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1 G regory Kelly -'.,'j .
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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
2p JU R ISDIC TIO N A ND V EN UE
28 2.Thiscourthasjurisdictionunder28U.S.C.j1338asthiscivilactionarisestmderan
ActofCongressrelatedtotrademarks.n iscourthasjurisdictionunder28 U.S.C.j1367
-
1-
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 .
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
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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.
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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 .
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 5 of 74
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.
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
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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.
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.
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
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 9 of 74
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:
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
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
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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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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
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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:
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ContactType 'Fecl>nical
Organization Name:
FirstName: Greqory
LastName: Kelly
Adöress 1: 11975 lzalrfax Rldge E;t.
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State / Province: NV
Postal/ 'IpCode: 89183
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NS5.SECURESERVER.NEr
updated-date: 2U00-1)4-03 11210:13.000
treated-date: 2001-0S-()2 07:10:18.000
registration-expiration-dale: 2009-05-02 07:10:17,000
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SUM M ERLIN
Tuesday Edltlon
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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.
hup'
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 16 of 74
''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.
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,
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
l,ull.//www.viewl,ews.com/zooa/vls,
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 17 of 74
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Date: Mon,09 May 2005 17:21:06 -0700
To: MarshaMornslsbcglobalm et
From : 'Bob Arexander''<bobaislcox,net>
Subject: Upclates
CC; Tsovegas@yahoo.com
Marsha,
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 .
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 .
Bob Alexander
IsoFitness Systems Internationa1
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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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nave beerlVCIr'ifl6!d
by rlLImel'oUS ClIl
3fCa!studiesa5 the mtlsteffectlve pessibse appl' oach to fitness. W e
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.
EXIIIBIT 9.
lsolltness l'age l()t l
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 26 of 74
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Make yourreservation
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Introductorysession. lnterrupting the session, ' ''
resultlng in a quietand
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Ifyou're tlred ofthe ''
hard body''environl
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Lucatior
): contactus todayl
(213aI))ç)i()l)s
isoFitness pl
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'ne these ()bstacles.
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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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om the USDA Human NutritlonResearchCenteron Aglng atTuftsUnr
versity
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
f-S-
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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person f!ndsthem seIVes Shaking forsevera1 '' ''k''âè '
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rn1rlutes.ltisa feeIirlg that is truly v
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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.
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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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.
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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
'
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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
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.
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.
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.
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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F'om : 'A1Cûppola'
'qlsofi
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 .
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irrespectiveofthefontorcolorstyle .
You can'tgetaround tradem arkssim ply by changing the colors or lbnts, although Bob m ay tell
)r()u S9.
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:
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 .
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.
In caseyotl're thinking offiling a preem ptive law suit, and m oving itto Texas , tllink again I have no
.
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
.
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.
Yahoo!Shopping
F'
ind GreatDealson Holiday GiftsatYahoo!Shoppipg
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 36 of 74
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Subject: Contractsdiscussed
Date: Sat,25Aug 2007 15:26:13 -0500
From : ''
AICoppola''KAl@ isofstnessooexas.colln>
To: 'ISOFITNESS'
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tllvahoo.col
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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!
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 37 of 74
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
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:
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
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.
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)()(
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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.
I122581-1:AI;(;M :
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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.
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 $4;
Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 45 of 74
Ifto Licensee:
Title: Title:
F,.
X I1I1$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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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
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.
Sincerely,
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
-
6-
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 49 of 74
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ISOFITNESS QF TEXAS lNC- pixplzzz
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17819 STUFBNER AlRt1NEROAD, SUITE i'
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NG, TEXAS 77379
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EightHundredand 00/109*ww*w.p-**A**wp- ..wvp.**w.#A...w*- ww**w*.Aww#p*w**w*hwp*.w**w*pp*wwww.ww**ww***w- w**k*A**wA# DOLLARS ; iî
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Greg Kellg 1
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 rf
yt'1('l r
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IL r'l,nt-close w lnuow
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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.
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
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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
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Iptlln://llsf320lnailvahoocoln/vm/qhnwlaetfetNhoxc
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 56 of 74
p
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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'
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Greg ,
Paul
- - - .. - 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 '
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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'l'
ltis AtgvclufzntAvith Fullktnd FinalRclcast (tht ''. '
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. 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.
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:
(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.
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$.187.
5-IA1:(91k1()()()! / v .' -''' ''' '
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 60 of 74
day ofthc 1)1011th.bcginnillg Fcbrtlary l.2008 Paylntm tsu'ilibc madc to thuordcrof'Grcg KeII)'orIlls
.
pal'llleflty$'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 $25. ()()fortxachdal'it('
kuuailïs unpald thcfcaftcr jfa gaynxkmtisnot
nhade on or bufore tlltttwenty-first (2l't) day of thc monti l iI1whicll it ls dtlca this Agreentcllt sllall
inuuedlatcl) bucomcntllland void andofno furthcrcffcct.
hrithotlt Iimiting tllc forcgoing.both parties and tllcir rcspcctivc Btlsi llcss Entitics and Rclatcd
Partiesagluxcnotto associatcorIink tllcirbtlsincssBrith tllc otllk:r-s busillcssb) ilsc()f-tllc otllcl
'busillcss's
name (Isoflitncss and Onc3oFitrlcssx as applicablc), ln anq' form of advertising or Intcrllutl site
(collectivcly,thck*links?')thc partl'crcatcsorutilizesaftcrtllc datc ofthisAgrcemcjlt. Ftlrthermorc. if
cilberpartq'discovcrsa iink bctAvccn its nanleand tbcothcrparty'snamcahcrthcdatcof'this Agrccnlttylt.
thediscovtlringpartywjllpromptl). '(a)lak'tt1111reasenablesttrpstohavethcIinkrcjllovtzd.ifitu' ascrkvatkx
,d
throtlgh thatl)a!-t)''suffbfts.and if'not.(b)notify thc otllcrpartl'ofits rcsponslbility to havc the Iink
rednovod. ' l''
he responslble party shall attcmpt to have thc 1Ink rclllovcd wltllin thirt) (3()) day'
s aftcr
discovel'
)'or noticc from thc othcr party. as thc casc npa) bc:provlded. /?(;I$'
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()
.
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
lk
--!j(7I-II1:1I-I- Ir-
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Case 2:08-cv-00537-RCJ-LRL Document 1 Filed 04/28/2008 Page 61 of 74
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)
$'Partics lna) nolh or
hcrcaftcrllavc againstany oftllttfAoppola Particsbasod on, arisillg outof.in conllcction urith orrclatil:g
to:.t1,3'oftllc Disputed Clainls. Nothing in thisparagraph sl 'allbt zconstrucd to appl3'to atlà ofthcM ofrks
Partics.
ll Kclly and Coppoia ktgrec thatoach of thcll: sltallbcarhis onn cxjlcnstts incurru:ti i11thc
ncgotiatioll.prcparation,cxcctllion andpcrfbl
npancc ofthisAglvcmcnt .
l:
5 'Fhis Agroclucntsltallbc govcrnod b)'and conslrtlo'd II1accordancc hs'ith tllc la'$'
$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
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'
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.ollpola '
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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'
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isovegas@yalooacom
March27,2008
Tom and M arsha M orri
s
One 30 Fitness
17819 StuebnerAirline Rd
Spring,TX 77379
DearTom and Marsha:
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
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
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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
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. .
Sincerely,
Gregory Kell
y
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.
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.
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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 --
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NS.MAGNETIKS.CO M
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