MAIL
* print close w indow
-
t.11t
.sh
ab(t.
subject: contactinfo
Date: W ed,19 Dec 2007 18:38:56 -0600
From : ''PauIKellogg'
'<pKell
oggt
tghwallp.com >
To: isovegas@ yahoo.com
cC: ''A1Coppola''.c:alcoppola6zltqpyahoo.com >

M r.Kell
y,

Inyouflatestemailthismorning,yousaidyouonlywantedto be contacted byAICoppola'sattorney.lam the


attorney forIsoFitness ofTexas and his new venture.Iam sending this emallso thatyou willhave my contact
information!and also to ask you when itwould be convenientto caliyou to discuss the issues you raised in your
emails. 1wlllbe avail abl
e mostoftom orrow and Friday,and then outofthe office through the 27th. IIook
forward to talking withyou.
PaulKellogg
PaulKellogg,Attorney
Hughes,W atters& Askanase,L.L.P.
Three Ailen Center
333 Clay St.,29th Fl
oor
Houston,Texas 77002
Directline:(713)328-2832
Fax:(713)328-2896
Confidentiality Statem ent: This electronic message transm ission containsinform ation from the Iaw l/rfn of
Hughes,W atters & Askanase,L.L.P.and is confidentialarld/orprivileged. The information is intended onl y for
theuseofthepersonls)namedasrect
pientsabove. Ifyouarenottheintendedrecipientanydisclosure
copa
/rlg,distributionoruseoflorarlgotheractionbasedon)là?econtentofthisinformationisstrictlyprohibited.
lfyou received this electronictransmission in error,please rlol//.kusbytelephoneat(800)284-0818
imm ediately.
Disclosure Pursuantto Freast?ly Regulations in Circular2:Y ; ro ensure compliance with requirements
imposed by the InternalRevenue Service vk'
e inform you thatany tax advice contained in this comm unication
(includinganyattachments)eas'notintendedorwrittentobeused andcannotbe usei forthepurpose of0)
avoidingtax-relatedpenaltiesunderlhe lnternalRevenue code or(il
)promoting,marketingorrecommendingto
anotherparty anytax-relatedmatterls)addressed herein.

Iptlln://llsf320lnailvahoocoln/vm/qhnwlaetfetNhoxc
zzlttboxztNz
lqç,IH=zia7i0 IIf)f4G17 l'
19 SXIIIISIT 1#'G
Ya.
ll()0!lVlitll-1sOVtYitS(
J#yill1O().C()m lMage l()f.
j
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 56 of 74

p
*;.M AIu print close w indow
-
Cktt'!araiû
Subject: Slgnedagreem ent
Date; Thu 31 Ja1
) 2008 15:51:05 -0600
From : 'PaulKell
ogg'''
cpi
lelloggt
lphwallp,com ;
x
To: 'ISOFITNESS'
'qlsovegas@yahoo.
col'
n;x

Greg ,

1Iere 's th e sif


glltad pages . 1q'm not su re ou r systenl û'aArl conve1't t. l1ese tco
p df, b ut at Jeast they a re in the . '
same fo rmat 1llla1- we rece.iv ed frortt
y'
c'tl,
so hopefully you can retr.teve them (the :
rj.le j.s not any large.K than Lhe
one you sent, so j.t ought to work). If you st.1.1) #1ave prob1erns wjteh
it,
1et me know and 1'11 see what I can do.

By the way, the first check ls being overnighted to you today.

Paul

Paul Kellogg, Attorney


Hughes, Watters & Askanasez L .L .P.
Three Ailen Center
333 Clay Stw 29th Floor
Houstonr Texas 77002
Direct line: (713) 328-2832
Fax : (713) 328-2896
Confidentiality Statement : This electronic message transmission
contains information from the 1aw firm of Hughes: Watters & Askanase,
L.L .P. and is confidential and/or privileged . The ânformation kfj
intended only for the use of the person ls) named as reciplents above .
Tf you are not Lhe intended recipientê any disclosume, copyingy
distribution or use of (or any other action based on ) the content of
this informaticn is strj.ctzy prohibited. If you received thj.s
electronzc transmission in error please notify us by telephone at
(800)
284-0818 immedjxately .

Disclosure Pursuant to Treasury Regulations in C.i.r(:u 1.aar' 2 30 : To


en s u re
compliance wit.h requirements imposed by the Interna.
1. Revenue s;e rvice :
we
inform you tha t any tax advice contained j.n tllis cornmuni catjon
(including any attachments) was not j-ntended or wrj.tten to be used and
cannot be usedz for the purpose of (i) avoiding taM related penalties
under the Internak Revenue Code or (kk) promoting, marketkng or
recommending to another part.y any tax-related 1ï1c
4tter (s) addressed
herein .

- - - .. - Or-i.g-
tna1 Message----.-
ë'rom ; Al Coppola (mai1Lo;al@ollfa3oL)tness s-
l(?m1
Sent : Wednesday, January 3Or 2008 12:21 PM
To: Pau) Kellogg
Cc : IISO FITNESS '

I'up. /box-lnboxacu sxld-sr


.//us.çszo.luail.yalptlo.coln/ym/sl,ow L.etter' .
at)()-7350I() l4:7 .. EXl-IlI3I-l- iib
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 57 of 74

Subject: Emailing: Greg Ke).1y agreement pg6y Greg Ke1ly agreement, pg7,
Greg Kei.ly ag lLeement pg8 ? Greg Kelly agreement pg1t Greg Kel. 1y
agreeameant.
pg2, Greg Ke1 2y ag reement pg 3t Greg Kelly agreemtant 47tJ4 t Gmetg K el2y
agreement pg5

Paul ,

1( have ini.t.ia1ed eilc h page and sJ.gned the sj-gnat-uze page and scann ed
each p age of the ag reement . A t.tac:hed you 111 fjnd each c7f thras6a pa gt
c#s .

Please con fjrm that. you have received this emai I along with 8
attachments .
Jtlso r please veri fy that Greg has received th îs ema a.1 along with a 11 8
atLachmerlts . I want t:o ma ke sure that it doesn '1: gtat c!aughL in hj.s
'''
)unk''
.
mail box .

Greg,

Your fj rst check will go out tomorrow at the 1a1est and I wzsll you qood
health and success as well.

Regardsy
Al

Adachm ents

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 59 of 74

AG REEM ENT W ITII FULL A ND FIN AL RELEA SE

'l'
ltis AtgvclufzntAvith Fullktnd FinalRclcast (tht ''. '
z
h.
glvfln'kt:î
lt''lis lnadc b'
hartd bt
. ztutx';rsGregor' j
Kellq. all illdivldual residil' îl ('oI)l)oIa. an ind,vidllal residlllg il) ''fbxas
lg iI3 Ncvada ('çKcll)''). a,ld z' .

(''('oppoIa'').

RECITALS
W HEREAS.Coppola untcrtlt .l I
llto a liceasing aglvttlllcl't (tl'c ''ISIAgrccllleldt'')ys'ith Isofitncss
Slstclns lldcrnatiollal, Inc.datc .d Octobcr 1. 2004 ul:dttr lvhich (among otllcr things) (roppola qsras
grantcd thc right to tlsc thc --lsoFitncss''trademark. through ISI. but 01!.,11c,4:1b),Kcllq and tllc rclatcd
''IsoFitncssSl'
stcm'e(asdefinttd in theISIAgreument).andtopurchascccrtainKciscrcxcrciscttqlllpnltlnt
orvncd b)'Kclil'(thcçwEquipment*')asdcscribedin ExhibitA attached hcrcto alld llladca parthcrcof'lbr
alIpurposks.

SVHEREAS.ccrbe zin disagrkxtments havc arisen witl)regard tf


athe ISIAgrcclnttntand thc liccllsu.
gralltta
;dulldcrit.antlKe)1)'and Coppola wantto rcsolvcthosclsstlesamicabll'and $&lth t-inalltl':

NOW THEREFORE. forand in consideration ofthttprclnlscsand thecovcnants sd tbrth Ilcrcin


and othcrgood and valuablc considcration thc rccciptand stpfficicno'ofwhlcl
l is hvrcby acknour
ledgcd
Kcll).
'andCoppola agrccasfollows: .

l. 'l-he rccitals above arc herttby incorporatcd into this Agrccnlcllt b)'rcfcrcllcc (br al1
.

purposcs.
2. The folloAving tcrrns,whcn uscd in this Agreclllclltsllallllavc thc Ineaning givcn to tllcm
hcre:

li (a) lûBtlsincss Entitl' h'or hbBusincss Enritics''lllcans any'partncrship. corporatllln.


lnitcd Iiability company, businuss trtlst, jointstockcompal ly,trtlst.unincorporatcd associatlen.
jointvcnturu,orotllorbusincssentityofAvhatevcrnaturcandtlle Iicensccsorfranchisf
xsof-all) '
.
oftiw foregoing.

(b) k%Rclatcd Partics'' lneans (as applicablt) the directt ars. managcrs. partners.
ofliccrs,cqllity oxvncrs, cmployccs.agcntsand aftorntp'
s ofa Bllsiness Entitl'. Its parcntcompanl'
ofany subsidiary orafriliateofeitbcrefthan. ForpurposcsofthisAgrccrncnt. toaftiliatc''lncans
a Business Entitl'that(i)controls (ii)is controllcd by. or(iii)is uudcrcolnlnon controlwitll
anothcrBusincssEntity, whcre û'controln'memlstheriglltto dlrectitsbusinessaclivitjcs.

(c) hçM orris Partics''mcans, collcctivell'


. M ar sha M orrisn '
1'01) M orrls alld thci1
'
colnpany,TM Svcllntss.Inc fonllcrlyltllowl!msIsolrllllttssofTcxas. Inc,

3. To bny peact and to rcsolvu forcvcr any alld alIdisputcs and claillls that ltlay'cxist
twtwufzl'
tthcm coilcvrning tlle IsoFittless tradomarks, tl'
ït lsoFitncss Systcn'
i.tht lSl Agrcizmcnta and thtl
E
quipmcllt.C'oppola agreesthathiscompany. APGM Vcntures, lllc.aTexas corlxlration, shallpay Kellq
a totalof Eltlven '
I-
llousand Two Hundrud and No/l00 Dollars ($1I.2()0.()0), Said consldcratiol)ys1llbc
payablein six (6)consecutivelnontbly instalilncntsinthualnotlntofOncThotlsalldEightlIundrcd Slxty' -
Sjx and67/l()0Dollars($l.866.67)cach, Each installmcklthA' ilIbcducandpay'able01)orbufbrc tllciirst

l1$.187.
5-IA1:(91k1()()()! / v .' -''' ''' '
'
-

' / .

EXIllBlrr jùe.
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 60 of 74

day ofthc 1)1011th.bcginnillg Fcbrtlary l.2008 Paylntm tsu'ilibc madc to thuordcrof'Grcg KeII)'orIlls
.

dcsignccand payabittathisaddrcsssctforth bclow (unlcsscllangcdin accordallcrB4th sttctioq 1t)) A .

pal'llleflty$'i1lbccollsiderk.
xllilncly i1
-Isdclivcl
'txlil1accordaldcc '
$s.jtlltllf.
lI'cqtllrclllcllts1l1Suctioll- tt
? i (!
.
!)
g.
lljjilbclow Ifa pavr nlclltisnotso dclivvrcd o1èorbcforu thkl11th (5 )da),'ofthc month in !$l1lcl1ilis
dwt:.APG M Vtmtures.lnc.shallpay $25. ()()fortxachdal'it('
kuuailïs unpald thcfcaftcr jfa gaynxkmtisnot
nhade on or bufore tlltttwenty-first (2l't) day of thc monti l iI1whicll it ls dtlca this Agreentcllt sllall
inuuedlatcl) bucomcntllland void andofno furthcrcffcct.

4. Asfurthqrconsidcration forthis Agrccmtult. (roppola rcprcscllts and ss'al'rants to Kclll'


thatthc tlxklrcisctcchniqucs listcd in Pàllibit: attachcdhcrcto:u1(ImadcapartkcruofforalIpurposcs.arc
.
not bking lhsttd b)'Onc3oFitllcss and willnotbc uscd by it111thtll'
tlttlrc ln excltantw (brtltat proltllst)s
.

Kclly acknowledgcsand agreesthathe has no right,claim,orllltcrcstin thctlxcrcisttprotocolto bc uscd


by One3tlFitncss and thatl1c will ncvcr attvmpt to msscrt any right. claim or intttrcst In said cxerclsc
prolocol: alld thatOnc3oFitncss, thc Coppolas, thtir Busilcss Elltltics alld tllcir Rclatcd Parties Illa)
condtlctsllch busincss atlocations throughoutthc world,allclnlaq'Iicense,subliccnst: frallcllise.sclland
.

othcrwiscdcali11stlch btlsincssnlodclthroughouttllc world wlthoutany oblection orhljldrallctlb)'Kcllj'


orally ofltisBllsillessEntltiesorthcirRclatcd Parties.

hrithotlt Iimiting tllc forcgoing.both parties and tllcir rcspcctivc Btlsi llcss Entitics and Rclatcd
Partiesagluxcnotto associatcorIink tllcirbtlsincssBrith tllc otllk:r-s busillcssb) ilsc()f-tllc otllcl
'busillcss's
name (Isoflitncss and Onc3oFitrlcssx as applicablc), ln anq' form of advertising or Intcrllutl site
(collectivcly,thck*links?')thc partl'crcatcsorutilizesaftcrtllc datc ofthisAgrcemcjlt. Ftlrthermorc. if
cilberpartq'discovcrsa iink bctAvccn its nanleand tbcothcrparty'snamcahcrthcdatcof'this Agrccnlttylt.
thediscovtlringpartywjllpromptl). '(a)lak'tt1111reasenablesttrpstohavethcIinkrcjllovtzd.ifitu' ascrkvatkx
,d
throtlgh thatl)a!-t)''suffbfts.and if'not.(b)notify thc otllcrpartl'ofits rcsponslbility to havc the Iink
rednovod. ' l''
he responslble party shall attcmpt to have thc 1Ink rclllovcd wltllin thirt) (3()) day'
s aftcr
discovel'
)'or noticc from thc othcr party. as thc casc npa) bc:provlded. /?(;I$'
t?J'
(??'. tltat both parties
acknowlcdge thatrclnoval is depcndcnton lnternet dirf zctorlts and othcrcomputer-bascd search cngincs
and advcrtising providcrs thatalv notundurthc controlof cithcr party mld ma)'llotrcspond svithill3()
.

dn).s after thc l'cquestfor reltloval. Ful'


tllennore, the pm-ties acknowledge ml(1agrl ze tllatthc f'oppolas
willtake rcasonablc stcpsto rclnevc tlle existing links betwettl)lsoFitncss and Ontt3olk -ltllttss addrcsscs,
f
alluzils. and pllone numburs on ALL advtlrtising, including lllttfollowing n'cbsltk!s and scarch cngillcs .

Yabtx)r Googlc. AOL M agnctiks iMedia LLC. l'cllowpagcs.coln, oakridgcnortllcom . v

uatcrdtsigl tstudio.comp lnylocalllotspots.com, drcalnvN'cddlllgsbridalsholNrcolp). cutnterxspoke.colTl.


.

wotxllandsonlll3cvcom, wullllcssforliving.oonl, liltkcdill.coln. rcx'ieur itlnagiyzillcctlllt. spherc.coln.


.

wt xxllandscllamber.org,and Patty Coppola'sM yspacc pagc. '1'11c Coppolas.on bcllalfefthclnsclvcsalld


tllcirBusiltcss Entiticsand thcirRciatcd Parties, covwlanttllattlltty willnotmakk,al1)'cffortto I' cstorc01'
rcplaccany of'tht:forttgoing Iinks.

5. Kcl!)'aglves tltat tlltt$ll,200 setIkrtllalluve is aII tllc colllpcllsatiollht


; is clltltlkxlt(J .

receive witll rusptct to tllc lsoFitncss trademarks. the IsoFitncss Systmn, the IS1 Agreemcllt. thc
Equipnzcntor any othcrrclalionship, arrangtmAt m toT'undcrstanding, contraclualor othenvisc.thatlllight
havc existtxl bcthvcen Kdly and tzoppola or Coppola's btlsintlss llow knosvn as -'On(l3()I'ltl)css''
(collttctivell'
atlhclkllisptlted Clainls''l'
.providcd thatnothing il1this paragraph sllallbktconstrtled to 811'
)p1:
$.
to an).
'oftllcM orrisPartlcs.

6 Kcllj'rcprcstmtsand B'
arrants tllat, to thc bcstofIlisknowludgc. llt:is tllttsolc our
llktl'of
aIIrigkts,tltlt aad intcfcstirlaud to tllt IsoFitncsstrademarks (USPTO StxialNo 78343lik3.rugistt:rf
. zd
on Jtlly I2, 26.)051and USPTO ScrialNo.7863l98l, rcgistcrcd ol)May 2, 2006)and aylJ'intcllcctual
profyel'
t).
'(31
'tradc sccrdsthatnyal'bt!clnbodied in tllc IsoFitncss Sl'
stf
all. lkell) ftll'tllvrrcpresktllts alld

1lS.1575-l.A I't)M :(4)(Jl a .. - -- ''''** N


-
.... -..7
)
(
N .x . ' :
y.j
. ' J

lk
--!j(7I-II1:1I-I- Ir-
.f3
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 61 of 74

warrants tllatlw has nt)tassigned. sold.transferred,giftud orothcrulsc convcqvd :


111),oi'said rigllts. titlc
orjlltcrtstto an) BusillcssElltity'ofqvlllch lteisa Rclated Parl)

7. Kellyp for himscif'and his Busincss Entitlts and their Rclatttd Partius (tllu ''KeII)'
Partics''). hklrcbl'l'
oluntarth and Iglosyjps
- zl)Jrclcascs.acjlllts all:lforcvcrdlscllargt:s ('oppola. Patt)
foppola,AP4RM Vcnttlrcs. Illc.and allof its Rclatcd Partics (tllc ''Coppola Partics'' ) f'
rolllanq'alld aIl
claims.denlands. liabiliticssobligations. dcbts,dutics.suits.actiollsand catlsesofactiol,ol-lvhatel' crklnd
or c baraclcr. wl l
ctll
e r kncnvl
l or ul l
kll
ohvn f
orcst
tel
) of tp'll
br cscel
). fixcd ol cont il
lgttltt
i , . prcscltf or
llchoatc,suspccted orttnsuspccttt d. liquidated orunliqllidatttl. tllatany'oftlle KtllI)
$'Partics lna) nolh or
hcrcaftcrllavc againstany oftllttfAoppola Particsbasod on, arisillg outof.in conllcction urith orrclatil:g
to:.t1,3'oftllc Disputed Clainls. Nothing in thisparagraph sl 'allbt zconstrucd to appl3'to atlà ofthcM ofrks
Partics.

8 Tllc (Toppola Partics hcrcby voluntarilva' .pl!


.
4 kllouiljtl
.y rclcasch,acqtllts arltl tbrcl.er
dischargcs tllc Kdly Particsfrom anl'alld allclaimsv dcnlands.liabilitles,obligations,dcbts. dutics.suits.
actlons alld catlscs ofactlon of whatcver kind or character. whdllcr knoNhm or unknownn foruseellor
unforcsccll.fixcd orcontingclltoprcsentoriltchoate. suspcctcd orullsnspccted.liquidated orullliqtlid:tlcd.
thatany of thf zCoppola PartiesIuay now or hcreaftta ;r havttagaillst any oftlw Kvlly Partics baskxlon.
arising outoftiI1conncctionwithorrclating to any oftbc Displltcd Clailns.

t? Kclb'and Coppola agrce thatthe Kclly Partik;sand tht Coppola Parties.respcctlvely.


shall hold thc cxistkmcc and colltcnts of this Agrecmcnt. and thc dctails of their rclationship in strict
confidencc and nt)tdisclose any aspect of-thc foregoing to a11)'third party:provl dtn.d t
hat:11tlfbrcgoing
shallnotappl).'to aI1)'petition. clail
nncatlsc ofaction, rcsptlnsc.cellntttrclaim orolllf
crfsling stlblnitlcd to
a cou!'
torothcr adjudicativc body so long msthe factofthctiling,and its conttmts.are kcptstricll'
confidcntialandare notdiscloscdpublicly,

10. Ikc11)'and Coppola agrœ thatany corrcspondcncctlïatcolncsillto cltllcronllns posscssion


thalisaddrcsscd to thc othcrsllallrtmlain sealcd an1 shallbc fbnvarded prolnptly tothc addrcsscu attlleir
addrcssêkssetforth below .

ll Kclly and Coppoia ktgrec thatoach of thcll: sltallbcarhis onn cxjlcnstts incurru:ti i11thc
ncgotiatioll.prcparation,cxcctllion andpcrfbl
npancc ofthisAglvcmcnt .

l2. This Agrcelnttntshallnotbc construcd aptillsteitllcrKelll'()r Collpola on thc basis that


sllch pal-ll'draftctithis Agrccmcnt. Any hcadijlgs in this Agi'
ez
cmkilltart foreasc of'l'cfbrklncc olllq'alld
shallneitlleraltcrnorlirnitanl'term soI'thisAgrcclncnt.

13. Any controvcrsl'orclaim conccrning thc wlforcttmklntorinterpretation ofthis Agrcclncnt


sllall be rcsolvcd 14.y arbi
tratiul)bcft're ollc (1)arbitrator II1Clark Cotlnty,Nuvada,Ilursuallt to (l1t;
Comnlcrcial Arbitratiol ) Rulcs of the Anwrican Arbitration Association. as thcll jn cflbct.
Notwithstaltding.thcarbitrator(I)shallnothavcany powcrorauthorl tytoaddto. altkx,aîuktntlornuxlif'
l'
tlle tcrm softhisAgrcenwnt, (ii)shallintcrprd and construtttlis Agrocnlcntin accordallcttwith and shall
bebound by.thcIaw' softhcStatcofNuvada(csccptthasthisparagraphshallbktgovcrllcd b),tllcFcdçral
Arbitration Act).'(iii)shallhavu no powt)rorauthority to gralltoraward ptlllitivc damagcsa tllc riglltto
which is hcrtlby waivçd t?y thttparties:and (iv)shallcstablisllalld cnforcc appropriatu rtllusto cnsurcthat
tlle procccding. mcluding thc ducisioll, bc kupt confidcntialitnd tl,atallconfidkilllialinfbrnlati on of'tlkc
partics be kcpt confidcntialalld btltlscd for no pulposfl otllk
lr tllan tllc arbitration. Jtldglntnlttlpon all).'
such awafd rertdfzrodmay bt'itmterod in any courtofpropcrjurisdiction. Each partl'to any arbitration.
nlcdiatioll.collrtcase.orotllcraditldicativcprocccding arisillg otltoforrclating to tllisAgrcclnolltsllall
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 62 of 74

boar 2111thc costs.profcssionalfccs all('


lttxpcnscs of its oïvn atttlrntas.accollntalltsand cxpttrts.and ollkl
halfoftliccostsot'tl'
lcproccuding
l4. lfany actiol)at lau'or in ttquityx including btlt Ilotlinlitcd to an action fbrdt tclaratoo'
rcliuf-is broughtto cnforcc or intcrprcttllc provisions oftllis Agrccnècnt.thc pl v'sr
alllllg )lart.'shallt)c
.

untitlud to recoverrcasonablt attonllp's-fees frol'


n thc otherIlarth'.'
wlllch fccs lnaq be sctb).thc court011
the trialofsuch action orl'nal'beenforced il1a scparate actilln forthatpurposealld ur hich ftxsshallbt. 'll
1
additlolltoanq'othcrrclicf-u'lliclll
'
na'
&'bt'aqvardcd.

l:
5 'Fhis Agroclucntsltallbc govcrnod b)'and conslrtlo'd II1accordancc hs'ith tllc la'$'
$s of tllc
Statc oI
'Ncvada '
wilhoutrcgarklto anl'provision tllcrcof'thatilligllrruquii'
c orpcnllittlluappllcation of'(hc
lahvs()fanl'othcrstatcorjtlrisdiction
lt'
p In thc twcnt a11'
. provision ofthis Agrccnlclltsllall bc hktld iilvalld or ui
lcilf-
orccablc b!
anq'courtofcolnpctcntjurisdiction.such holding shallnotillvalidate orrunderullenforceableanl'other
Provislon llerflof

I7. This Agrlxmalt may be amended modificd.altcrcd or tf


lnniluttuwd 01:1),b) a writttl)
instrumcntcxccutcd b)'KcIl)'and Coppola.
18. This Agrcclucnt lnal'bc cxecuted in one o1'lnorf .
lcoul'tcrpal -ts, f
zacllof which sllallbe
binding upon tllc party that cxccutcd itsand both of which.takcn together. shallconstittltc ollttoriginal
docunpcnt. A collntklqlfirtmay bc faxcd.clcctronically scanncd or111:1.
11:*
.
(1to thu:othcrparLl'. and any sllch
fbx.scanncd docllmkmtora copy thcrcofshallbeasvalit iastllt:originat

l9. An. ',


' notice or otht lr comrnunication rcqtllrta
'
d or pc
'
nnlttcd to bc glvcn undcr ll1ls
Agrcemcntwillbttconsldered givcn' i)upon delivcrj'in pcrson:(ii)on thcthird (3rg)dal'aftcrbeing
. (

depositcd 11 thc Unitth


ad Statos mail,ccrtificd.postagc prcpaid and addrcssttd to thc rccipicllt at tlli
zir
addresssctforth bclou'(unlcssIthasbccnchanged in accordallcehermvithl.
'(iii)011theûrst(lb:)rcglllar
business da) afkr bcillg duposited witllan ovenlit'
zl
ltdclivclA servicc that providcs rt
lceljlt ofdeliA'
tllp.
withdclivco'cllargcsprcpaid and addrcsscdto' tl
zerecipientatlllciraddresssd fortllbttlou (tlnlcssithas
ty'
wa
tm changcd in accordancc lkcrcwithla
'or(iv)upon rttcciptofproofoftransmission and rcocipt.1f-b3'
facsimilc01'cnlail. Notices111:3)bc sentto:

Coppola'
. AlCoppola
27326 Robinson Rd..Stc.2l3
7-hc%ï lands,TX 77385
Fax' .(28l)4l9-330()
alrijonc3ofitncss.coln
KclI3'
: Grcgory Kelly
11975Faidbx Ridgc St.
LasVcgas.NV 89183
Fax:
lsovegastkilyalpoo.coltl
20. 'rhis Agreelnclltconstittltes thc cntirc agrtlcn:untbctwctm Fx(;llx
. .'alld t'
.'
.ollpola '
witlllzg:krd
to tl'
le stlbiçct lllattcrs hercof. It stlpcrsedcs and rcplaccs an).
' and alI -
prior or coTltclnporallcotls
agrtwunpcnts,tlndcrstalldillgs or arrangcnlcnts bctyvccn thklln Svltcthcr oral k)r uzrjttuln. Ilurtailling to alll'
sppbi.
zct11lat!k:rhttri
zof.

1lhl.1875-IA17(lN.
f.()()
()I 4 ..
''-' .' ''*N.
t.
h
-- .
'-J
'' .
...
)
( -,.rk.y
.'

FaX IIIB I-r lGt'h


Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 63 of 74

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EX H IB IT ((p'
s
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 64 of 74

Kï1
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 65 of 74

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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 67 of 74

429 I:j(I4E4III!r u
1a
1s
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Fas
lrlasxvRs
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sa
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(zo2)sa2-is;6
isovegas@yalooacom

March27,2008
Tom and M arsha M orri
s
One 30 Fitness
17819 StuebnerAirline Rd
Spring,TX 77379
DearTom and Marsha:

Itiswith very mixedfeelingsthatIcontactyouforthe firsttime.You have obviouslybeen made aware


ofthe events which bring us to this point,as you have made a decision to change yourname from
Isofitnessto One 30 Fitness,and change yourcorporate i dentityfrom Isotitness ofTexas lnc.,to TM
W ellnessInc.

Since lam seekingcompensation from youruse ofmy federallyprotectedtradem afksforthe pastthree


years,Iwanted youto hearthe truthfrom me pri
orto making anydecisiopson this i
ssue.
Back inthe fallof2004,BobAlexanderpitched me withthe i deaoflicensing my program outside ofLas
Vegas. Itold him thatIdid n0tbelieve the program wasscal able atthattim e,butthatIwould consi
der
doing so on an''at-will,'basis. In I
ayman'
sterm s,thi
swas thesam eastelling him thatIwould consider
i
tas Iong as Ihad the rightto dissolve the relationship i
f Isaw the need to do so. Bob agreed! He
neverattempted to secure the rightto use mytrademarks and training system beyond m yday-to-day
approval,
As customers ofthe first Isofitness location,you saw fifst hand thatthe initiallocation exceeded
evefyone's expectations. l
twas a smashing success! Bob was anxious to open more Iocations as
soon as possible.
W henyouwerefil '
stpresented to meascandi datesforOpeningthe second Isofi
tnesslicensed Iocation,
lhad m ixed feeiings.Collecti
velyjIdid notlike yourchoiceofIocatiorlbased On rentalone,a0d did not
like the am ountoftenantim provem ents you were prepared to pay. Thisseem ed Iike an incredibl e
waste ofm oney to me,and lal so fel
tthatBob was attempting to getyou to overpay forthe Keiser
equipment.

In an unrelated serjes Ofevents,Bob wound up having a mel


tdown overthe costOfOrdering a few
pneumati
c controlsthat1ordered to refufbish equipmentwe already had in stock ($50/each). He
informed m e thathe didn'tIike h0w things were going between us,and tol
d m e he was going lo
proceedwith you and AIon hisown.

Atthispoint,Itold him thatwas Okay,butthathebetterinform AIto remove my name im mediately,and


betterdare notsellmyname orsystem toyou.Thiswas in May of2005.
O f course,as we alIknow Bob turned around sold you m y nam e anyway,overcharged you for
equipment,(nearlydouble),and rodeoffintothe Sunset. ldid notbecome aware ofthedecei
tuntil
Decemberof2005,when lfirstdiscoveredthe isofitnessoflexaswebsite.

BasedonthepaymentsyOumadetomefrom October-December2007,(total$1,
200),Iam guessing
thatyotlwere rnade aware thatltried to curethe defaulton the use c)fmy nal ne,silce you ultimately
decided to stop tlsing it.However,thi
sis aIIIcan assed atthispoilt,and lthinkyou know why,

EXIIIBI-1- )7a
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 68 of 74
@ Page2 M arch27,2008

W hile i
twasfully m y intention totryandsalvagethissituation bybringing oblrthfee operations undera
single umbrella,1respectAl'sand yourdecisionto ''spread yourwingsand fly.'' However, therew as a
costwith fnakingthisdecision including pastcompensation fofmytrademark/intell ectualpropel ly use,
aswellasaf1agreement,Which differentiates 0urprograrnsfrom One arlothefinthe futul' e.
Atthispointin time,1am preparecsto offeryou a settlem entfoFpastuse ofmytraöem afkintelledual
propertyfor$12,000,payable insix consect
dive monthly installrnentsof$2,000,stading April15,2008.
There is an agreementin place,which willexonerate you from any future Iiabilities, provided thatyou
agreetosome minordifferentiation ofourprogramsmoving fol w ard.
W hile ldon' tconsidermyselfto be a Iitigious person,Ihave no fearofIawsuits, and am nuite able of
filinflthem .There is no question thatyou used mytrademark and intell
ectualpropefty from June 2005
to Septem ber2007 withoutpaying m e. Iwillacknowledge thatBobAlexanderswi ndled you, butIdid
whatIcoul d to preventit! Ialsohad nothing todowithyourdecisionto change yourbusilless narne to
avoid future paym entsonthe use ofmy nam e.Thatdecisionwas yours and Irespecti t.
Atthe end ofthe day,Iawsuits are aboutm oney. lam atternpting to gi ve you the opportunityto avoid
the costlyIegalexpense Ofdefending a I egitimatecom plainthere inthe Southern FederalDistrictCourl
in Nevada. As m uch as Ifeelbad foryou, Ifeelworse f0r mysel f. The contractyou si gned with
Isofitness Systems IntemationalInc.was designed primarilyto protectmy intellectualpropedy. There
are now two busine% es,whi ch have it,and Ican'tgetitback!
Please Ietme know whatyou wantto do here,butm yOfferissolid. lfyouwanttowaste m oneyon an
attorney tfying to negotiate with m e,go ahead. Ihave atrack record now,andyou m i
ghtwantto ask
around before you throw m oney 0utthe window .

Sincerely,

Greg Kelly

PS -Iwillalso accepta one-time cedified checkfor$11h000 as paymentin full,ifmadewithin thenext


seven days.

EXIIIBl'r I7b
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 69 of 74

TM ' W'ellllcss.Inc.
l78lt
.
lStuebller-Airlile Rtl.
Spring,'l-X 77380

M arch (12,2008

Grcgory Kelly
11978Pairfax Ridgc St.
l-asVegas,NV 89l83

M r.K elly

lregrd thatourGrstc' ontautfrom you sintx lsoFitnessofTexas,lnc. wasestablished in M arfzh


2005 and opened itdoors in June 2005 wasa dem and forcom pcllsatitln due to thtlpasttlse of
'I-l'
atlelnftl'k/llltellccttlalPropel-ty.

Asyotlareawareournam ewaschangcd to TM W ellness,Inc.and we areoperating undura new


licenseagreem ent. 1know you are aware ofthese changes,sinctryotlsigned an agreemelltin
Novembcr2007 with ourcorporation in thisregard.W c no Iongeruse any form of-tlle Istll7itlless
trademark.

lascertain from yourstatemcntinyotlrfirstand only correspondcllce with ourcolnpany tllatyou


szcm tohave suff-ered from yollrdcalingswith BobA loxandcr.A lthough we have evermetBob
Alexanderinperson and havenothad any contactw ith him since October2005,Iw illhave to
takcyourword forthis.

Asan officerofthesecorporations,Ihaveacted in good faith to the IsoFitness Iwicellse


Agreementthatwassigned in April2005. W ith no guidancefrom anyonewitllin IsoFitness
lnternationalsincelate2005,wehavedoneourbesttogrow tlnderadverseciruulnstances(i.e,.no
supportorresearchanddeveloplnentwhichwaspartoftheagreement).Althoughyotlstatttdthat
wewereoverchargud by Isor-itnesslnternationaland/orBob Alexanderfortheequiplnent
purchased we are notseckingretribution,and willabide by the originalpurchase agreement,

lhave soughtadvise from Iegalcounselon thismatterand based on herexpertopinion, she does


notseeourcompanyto be tlnderany legalobligation to you. lfyou have an executed copy oi-
any oolltrac.
totîwrtl
zan tlle onewe signed in Novembor2007,wewoultlrequostthatyou provide
afbrmalcopy assoon aspossible. M oststates provide prottctitln fbrl
-rivolous lawstlits. a1)(!if
you proceedwithautionsagaiastourcompallyandajtltlglnentisllotisstled inyourfavorswewill
be forcedto f'
ileacounterclaim fordaluages including cotlrtcostand attorney'sfkes.

I-astly,ifyou llad properknowledgethatwe were being ttswindlcd''asyou stated, and/orfeltthat


we werc il)trademark violation,wlly were wcn()tnotified imm etliately? Ihope yotlare
stlccessfulin locating Bob Alcxandcrin tllevery nearfuturc. Bast!d on aIIinformation shared
with usin yourone and only com munication,yourissuesbegan and should btlGnalized witl)Bob
A lexander.

Sincerxj)?, y -
. ,..y y iï , , y.
/tr'
.
-,
y(.
-.
y--
t'-,m
.- (r
zt-
' .
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a1411:1Nforris
President

ccJtllia laovorn A ttorney

EXIIIBI-I-t:
5ll.
nili.
l2ivsitli-istlYegktsktlyyant'' 'lOïlk ragtl l:)1x:
j
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 70 of 74

A o '
.,M A IL prlot-closew ndow
C loss!c
Date: Moll 14Apr2008 17:32:09 -0700 (PDT)
From ; ''ISOFITNESS''<p
sovegasClyal3oo,corn>
Subject: Fwd:Updates
To: MarshaMorris@ sbcgl
obal.net
CC: champions@ one3ofrtness.cofln

Marsha:
Thank you forresponding to my demand forpaymentof$12,000 foruse ofmy proprietary system and
trademark.
Itseemsthatyourdefense fornotpaying me isthatyou didn' tknow thatBob swindled you, and thatyou paid his
fee withoutreceivingthe appropriate 'research and development''
.

You seem like a smartwoman Marsha.As such, cl aiming thatyou didn'tknow you were being swindled simply
isn'ta defense. The following emailproves it!
ln the attached emaillBob promises you allsorts ofsupportfrom me, yetyou neverreceived any of
it. Additionally,the Iinkto the Houston Iocations was removed from mywebsite in M ayof2005. This isthe
same month yousigned youragreem ent.
To a reasonable person,the claim thatyou didn'tknow thatIhad paded wayswith Bob, are simply notcredible.
Beyondthis yourotherdefense seems to be thatyou are notgoing to hold me accountable forhaving been
swindled by Bob. Letme make some things very clearto you:
1. Ihave nevermetyou oryourhusband butthinkyou are ni
ce peopl
e.
2. Idid notapprove ofyou using my trademark orbusiness concept, because youwere notfollowing the
established formula forIocation,initialinvestment,equipment, etc.
3. Iwas neveran owner/officerofIsofitness Systems InternationalInc. and neverreceived any com pensation
from them . Checkthe filesyourselfonline .

4.Iseveredanypadi
cipation(atwillagreement)with ISIInc.and BobAlexander.priortotheconsummation of
youragreement,and clearly informed Bob/lsllnc.notto go forward with yourplans to open anotherlsotitness
I
ocation.

5. 1immediatelyremoved aIlreferencesto any Iocations in Texasin May of2005. Having paid $50,000 to open
this business,you couldn'tpossiblyhave m issed this!
6. Severa!comm unicationstook piace between myselfand youfsponsorfrom Decem berof2005 thfough
September2007 rel ative to yourillegaluse ofmy trademark. Despite an initial'Cease and Desist,'demand I
continued to negotiate in good faithto find a resolution whichwouid allow usto move fofward as an entity.
7. Once the negotiationsbetween yoursponsorand lbroke down! you both agreed to pay me $400 permonth
from October-December2007,fornothing otherthan use ofmy trademark. Youdid so willingly,and wi thout
any release from prioruse ofmy markforthe previous ttlree years.
8. In agreeing to pay me foruse ofmy mark, you estabiished a fairmarketvalue forany previous use.
9.Yoursponsorhas settled any claims Ihad wi
th him,and Iam happyto see him moving forward. Iwould like
the same foryou once you have compensated me fairly.The twelve thousand dollardemand is more than
reasonable,considering thatyou can shave $1000 offthe fee im mediatel
y by paying with a singe cedified check .

10. The costofdefending againsta slam dunktrademark case in Nevada willbe prohibitive, and unnecessary.

http.
.//us.rsae.m ail.yttlpoo.com/ym /show r-ettervbox-selzta v sgla-qsag 1ltss4sc?() 93366... Ilx l-llsl''
r pc
1GIIUQJ)lvlGll*'laklVL'
.
tjfàbtjj;)fGl1$ 'vt7lll lcltjL.r.KJI,
J.
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 71 of 74

ltisgoingtocostmeabout$2,400-$3 000justto havea Iawyerreview itpriortogling,eventhough Iam doing


aIlthe preparation.There are more than 100 pages ofexhibits thatsom eonewillhave to sortthrough. Y ou are
also going to have to retain an attorney. because you cannotdefend yourcorporation i
n properperson Ican.
.
simply because mytrademarkshave always been owned by me as an individual.
M y intention i
s to have my cased filed on Thursdayl atwhich time Iwillhave already paid the fee ofseveral
thousand dotlarsforreview. Iwanted to take one Iastopportunityto make sure you Nad the factsofthiscase
before Ido. There is also a sling fee of$350 fora civilfederalcase
.

Please do nottake any ofthispersonally, because 1have no animus towards you. AIlthatmatters is thatyou
used my name and goodwillfortwo and a halfyears withoutpaying me forit, and continue to use my training
system . The factthatsomeone else swindled you has no bearing on the case unlessyou can demonstrate thatI
benested in some wayfrom this. Idid not!
Ialso did not5nd outthatyou had moved forward with Bob untilsix months afterithappened when Iran across
the isostnessoftexaswebsite. W hen ldid so, Itook immediate action which you willIaterfind outwas more than
appropri ate. Icannotshare itwith you now,due to consdentiality agreementswhich are in place.
Ialso had no business contacting you before yousigned youragreementwith Bob, since itwould have placed
me atrisk from being sued by him. My expectation was thatifyou did move forward with him , itwould have
been so undera new name,Iike whatyou use now Ihave had no communicati
. onwith Bob since the day
Iinstructed him to remove myname. lam notrequired to be a Good Samaritan ifitplaces my fam ily and
business atunnecessary risk. .

The rem ovalofthe Texas Iocati


onand phone numbershould have been enough ofa signalto you thatyou were
being swindled and notby me. Ihad a rightto do that and did so immediately, PRIOR to you signing any
agreements.
lfyourposition has notchanged afterreading this email,then there is no need fora repl y. However,please note
thataIlparti es to federalIawsuits are required to sign awaiverofservice provided thatthe moving party provides
a copy ofthe complaint,and costfree means ofreturning the waiver. lhave been i nstructed by Juli
a Lovorn's
office thattheywillnotacceptservice on thiscom plaint due to the factthatthey do nothandle trademark cases.
Look fora package in the nextfew days .

Sincerely,

Gregory Kell
y

Note:forwarded message attached.

hup.
.//us,t-sce.m ail.yahoo,cow ym/showl-ettel.kbox-senta v sgltl-qsaq 116545.): 93366... ldxlllsl-l. 1qu
.
& T/ J &
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 72 of 74

' M AC6lu
*.:
print-close w indow
a1.'pït.

Date: W ed,26 Sep 2007 13:19:17 -0700 (PDT)


Ffom : ''
AICoppola''<ai
coppola6zlt
éqyehoo.com >
sgbject: MarshaMorris
To: 'ISOFITNESS - Greg Kell
ey''<ësovegaslyahoo.corn>

G reg,
Ispoke wi
tb Marsha today and we've scheduled an appointmentforM onday night, O ct.1stand weplldiscuss
whatthey pl
anto do regarding using the IsoFitness name.

Also,wediscussedtodaythesubjectofherwantingtogetadefibmachineandthereasonsforit.Apparently,
she personally has had to people fainton herwhije doing the intro. session. In both cases,they were diagnosed
with Vasovegalsyndrome. Below is ao explanation Icopied from W ebM D regarding Vasovegalsyndrome.
1'11getback in touch wi
thyouafterourmeeting on M onday.
thanks,
AI

The m ostcommon causes offainting are notdangerous.ln these cases you faintbecause of:
* The vasovagalrefl ex,which causesthe heartrate to slow and the blood vesselstowiden, ordilate.
As a result,blood poolsin the Iowerbodyand Iess blood goesto the brain. This reflex can be
triggered by many things,including stress,pain,fear,coughing, holding yourbreath,and urinating.

Looking fora deal? Firs greatprices on ftîghls @nd hote% with Yahoo!Farechase.

I,ul,.//us.f-sco m itil.yal'oovcom/yln/show uetterkt,ox-llzboxa u sgld-,axz () ,,?,I4a2


.
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 73 of 74

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loueryingwhois.godaddy.com)
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The data contained in GoDaddy.com,Inc.' s W llols database,
while believed by the com pany to be reliable,is pfovided '' as is'
'
with no guarantee orwarfanti es regarding its accuracy. This
informationisprovi dedforthesole purpose ofassisti ngyou
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Any use ofthis data fofanyotherpurpose is expressly forbidden wi thoutthe priorwritten
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//ww w .llettel'wllois.com/llw llois.cgi?, verifcation=764s&dolllaill=isoftllessllt-texascom


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http. .
EX H IBIT * $tt ,
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 74 of 74

includlng mining thls data foryourow n personaporcommercialpurposes.

Please note:the registrantofthe domain name isspecified


in the 'regi
strant''field. ln mostcases GoDaddy com 1nc
is notthe registrantofdomaln names Ilsted in this database.

Registrant
Stacy Jones
1544 Sawdust
Suite 270
TheW oodlands Texas 77380
United States

Registeredthrough'GoDaddyacom,Inc (http.
//www.godaddy.com)
Domai n Nam e.ISOFIT NESSOFTEXAS.CO M
Created on'14-Oct-05
Expires on:14-Oct-08
LastUpdated on.O5-C)ct-07
Adminiitrative Contact:
Jones,Stacy stacy@ magnetiks.com
1544 Sawdust
Suite 27O
The W oodlands,Texas 77380
United States
2813629855 Fax -
TechnicalContactz
Jones,Stacy stacy@ magnetikscom
1544 Sawdust
Suite 27O
TheW oodlands, Texas 77380
United States
2813629855 Fax --
Domai
n servefs in Iisted order:
NS.MAGNETIKS.CO M
NSZ.MAGNETIKS.CO M

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