Exhibit 10.12

Execution Draft

PURCHASE AND SALE AGREEMENT

Among

ADVANCED AESTHETICS, LLC,
KLINGER ADVANCED AESTHETICS, INC.

And

GK ACQUISITION LLC

May 7, 2007

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TABLE OF CONTENTS

 

 

 

 

1.

Purchase and Sale of Equity Interests; Lease Assignment; Other Closing
Agreements

1

 

1.1.

Purchase and Sale of Equity Interests

1

 

1.2.

Assignment and Assumption of 501 Madison Leases

2

 

1.3.

Purchase and Sale of Purchased Assets

2

 

1.4.

Assumed Liabilities

2

 

1.5.

Purchase Price

2

 

1.6.

Payment of Purchase Price

3

 

1.7.

Delivery of Equity Interests and the Purchased Assets

3

 

1.8.

Transition Services Agreement

3

 

1.9.

Raspberry Red Assignment

3

 

1.10.

Cosmedicine Supply Agreement

3

 

1.11.

Non-Competition/Solicitation Agreements

3

 

1.12.

Non-Solicitation Agreement

3

 

1.13.

Assignment of Trademarks

3

 

1.14.

TrueYou Guaranty

3

 

1.15.

Excluded Liabilities

3

 

 

 

2.

Time and Place of the Closing

4

 

 

 

3.

Sellers Representations and Warranties

5

 

3.1.

Existence and Qualification

5

 

3.2.

Authority; Enforceability

5

 

3.3.

Capitalization

5

 

3.4.

Title to Equity Interests

5

 

3.5.

Consents and Approvals

5

 

3.6.

The Purchased Assets; Accounts Payable; Gift Card Liability

6

 

3.7.

Material Contracts

6

 

3.8.

Absence of Liabilities

8

 

3.9.

Absence of Certain Developments

8

 

3.10.

Real Property

10

 

3.11.

No Condemnation

10

 

3.12.

Absence of Questionable Payments

11

 

3.13.

Intellectual Property

11

 

3.14.

Title to Assets

14

 

3.15.

Employee Benefit Plans

14

 

3.16.

Labor

17

 

3.17.

Environmental Matters

18

 

3.18.

Bank Accounts

19

 

3.19.

Litigation

19

 

3.20.

Insurance

19

 

3.21.

Tax Matters

20

 

3.22.

Licenses; Permits

21

 

3.23.

Related Party Transactions

22

 

3.24.

Suppliers

22

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3.25.

Inventory

22

 

3.26.

Product Warranty

22

 

3.27.

Compliance with Applicable Laws

22

 

 

 

4.

Representations and Warranties by the Buyer

23

 

4.1.

Authority

23

 

4.2.

Enforceability

23

 

4.3.

Existence and Qualification

23

 

4.4.

Consents and Approvals

23

 

 

 

5.

Further Agreements of the Parties

24

 

5.1.

Conduct of Business

24

 

5.2.

Gift Certificate Matters

24

 

5.3.

Effective Date of Sale; True Up

24

 

5.4.

Post Closing Cooperation

24

 

 

 

6.

Closing Conditions

25

 

6.1.

Buyer’s Closing Conditions

25

 

6.2.

Sellers’ Closing Conditions

26

 

 

 

7.

Survival of Representations and Warranties

27

 

 

 

 

7.1.

Survival of Representations and Warranties of the Sellers

27

 

7.2.

Survival of Representations and Warranties of the Buyer

27

 

 

 

8.

Indemnification

27

 

8.1.

Obligation of the Sellers to Indemnify

27

 

8.2.

Obligation of the Buyer to Indemnify

27

 

8.3.

Notice and Opportunity To Defend

28

 

8.4.

Limitations on Indemnification by Sellers

28

 

8.5.

Limitation on Remedies

28

 

 

 

9.

Termination

29

 

9.1.

Termination

29

 

9.2.

Effect of Termination

29

 

 

 

10.

Miscellaneous

30

 

10.1.

Amendment and Modification

30

 

10.2.

Waiver of Compliance; Consents

30

 

10.3.

Notices

30

 

10.4.

Assignment

31

 

10.5.

Governing Law; Venue

31

 

10.6.

Counterparts

31

 

10.7.

Interpretation

31

 

10.8.

Entire Agreement

31

 

10.9.

Specific Performance

32

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EXHIBITS

 

 

Exhibit A

Purchased Assets

Exhibit A-1

Sellers’ security deposits

Exhibit B

Assumed Accounts Payable

Exhibit C

Assumed Gift Card Liability

Exhibit D

Other Liabilities

Exhibit E

Note

Exhibit F

Assignment and Assumption Agreement

Exhibit G

Bill of Sale

Exhibit H

Transition Services Agreement

Exhibit I

Red Raspberry Assignment

Exhibit J

Cosmedicine Supply Agreement

Exhibit K

Non-Competition/Solicitation Agreement

Exhibit L

Non-Solicitation Agreement

Exhibit M

Certain Employees

Exhibit N

Assignment of Trademarks

Exhibit O

Guaranty

SCHEDULES

 

 

Schedule 1.1

Equity Interests

Schedule 3.4

Liens

Schedule 3.5

Consents and Approvals

Schedule 3.6(a)

Matters relating to the Purchased Assets

Schedule 3.6(b)

Accounts Payable

Schedule 3.6(c)

Gift Certificate Liability

Schedule 3.7

Material Contracts

Schedule 3.8

Liabilities

Schedule 3.9

Absence of Certain Developments

Schedule 3.10

Leases

Schedule 3.13

Intellectual Property

Schedule 3.14

Personal Property

Schedule 3.15

Employee Benefit Plans

Schedule 3.16

Labor Matters

Schedule 3.19

Legal Proceedings

Schedule 3.20

Insurance

Schedule 3.21

Tax Matters

Schedule 3.22

Licenses; Permits

Schedule 3.23

Related Party Transactions

Schedule 3.24

Suppliers

Schedule 3.25

Inventory

Schedule 5.5

Sellers Post Closing Payables

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PURCHASE AND SALE AGREEMENT

          THIS PURCHASE AND SALE AGREEMENT made this 7th day of May, 2007 among
ADVANCED AESTHETICS, LLC, a Delaware limited liability company (“AA”), KLINGER
ADVANCED AESTHETICS, INC., a Delaware corporation (“KAA”) and GK ACQUISITION
LLC, a Delaware limited liability company (“Buyer”).

WITNESSETH:

          WHEREAS, AA and KAA are subsidiaries of TrueYou.Com Inc. (“TrueYou”),
a public company whose shares of common stock are traded in the Pink Sheets and
which files Current, Quarterly and Annual Reports with the Securities and
Exchange Commission (“SEC”);

          WHEREAS, the business activities of TrueYou and its subsidiaries are
described in detail in TrueYou’s filings with the SEC, including, but not
limited to, its Annual Report on Form 10-K for the fiscal year ended July 1,
2006 and Quarterly Report on Form 10-Q for the fiscal quarter ended September
30, 2006 (collectively “SEC Filings”);

          WHEREAS, the subsidiaries of AA set forth in Schedule 1.1 hereto (the
“Subsidiaries”) hold leases for and operate spa/salons in various locations in
the U.S. under the “Georgette Klinger” name, the “Advanced Aesthetics” name and
variations thereof;

          WHEREAS, KAA holds leases for and operates a store/salon (with office
facilities) located at 501 Madison Avenue, New York, New York (“NY Premises”);

          WHEREAS, the parties desire that the spa/salon business conducted by
the Subsidiaries and at the NY Premises and including all inventory, furniture,
fixtures, owned computer equipment and software, customer contracts and files,
equipment, supplies, various intellectual property (including all of the
Subsidiaries and affiliates rights relating to the name “Georgette Klinger”) and
other assets in the premises of the Subsidiaries and at the NY Premises (all of
the foregoing business and assets collectively the “Business”) be sold and
transferred by AA (“Seller”) and KAA (“Assignor”, and with Seller the “Sellers”)
to the Buyer; and

          WHEREAS, the parties have agreed that the sale of the Business to
Buyer shall be effective as of 12:01 a.m. on April 1, 2007 (“Effective Date of
Sale”) and that all profit/loss and other benefits, rights and obligations of
the parties shall be allocated between the Buyer on the one hand and Seller and
Assignor on the other hand as of the Effective Date of Sale.

          NOW THEREFORE, the parties agree as follows:

          1. Purchase and Sale of Equity Interests; Lease Assignment; Other
Closing Agreements.

                    1.1. Purchase and Sale of Equity Interests. At the closing
provided for in Section 2 below (“Closing”), AA will sell and Buyer will
purchase, all of the equity interests of the Subsidiaries set forth on Schedule
1.1 hereto (collectively “Equity Interests”).

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                    1.2. Assignment and Assumption of 501 Madison Leases. At the
Closing, KAA will assign to Buyer which will assume, all of the leases for the
NY Premises (the “501 Madison Leases”).

                    1.3. Purchase and Sale of Purchased Assets. At the Closing,
KAA will sell to Buyer and Buyer will purchase, all of the furniture, fixtures,
supplies, inventory and similar items contained in the premises described in the
501 Madison Leases as described in Exhibit A hereto and the contracts described
in Exhibit A hereto (the “Purchased Assets”). For purposes of this Agreement,
the term “contract” shall mean any contract, agreement, understanding,
indenture, note, bond, mortgage, loan, instrument, lease, license, commitment,
security agreement, guarantee, charter, franchise, power of attorney, agency or
other arrangement, understanding, undertaking, commitment or obligation, whether
written or oral. For the avoidance of doubt, the Purchased Assets shall not
include any security deposits or tenant allowances relating to the Business, a
schedule of which as of December 30, 2006 is included as Exhibit A-1 hereto and
the parties shall take appropriate action to insure that Sellers receive payment
for such security deposits and tenant allowances.

                    1.4. Assumed Liabilities. Upon and subject to the terms and
conditions of this Agreement, at the Closing the Purchaser shall assume and
agree to pay, perform and discharge only the following obligations (the “Assumed
Liabilities”) of KAA and AA existing as of the Closing:

                    (a) Accounts Payable. The assumption by Buyer of $1,450,000
accounts payable relating to the Business which are set forth in Exhibit B
hereto (the “Assumed Accounts Payable”).

                    (b) Gift Card Liability. The assumption by Buyer of the gift
certificate liability of the Business as set forth in Exhibit C hereto (the
“Assumed Gift Card Liability”).

                    (c) Contracts. All liabilities and obligations of the
Sellers arising under the terms of the contracts assigned under Section 1.3 and
only to the extent such liabilities and obligations arise or relate to periods
after the Closing Date.

                    (d) Lease Obligations. All obligations of the Assignor under
the 501 Madison Avenue Leases.

                    (e) Other Existing Liabilities. The liabilities and
obligations of the Sellers set forth on Exhibit D.

                    (f) EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT, BUYER IS NOT ASSUMING, NOR SHALL IT IN ANY MANNER BECOME LIABLE FOR,
ANY OTHER LIABILITIES OR OBLIGATIONS OF ANY KIND OR NATURE WHATSOEVER OF KAA OR
AA.

                    1.5. Purchase Price. The purchase price for the Equity
Interests, the assignment of the 501 Madison Leases and the Purchased Assets
shall be (a) the $150,000 Note as provided in Section 1.4 below and (b) the
assumption of the Assumed Liabilities.

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                    1.6. Payment of Purchase Price. At the Closing, Buyer shall
(i) issue to Seller the $150,000 Note annexed as Exhibit E hereto and (ii)
execute and deliver the Assignment and Assumption Agreement annexed as Exhibit F
pursuant to which Buyer will assume the Assumed Liabilities.

                    1.7. Delivery of Equity Interests and the Purchased Assets.
At the Closing, AA shall deliver certificates representing the Equity Interests
set forth on Schedule 1.1, duly endorsed in blank or accompanied by stock powers
duly executed in blank, in proper form for transfer, free and clear of any
claim, lien charge, equity, restriction or right on any of the assets or
properties of Sellers or any of their Subsidiaries or any other encumbrance
(“Lien”) and the Bill of Sale for the Purchased Assets annexed as Exhibit G.

                    1.8. Transition Services Agreement. At the Closing, the
parties will execute and deliver the Transition Services Agreement annexed as
Exhibit H pursuant to which KAA will provide accounting and other services to
Buyer as set forth therein.

                    1.9. Raspberry Red Assignment. At the Closing, the Buyer
will assume the obligations of Assignor under the agreement dated August 31,
2006 with Raspberry Red Marketing LLC pursuant to which KAA and the Subsidiaries
store inventory and Red Raspberry distributes salon inventory, supplies and
related materials and Red Raspberry provides other services and will execute and
deliver the Raspberry Red Assignment annexed as Exhibit I.

                    1.10. Cosmedicine Supply Agreement. At the Closing, the
parties will execute and deliver the Cosmedicine Supply Agreement annexed as
Exhibit J (the “Cosmedicine Supply Agreement”) pursuant to which the Sellers or
an affiliate thereof will supply certain products branded under the Cosmedicine
name to Buyer for use in the Business.

                    1.11. Non-Competition/Solicitation Agreements. At the
Closing, the Seller will execute and deliver the Non-Competition/Solicitation
Agreement annexed as Exhibit K.

                    1.12. Non-Solicitation Agreement. At the Closing, the Seller
will cause to be delivered to Buyer, the Non-Solicitation Agreement annexed as
Exhibit L from those employees set forth in Exhibit M.

                    1.13. Assignment of Trademarks. At the Closing, the Sellers
will execute and deliver to Buyer the Assignment of Trademarks annexed as
Exhibit N.

                    1.14. TrueYou Guaranty. At the Closing, TrueYou will execute
and deliver to Buyer the Guaranty annexed as Exhibit O.

                    1.15. Excluded Liabilities. Notwithstanding anything in this
Agreement to the contrary, Buyer does not assume (or intend to assume) and will
not become responsible for any liability of Sellers except for the Assumed
Liabilities (all such unassumed liabilities hereinafter referred to as the
“Excluded Liabilities”) and Sellers shall remain and be solely and exclusively
jointly and severally liable for such liabilities, obligations and duties. In
addition, Buyer will not assume (or intend to assume) and will not become
responsible for certain liabilities of the Subsidiaries set forth below in this
Section 1.15 which Sellers have agreed to retain and Sellers shall remain liable
for such liabilities, obligations and duties. Without limiting the generality of

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the foregoing, the following are included among the liabilities of the Sellers
and the Subsidiaries that the Buyer does not expressly or impliedly assume or
become responsible for:

                    (a) Pre-Closing Liability. All liabilities of the Sellers
relating to any event, circumstance or condition existing prior to the Closing
(other than those expressly assumed pursuant to Section 1.4). For the avoidance
of doubt, except as may be expressly assumed pursuant to Section 1.4(a), Buyer
shall not assume or be responsible for any pre-closing obligations of Sellers
under any of the Real Estate Leases set forth on Exhibit 3.10.

                    (b) Taxes. (i) Any liability of Sellers or the Subsidiaries
for any and all taxes, charges, fees, levies or other assessment any interest,
whether paid or received, fines, penalties or additional amounts attributable
to, or imposed upon, or with respect to, any such taxes, charges, fees, levies
or other assessments (individually a “tax”, collectively “taxes”) allocable to
tax periods prior to the Closing and (ii) all liabilities and obligations of the
Sellers or the Subsidiaries for any taxes due or becoming due by reason of (A)
the conduct of the Business prior to the Closing, including any taxes that may
become due as a result of any examination of the Seller’s taxes by any taxing
authority; (B) the ownership, possession, use, operation, purchase, acquisition,
sale or disposition, of the Purchased Assets prior to the Closing.

                    (c) Claims. All liabilities of the Sellers or the
Subsidiaries with respect to any pending, threatened or unasserted litigation,
or any claim or liability arising from or attributable to the Sellers or the
Subsidiaries or their respective businesses prior to the Closing, including but
not limited to those set forth on Schedule 3.19 (other than those expressly
assumed pursuant to Section 1.4).

                    (d) Beverly Hills Lease. All liabilities of the Sellers or
the Subsidiaries with respect to the former lease of the Beverly Hills premises
more fully described in Schedule 3.10, including but not limited to any pending,
threatened or unasserted litigation, or any claim or liability relating thereto.

                    (e) Employees. All liabilities arising out of the employment
relationship (or termination thereof prior to the Closing Date) between the
Sellers or the Subsidiaries and any of their respective employees or former
employees, directors, members or independent contractors, existing at any time,
before the Closing Date (except for accrued vacation other than any obligation
to compensate employees in cash for accrued vacation time). For the sake of
clarity, any obligations and liabilities related to employment agreements
accrued and/or payable before the Closing Date (including bonuses and
extra-salaries compensation) and any obligations and liabilities accrued or
existing before the Closing Date related to the establishment, administration
and maintenance of any Employee Benefit Plans are Excluded Liabilities.

                    (f) Accounts Payable. Any accounts payable other than the
Assumed Accounts Payable.

                    (g) Retained Assets. All liabilities relating to or arising
out of assets of the Sellers other than the Purchased Assets.

          2. Time and Place of the Closing. The closing of the transactions
contemplated herein (the “Closing”) shall take place at 9:30 a.m. at the offices
of Troutman Sanders, LLP, 405

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Lexington Avenue, New York, New York 10174 on May 7, 2007 unless otherwise
agreed by the parties. The time and date upon which Closing occurs is herein
referred to as the “Closing Date.”

          3. Sellers Representations and Warranties. Each of the Seller and
Assignor (hereinafter collectively “Sellers”) jointly and severally hereby
represent and warrant to the Buyer that:

                    3.1. Existence and Qualification. Each of the Sellers and
the Subsidiaries is an entity duly organized, validly existing and in good
standing under the statutes, laws, codes, ordinances, regulations, rules,
orders, judgments, writs, injunctions, acts or decrees (the “Laws”) of its
jurisdiction of organization, with full power and authority to conduct its
business and to own or lease and operate its assets and properties as conducted
and operated. Each of the Sellers and the Subsidiaries is duly qualified to
conduct business as a foreign corporation and is in good standing in each other
jurisdiction in which it is required to be qualified under the Laws of such
jurisdiction.

                    3.2. Authority; Enforceability. The Sellers have the power
and authority to enter into, execute and deliver this Agreement and each of the
other documents being executed by Sellers in connection with this Agreement (
the“Sellers’ Ancillary Documents”) and to perform their obligations hereunder
and thereunder. The execution, delivery and performance by the Sellers of this
Agreement and Sellers’ Ancillary Documents have been authorized by all necessary
action on behalf of the Sellers. This Agreement and the Sellers’ Ancillary
Documents, have been duly executed and delivered by Sellers and each such
document is the valid and binding obligation of the Sellers enforceable against
them in accordance with their terms.

                    3.3. Capitalization. The authorized and outstanding equity
interests of each of the Subsidiaries as of the date hereof are as set forth on
Schedule 1.1. All of the Equity Interests are duly authorized, validly issued,
fully paid and nonassessable. No equity interests of any of the Subsidiaries are
reserved for issuance, and there are no agreements, commitments or arrangements
providing for the issuance or sale of any capital stock or other equity
interests of any of the Subsidiaries or any issued or outstanding options,
warrants or rights to purchase, or any security or instrument convertible into
or exchangeable for, any equity interests of any of the Subsidiaries. At the
Closing and immediately thereafter, 100% of the outstanding shares of the
capital stock of the Subsidiaries will be held by the Buyer.

                    3.4. Title to Equity Interests. AA has good title to all of
the Equity Interests that it purports to own, free and clear of any Lien except
as set forth in Schedule 3.4. All such Equity Interests are duly authorized and
are validly issued, fully paid and nonassessable. There is no outstanding right,
subscription, warrant, call, preemptive right, option or other agreement of any
kind to purchase or otherwise to receive from any of the Sellers or the
Subsidiaries any shares of the capital stock or any other security of, or any
proprietary interest in, any of the Subsidiaries, and there is no outstanding
security of any kind convertible into such capital stock or proprietary
interest.

                    3.5. Consents and Approvals. The execution, performance and
delivery by the Sellers of this Agreement and each of the Sellers’ Ancillary
Documents and the consummation

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by the Sellers of the transactions contemplated hereby and thereby will not,
except as set forth on Schedule 3.5: (a) conflict with or breach any provision
of the Certificate or Articles of Incorporation or By-laws or comparable
governing documents of any of the Sellers or the Subsidiaries; (b) require any
of the Sellers or the Subsidiaries to make any filing or registration with, or
obtain any other permit, authorization, consent or approval of, any governmental
or regulatory authority; (c) conflict with, violate or breach any provision of,
or constitute a default (or an event which, with notice or lapse of time or
both, would constitute a default) under, or result in a material modification
of, any of the terms, covenants, conditions or provisions of, or give rise to a
right to terminate or accelerate or increase the amount of payment due under,
any note, bond, mortgage, indenture, deed of trust, license, franchise, permit,
lease, contract, agreement, or other instrument, commitment or obligation to
which any of the Sellers or the Subsidiaries is a party, or by which any of them
or any of their respective properties or assets may be bound; (d) result in the
creation of any Lien on any of the properties or assets of any of the Sellers or
the Subsidiaries; (e) violate any order, injunction, judgment, decree, ruling,
writ, assessment or arbitration award of a governmental authority (an “Order”)
applicable to any of the Sellers or the Subsidiaries or any of their assets or
the Business.

                    3.6. The Purchased Assets; Accounts Payable; Gift Card
Liability.

                    (a) Except as set forth in Schedule 3.6(a), the Equity
Interests, the 501 Madison Interests and the Purchased Assets constitute all of
the rights, properties and assets (real, personal, mixed, tangible or
intangible) which are sufficient for the conduct of the Business as conducted
immediately prior to the Closing. No third party (including any affiliate of any
of the Sellers other than any of the Subsidiaries) owns or has any interest by
lease, license or otherwise in the Equity Interests, the 501 Madison Leases or
the Purchased Assets. The documents of transfer to be executed and delivered by
the Sellers at the Closing will be sufficient to convey good and marketable
title to the Equity Interests, the 501 Madison Leases and the Purchased Assets
to the Buyer, free and clear of all Liens except as set forth on Schedule
3.6(a).

                    (b) Schedule 3.6(b) contains a true, correct and complete
list of all accounts payable of the Business as of April 18, 2007, which list
sets forth the aging of such accounts payable.

                    (c) Schedule 3.6(c) contains a true, correct and complete
list of all gift certificate liability of the Business as of December 30, 2006
and March 30, 2007. Schedule 3.6(c) also contains a true, correct and complete
aggregate total by store location of all gift certificate redemptions for the
period beginning April 1, 2006 and ending March 30, 2007. Except as set forth on
Schedule 3.6(c), to the Knowledge of the Sellers or the Subsidiaries, there are
no outstanding gift certificates issued by Sellers or any of the Subsidiaries
pertaining to the Business that have yet to be redeemed.

                    3.7. Material Contracts.

                    (a) Schedule 3.7 sets forth a complete list of all Material
Contracts (as defined below) pertaining to the Business. The term “Material
Contracts” includes the following:

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          (i) any contract that provides for aggregate future payments after
April 1, 2007 of more than $25,000 by any of the Sellers pertaining to the
Business or by any of the Subsidiaries;

 

 

 

          (ii) any contract with any current or former officer, director,
partner, member, manager, stockholder or any affiliate of any of the Sellers
pertaining to the Business or of any of the Subsidiaries;

 

 

 

          (iii) any contract that was entered into other than in the ordinary
course of business pertaining to the Business or any of the Subsidiaries;

 

 

 

          (iv) any contract pertaining to the Business or any of the
Subsidiaries for joint ventures, strategic alliances, partnerships, licensing
arrangements or sharing of profits or proprietary information;

 

 

 

          (v) any contract pertaining to the Business or any of the Subsidiaries
containing covenants not to compete in any line of business or with any
individual, partnership, corporation, limited liability company, joint stock
company, unincorporated organization or association, trust or joint venture, or
a governmental agency or political subdivision thereof (a “Person”) in any
geographical area or not to solicit or hire any individual with respect to
employment or covenants of any other Person not to compete with regards to the
Business or any of the Subsidiaries;

 

 

 

          (vi) any contract pertaining to the Business or of the Subsidiaries
relating to the acquisition (by merger, purchase of stock or assets or
otherwise) of any operating business or material assets or the capital stock or
other equity interests of any Person;

 

 

 

          (vii) any contract pertaining to the Business or of the Subsidiaries
that guarantees or indemnifies or otherwise causes any of the Subsidiaries to be
liable for the obligations or liabilities of another, including indentures,
guarantees, loan or credit agreements, purchase money obligations incurred in
connection with the acquisition of property, pledge agreements and security
agreements;

 

 

 

          (viii) any contract pertaining to the Business or of the Subsidiaries
providing for severance, retention, change in control or other similar payments;

 

 

 

          (ix) any contract pertaining to the Business or of the Subsidiaries
for the employment of any individual on a full-time, part-time or consulting or
other business;

 

 

 

          (x) Contracts pertaining to the Business or of the Subsidiaries
providing for indemnification by the Subsidiaries arising out of or in
connection with any product or service offering in the Business (the “Business
Products”);

 

 

 

          (xi) any contract pertaining to the Business or of the Subsidiaries
that involves the borrowing or lending of money;

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          (xii) any contract pertaining to the Business or of the Subsidiaries
that contains any warranty terms in connection with the sale of Business
Products; or

 

 

 

          (xiii) Contracts pertaining to the Business or of the Subsidiaries
that are otherwise material to the Subsidiaries.

                    (b) Each of the Material Contracts is in full force and
effect and is the legal, valid and binding obligation of the executing Seller or
Subsidiary, enforceable against them in accordance with its terms. Except as set
forth in Schedule 3.7, none of the Sellers or the Subsidiaries is in material
default under any Material Contract, nor, to the Knowledge of the Sellers or the
Subsidiaries, is any other party to any Material Contract in material default
thereunder, and no event has occurred that with the lapse of time or the giving
of notice or both would constitute a material default thereunder. Except as set
forth in Schedule 3.7, 3.10 or 3.19, no party to any of the Material Contracts
has exercised any termination rights with respect thereto, and no party has
given notice of any significant dispute with respect to any Material Contract.
The Sellers have delivered to the Buyer prior to the Closing true, correct and
complete copies of all of the Material Contracts, together with all amendments,
modifications or supplements thereto. For purposes of this Agreement, the term
“Knowledge” shall mean the actual knowledge of the Person (including the actual
knowledge of their officers and directors) or that knowledge which could have
been acquired by the Person after making such due inquiry and exercising such
due diligence as a prudent businessperson would have made or exercised in the
management of its business affairs, including due inquiry of the officers,
directors or management employees who could have reasonably be expected to have
knowledge of the matters in question.

                    3.8. Absence of Liabilities. Except as set forth on Schedule
3.8 or in this Agreement or in any of the Schedules or Exhibits hereto, or as
expressly set forth as exceptions to other representations or warranties in this
Agreement, neither the Business nor any Subsidiary has any liabilities,
including but not limited to any debt, loss, damage, adverse claim, liability or
obligation (whether direct or indirect, known or unknown, asserted or
unasserted, absolute or contingent, accrued or unaccrued, liquidated or
unliquidated, or due or to become due, and whether in contract, tort, strict
liability or otherwise).

                    3.9. Absence of Certain Developments. Except as expressly
contemplated by this Agreement or as set forth in the SEC Filings or on Schedule
3.9, since September 30, 2006 (i) the Sellers and the Subsidiaries have
conducted the Business only in the ordinary course of the Business and (ii)
there has not been any event, change, occurrence or circumstances that has had
or could reasonably be expected to have a Material Adverse Effect. For purposes
of this Agreement, the term “Material Adverse Effect” shall mean a change,
effect, event, occurrence or circumstance that is materially adverse to (i) the
business, assets, properties, results of operations, management, condition
(financial or otherwise) or prospects of the Sellers and the Subsidiaries, taken
as a whole, or (ii) the ability of the Sellers or the Subsidiaries to consummate
the transactions contemplated by this Agreement or to perform their respective
obligations under this Agreement or the other documents contemplated hereby.
Without limiting the generality of the foregoing, except as expressly
contemplated by this Agreement, since September 30, 2006:

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                    (a) there has not been any material damage, destruction or
loss, whether or not covered by insurance, with respect to the property and
assets of the Sellers used in the operations of the Business or the property and
assets of the Subsidiaries or the waiver of any right of material value;

                    (b) there has not been any declaration, setting aside or
payment of any dividend or other distribution in respect of any shares of
capital stock or other equity interests of the Subsidiaries, or any repurchase,
redemption or other acquisition by the Subsidiaries of any outstanding shares of
capital stock or other securities of, or other equity interest in, the
Subsidiaries;

                    (c) except in the ordinary course of business, neither any
of the Sellers with respect to the Business nor any of the Subsidiaries have
entered into any employment, deferred compensation, severance or similar
agreement (nor amended any such agreement) or agreed to increase the
compensation payable or to become payable by it to any of the directors,
officers, partners, members, managers, employees, agents or representatives of
the Sellers engaged in the Business or of the Subsidiaries or agreed to increase
the coverage or benefits available under any severance pay, termination pay,
vacation pay, company awards, salary continuation or disability, sick leave,
deferred compensation, bonus o r other incentive compensation, insurance,
pension or other employee benefit plan, payment or arrangement made to, for or
with such officers, employees, agents or representatives;

                    (d) none of the Sellers with regards to the Business or any
of the Subsidiaries has made or rescinded any election relating to taxes or
settled or compromised any claim relating to taxes;

                    (e) none of the Sellers with regards to the Business or any
of the Subsidiaries have entered into any transaction or agreement, or sold,
leased or otherwise transferred any assets, or incurred any liabilities, other
than in the ordinary course;

                    (f) none of the Sellers with regards to the Business or any
of the Subsidiaries have made any loans, advances or capital contributions to,
or investments in, any Person other than any of the Sellers or the Subsidiaries;

                    (g) none of the Sellers with respect to the Business or the
Subsidiaries have made or committed to make any capital expenditures or capital
additions in excess of $500,000 in the aggregate;

                    (h) none of the Sellers with respect to the Business or the
Subsidiaries have granted any license or sublicense of any rights under or with
respect to any Intellectual Property (as hereinafter defined) except in the
ordinary course in connection with the non-exclusive license of the Business
Products;

                    (i) no act, omission, event or other occurrence has resulted
in any Material Adverse Effect;

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                    (j) none of the Sellers with respect to the Business nor any
of the Subsidiaries have made any change in the accounting methods or practices
it follows, whether for general financial or tax purposes or otherwise;

                    (k) none of the Sellers or any of the Subsidiaries has
materially modified or terminated any Material Contract;

                    (l) none of the Sellers with regards to the Business or any
of the Subsidiaries has suffered any labor dispute, strike or other work
stoppage; and

                    (m) none of the Sellers or any of the Subsidiaries has
agreed, committed, arranged or entered into any understanding to do anything set
forth in this Section .

                    3.10. Real Property.

                    (a) Schedule 3.10 contains a true, correct and complete list
of all the leases, subleases, licenses and other agreements for any real
property utilized by the Sellers in the Business or any Subsidiary (the
“Leases”). The Sellers do not own any real property in its conduct of the
Business. No Subsidiary owns any real property.

                    (b) The Sellers or the Subsidiaries have good and marketable
leasehold title to the Leases executed by them, which Leases are free and clear
of all Liens due to the acts or omission of the tenant other than those set
forth in Schedule 3.10. The Leases constitute all interests in real property
currently used, occupied or held for use in connection with the Business. The
Sellers have delivered to the Buyer true, correct and complete copies of the
Leases, together with all amendments, modifications or supplements, if any,
thereto. Each of the Leases is in full force and effect. That certain Addendum
#2 to the Lease between MDN Wharfside, Ltd. (by assignment from Wharfside
Holding, Inc.), as landlord, and Fore’le Ltd., Inc., as tenant is in full force
and effect. The commencement date for the lease dated September 14, 2005 between
the Chevy Chase Land company of Montgomery County, Maryland and Advanced K, LLC
is April 1, 2006, and the expiration date for such lease is *April 30, 2021.

                    (c) Except as set forth in Schedule 3.10, neither Assignor
nor the Subsidiaries are in default under any of the Leases, and no event has
occurred and no circumstance exists which, if not remedied, and whether with or
without notice or the passage of time or both, would result in such a default.

                    (d) Except as set forth on Schedule 3.10, all plants,
structures and buildings of the Business are in good operating condition, are
free of structural or other defects that could interfere with the conduct of the
normal operations of such facilities and are suitable for the purposes for which
they are currently being used. The Business complies in all material respects
with each building, zoning, anti-pollution, health, occupational safety or other
Law in respect of its plants, structures and equipment and their operations.

                    3.11. No Condemnation. To the Knowledge of Sellers, neither
the whole nor any portion of the premises of the Leases is subject to any
governmental decree or Order to be

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sold nor have any proceedings for the condemnation, expropriation or other
taking of all or any portion of the premises of the Leases been instituted or,
to the Knowledge of the Sellers or the Subsidiaries, threatened by any
governmental authority, with or without payment therefore.

                    3.12. Absence of Questionable Payments. Neither the Sellers,
the Subsidiaries nor any affiliate, director, officer, manager, member, partner,
employee, agent, representative or other Person acting on behalf of the Sellers
or the Subsidiaries has (i) used any funds for unlawful contributions, payments,
gifts or entertainment, or made any unlawful expenditures relating to political
activities of government officials or others, or (ii) accepted or received any
unlawful contributions, payments, gifts or expenditures.

                    3.13. Intellectual Property.

                    (a) Schedule 3.13 sets forth an accurate and complete list
of all Intellectual Property owned or used in the Business or by the
Subsidiaries that have been registered in any jurisdiction, or for which an
application to register the rights in such Intellectual Property has been filed
in any jurisdiction. Schedule 3.13 lists the jurisdictions in which each such
item of Intellectual Property has been issued or registered or in which any such
application for such issuance and registration has been filed, and the name of
the owner of each such registration or application. For purposes of this
Agreement, the term “Intellectual Property” means (i) the trademarks, service
marks, rights to use Internet domain names and other intangibles of a like
nature set forth on Schedule 3.13 hereto, together with the goodwill associated
with any of the foregoing, and all applications, registrations and renewals
thereof (ii) the Software (as defined hereinafter) set forth on Schedule 3.13
hereto and (iii) any Trade Secrets (as defined hereinafter) associated with the
Business other than as scheduled on Schedule 3.13 hereto.

                    (b) Except as disclosed in Schedule 3.13, the Subsidiaries
are the sole and exclusive owners of, or have valid and continuing rights to
use, sell and license, as the case may be, all of the Intellectual Property,
free and clear of all Liens or obligations to others.

                    (c) Neither (i) the Intellectual Property owned, used,
practiced or otherwise commercially exploited by any of the Sellers with regard
to the Business or by any of the Subsidiaries, (ii) the development,
manufacturing, licensing, marketing, importation, offer for sale, sale or use of
any Business Products in connection with the Business as presently conducted nor
(iii) the present and currently proposed business practices and methods of the
Sellers pertaining to the Business or the Subsidiaries infringe, violate or
constitute an unauthorized use or misappropriation of any patent, copyright,
trademark, trade secret or other similar right, or any contractual right, of any
Person (including pursuant to any non-disclosure agreements or obligations to
which any of the Sellers or the Subsidiaries or any of the present or former
employees of any of the Sellers or the Subsidiaries is a party), and further
including any obligations that may exist with respect to any Software licensed
by any of the sellers or any of the Subsidiaries under any open source license.

                    (d) Except with respect to licenses of generally available,
commercial, off-the-shelf Software licensed pursuant to standardized end-user or
enterprise licenses for Software in object code format available for a license
fee of no more than $5,000, and except pursuant to the Intellectual Property
Licenses listed in Schedule 3.13, none of the Sellers with regards to

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Software used in the Business or by the Subsidiaries is required, obligated, or
under any liability whatsoever, to make any payments or provide any other
consideration of any kind, to any owner of, licensor of, or other claimant to
any Intellectual Property, or to any other Person. For purposes of this
Agreement, the term “Intellectual Property Licenses” (i) any grant to a third
Person of any right to use any of the Intellectual Property, and (ii) any grant
to the Seller or any of the Subsidiaries of a right to use a third Person’s
intellectual property rights. The term “Software” means any and all (i) computer
programs, including any and all software implementations of algorithms, models
and methodologies, whether in source code or object code, (ii) databases and
compilations, including any and all data and collections of data, whether
machine readable or otherwise, (iii) descriptions, flow-charts and other work
product used to design, plan, organize and develop any of the foregoing,
screens, user interfaces, report formats, firmware, development tools,
templates, menus, buttons and icons, and (iv) all documentation including user
manuals and other training documentation related to any of the foregoing.

                    (e) Schedule 3.13 sets forth a complete and accurate list of
all contracts to which any of the Sellers or the Subsidiaries are a party (other
than non-exclusive licenses entered into in the ordinary course in connection
with the sale of Business Products and licenses of generally available,
commercial, off-the-shelf Software licensed to the Sellers or the Subsidiaries
pursuant to standardized end-user or enterprise licenses for Software in object
code format available for a license fee of no more than $5,000) that (i) grant
any Intellectual Property Licenses to or from the Sellers with regards to the
Business or any of the Subsidiaries, (ii) contain a covenant not to compete or
otherwise limit the ability of the Business or the Subsidiaries to use or
exploit fully any of the Intellectual Property, or (iii) contain an agreement by
any of the Sellers or the Subsidiaries to indemnify any other Person against any
claim of infringement of, violation, misappropriation or unauthorized use of any
Intellectual Property. The Sellers and the Subsidiaries have delivered to the
Buyer true, correct and complete copies of each such contract set forth on
Schedule 3.13, together with all amendments, modifications or supplements
thereto.

                    (f) Each of the Intellectual Property Licenses is in full
force and effect and is the legal, valid and binding obligation of one or more
of the Sellers and the Subsidiaries and the counterparties to such Intellectual
Property Licenses. None of the Sellers or the Subsidiaries is in default under
any Intellectual Property License, nor, to the Knowledge of any of the Sellers
or the Subsidiaries, is any other party to any Intellectual Property License in
default thereunder, and no event has occurred that, with the lapse of time or
the giving of notice, or both, would constitute a default thereunder. No party
to any of the Intellectual Property Licenses has exercised any termination
rights with respect thereto.

                    (g) Except in the ordinary course of conducting business, no
Trade Secret or any other non-public, proprietary information material to the
Business or the Subsidiaries as presently conducted or as presently proposed to
be conducted has been authorized to be disclosed or has been actually disclosed
to any Person other than pursuant to a written non-disclosure agreement with one
or more of the Sellers or the Subsidiaries that includes appropriate
restrictions on the disclosure and use of such information designed to preserve
such information’s status as confidential or as a Trade Secret. The Sellers and
the Subsidiaries have taken commercially reasonable security measures to protect
the secrecy, confidentiality and value of all such Trade Secrets and non-public,
proprietary information, including invention

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disclosures, of the Sellers and the Subsidiaries. Each employee, consultant and
independent contractor of the Sellers and the Subsidiaries who has or has had
access to proprietary information relating to the Business has entered into a
written non-disclosure and invention assignment agreement with any Seller or
Subsidiary in a form set forth in Schedule 3.13. For purposes of this agreement,
the term “Trade Secret” refers to any discoveries, concepts, ideas, research and
development, know-how, formulae, inventions, compositions, technical data,
procedures, designs, drawings, specifications, databases, and other proprietary
and confidential information, including customer lists, supplier lists, pricing
and cost information, and business and marketing plans and proposals of the
Sellers pertaining to the Business or of the Subsidiaries, in each case
excluding any rights in respect of any of the foregoing that comprise or are
protected by service marks.

                    (h) None of the Sellers or the Subsidiaries is the subject
of any pending or, to the Knowledge of the Sellers or the Subsidiaries,
threatened proceedings which involve a claim of infringement, misappropriation,
unauthorized use or violation of any intellectual property rights or contractual
rights of any Person, or challenging the ownership, use, validity or
enforceability by any of the Sellers or the Subsidiaries of any Intellectual
Property. None of the Sellers or the Subsidiaries have received notice of any
such threatened claim and to the Knowledge of the Sellers or the Subsidiaries
there are no facts or circumstances that would form the basis for any claim of
infringement, unauthorized use, misappropriation or violation of any
intellectual property rights or contractual rights of any person against any of
the Sellers or the Subsidiaries or challenging the ownership, use, validity or
enforceability of any Intellectual Property. All of the rights in and to
Intellectual Property of any of the Sellers or the Subsidiaries are valid and
enforceable.

                    (i) To Seller’s Knowledge, no Person is infringing,
violating, misusing or misappropriating any Intellectual Property. No claims of
such infringements, violations, misuse or misappropriations have been made
against any Person by any of the Sellers or the Subsidiaries.

                    (j) The consummation of the transactions contemplated hereby
will not result in the loss or impairment of the use in the Business of any of
the Intellectual Property. Except as set forth on Schedule 3.13, no consent of
any licensor or other Person is required in order to transfer to Buyer any
license or other rights of any of the Sellers or the Subsidiaries to the
Intellectual Property.

                    (k) No present or former employee of any of the Sellers or
the Subsidiaries has any right, title, or interest, directly or indirectly, in
whole or in part, in any Intellectual Property. To the Knowledge of any of the
Sellers or the Subsidiaries, no employee, consultant or independent contractor
of any of the Sellers or the Subsidiaries is, as a result of or in the course of
such employee’s, consultant’s or independent contractor’s engagement by any of
the Sellers or the Subsidiaries, in default or breach of any material term of
any employment agreement, non-disclosure agreement, assignment of invention
agreement or similar agreement.

                    (l) Schedule 3.13 sets forth separately a complete and
accurate list of (i) all Software that is owned exclusively by any of the
Sellers or the Subsidiaries that is material to the operation of the Business,
(ii) all Software that is used by any of the Sellers or the Subsidiaries in

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the Business that is not exclusively owned by the Sellers or the Subsidiaries,
excluding generally available, commercial, off-the-shelf Software licensed
pursuant to standardized end-user or enterprise licenses for Software in object
code format available for a license fee of no more than $5,000 and (iii) for
each of the foregoing items of Software, any and all contracts pursuant to which
any of the Sellers or the Subsidiaries derives its ownership of or right to use
such item of Software.

                    3.14. Title to Assets. Schedule 3.14 includes an unaudited
balance sheet dated as of March 30, 2007. The Subsidiaries own outright and have
good and marketable title to all of their assets and properties, including,
without limitation, all of the assets and properties located at the stores
operated by the Business and Sellers have good and marketable title to the
Purchased Assets, in each case free and clear of any Lien, except for (i) Liens
described in Schedule 3.6; or (ii) Liens securing taxes, assessments,
governmental charges or levies, or the claims of materialmen, carriers,
landlords and like Persons, all of which are not yet due and payable or (iii)
Liens being released immediately prior to the Closing hereof. Schedule 3.14 sets
forth all leases of personal property (“Personal Property Leases”) relating to
personal property used in the Business or to which any of the Subsidiaries is a
party. Sellers have delivered to the Buyer true, correct and complete copies of
the Personal Property Leases, together with all amendments, modifications or
supplements thereto. Each of the Personal Property Leases is in full force and
effect and except as set forth in Schedule 3.14, none of the Subsidiaries have
received or given any notice of any default or event that with notice or lapse
of time, or both, would constitute a default by any of the Subsidiaries and, to
the Knowledge of the Sellers or the Subsidiaries, no other party is in default
thereof. All machinery, equipment, furniture, fixtures and other material items
of personal property used in the Business are in good operating condition and
fit for operation in the ordinary course of the Business (subject to normal wear
and tear) with no defects that could reasonably be expected to interfere with
the conduct of the normal operation of such equipment, furniture, fixtures and
other personal property and are suitable for the purposes for which they are
currently being used.

                    3.15. Employee Benefit Plans. Except as disclosed on
Schedule 3.15:

                    (a) (i) none of the Sellers, for the benefit of persons
employed by the Business, or the Subsidiaries nor any other Person that,
together with the Sellers or their Subsidiaries, would be treated as a single
employer (an “ERISA Affiliate”) under Section 414 of the Internal Revenue Code
of 1986, as amended (the “Code”), maintains or sponsors, or has any liability,
contingent or otherwise, with respect to, any (i) employee benefit plan, as
defined in Section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”), (ii) employment contract or (iii) bonus, deferred
compensation, incentive compensation, performance compensation, stock purchase,
stock option, stock appreciation, restricted stock, phantom stock, savings,
profit sharing, severance, termination pay (other than statutory or common law
requirements for reasonable notice), health or other medical, salary
continuation, cafeteria, dependent care, vacation, sick leave, holiday pay,
fringe benefit, reimbursement, life insurance, disability or other (whether
insured or self-insured) insurance, supplementary unemployment, pension
retirement, supplementary retirement, welfare or other plan, program, policy or
arrangement, whether written or unwritten, formal or informal, which any current
or former employee, consultant or director of the Sellers participating in the
Business or of the Subsidiaries or any ERISA Affiliate of any of the Sellers or
the Subsidiaries participated or

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participates in or was or is covered under, or was or is otherwise a party, and
with respect to which any of the Sellers or the Subsidiaries or any ERISA
Affiliate of any of the Sellers or the Subsidiaries is or ever was a sponsor or
participating employer, or had or has an obligation to make contributions, or
was or is otherwise a party (a “Benefit Arrangement”), (ii) no Benefit
Arrangement provides or has ever provided post-retirement medical or health
benefits or severance benefits, except to the extent required by Part 6 of Title
I of ERISA or similar state Laws, and (iii) no Benefit Arrangement is or has
ever been a “welfare benefit fund,” as defined in Section 419(e) of the Code, or
an organization described in Sections 501(c)(9) or 501(c)(20) of the Code. The
Sellers have delivered to the Buyer true and complete copies of: (i) each
written Benefit Arrangement document and a description of each unwritten Benefit
Arrangement, (ii) each summary plan description relating to any Benefit
Arrangement, (iii) each trust, insurance or other funding contract or agreement
relating to any Benefit Arrangement, (iv) each administrative services contract
or agreement relating to any Benefit Arrangement, (v) the three most recent
annual reports (Forms 5500) for each Benefit Arrangement (including all related
schedules), if applicable, and (vi) the most recent Internal Revenue Service
determination letter, opinion, notification or advisory letter (as the case may
be) for each Benefit Arrangement which is intended to constitute a qualified
plan under Section 401 of the Code. None of the Subsidiaries nor any of their
ERISA Affiliates has any obligation or commitment to establish, maintain,
operate or administer any new Benefit Arrangement or to amend any Benefit
Arrangement so as to increase benefits thereunder or otherwise.

                    (b) Neither the Sellers, with respect to the Business, the
Subsidiaries nor any of their ERISA Affiliates have or have ever had any
liability with respect to any Benefit Arrangement that is subject to Title IV of
ERISA, including a “multiemployer plan”, as defined in Section 3(37) of ERISA,
or a “single employer plan” within the meaning of Section 4001(a)(15) of ERISA.
Neither the Sellers, with respect to the Business, the Subsidiaries nor any of
their ERISA Affiliates have terminated a Benefit Arrangement with respect to
which any liability remains outstanding.

                    (c) Each Benefit Arrangement conforms to, and has been
operated and administered in compliance with, its terms and all applicable Laws,
including ERISA and the Code, and including, but not limited to the requirements
of ERISA Sections 601 et seq. and 701 et seq. and Sections 4980B, 9801 and 9802
of the Code. Each Benefit Arrangement intended to be qualified under Section
401(a) of the Code is so qualified and is the subject of a currently effective
favorable determination letter issued by the Internal Revenue Service with
respect to the qualification of such Benefit Arrangement under the Code. No
event has occurred, and no condition exists, which could adversely affect the
tax-qualified status of any such Benefit Arrangement. None of the Sellers with
respect to any Benefit Arrangement maintained for the benefit of the Business,
the Subsidiaries nor any of their ERISA Affiliates have incurred or is subject
to a tax under Section 4979 of the Code. No Benefit Arrangement has assets that
include securities issued by the Sellers, the Subsidiaries or any of their ERISA
Affiliates.

                    (d) There are no pending or, to the Knowledge of any of the
Sellers or the Subsidiaries, threatened actions, suits, claims, trials,
arbitrations, investigations or other proceedings by any Person or governmental
authority, including any present or former participant or beneficiary under any
Benefit Arrangement (or any beneficiary of any such participant or beneficiary)
involving any Benefit Arrangement or any rights or benefits under any

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Benefit Arrangement other than ordinary and usual claims for benefits by
participants or beneficiaries thereunder. No event has occurred and no condition
exists that could subject any of the Sellers or the Subsidiaries or the fund of
any Benefit Arrangement to the imposition of any tax or penalty with respect to
any Benefit Arrangement, whether by way of indemnity or otherwise. All
contributions required to have been made or remitted and all expenses required
to have been paid by the Sellers or the Subsidiaries to or under any Benefit
Arrangement under the terms of any such plan, any agreement or any applicable
Law have been paid within the time prescribed by any such plan, agreement or
Law. All contributions to or under any Benefit Arrangement have been currently
deductible under the Code when made. No “prohibited transaction” (as defined in
ERISA Section 406) or breach of fiduciary responsibility has occurred with
respect to any Benefit Arrangement for which a tax, penalty or other liability
of whatever nature could be incurred by the Sellers or the Subsidiaries, whether
by way of indemnity or otherwise.

                    (e) There is no contract, agreement or benefit arrangement
covering any current or former employee or director of the Sellers with respect
to the Business or the Subsidiaries nor any of their ERISA Affiliates which,
individually or in the aggregate, could be expected to give rise to the payment
of any amount which would constitute an “excess parachute payment” (as defined
in Section 280G of the Code) or be nondeductible under Section 162(m) of the
Code. Neither the execution of this Agreement nor the consummation of any of the
transactions contemplated hereby will, either alone or in conjunction with any
other event (including the termination of an employee’s employment) (i) result
in any obligation or liability (with respect to accrued benefits or otherwise)
on the part of the Sellers with respect to the Business or the Subsidiaries nor
any of their ERISA Affiliates under any Benefit Arrangement, or to any present
or former employee, director, officer, stockholder, contractor or consultant of
the Sellers with respect to the Business or the Subsidiaries nor any of their
ERISA Affiliates, (ii) be a trigger event under any Benefit Arrangement that
will result in any payment (whether of severance pay or otherwise) becoming due
to any such present or former employee, officer, director, stockholder,
contractor, or consultant, or (iii) accelerate the time of payment or vesting,
or increase the amount, of any compensation theretofore or thereafter due or
granted to any employee, officer, director, stockholder, contractor, or
consultant of the Sellers with respect to the Business or the Subsidiaries nor
any of their ERISA Affiliates.

                    (f) Each Benefit Arrangement may be amended or terminated
unilaterally by the Sellers or the Subsidiaries at any time without liability or
expense to the Sellers or the Subsidiaries nor any of their ERISA Affiliates as
a result thereof (other than for benefits accrued through the date of
termination or amendment and reasonable administrative expenses related thereto)
and no plan documentation or agreement, summary plan description or other
written communication restricts or prohibits the Sellers or the Subsidiaries nor
any of their ERISA Affiliates from amending or terminating any such Benefit
Arrangement.

                    (g) No Benefit Arrangement is required to comply with the
provisions of any foreign Law.

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                    3.16. Labor.

                    (a) Schedule 3.16 sets forth the payroll of the Business for
the period therein set forth. The Sellers have delivered to the Buyer a copy of
each employment, consulting or independent contractor agreement,
confidentiality/assignment of inventions agreement and/or non-competition
agreement entered into with an employee or service provider of the Sellers
participating in the Business or the Subsidiaries. To the Knowledge of the
Sellers or the Subsidiaries, no key employee participating in the Business has
any plans to terminate employment or service with the Sellers or the
Subsidiaries.

                    (b) There are no personnel policies applicable to the
employees of the Sellers participating in the Business or the Subsidiaries,
other than employee manuals, true and complete copies of which have previously
been provided to the Buyer.

                    (c) Except as set forth on Schedule 3.16, with respect to
current and former employees and service providers of the Sellers participating
in the Business and of the Subsidiaries (each a “Service Provider”):

 

 

 

          (i) To Seller’s Knowledge, the Sellers and the Subsidiaries are and
have been in compliance in all material respects with all applicable Laws
respecting employment and employment practices, terms and conditions of
employment and wages and hours, including any Laws respecting minimum wage and
overtime payments, employment discrimination, workers’ compensation, family and
medical leave, immigration, and occupational safety and health requirements, and
has not and is not engaged in any unfair labor practice;

 

 

 

          (ii) To Seller’s Knowledge, there is no basis for any claim by any
Service Provider that such Service Provider was subject to a wrongful discharge
or any employment discrimination by the Sellers or the Subsidiaries, or their
respective management, arising out of or relating to such Service Provider’s
race, sex, age, religion, national origin, ethnicity, handicap or any other
protected characteristic under applicable Laws;

 

 

 

          (iii) To Seller’s Knowledge, except as provided in Schedule 3.16,
there is not now, nor within the past six years has there been, any actions,
suits, claims, labor disputes or grievances pending, or, to the Knowledge of the
Sellers or the Subsidiaries, threatened or reasonably anticipated relating to
any labor, safety or discrimination matters involving any Service Provider,
including charges of unfair labor practices or discrimination complaints, which,
if adversely determined, would, individually or in the aggregate, result in any
liability to the Sellers or the Subsidiaries;

 

 

 

          (iv) the Service Providers of the Sellers participating in the
Business and of the Subsidiaries are not and have never been represented by any
labor union, no collective bargaining agreement is binding and in force against
any of the Sellers pertaining to the Business or the Subsidiaries or is
currently being negotiated by any of the Sellers pertaining to the Business or
the Subsidiaries, and

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to the Knowledge of any of the Sellers or the Subsidiaries, no union
organization campaign is in progress with respect to any of the Service
Providers, and no question concerning representation exists respecting such
Service Providers;

 

 

 

          (v) neither the Sellers with regards to the Business nor any of the
Subsidiaries have entered into any agreement, arrangement or understanding
restricting its ability to terminate the employment of any or all of its current
Service Providers at any time, for any lawful or no reason, without penalty or
liability;

 

 

 

          (vi) To Seller’s Knowledge, each Service Provider classified by the
Sellers participating in the Business or the Subsidiaries as an independent
contractor satisfies and has satisfied the requirements of any applicable Law to
be so classified, and the Sellers and the Subsidiaries have fully and accurately
reported such independent contractors’ compensation on IRS Forms 1099 when
required to do so;

 

 

 

          (vii) None of the Sellers or the Subsidiaries have any liability for
any payment to any trust or other fund governed by or maintained by or on behalf
of any governmental authority with respect to unemployment compensation
benefits, social security or other benefits or obligations for Service Providers
participating in the Business (other than routine payments to be made in the
normal course of business and consistent with past practice); and

 

 

 

          (viii) There are no pending, or, to Seller’s Knowledge, threatened or
reasonably anticipated claims or actions against any of the Sellers arising out
of the Business or against any of the Subsidiaries under any worker’s
compensation policy or long-term disability policy.

                    (d) No “mass layoff,” “plant closing” or similar event as
defined by the Worker Adjustment and Retraining Notification Act with respect to
any of the Sellers with regards to the Business or with respect to the
Subsidiaries has occurred.

                    3.17. Environmental Matters.

                    (a) Each Seller, with respect to the Business, and each
Subsidiary has complied in all material respects with all Environmental Laws and
to the Knowledge of the Sellers or the Subsidiaries, none of the Sellers, with
respect to the Business, or the Subsidiaries has any material liability under
any Environmental Law. “Environmental Laws” means any and all applicable local,
state or federal permits and relating to environmental protection, pollution
control or environmental contamination, or the management of Hazardous
Substances, including, but not limited to, the Resource Conservation & Recovery
Act, 42 U.S.C. §6901 et seq., as amended, the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. §9601 et seq., as amended
(“CERCLA”), the Federal Water Pollution Control Act, 33 U.S.C. §1251 et seq., as
amended, the Safe Drinking Water Act, 21 U.S.C. §349, 42 U.S.C. §§201, 300f , as
amended, the Clean Air Act, 42 U.S.C. §7401 et seq., as amended, and the Toxic
Substances Control Act, 15 U.S.C. §2601 et seq., as amended, and analogous state
Laws.

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                    (b) No notice, citation, summons or Order has been issued,
no complaint has been filed, no penalty has been assessed and no investigation
or review is pending or, to the best Knowledge of the Sellers or the
Subsidiaries, threatened, by any federal, state, local or foreign governmental
or regulatory agency or authority: (i) with respect to any alleged violation by
any of the Sellers with respect to the Business or any of the Subsidiaries of
any Environmental Law; or (ii) with respect to any alleged failure by any of the
Sellers with respect to the Business or any of the Subsidiaries to have any
required permit; or (iii) with respect to any use, possession, generation,
treatment, storage, recycling, transportation or arrangement for transportation
or disposal of any substance regulated under any Environmental Laws (“Hazardous
Substances”), including, without limitation, hazardous substances as defined by
CERCLA, petroleum products, radioactive materials and asbestos by any of the
Sellers with respect to the Business or any of the Subsidiaries.

                    (c) Neither any of the Sellers with respect to the Business
nor any of the Subsidiaries has received any request for information, notice of
claim, complaint, demand or notification that it is or may be responsible or
potentially responsible or liable with respect to any threatened or actual
Release of any Hazardous Substance. No oral or written notification of a Release
or threat of Release of a Hazardous Substance has been filed by or on behalf of
any of the Sellers with respect to the Business or any of the Subsidiaries or in
relation to any real property now or previously owned, operated or leased by any
of the Sellers with respect to the Business or any of the Subsidiaries. To the
Knowledge of the Sellers or the Subsidiaries, no such real property is listed or
proposed for listing on the National Priority List promulgated pursuant to
CERCLA, on CERCLIS or on any similar state list of sites. There have been no
governmental investigations, studies, audits, tests, reviews or other analyses
conducted by or which are in the possession of any of the Sellers or any of the
Subsidiaries relating to the Business, true and correct copies of which have not
been delivered to the Buyer prior to the date hereof.

                    (d) None of the Sellers with respect to the Business or the
Subsidiaries have managed any Hazardous Substances on any property leased by any
of the Sellers with respect to the Business or by any of the Subsidiaries in a
manner which is in material violation of any Environmental Law, or will give
rise to any material liability under any Environmental Law.

                    3.18. Bank Accounts. The Sellers and the Subsidiaries do not
maintain any bank account, brokerage account or safe deposit boxes.

                    3.19. Litigation. Except as set forth on Schedule 3.19,
there are no law suits, claims, investigations or actions or administrative
proceedings (collectively, “Proceedings”) against any of the Sellers pertaining
to the Business or any of the Subsidiaries pending or, to the Knowledge of any
of the Sellers or the Subsidiaries, threatened against any of the Sellers or the
Subsidiaries, or the transactions contemplated by this Agreement, nor are there
any judgments, decrees or Orders to which any of the Sellers with regards to the
Business or any of the Subsidiaries is subject. None of the Sellers or the
Subsidiaries are subject to any Order.

                    3.20. Insurance. The Sellers and the Subsidiaries
collectively maintain the insurance policies pertaining to the Business set
forth in Schedule 3.20. Each of these policies are in full force and effect for
such amounts as are sufficient for all requirements of Law and all

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agreements pertaining to the Business to which any of the Sellers or the
Subsidiaries is a party or by which such Persons are bound. In the opinion of
management of Sellers, the nature and extent of such insurance coverage is
reasonable, given the nature of the risks inherent in the Business. Except as
set forth on Schedule 3.20, to the Knowledge of Sellers and Subsidiaries, there
are no outstanding unpaid claims under any such policy or binder and to the
extent any such claims shall exist, they shall be the sole responsibility of
Sellers. Excluding insurance policies that have expired and been replaced in the
ordinary course of the Business, no insurance policy has been canceled within
the last two years and, to the Knowledge of the Sellers or the Subsidiaries, no
threat has been made to cancel any insurance policy of any of the Sellers
pertaining to the Business or of any of the Subsidiaries during such period.

                    3.21. Tax Matters. Except as set forth in Schedule 3.21:

                    (a) Each of the Sellers with respect to the Business and
each of the Subsidiaries has filed or has had filed on its behalf in a timely
manner (within any applicable extension periods) all Tax Returns (as defined
below) required to be filed by them, (ii) all Taxes with respect to taxable
periods covered by such Tax Returns, have been timely paid in full or will be
timely paid in full by the due date thereof, (iii) there are no liens for Taxes
with respect to any of the assets or properties of any of the Sellers pertaining
to the Business or any of the assets or properties of the Subsidiaries. With
respect to any period for which Tax Returns pertaining to the Business have not
yet been filed or for which Taxes pertaining to the Business are not yet due or
owing, the Sellers and the Subsidiaries have made due and sufficient accruals
for such taxes in the Financial Statements and in their books and records. All
required estimated tax payments sufficient to avoid any underpayment penalties
or interest have been made by or on behalf of the Sellers with respect to the
Business and the Subsidiaries. The Sellers with respect to the Business and the
Subsidiaries have complied in all material respects with all applicable Laws
relating to the payment and withholding of taxes in connection with amounts paid
or owing to any employee, independent contractor, creditor, equity owner or
other third party and have duly and timely withheld and paid over to the
appropriate Taxing Authority all amounts required to be so withheld and paid
under all applicable Laws. “Tax Return” or “Tax Returns” shall mean all returns,
declarations of estimated tax payments, reports, estimates, information returns
and statements, including any related or supporting information with respect to
any of the foregoing, filed or to be filed with any Taxing Authority in
connection with the determination, assessment, collection or administration of
any Taxes.

                    (b) None of the Sellers with respect to the Business or the
Subsidiaries is party to or bound by any tax sharing agreement, tax indemnity
obligation or similar agreement, arrangement or practice with respect to Taxes
(including any advance pricing agreement, closing agreement or other agreement
relating to Taxes with any domestic, foreign, federal, national, state, county
or municipal or other local government, any subdivision, agency, commission or
authority thereof, or any quasi-governmental body exercising tax regulatory
authority (each, a “Taxing Authority”)).

                    (c) The Sellers have delivered to the Buyer complete copies
of (i) all federal, state, local and foreign income or franchise Tax Returns of
Sellers and the Subsidiaries pertaining to the Business relating to the taxable
periods ended June 30, 2005 and June 30, 2006 and (ii) any audit report issued
within the last three years relating to any taxes due from or with

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respect to the Sellers pertaining to the Business or any of the Subsidiaries.
Schedule 3.21 lists each such audit. Except as set forth on Schedule 3.21, there
are no audits or investigations of the Sellers pertaining to the Business or any
of the Subsidiaries by any Taxing Authority in progress, nor have the Sellers or
any of the Subsidiaries received any notice from any Taxing Authority that it
intends to conduct such an audit or investigation. No claim has been made by a
Taxing Authority in a jurisdiction where the Sellers or any of the Subsidiaries
do not file Tax Returns pertaining to the Business to the effect that any of the
Sellers or the Subsidiaries are or may be subject to taxation by that
jurisdiction. There are no Liens on any of the assets of the Sellers pertaining
to the Business or any of the Subsidiaries arising as a result of any failure
(or alleged failure) to pay any tax. The Sellers, with regard to the Business,
and the Subsidiaries have disclosed on their federal income Tax Returns all
positions taken therein that could give rise to substantial understatement of
federal income Tax within the meaning of Section 6662 of the Code, and none of
the Sellers with regard to the Business or the Subsidiaries have participated in
a “reportable transaction” within the meaning of Treasury Regulation Section
1.6011-4(b).

                    (d) None of the Sellers with regard to the Business nor the
Subsidiaries shall be required to include in a taxable period ending after the
Closing Date taxable income attributable to income that accrued in a prior
taxable period but was not recognized in any prior taxable period as a result of
the installment method of accounting, the long-term contract method of
accounting, the cash method of accounting, intercompany transactions or excess
loss accounts described in Treasury Regulations under Section 1502 of the Code
or any comparable provision of state, local, or foreign Tax Law, income
resulting from a change in accounting method as required under section 481(a) of
the Code, or income required to be included under Section 381 of Code.

                    (e) Except as set forth on Schedule 3.21, none of the
Sellers with respect to the Business nor any of the Subsidiaries have (i)
entered into any agreements or waivers extending, or having the effect of
extending, the statutory period of limitations applicable to any material Tax
returns required to be filed with respect to any of the Sellers or the
Subsidiaries, (ii) requested any extension of time within which to file any Tax
Return, which return has not yet been filed and (iii) no power of attorney with
respect to any Tax Return has been executed or filed with any Taxing Authority
by or on behalf of any of the Sellers with respect to the Business or any of the
Subsidiaries. There is no contact covering any Person that, individually or
collectively, could give rise to the payment of any amount that would not be
deductible by reason of Section 280G of the Code. None of Sellers with respect
to the Business or any of the Subsidiaries is a party to any tax allocation or
tax sharing agreement nor has any liability for the taxes of any Person under
Treasury Regulation Section 1.1502-6(a) (or any predecessor or successor thereof
of any analogous or similar provision under Law) as a transferee, or successor,
by contract, or otherwise.

                    (f) None of the Sellers or the Subsidiaries have received
any notice of any action, dispute, claim or audit now pending, or to the
Knowledge of the Sellers or the Subsidiaries, proposed or threatened against, or
with respect to, the Sellers or the Subsidiaries, in respect of any Taxes
pertaining to the Business.

                    3.22. Licenses; Permits. Schedule 3.22 sets forth all
material certificates, licenses, permits, authorizations and approvals (the
“Permits”) held by the Sellers in connection

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with the operation of the Business and the Subsidiaries (the “Business
Permits”). Except as indicated in Schedule 3.22, each of the Sellers and the
Subsidiaries has complied in all material respects with the terms and conditions
of all such certificates, permits, authorizations and approvals. The Sellers and
the Subsidiaries currently have all Permits which are required for the operation
of the Business as presently conducted, other than those the failure of which to
possess is immaterial. Other than as set forth on Schedule 3.22, none of the
Sellers or the Subsidiaries is in default or violation in any material respect,
and no event has occurred which, with notice or the lapse of time or both, would
constitute a default or violation, in any material respect of any term,
condition or provision of any Business Permit, and to the Knowledge of any of
the Sellers or the Subsidiaries, there are no facts or circumstances which form
the basis for any such default or violation.

                    3.23. Related Party Transactions. Except as set forth on
Schedule 3.23, no employee, officer, director, shareholder, partner, manager or
member of any of the Sellers with respect to the Business or the Subsidiaries,
or any member of his or her immediate family or any of their respective
affiliates (“Related Persons”) (i) owes any amount to the Subsidiaries nor do
any of the Sellers or the Subsidiaries owe any amount to, nor have any of the
Sellers or the Subsidiaries committed to make any loan or extend or guarantee
credit to or for the benefit of, any Related Person, (ii) is involved in any
business arrangement or other relationship (other than customary employment
relationships) with any of the Sellers or the Subsidiaries (whether written or
oral), (iii) owns any property or right, tangible or intangible, that is used by
any of the Sellers or the Subsidiaries (other than rights arising out of
employment arrangements) or (iv) has any claim or cause of action against any of
the Sellers or the Subsidiaries.

                    3.24. Suppliers. Schedule 3.24 sets forth a list identifying
the major suppliers to the Sellers and the Subsidiaries with respect to the
Business.

                    3.25. Inventory. The inventory of the Sellers pertaining to
the Business and of the Subsidiaries (the “Inventory”) consists of retail
products and supplies, all of which is merchantable and fit for the purpose for
which it was procured or manufactured. Schedule 3.25 includes a list of all
Inventory by category and the value of all inventory contained in such category
as of April 2, 2007. The value of the inventory set forth in Schedule 3.25 is
stated at cost. There have been no material changes in the value of such
inventories during the period beginning on April 2, 2007 and ending on the
Closing Date. The Sellers and the Subsidiaries have good title to all of the
Inventory, free and clear of any Lien except as set forth on Schedule 3.4.

                    3.26. Product Warranty. Each Business Product manufactured
by the Sellers or the Subsidiaries has been in material conformity with all
applicable contractual commitments. No Business Product manufactured, sold or
delivered by the Sellers or the Subsidiaries is subject to any guaranty,
warranty or other indemnity beyond the applicable standard terms and conditions
of sale.

                    3.27. Compliance with Applicable Laws. To the Knowledge of
Sellers, each of the Sellers and the Subsidiaries are in compliance in all
material respects with all Laws of each governmental authority applicable to the
Business or the operations or assets pertaining to the Business. Since June 30,
2006, none of the Sellers or the Subsidiaries has received any notice of

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or been charged with the violation of any Law. To the Knowledge of the Sellers
and the Subsidiaries, none of the Sellers or the Subsidiaries is under
investigation with respect to the violation of any Law and to the Knowledge of
Sellers and Subsidiaries there are no facts or circumstances which could
reasonably form the basis for any such violation other than violations which
would have an immaterial affect on the Business.

          4. Representations and Warranties by the Buyer. The Buyer represents
and warrants to the Sellers as follows:

                    4.1. Authority. The Buyer has the power and authority to
enter into, execute and deliver this Agreement, and each of the other documents
to be executed by Buyer in connection herewith (“Buyer Ancillary Documents”) and
to perform the Buyer’s obligations hereunder and thereunder. The execution and
delivery of this Agreement, the Pledge Agreement, and each of Buyer Ancillary
Documents, the consummation of the transactions contemplated hereby and thereby
and the performance by the Buyer of this Agreement, the Pledge Agreement and the
Buyer Ancillary Documents in accordance with their respective terms and
conditions have been duly authorized by Buyer.

                    4.2. Enforceability. This Agreement and each of the Buyer
Ancillary Documents have been duly executed and delivered by the Buyer and each
constitutes the valid and binding agreement of the Buyer enforceable against it
in accordance with the terms hereof and thereof.

                    4.3. Existence and Qualification. The Buyer is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware, with full corporate power and authority to conduct its
business and to own and operate its assets and properties as conducted and
operated. Buyer is duly qualified to conduct business as a foreign corporation
where it will be required to be qualified after the Closing hereof and is in
good standing in each such jurisdiction.

                    4.4. Consents and Approvals. The execution, performance and
delivery by the Buyer of this Agreement and the Buyer Ancillary Documents, the
consummation by the Buyer of the transactions contemplated hereby and thereby
and the compliance by the Buyer with the provisions hereto and thereto will not
(a) require the Buyer to make any filing or registration with, or obtain any
other permit, authorization, consent or approval of, any governmental or
regulatory authority; (b) conflict with or breach any provision of the
Certificate of Incorporation or By-laws of the Buyer; (c) conflict with, violate
or breach any provision of, or constitute a default (or an event which, with
notice or lapse of time or both, would constitute a default) under, or result in
a material modification of, any of the terms, covenants, conditions or
provisions of, or give rise to a right to terminate or accelerate or increase
the amount of payment due under, any note, bond, mortgage, indenture, deed of
trust, license, franchise, permit, lease, contract, agreement or other
instrument, commitment or obligation to which the Buyer is a party, or by which
it or any of its properties or assets may be bound; or (e) result in the
creation of any Lien on any asset of the Buyer; (f) violate any order, writ,
injunction, decree, judgment, or ruling of any court or governmental authority,
applicable to the Buyer or the assets of the Buyer.

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          5. Further Agreements of the Parties.

                    5.1. Conduct of Business. From the date hereof through the
Closing Date, the Sellers shall cause the Subsidiaries to conduct their business
in the ordinary course and to use commercially reasonable efforts to cause the
Subsidiaries to preserve their business organization intact, keep available the
services of their present officers, employees, consultants and agents, maintain
their present suppliers and customers, preserve their goodwill and maintain
their corporate and business records.

                    5.2. Gift Certificate Matters. Subject to the provisions of
the Cosmedicine Supply Agreement, as part of the consideration for the
transactions herein contemplated, Buyer will cause each of its subsidiaries to
honor all gift certificates issued by the stores prior to the Effective Date of
Sale in accordance with the terms of such gift certificates.

                    5.3. Effective Date of Sale; True Up. As hereinabove stated,
the parties have agreed that 12:01 a.m. on April 1, 2007 is the Effective Date
of Sale with respect to the transactions herein contemplated. Accordingly,
promptly following the Closing, the parties and their representatives will meet
to allocate costs and expenses, profit and loss and all other relevant matters
to reflect that the Effective Date of Sale is April 1, 2007 and any party owing
monies to the other as a result of such allocations and true up shall promptly
pay over such monies to the other. For the avoidance of doubt, all revenues
received by the Business after the Effective Date of Sale shall belong to Buyer
and all costs and expenses of the Business after the Effective Date of Sale
shall be borne by Buyer. If and to the extent any revenues were applied for
other than an expense of the Business or an expense of the Business was paid by
funds not generated by the Business, the parties shall reconcile such payments
and expenses to reflect the effective ownership of the Business by Buyer as of
the Effective Date of Sale. In the event the parties cannot agree within 30 days
following the Closing, the parties shall agree upon an independent accounting
firm (or a firm determined by the American Arbitration Association if the
parties cannot agree). The parties shall use their best efforts to have all
matters resolved by the arbitrator promptly and judgment may be entered upon the
determination of the arbitrator in any court of competent jurisdiction. The cost
of the arbitration and the expenses of the arbitrator and arbitration as well as
the reasonable attorneys’ fees and expenses shall be borne by the parties in
inverse proportion as they may prevail on matters resolved by the arbitrator
which proportional allocation shall also be determined by the arbitrator at the
time the arbitrator renders his or its decision on the merits.

          In addition to the true up to be undertaken promptly following the
Closing, at regular intervals following the Closing Date and on notice from
either party, the parties shall meet to determine the accuracy of the items
either retained by the Sellers and/or assumed by or assigned Purchaser and to
the extent that there has been an error; e.g., an Assumed Payable was greater
than on the appropriate schedule, or the amount of a security deposit was not
correctly stated, etc., the parties shall meet and attempt to reconcile the
actual amounts versus the amounts that were on the schedules and account to each
other accordingly. The same procedures as set forth above shall be used in the
event of a dispute regarding any true up.

                    5.4. Post Closing Cooperation. Subject to the terms and
conditions provided in this Agreement, each of the parties hereto agrees to use
commercially reasonable efforts to take,

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or cause to be taken, all actions and to do, or cause to be done, all things
necessary, proper or advisable to consummate and make effective as promptly as
practicable the transactions contemplated by this Agreement, the documents and
instruments to be executed by the Sellers described in Section 1 hereof (the
“Seller Ancillary Documents”) and the Buyer Ancillary Documents, and to
cooperate with each of the other parties hereto in connection with the
foregoing, including (i) to obtain all consents or approvals as are necessary in
connection with the consummation of the transactions contemplated hereby, (ii)
to effect all registrations and filings as are necessary or desirable in
connection with the consummation of the transactions contemplated hereby, (iii)
to defend any Proceedings (whether judicial or administrative, whether brought
by private parties or governmental entities) challenging this Agreement or the
consummation of the transactions contemplated hereby, (iv) to furnish to each
other such information and assistance and to consult with respect to the terms
of any registration, filing, application or undertaking as may be reasonably
requested in connection with the foregoing, and (v) to cause the satisfaction
(but not waiver) of the conditions set forth in Sections 6.1 and 6.2.

                    5.5. Access. After the Closing and upon reasonable notice,
each of the parties hereto will furnish or cause to be furnished to each other
and their affiliates and their respective employees, counsel and other
representatives, access during normal business hours to such information
relating to the Subsidiaries as may be reasonably necessary for financial, tax
reporting, accounting and any other matters which may be relevant including
transferring and/or obtaining any permits, licenses, etc. which Buyer may need
to obtain. This also includes but is not limited to keeping available all such
information as the Sellers may need to file any Tax Returns to include the
accounts of the Subsidiaries up, to and through the Closing Date. Buyer agrees
not to dispose of any books and records of the Subsidiaries for a period of five
years after the Closing.

          6. Closing Conditions.

                    6.1. Buyer’s Closing Conditions. The obligation of the Buyer
to effect the transactions contemplated hereby are subject to the fulfillment,
or the waiver by the Buyer, at or prior to the Closing, of the conditions set
forth below.

                    (a) The representations and warranties of the Sellers
contained herein shall be true and correct in all material respects as of the
Closing Date with the same force and effect as though made on the Closing Date
and each Seller shall have performed and complied in all material respects with
all covenants and agreements required to be performed or complied with by such
Seller under this Agreement on or prior to the Closing Date.

                    (b) Sellers shall have complied with their obligation to,
and shall have delivered to the Buyer, all of the Seller Ancillary Documents,
including the documents and instruments described in Section 1 hereof, in each
case duly executed by all parties (other than Buyer).

                    (c) The Sellers shall have obtained the written confirmation
that (i) the holders of any pledge or security interest in any Subsidiary’s
assets or properties have released (or simultaneously with the Closing will
release) from such pledge or security interest all assets and properties of the
Subsidiaries that are the subject thereof and (ii) the beneficiary of any

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agreement under which any Subsidiary guarantees or otherwise becomes liable for
the obligations or liabilities of another shall have released (or simultaneously
with the Closing will release) such Subsidiary from any such guarantee
obligation.

                    (d) There shall be no order, decree or injunction of a court
of competent jurisdiction which prevents the consummation of the transactions
contemplated by this Agreement.

                    (e) At the Closing, the Sellers shall also deliver to the
Buyer:

 

 

 

          (i) “good standing” documents, including certifications by appropriate
officials of their respective jurisdictions of formation and/or qualification,
of the current payment of taxes and of the valid formation and good standing of
each Subsidiary;

 

 

 

          (ii) copies of the charter documents of each Subsidiary, certified as
true and correct by the appropriate officials of their respective jurisdictions
of formation;

 

 

 

          (iii) copies of the by-laws (or the equivalent thereof) of each
Subsidiary certified as true and correct by the Secretary of each Subsidiary;

 

 

 

          (iv) the resignation, dated the Closing Date, of each director of each
Subsidiary.

                    6.2. Sellers’ Closing Conditions. The obligation of the
Sellers to effect the transactions contemplated hereby shall be subject to the
fulfillment, or the waiver by the Sellers at or prior to the Closing, of the
conditions set forth below.

                    (a) The representations and warranties of the Buyer
contained herein shall be true and correct in all material respects as of the
Closing Date with the same force and effect as though made on the Closing Date
and the Buyer shall have performed and complied in all material respects with
all covenants and agreements required to be performed or complied with by it
under this Agreement on or prior to the Closing.

                    (b) The Buyer shall have complied with their obligations to,
and shall have delivered to Sellers, the $150,000 Note, the Assignment and
Assumption Agreement, the Buyer Ancillary Documents, including the documents set
forth in Section 1 hereof, in each case duly executed by Buyer.

                    (c) The Sellers and their affiliates shall have been
released from all guarantees of any Subsidiary’s obligations granted by either
of them for the benefit of any third party, and all collateral pledged by the
Sellers or any of their affiliates to secure such guarantees shall have been
released by the pledgee thereof.

                    (d) There shall be no order, decree or injunction of a court
of competent jurisdiction which prevents or delays the consummation of the
transactions contemplated by this Agreement.

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                    (e) At the Closing, the Buyer shall also deliver to the
Sellers:

 

 

 

       (i) a certificate, dated as of the date of the Closing, executed by the
Secretary of the Buyer, certifying the Certificate of Incorporation and By-Laws
and the incumbency of the officers of the Buyer; and

 

 

 

       (ii) “good standing” documents, including certifications by appropriate
officials of its jurisdiction of incorporation, of the current payment of taxes
and of the valid incorporation and good standing of the Buyer.

          7. Survival of Representations and Warranties.

                    7.1. Survival of Representations and Warranties of the
Sellers. All of the Sellers’ representations and warranties, (and each Seller’s
liability for any inaccuracy therein or breach thereof) shall survive the
execution and delivery of this Agreement and the Closing hereunder and shall
thereafter continue in full force and effect until the eighteenth month
anniversary of the Closing Date; provided, however, that the representations and
warranties set forth in Sections 3.15 (Employee Benefit Plans), 3.17
(Environmental Matters), 3.21 (Tax Matters) and Sections 3.1 (Existence and
Qualification), 3.2 (Authority, Enforceability), 3.3 (Capitalization) and 3.4
(Title to Equity Interests) shall survive the Closing indefinitely. All of
Sellers’ covenants and agreements shall survive the Closing Date without
expiration.

                    7.2. Survival of Representations and Warranties of the
Buyer. All of the representations, warranties, covenants and agreements (and the
Buyer’s liability for an inaccuracy therein or breach thereof) shall survive the
execution and delivery of this Agreement and the Closing hereunder and shall
thereafter continue in full force and effect until the eighteenth month
anniversary of the Closing Date; provided, however that the representations
contained in Sections 4.1 (Authority), 3.2 (Enforceability) and 3.3 (Existence
and Qualification) and 3.4 (Title to Equity Interests) shall survive the Closing
indefinitely. All of Buyer’s covenants and agreements shall survive the Closing
Date without expiration.

          8. Indemnification.

                    8.1. Obligation of the Sellers to Indemnify. Subject to the
limitations in this Agreement, Sellers agree to indemnify, defend and hold
harmless the Buyer (and its respective directors, officers, employees,
affiliates, shareholders, agents, attorneys, successors and assigns) (“Buyer
Indemnitees”) from and against all losses, liabilities, damages, deficiencies,
costs or expenses (including interest, penalties and reasonable attorneys’ and
consultants’ fees and disbursements) (collectively, “Losses”) based upon,
arising out of or otherwise in respect of (i) any inaccuracy in or any breach of
any representation, warranty, covenant or agreement of the Sellers in this
Agreement or (ii) any Excluded Liability.

                    8.2. Obligation of the Buyer to Indemnify. Subject to the
limitations in this Agreement, the Buyer agrees to indemnify, defend and hold
harmless Sellers (and their respective agents, attorneys, affiliates, heirs,
representatives, successors and assigns) (“Sellers’ Indemnitees”) from and
against any Losses based upon, arising out of or otherwise in respect of (i) any
inaccuracy in or any breach of any representation, warranty, covenant or
agreement of the Buyer in this Agreement or (ii) any Assumed Liability.

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                    8.3. Notice and Opportunity To Defend.

                    (a) Promptly after receipt by any person entitled to
indemnity under this Agreement (the “Indemnitee”) of notice of any demand, claim
or circumstances which, if true, will or can reasonably be expected to give rise
to a claim or the commencement (or threatened commencement) by any third party
of any action, proceeding or investigation (an “Asserted Liability”) that, if
such third party prevails, will or could reasonably be expected to result in a
Loss with respect to which any party is obligated to provide indemnification
under this Agreement, the Indemnitee shall give notice thereof (the “Claims
Notice”) to such other party (or parties) who is or can reasonably be expected
to be obligated to provide indemnification pursuant to Section 8.1 or 8.2 (the
“Indemnifying Party”). The Claims Notice shall describe the Asserted Liability
in reasonable detail and shall indicate the amount (estimated, if necessary and
to the extent feasible) of the Loss that has been or may be suffered by the
Indemnitee.

                    (b) The Indemnifying Party may elect to defend, at its own
expense and by its own counsel, any Asserted Liability. If the Indemnifying
Party elects to defend such Asserted Liability, it shall within 30 days after
the date the Claims Notice is given (or sooner, if the nature of the Asserted
Liability so requires) notify the Indemnitee of its intent to do so, and the
Indemnitee shall cooperate, at the expense of the Indemnifying Party, in the
compromise of, or defense against, such Asserted Liability. If the Indemnifying
Party fails to defend the Asserted Liability, the Indemnitee may pay or defend
such Asserted Liability and all reasonable expenses incurred by the Indemnitee
in defending such Asserted Liability, shall be borne by the Indemnifying Party;
provided, however, that no such expenses shall be borne by the Indemnifying
Party unless the Asserted Liability is one which, if true, will or can
reasonably be expected to give rise to a claim or is an actual or threatened
action, proceeding or investigation by a third party that, if such third party
prevails, will or can reasonably be expected to result in a Loss with respect to
which any party (or parties) is obligated to provide indemnification under this
Agreement. Neither the Indemnifying Party nor the Indemnitee may settle or
compromise any claim over the objection of the other; provided, however, that
consent to settlement or compromise shall not be unreasonably withheld. In any
event, the Indemnitee and the Indemnifying Party may participate, at their own
expense, in the defense of such Asserted Liability. If the Indemnifying Party
chooses to defend any claim, the Indemnitee shall make available to the
Indemnifying Party any books, records or other documents within its control that
are necessary or appropriate for such defense. Indemnitee shall at all times
have the right not to seek indemnity from the Indemnifying Party and defend or
compromise and settle if it fully releases Indemnifying Party from its indemnity
obligations with respect to such claim.

                    8.4. Limitations on Indemnification by Sellers.
Notwithstanding anything herein to the contrary, Sellers shall not be required
to indemnify Buyer or Buyer’s Indemnitees except to the extent Losses exceed
$25,000 and then only to the extent of any such excess and in no event shall
Buyer or Buyer’s Indemnitees have any rights with respect to such excess except
to offset any claims for Losses against the Note issued by Buyer to Sellers
hereunder, subject to the right of Sellers to dispute such claims.

                    8.5. Limitation on Remedies. The parties agree that
following the Closing, absent willful concealment or fraud, the indemnification
provided herein and recourse pursuant to Section 10.9 to specific performance,
where appropriate, shall be the sole and exclusive

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remedy of the parties for breaches of the representations, warranties, covenants
and agreements of the parties contained in this Agreement.

          9. Termination.

                    9.1. Termination.

                    (a) Notwithstanding anything to the contrary contained in
this Agreement, this Agreement may be terminated at any time by:

 

 

 

       (i) the written consent of the Buyer and the Sellers;

 

 

 

       (ii) either the Buyer or the Sellers if the Closing does not occur on or
before May 15, 2007; but only if such party seeking termination under this
Section 9.1(a)(ii) shall not have prevented the Closing from occurring or
otherwise failed to comply with its obligations hereunder;

 

 

 

       (iii) the Buyer, if any of the conditions set forth in Section 6.1 shall
have become incapable of fulfillment on or prior to May 15, 2007, and shall not
have been waived by Buyer, or if Sellers shall have breached in any material
respect any of their representations, warranties or obligations hereunder and
such breach shall not have been cured in all material respects or waived prior
to the Closing; or

 

 

 

       (iv) the Sellers’, if any of the conditions set forth in Section 6.2
shall have become incapable of fulfillment on or prior to May 15, 2007, and
shall not have been waived by the Sellers, or if the Buyer shall have breached
in any material respect any of its representations, warranties or obligations
hereunder and such breach shall not have been cured in all material respects or
waived prior to the Closing.

                    (b) In the event of the termination of this Agreement by the
Buyer or the Sellers pursuant to this Section 9.1, written notice thereof shall
promptly be given to the other party and, except as otherwise provided herein,
the transactions contemplated by this Agreement shall be terminated without
further action by any party.

                    9.2. Effect of Termination.

                    (a) Except as otherwise expressly provided, upon the
termination of this Agreement in accordance with Section 9.1, this Agreement
shall forthwith become null and void, without any liability on the part of the
parties hereto, and all obligations of the parties shall terminate except those
which by their terms survive this Agreement; provided, however, that nothing
contained in this Section 9.2 shall relieve any breaching party of any liability
to any other party hereto for its breach hereof.

                    (b) Nothing herein shall diminish the obligations of the
parties to use all good faith reasonable efforts to cause the conditions set
forth in Sections 6.1 and 6.2 to be satisfied and to otherwise comply with their
obligations hereunder.

-29-

--------------------------------------------------------------------------------

          10. Miscellaneous.

                    10.1. Amendment and Modification. This Agreement may be
amended, modified or supplemented only by written agreement of the Sellers and
the Buyer.

                    10.2. Expenses. Regardless of whether the transactions
provided for in this Agreement are consummated, except as otherwise provided
herein, each party hereto shall pay its own expenses incident to this Agreement
and the transactions contemplated herein.

                    10.3. Waiver of Compliance; Consents. Any failure of any of
the parties to comply with any obligation, covenant, agreement or condition
herein may be waived by the party entitled to the benefits thereof only by
written instrument signed by the party granting such waiver, but such waiver or
failure to insist upon strict compliance with such obligation, covenant,
agreement or condition shall not operate as a waiver of, or estoppel with
respect to, any subsequent or other failure. Whenever this Agreement requires or
permits consent by or on behalf of a party, such consent shall be given in
writing in a manner consistent with the requirements for a waiver of compliance
as set forth in this Section 10.2.

                    10.4. Notices. All notices and other communications
hereunder shall be given by personal delivery, or registered overnight courier,
or facsimile with receipt or by registered or certified mail (return receipt
requested), postage prepaid, to the parties at the following addresses (or at
such other address for a party as shall be specified by like notice, provided
that notices of a change of address shall be effective only upon receipt
thereof):

 

 

 

If to the Buyer, to:

 

 

 

GK Acquisition LLC
c/o Angela L. Krivulka
3 Bucks Mill Lane
Holmdel, New Jersey 07733
Telecopier No.: 732-335-4124

 

 

 

with copies to:

 

 

 

Michael J. Lerner
Lowenstein Sandler
65 Livingston Avenue
Roseland, New Jersey 07068
Telecopier No.: 973-597-2400

 

 

 

If to any of the Sellers, to:

 

 

 

Klinger Advanced Aesthetics, Inc.
501 Merritt 7, 5th Floor
Norwalk, Connecticut 06851
Telecopier No.: 203-295-2102

-30-

--------------------------------------------------------------------------------

 

 

 

with copies to:

 

 

 

Edward R. Mandell
Troutman Sanders, LLP
405 Lexington Avenue
New York, New York 10174
Telecopier No. 212-704-6160

                    10.5. Assignment. This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto,
their heirs and their respective successors and permitted assignees. Either
party’s rights hereunder may be assigned without the consent of the other to any
affiliate of such assignor (but no other) but no such assignment shall relieve
the assigning party of all of its obligations to the other party hereto.

                    10.6. Governing Law; Venue. This Agreement was negotiated
and entered into in the State of New York, and shall be governed by, construed
and enforced in accordance with the internal laws of the State of New York,
applied to contracts made in New York by New York domiciliaries to be wholly
performed in New York without giving effect to the conflict of laws principles
thereof. Each party covenants and agrees that the Supreme Court of the State of
New York located in New York City or (in case of diversity) the United States
District Court for the Southern District of New York shall have exclusive
personal jurisdiction and be the sole proper venue over any dispute between the
parties and no legal proceeding relating to this Agreement or any documents
executed in connection herewith may be maintained except in either of such
venues.

                    10.7. Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same document.

                    10.8. Interpretation. The Article and Section headings
contained in this Agreement are solely for the purpose of reference, are not
part of the Agreement of the parties and shall not in any way affect the meaning
or interpretation of the Agreement. As used in this Agreement: (a) the term
“person” shall mean and include an individual, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization and a government or any
department or agency thereof; and (b) the term “affiliate” shall have the
meaning set forth in Rule 12b-2 of the General Rules and Regulations promulgated
under the Securities Exchange Act of 1934, as amended.

                    10.9. Entire Agreement. This Agreement, including the
Schedules and Exhibits hereto and the documents, schedules, certificates and
instruments referred to herein and therein, embodies the entire agreement and
understanding of the parties hereto in respect of the transactions contemplated
by this Agreement. There are no restrictions, promises, representations,
warranties, covenants or undertakings other than those expressly set forth or
referred to herein or therein. This Agreement supersedes all prior agreements
and understandings between the parties with respect to such transactions.

-31-

--------------------------------------------------------------------------------

                    10.10. Specific Performance. Each of the parties hereto
acknowledges and agrees that the Buyer, on the one hand, and the Sellers on the
other hand, would be irreparably damaged in the event any of the provisions of
this Agreement were not performed in accordance with their specific terms or
were otherwise breached. Accordingly, each of the parties hereto agrees that
they each shall be entitled to an injunction or injunctions to prevent breaches
of the provisions of this Agreement and to enforce specifically this Agreement
and the terms and provisions hereof in any action instituted in any court of the
United States or any state thereof having subject matter jurisdiction, in
addition to any other remedy to which such party may be entitled, at law or in
equity.

                    10.11. Severability. The invalidity or unenforceability of
any provision hereof shall not affect the validity or enforceability of any
other provision hereof.

[signature page follows]

-32-

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          IN WITNESS WHEREOF, the parties have executed this Purchase and Sale
Agreement as of the date first above written.

 

 

 

 

ADVANCED AESTHETICS, LLC

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title:

 

 

 

KLINGER ADVANCED AESTHETICS, INC.

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title:

 

 

 

 

GK ACQUISITION LLC

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Angela L. Krivulka, Sole Member

--------------------------------------------------------------------------------

EXHIBIT A

Purchased- Assets

--------------------------------------------------------------------------------

Exhibit A

All the furniture, fixtures, supplies, equipment, inventory and other items for
the conduct of business at the 501 Madison spa location.

All the furniture, fixtures, and equipment for the conduct of business at the
501 Madison office location.

All the necessary contracts listed in the schedules including Schedule 3.5.

--------------------------------------------------------------------------------

EXHIBIT A-1

Seller’s Security Deposits

--------------------------------------------------------------------------------

Klinger Advanced Aesthetics, Inc.
Security Deposits
Account #1870-#1880
as of 12/30/06

Account Description  
Balance
  Comments 1870-10-00       501 Madison Avenue-Securtiy Deposit-RENT      
49,962.34       501 Madison Avenue- Corp Offices 1870-33-00   Costa Mesa-South
Coast Plaza-Securtiy Deposit-RENT   50,000.00   Costa Mesa- Lease Doc A-SEC
16.05 1870-35-00   501 Madison Avenue-Securtiy Deposit-RENT   70,000.00   501
Madison Avenue- Lease Doc B-SEC 16   1875-20-00   Chicago-Securtiy
Deposit-UTILITY   368.96     1875-35-00   501 Madison Avenue-Securtiy
Deposit-UTILITY   8,635.00     1875-36-00   Manhassett-Securtiy Deposit-UTILITY
  5,630.00     1875-45-00   Palm Beach-Securtiy Deposit-UTILITY   200.30    
1875-47-00   West Palm Beach-Securtiy Deposit-UTILITY   3,995.31   Florida Light
& Power-OCT05 CK#14782,14874 1875-48-00   Boca Raton-Securtiy Deposit-UTILITY  
3,023.00   Florida Light & Power-OCT05 CK#15171 1875-50-00   Chevy Chase
Pavillion-Securtiy Deposit-UTILITY   2,335.00   OLD Facility- CC Pavillion    
1880-10-00   SECURITY DEP-OTH.: HQ   44,675.00   Washington DC-Heartland
(Palomar) Laser Lease #14690.002-monthly             ACH lease payment
1880-26-00   SECURITY DEP-OTH.: DALL   17,870.00   Heartland (Palomar) Laser
Lease #14690.003-monthly ACH lease payment 1880-30-00   SECURITY DEP-OTH.: LA  
4,871.00   April 23,2004 Opening Balance 1880-33-00   SECURITY DEP-OTH.: SCP  
17,870.00   Heartland (Palomar) Laser Lease #14690.004-monthly ACH lease payment
1880-46-00   SECURITY DEP-OTH.: PBG   17,870.00   Heartland (Palomar) Laser
Lease #14690.001-monthly ACH lease payment       Subtotal Security Deposits  
297,305.91       Tenant Allowances outstanding             Location Description
              $25,580 is last payment due for tenant allowance under the        
NorthPark   lease.   25,580.00           $572,603.80 is outstanding on the
original tenant allowance             as provided under the lease. There is also
an additional             $158,000 in further tenant allowance to be provided
for             tenant's work to the landlord's lobby and consideration for    
    Chevy Chase   construction issues caused by landlord.   730,603.00          
Subtotal Tenant Allowances   756,183.00             Grand Total Tenant
Allowances and Security Deposits   1,053,488.91    

--------------------------------------------------------------------------------

EXHIBIT B

Assumed Accounts Payable

--------------------------------------------------------------------------------

Exhibit B
Assumed Accounts Payable

See Schedule 3.6(b) for the Company’s Accounts Payable as of April 18, 2007.
Within three Business Days following the Closing Date, Sellers and Buyer will
review the Company’s Accounts Payable as of the Closing Date and determine which
of the Accounts Payable Buyer will assume pursuant to Section 1.4(a) of the
Purchase and Sale Agreement.

--------------------------------------------------------------------------------

EXHIBIT C

Assumed Gift Card Liability

--------------------------------------------------------------------------------

Exhibit C
Assumed Gift Card Liability

Buyer shall assume $5,100,000 of the aggregate gift certificate liability of the
Business set forth on Schedule 3.6(c) to the Purchase and Sale Agreement.

--------------------------------------------------------------------------------

Exhibit D
Other Liabilities

None.

--------------------------------------------------------------------------------

EXHIBIT E

Note

--------------------------------------------------------------------------------

PROMISSORY NOTE

 

 

$150,000

May ____, 2007

          FOR VALUE RECEIVED, the undersigned, GK Acquisition LLC, a Delaware
limited liability company (the “Debtor”), hereby promises to pay to the order of
Klinger Advanced Aesthetics, Inc. (“Holder”), the sum of ONE HUNDRED FIFTY
THOUSAND DOLLARS ($150,000) (“Debt”) as provided in this promissory note (the
“Note”).

          1. Interest; Principal Amount and Payment. The Debt shall bear
interest on the unpaid principal balance thereof outstanding from time to time
and until such principal balance is repaid in full, at an annual rate equal to
eight percent (8%) per annum. Interest shall accrue together with the principal
of this Note and shall be due and payable in full on the earliest of (i) the
sixtieth day following the date first set forth above, and (ii) upon an Event of
Default as hereafter described.

          2. Prepayment. The Debt may be prepaid at any time in whole or in part
without penalty or premium on written notice,

          3. Defaults. Each of the following events shall constitute a default
under this Note (each, an “Event of Default”).

                    (a) any default shall occur in the payment of any amount
payable under this Note;

                    (b) the Debtor shall become unable, fail generally or admit
in writing its inability to pay its debts as they become due;

                    (c) the Debtor shall (i) voluntarily commence any proceeding
or file any petition seeking liquidation, reorganization or other relief under
any Federal, state or foreign bankruptcy, insolvency, receivership or similar
law now or hereafter in effect, (ii) consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition described
in clause (d) below, (iii) apply for or consent to the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for
the Debtor or for all or a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors or (vi)
take any action for the purpose of effecting any of the foregoing;

                    (d) an involuntary proceeding shall be commenced or an
involuntary petition shall be filed seeking (i) liquidation, reorganization or
other relief in respect of the Debtor or its debts, or of all or a substantial
part of its assets, under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar official
for the Debtor or for all or a substantial part of its assets, and, in any such
case, such proceeding or petition shall continue

--------------------------------------------------------------------------------

undismissed for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

                    (e) the Debtor dissolves, liquidates, winds-up, or sells or
otherwise disposes of all or substantially all of its business or assets;

          4. Remedies upon an Event of Default. If any Event of Default shall
have occurred, the principal of this Note, together with accrued interest
thereon shall automatically become due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the
Debtor.

          5. Notices. All notices or other communications to be given hereunder
shall be in writing and sent in accordance with that certain Purchase and Sale
Agreement dated as of even date herewith between the parties pursuant to which
this Note is issued.

          6. Costs and Expenses. The Debtor shall be responsible to pay or
reimburse any and all reasonable costs and expenses incurred by the Holder in
connection with the enforcement and collection of this Note.

          7. Amendment. No provision of this Note may be changed, modified,
waived or released, unless it is in writing and signed by the Debtor and the
Holder.

          8. Waivers. Presentment for payment, notice of dishonor, protest and
notice of protest are hereby each waived by the Debtor. Any other waiver or
consent respecting this Note shall be effective only if in writing and signed by
the Holder and then only in the specific instance and for the specific purpose
for which given. The failure or delay of the Holder at any time or times to
require performance of, or to exercise its rights with respect to, any term or
provision of this Note in no manner shall affect its right at a later time to
enforce any such term or provision. No notice to or demand on the Debtor in any
case shall entitle such party to any other or further notice or demand. All
rights, powers, privileges, remedies and other interests of the Holder under
this Note and applicable law are cumulative and not alternatives.

          9. Venue. Debtor irrevocably consents that any legal action or
proceeding against it under, arising out of or in any manner relating to this
Note, may be brought in any court of the State of New York located in New York,
New York or in the United States District Court for the Southern District of New
York. Debtor, by the execution and delivery of this Note, expressly and
irrevocably assents and submits to the personal jurisdiction of any of such
courts in any such action or proceeding, and further irrevocably consents to the
service of any complaint, summons, notice or other process relating to such
action or proceeding by delivery thereof to it by hand or by mail in the manner
provided for in this Note. Debtor hereby expressly and irrevocably waives any
claim or defense in any such action or proceeding based on any alleged lack of
personal jurisdiction, improper venue or forum non conveniens or any similar
basis. Debtor shall not be entitled in any such action or proceeding to assert
any defense given or allowed under the laws of any state other than the State of
New York unless such defense is also given or allowed by the laws of the State
of New York. Nothing in this Note shall affect or impair in any manner or to any
extent the right of holders to commence legal proceedings or otherwise proceed
against debtor in any jurisdiction or to serve process in any manner permitted
by law.

2

--------------------------------------------------------------------------------

          10. Governing Law. This Note has been executed, delivered and accepted
in the State of New York and shall be construed in accordance with and governed
by the internal laws of the State of New York.

          IN WITNESS WHEREOF, the Debtor has executed and delivered this Note as
of the date first written above.

 

 

 

 

GK ACQUISITION LLC

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

     Angela L. Krivulka, Sole Member

3

--------------------------------------------------------------------------------

EXHIBIT F

Assignment and Assumption Agreement

--------------------------------------------------------------------------------

ASSIGNMENT AND ASSUMPTION AGREEMENT

                    This ASSIGNMENT AND ASSUMPTION AGREEMENT, dated as of May
______, 2007 (this “Assignment and Assumption Agreement”), by and between
KLINGER ADVANCED AESTHETICS, INC., a Delaware corporation, ADVANCED AESTHETICS,
LLC, a Delaware limited liability company (with Klinger Advanced Aesthetics,
Inc., the “Sellers”), and GK ACQUISITION LLC, a Delaware limited liability
company (the “Buyer”).

                    The Sellers and Buyer are parties to a Purchase and Sale
Agreement, dated as of May _____, 2007 (the “Agreement”). Terms used herein have
the respective meanings ascribed thereto in the Agreement unless otherwise
defined herein.

                    For good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, on the terms and subject to the
conditions of the Agreement, as of the date hereof the Sellers assign, transfer
and convey to Buyer all of the rights, title and interest of the Sellers in, to
and under the 501 Madison Leases and the contracts set forth in Exhibit A to the
Agreement.

                    Buyer hereby assumes and agrees to pay, perform and
discharge when due the Assumed Liabilities, to the extent not paid, performed or
discharged on or before the date hereof.

                    Notwithstanding anything herein to the contrary, the Assumed
Liabilities shall not include, and Buyer shall not and does not assume, the
Excluded Liabilities.

                    This Assignment and Assumption Agreement is subject in all
respects to the terms and conditions of the Agreement, and all of the
representations, warranties, covenants and agreements of the Sellers contained
therein, all of which shall survive the execution and delivery of this
Assignment and Assumption Agreement in accordance with the terms of the
Agreement.

                    This Assignment and Assumption Agreement constitutes an
agreement solely among the parties hereto, and is not intended to and shall not
confer any rights, remedies, obligations or liabilities, legal or equitable, on
any Person other than the parties hereto and their respective successors,
assigns and legal representatives, or otherwise constitute any Person a third
party beneficiary under or by reason hereof, unless otherwise provided under the
Agreement. This Assignment and Assumption Agreement may be executed in one or
more counterparts, each of which shall be deemed an original agreement, but all
of which together shall constitute one and the same instrument, and shall be
governed by and construed in accordance with the internal laws of the State of
New York without reference to conflicts of law principles thereof. Buyer and the
Sellers hereby irrevocably submit to the exclusive personal and subject matter
jurisdiction of the state and federal courts located in New York County, New
York, over any suit, action or proceeding arising out of or relating to this
Assignment and Assumption Agreement. This Assignment and Assumption Agreement
may only be amended or modified in writing signed by the party against whom
enforcement of such amendment or modification is sought.

--------------------------------------------------------------------------------

                    IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Assumption Agreement to be duly executed on their behalf by the
undersigned, thereunto duly authorized, as of the day and year first above
written.

 

 

 

 

GK ACQUISITION LLC

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Angela L. Krivulka, Sole Member

 

 

 

KLINGER ADVANCED AESTHETICS, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title:

-2-

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EXHIBIT G

Bill of Sale

--------------------------------------------------------------------------------

BILL OF SALE

                    KNOW ALL MEN BY THESE PRESENTS, that KLINGER ADVANCED
AESTHETICS, INC., a Delaware corporation (the “Seller”), for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
hereby sells, conveys, grants, bargains, transfers, sets over and assigns to GK
ACQUISITION LLC, a Delaware corporation (the “Buyer”), the Purchased Assets, as
such terms are defined in the Asset Purchase Agreement, dated as of May ____,
2007 (the ”Agreement”), among the Seller, Advanced Aesthetics, LLC and the
Buyer. Terms used herein have the respective meanings ascribed thereto in the
Agreement unless otherwise defined herein.

TO HAVE AND TO HOLD, the same unto the Buyer forever.

                    The Seller hereby agrees that the representations,
warranties, covenants and agreements of the Seller contained in the Agreement
shall not merge into or with this Bill of Sale but shall survive this Bill of
Sale and shall continue in full force and effect for the period specified in the
Agreement.

                    The Seller hereby covenants and agrees with the Buyer that,
from time to time after the delivery of this Bill of Sale, the Seller will
execute and deliver, or cause to be executed and delivered, such other
instruments of conveyance and transfer and take such other actions as the Buyer
may reasonably request to evidence and/or in any manner to perfect the title to
the Purchased Assets in the Buyer, and to do all other things and execute and
deliver all other instruments and documents as may be required under the
Agreement to put Buyer in control thereof.

                    The provisions of this Bill of Sale shall be binding upon
the Seller and its successors, assigns and legal representatives and shall inure
to the benefit of the Buyer and its successors, assigns and legal
representatives.

[Signature Page to Follow]

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                    IN WITNESS WHEREOF, the Seller has caused this Bill of Sale
to be signed on its behalf by the undersigned, thereunto duly authorized, as of
this _____ day of May, 2007.

 

 

 

 

KLINGER ADVANCED AESTHETICS, INC.

 

 

By:

 

 

 

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Name:

 

Title:

[signature page to Bill of Sale]

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EXHIBIT H

Transition Services Agreement

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Klinger Advanced Aesthetics, Inc.
501 Merritt 7, 5th Floor
Norwalk, CT 06851

May     , 2007

GK Acquisition, LLC
c/o Angela Krivulka.
3 Bucks Mill Lane
Holmdel, New Jersey 07733

Gentlemen:

          In connection with the Purchase and Sale Agreement of even date (the
“Agreement”) pursuant to which GK Acquisition LLC is acquiring the Business (as
defined in the “Agreement”) previously operated by Sellers, this letter will
constitute our agreement that, Klinger Advanced Aesthetics, Inc. (“Klinger”)
will provide certain transitional services to Buyer including but not limited to
accounting and administrative services, back office support, payroll and other
similar services to the Buyer(the “Services”) which Services are set forth on
Schedule A annexed hereto. Klinger shall provide the Services until such time as
Buyer is able to put its own systems in place or this agreement is terminated
(the “Transition Period”). Klinger will utilize the systems in place at Klinger
in connection with its performance of the Services. Klinger shall pay on behalf
of GK, employee salaries and other related expenses related to the Business for
the first pay cycles during the Transition Period following the Closing Date.
Such payroll advances shall be made in accordance with normal payroll practices
and be subject to the True Up contemplated in Section 5.2 of the Agreement.

          The cost of providing such services shall be Klinger’s true cost of
providing these services and shall be paid by Buyer to Seller within fifteen
(15) days following receipt of an invoice from Klinger.

          Klinger shall act under this Letter Agreement solely as an independent
contractor and not as an agent, partner, employee or joint venturer of the
Buyer. Employees or agents of Klinger rendering services to the Buyer pursuant
to this Letter Agreement shall not be deemed employees or agents of the Buyer.

          The parties hereto shall cooperate with each other in connection with
the performance and receipt of any Services under this Letter Agreement during
the Transition Period. Terms not defined herein, shall have the meaning set
forth in the Agreement.

          Except as indicated in Schedule A, this Agreement may be terminated by
either party on fifteen (15) days written notice to the other provided however
that Klinger cannot terminate this Letter Agreement for the first thirty (30)
days following the Closing Date.

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          This Letter Agreement shall be binding upon and inure to the benefit
of the parties hereto, their heirs and respective successors and assigns. Buyer
rights may assigned without the consent of Klinger to any affiliate of Buyer.

          All notices or other communications required or permitted to be given
hereunder shall be as set forth in the Agreement and all disputes hereunder
shall be resolved in the manner provided for dispute resolution in the
Agreement.

          If the foregoing sets forth our agreement, please indicate below.

 

 

 

 

 

 

Very truly yours,

 

 

 

 

 

 

KLINGER ADVANCED AESTHETICS, INC.

 

 

 

 

 

 

By:

 

 

 

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AGREED:

 

 

 

 

 

 

GK ACQUISITION, LLC

 

 

 

 

 

 

By:

 

 

 

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Angela L. Krivulka, Sole Member

 

 

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SCHEDULE A

Transition Services shall include

 

 

 

 

•

Finance Support

 

 

 

 

•

Supply Chain Management for a maximum of two weeks only

 

 

 

 

•

Payroll Services

 

 

 

 

•

Accounts Payable

 

 

 

 

•

IT Services

 

 

 

 

•

Such other Services as reasonably requested by Buyer

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EXHIBIT I

Red Raspberry Agreement

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ASSIGNMENT AGREEMENT

Reference is made to the Consulting/Management Agreement (the “Agreement”) by
and between Klinger Advanced Aesthetics, Inc. (“KAA”) and Raspberry Red
Marketing, LLC (“RRM”), dated as of August 31, 2006. KAA hereby provides notice
that KAA intends to enter into a Purchase and Sale Agreement (the “Purchase and
Sale Agreement”) by and among Advanced Aesthetics, LLC, KAA and GK Acquisition,
LLC (“GK”) pursuant to which KAA shall sell certain of its assets to GK
(the ”Sale”), and that as part of the Sale, KAA intends to assign the Agreement
to GK.

KAA hereby assigns, conveys and transfers to GK all of the rights, title and
interest of KAA in, to and under the Agreement, and delegates to GK all of KAA’s
duties under the Agreement effective as of the Closing (as such term is defined
in the Purchase and Sale Agreement).

GK hereby accepts such assignment of rights and delegation of duties and agrees
to assume and pay, perform and discharge when due the obligations of KAA under
the Agreement accruing after the Closing.

This agreement shall be binding upon and inure to the benefit of the parties
hereto, their successors, assigns and personal representatives.

Entered into this _____ day of May, 2007.

 

 

 

 

GK ACQUISITION LLC

 

 

 

By:

 

 

 

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Angela L. Krivulka, Sole Member

 

 

 

 

KLINGER ADVANCED AESTHETICS, INC.

 

 

 

By:

 

 

 

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Name:

 

Title:

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EXHIBIT J

Cosmedicine Supply Agreement

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Subsequent to the Closing, the Sellers shall use their commercially reasonable
efforts to take, or cause to be taken, all actions and to do, or cause to be
done, all things necessary, proper or advisable to cause to be delivered to
Buyer copies of the Cosmedicine Supply Agreement.

EXHIBIT K

Non-Competition/Solicitation Agreement

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NON-COMPETITION AGREEMENT

          THIS NON-COMPETITION AGREEMENT (this “Agreement”) is made as of [May ,
2007] (the “Effective Date”), by and between KLINGER ADVANCED AESTHETICS, INC.
(“KAA”), ADVANCED AESTHETICS, LLC (“AA”) (collectively referred to herein as
“Sellers”); ADVANCED AESTHETICS SUB, INC. (“AASI”) and TRUEYOU.COM, INC. (the
“Sellers Parent” and together with Seller and AASI, the “Bound Parties”) and GK
ACQUISITION LLC (“Buyer”). Defined terms used in this Agreement and not
otherwise defined shall have the meanings ascribed to them in the Purchase and
Sale Agreement (as defined below).

RECITALS:

          WHEREAS, the Bound Parties have been involved in the operation of
spas/salons in various locations in the United States under the “Georgette
Klinger” name, the Advanced Aesthetics name and variations thereof ( the “Spa
Business”); and

          WHEREAS, pursuant to the Purchase and Sale Agreement, Sellers are
selling the Equity Interests in the Subsidiaries and certain other assets to
Buyer and Buyer is purchasing the Equity Interests and assets from Sellers; and

          WHEREAS, the execution and delivery of this Agreement is a condition
precedent to, and an integral part of, the consideration flowing to Buyer for
its consummation of the transactions contemplated by the Purchase and Sale
Agreement including its payment of the Purchase Price; and

          WHEREAS, the execution and delivery of this Agreement is necessary to
ensure that Buyer receives the full benefit of the Purchase and Sale Agreement
and to preserve the goodwill associated with the Spa Business, Equity Interests
and the assets, the Bound Parties are willing to agree to certain restrictions
on their business activities from and after the date hereof, upon the terms and
subject to the conditions set forth in this Agreement;

          NOW, THEREFORE, in consideration of the mutual covenants contained in
this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

          1. Term. The term of this Agreement shall commence on the Effective
Date and expire on the day before the third anniversary hereof (the “Term”).

          2. Confidentiality.

 

 

 

          a. Confidential Information. The Bound Parties acknowledge and agree
that they have and in the future may continue to have access to secret and
confidential information relating to the Spa Business (“Confidential
Information”) and that the following restrictive covenants are necessary to
protect the interests and continued success of the Spa Business. As used in this
Agreement, Confidential Information

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includes, without limitation, all information with respect to the Spa Business’
operations, processes, protocols, products, services, inventions, business
practices, finances, vendors, suppliers, customers, potential customers,
marketing, methods, costs, prices, contractual relationships, regulatory status,
compensation paid to employees or other terms of employment , whether or not in
written form, relating to the Spa Business which is confidential and has not
been made available to the general public.

 

 

 

          b. Non-Disclosure. The Bound Parties shall not disclose any
Confidential Information to any person or entity at any time during the Term
except to the extent required by law. The parties hereby stipulate and agree
that as between them, the Confidential Information identified herein is
important, material and affects the successful conduct of the Spa Business.

          3. Non-Competition. The Bound Parties agree that during the Term they
will not, directly or indirectly, whether or not for compensation, be engaged in
or have any financial interest in any business or activity, wherever located,
which own and/or operate spa/salons similar to the Spa Business as heretofore
conducted by the Bound Parties. For purposes of this Agreement, a Bound Party
will be deemed to be “engaged in or to have a financial interest” in a business
if a Bound Party is an owner, employee, officer, director, partner, agent,
consultant, service provider, joint venturer or member of or to any person,
partnership, corporation, trust or other entity which is engaged (directly or
indirectly) in the operation or ownership of spas/salons similar to the Spa
Business, or if such Bound Party directly or indirectly receives remuneration
from or performs services for, such an entity or if a Bound Party beneficially
owns an equity interest, or interest convertible into equity, in any such
entity; provided, however, that the foregoing will not prohibit any Bound Party
from owning, for the purpose of passive investment, less than 5% of any class of
securities of a publicly held corporation actively traded on a national
securities exchange.

          Notwithstanding the foregoing, the Bound Parties shall not without
limitation be restrained from engaging in the sale of cosmoceutical or other
skincare products to retailers or other operators of businesses whether or not
competitive with the Spa Business.

          4. Non-Solicitation/Non-Interference. During the Term the Bound
Parties shall not, directly or indirectly, acting as an employee, owner,
shareholder, partner, member, joint venturer, contractor, advisor,
representative, officer, director, agent, salesperson, consultant, service
provider, advisor, investor or principal of any Person:

 

 

 

          a. solicit, request or otherwise attempt to induce or influence,
directly or indirectly, any present client, distributor or supplier, or
prospective client, distributor or supplier of the Spa Business, or other
persons sharing a business relationship with the Spa Business, to cancel, limit
or postpone their business with the Spa Business, or otherwise take action which
might be to the disadvantage of the Spa Business; or

 

 

 

          b. after the date hereof, hire or solicit for employment, directly or
indirectly, or induce or actively attempt to influence, any person who is then
or at any time during the Term was an employee, officer, director, agent,
contractor or other business associate

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of (i) Buyer, or (ii) of any other Person (including the Bound Parties) if such
person’s primary responsibilities were related to the Spa Business, to terminate
his or, her employment or discontinue such person’s consultant, contractor or
other business association with Buyer.

          5. Consideration. The parties acknowledge and agree that this
Agreement is being entered into by the Bound Parties (i) in order to induce
Buyer to enter into the Purchase Agreement and to consummate the transactions
contemplated thereby, (ii) in consideration of the Purchase Price to be paid for
the Equity Interests and assets, and (iii) to preserve the value of the
transaction for the Buyer and the goodwill associated with the Spa Business. The
Bound Parties acknowledge that the restrictions contained in this Agreement
including the time period, geographic restrictions and scope of the subject
matter are reasonable and necessary to protect the interests of the Buyer and
the Spa Business. The Bound Parties further acknowledge that no consideration
beyond the Purchase Price set forth in the Purchase Agreement shall be paid to
them in consideration of this Agreement.

          6. Violation of Covenants. If any Bound Party violates any of the
restrictive covenants contained in this Agreement, (i) the applicable
restrictive period (with respect to each Bound Party) shall be increased by the
period of time from the commencement of any such violation until the time such
violation shall be cured by the Bound Parties to the satisfaction of Buyer, and
(ii) Buyer may pursue any and all remedies available to it at law and/or in
equity to enforce, and recover damages for the breach of, the restrictive
covenants contained in this Agreement, including, without limitation,demanding
injunctive relief under Section 10.

          7. Scope of Covenants. In the event that any of the provisions of this
Agreement should ever be adjudicated to exceed the time, geographic, product or
service, or other limitations permitted by applicable law in any jurisdiction,
then such provisions shall be deemed reformed in such jurisdiction to the
maximum time, geographic, product or service, or other limitations permitted by
applicable law. If the covenants of this Agreement are determined to be wholly
or partially unenforceable in any jurisdiction, such determination shall not be
a bar to or in any way diminish the Company’s right to enforce such covenants in
any other jurisdiction.

          8. Governing Law. This Agreement, and all matters arising directly or
indirectly herefrom, shall be governed by and construed in accordance with the
laws of the State of [New York] notwithstanding the choice of law or conflicts
of law principles thereof.

          9. Jurisdiction; Venue. The Buyer and each of the Bound Parties hereby
(a) irrevocably consent and submit to the exclusive jurisdiction and venue of
the Supreme Court of the State of New York]and/or the United States District
Court for the Southern District of New York with respect to any dispute arising
out of or related in any way to this Agreement, and (b) irrevocably waive, to
the fullest extent permitted by law, any objection that any of them may now or
hereafter have to the laying of the venue of any such suit, action or proceeding
in any such court or that any such suit, action or proceeding which is brought
in any such court has been brought in an inconvenient forum.

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          10. Injunctive Relief. The Bound Parties acknowledge and agree that in
the event of a breach or threatened breach of this Agreement by any Bound Party,
Buyer may suffer irreparable harm and monetary damages alone would not afford
Buyer an adequate remedy and, therefore, Buyer shall be entitled to seek
immediate injunctive relief in any court of competent jurisdiction restraining
the Bound Party(ies) from such breach or threatened breach of the restrictive
covenants contained in this Agreement. Nothing herein shall be construed as
prohibiting Buyer from pursuing any other remedies available to it for such
breach or threatened breach, including, without limitation, the recovery of
monetary damages from the Bound Parties, jointly and severally.

          11. Waiver. The waiver by either party of any breach by the other
party of any provision of this Agreement shall not operate or be construed as a
waiver of any subsequent breach by such party.

          12. Assignment. The Buyer may freely assign its rights and obligations
under this Agreement to any entity, including any successor to all or
substantially all of the assets of Buyer, by merger or otherwise and may assign
or encumber this Agreement and its rights hereunder as security for indebtedness
of Buyer and its Affiliates., provided that Buyer requires such assignee to
expressly assume its obligations hereunder. The Bound Parties may not assign any
of the Bound Parties’ duties, responsibilities or obligations hereunder and any
attempted assignment by any Bound Party shall be void and of no force and
effect. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

          13. No Conflicts. The Bound Parties, jointly and severally, represent
and warrant to Buyer that the execution, delivery and performance by the Bound
Parties of this Agreement has been fully authorized and has no conflict with or
result in a violation or breach of, or constitute (with or without the giving of
notice or the lapse of time or both) a default under any contract, agreement or
understanding, whether oral or written, to which any Bound Party is a party or
by which any Bound Party is bound and the there are no restrictions, covenants,
agreements or limitations (including under a Bound Party’s certificate of
incorporation, by-laws or like governance document) on any Bound Party’s right
or ability to enter into and fully perform this Agreement, and the Bound Parties
agree to indemnify save Buyer harmless from any liability, cost or expense,
including attorney’s fees, based upon or arising out of any such restrictions,
covenants, agreements, or limitations that may be found to exist.

          14. Entire Agreement. This Agreement contains the entire agreement of
the parties and all promises, representations, understandings, arrangements and
prior agreements on such subject are merged herein and superseded hereby. The
provisions of this Agreement may not be amended, modified, repealed, waived or
extended except by an agreement in writing signed by the party against whom
enforcement of such amendment, modification, repeal, waiver or extension is
sought.

          15. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, and all of which
shall together be deemed to constitute one and the same instrument.

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          16. Notices. All notices, demands, or other communications to be given
or delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given when delivered personally to the
recipient or when sent by facsimile followed by delivery by reputable overnight
courier service, or one day after being sent to the recipient by reputable
overnight courier service (charges prepaid). Such notices, demands and other
communications shall be sent to the Bound Parties and the Buyer at the addresses
indicated below or to such other address or to the attention of such other
person or entities as the recipient party has specified by prior written notice
to the sending party. All notices, demands and other communications hereunder
may be given by any other means(including telecopy or electronic mail) but shall
not be deemed to have been duly given unless and until it is actually received
by the intended recipient.

 

 

 

If to the Buyer:

 

 

 

GK Acquisition, LLC

 

c/o Angela Krivulka

 

3 Bucks Mill Lane 07733

 

Holmdel, New Jersey,

 

 

 

With a copy to:

 

 

 

Lowenstein Sandler, PC

 

65 Livingston Avenue

 

Roseland, New Jersey 07068

 

Attn: Michael J. Lerner

 

 

 

If to Bound Parties:

 

 

 

Klinger Advanced Aesthetics, Inc.

 

501 Merritt 7, 5th Floor

 

Norwalk, Connecticut 06851

 

Telecopier No.: 203-295-2102

 

 

 

With a copy to:

 

 

 

Edward R. Mandell

 

Troutman Sanders, LLP

 

405 Lexington Avenue

 

New York, New York 10174

 

Telecopier No. 212-704-6160

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          IN WITNESS WHEREOF, Buyer and each Bound Party have caused this
Agreement to be executed by its duly authorized officers as of the day and year
first above written.

 

 

 

 

GK ACQUISITION LLC

 

 

 

 

By:

 

 

 

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Angela L. Krivulka, Sole Member

 

 

 

 

KLINGER ADVANCED AESTHETICS, INC.

 

 

 

 

By:

 

 

 

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Name:

 

Title:

 

 

 

 

ADVANCED AESTHETICS, LLC

 

 

 

 

By:

 

 

 

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Name:

 

Title:

 

 

 

 

ADVANCED AESTHETICS SUB, INC.

 

 

 

 

By:

 

 

 

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Name:

 

Title:

 

 

 

 

TRUEYOU.COM, INC.

 

 

 

 

By:

 

 

 

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Name:

 

Title:

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EXHIBIT L

Non-Solicitation Agreement

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GEORGETTE KLINGER SPAS
EMPLOYEE COVENANTS AGREEMENT

I am about to become a paid employee of Georgette Klinger Spas (“Klinger”),
having a place of business at _______________. Klinger, together with its parent
companies, subsidiaries and affiliates, future successors or assigns, may be
collectively referred to in this Covenants Agreement as, the “Company.” I am
making this Agreement in consideration of my employment by Klinger, and the
compensation and benefits afforded to me in connection with that employment.

1. Covenant Against Competition.

I agree that during the course of my employment with the Company and for a
period of [six (6)] months following the termination of my employment with the
Company (for any reason or no reason) (the “Restricted Period”), I will not,
within a [twenty (20)] mile radius of the Klinger place of business where I was
employed, without the express prior written consent of the Company, either
directly or indirectly, whether alone or as an owner, shareholder, partner,
member, joint venturer, officer, director, consultant, independent contractor,
agent, employee or otherwise of any company or other business enterprise, assist
in, engage in or otherwise be connected to or benefit from any business
competitive with that of the Company. A “business competitive with that of the
Company” is one that (i) involves, in any manner, the marketing, development,
construction, or operation of a company providing salon or spa services, or (ii)
engages in or provides or intends to engage in or provide any products, services
or other business which is of the same nature as a product, service or other
business of the Company or a product, service or other business that the Company
was developing during the period of my employment and of which I have knowledge
or reasonably should have had knowledge. Notwithstanding the foregoing, nothing
herein shall be deemed to prohibit my ownership of less than 2% of the
outstanding shares of any publicly traded corporation that conducts a business
competitive with that of the Company.

2. Covenant Against Solicitation.

I further agree that, during the Restricted Period, I will not, without the
express prior written consent of the Company, directly or indirectly: (i)
contact, communicate, solicit, transact business with or perform services for
(or assist any third party in contacting, communicating, soliciting, transacting
business with or performing any services for) any person that is or was (at any
time within [six (6)] months prior to the contact, communication, solicitation,
transaction of business, or performance of services), a customer of the Company;
(ii) solicit, recruit, hire, engage, or refer (or assist any third party in
soliciting, recruiting, hiring, engaging or referring) any person who either is,
or during the [six (6)] months immediately preceding the termination of my
employment was, an employee, agent, consultant or independent contractor of the
Company; or (iii) interfere with, disrupt or attempt to interfere with or
disrupt the relationship, contractual

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or otherwise, between the Company and any of its customers, suppliers,
independent contractors, agents or employees.

3. Non-Disparagement. I will not at any time (during or after my employment with
Klinger) disparage the reputation of the Company, its customers and its or their
respective affiliates or any of its or their respective officers, directors,
employees or agents.

4. Interpretation and Scope of this Agreement.

                    (a) Each provision of this Agreement will be interpreted on
its own. If any provision is held to be unenforceable by a court of competent
jurisdiction as written, then such provision shall be deemed limited and
restricted to the extent that the court shall deem the provision to be
enforceable. The invalidity or unenforceability of any provisions of this
Agreement shall not affect the validity or enforceability of any other provision
hereof. Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. If it is ever held that any restriction hereunder is too
broad to permit enforcement of such restriction to its fullest extent, such
restriction shall be enforced to the maximum extent permitted by applicable law.

                    (b) I understand and agree that if I breach or threaten to
breach any of the provisions of this Agreement, including without limitation the
provisions of Sections 1, 2, or 3 hereof, the Company would suffer irreparable
harm and damages would be an inadequate remedy. Accordingly, I acknowledge that
Company shall be entitled to temporary, preliminary and permanent injunctive or
other equitable relief in any court of competent jurisdiction (without being
obligated to post a bond or other collateral) and to an equitable accounting of
all earnings, profits and other benefits arising, directly or indirectly, from
such violation, which rights shall be cumulative and in addition to (rather than
instead of) any other rights or remedies to which the Company may be entitled at
law or in equity. In addition (and not instead of those rights), I further
covenant that I shall be responsible for payment of the fees and expenses of
Company’s attorneys and experts, as well as Company’s court costs, pertaining to
any suit, arbitration, mediation, action or other proceeding (including the
costs of any investigation related thereto) arising directly or indirectly out
of my violation or threatened violation of any of the provisions of this
Agreement.

                    (c) The provisions of this Agreement shall constitute the
entire agreement of Klinger and I with respect to the matters covered hereby and
shall supercede all previous written, oral or implied understandings with
respect to such matters.

                    (d) Any and all actions, claims or controversies arising
directly or indirectly out of this Agreement, including, without limitation,
tort claims, shall be governed and construed by the laws of the [State of New
Jersey], without reference to the choice of laws provisions thereof. Any and all
actions arising directly or indirectly out of this Agreement or my employment by

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Klinger shall be brought and heard in the state and federal courts of the [State
of New Jersey] and I hereby irrevocably submit to the exclusive jurisdiction of
any such courts. The Company and I hereby agree to waive our respective rights
to a trial by jury.

                    (e) This Agreement shall be binding upon me and my
executors, heirs and assigns and shall inure to the benefit of the Company, its
affiliates and their respective successors and assigns (including, without
limitation, a purchaser of all or substantially all of the assets of the Company
or its affiliates).

                    (f) I acknowledge and agree that the restrictions on the
activities in which I may engage that are set forth in Sections 1, 2 and 3 of
this Agreement and the location and period of time for which such restrictions
apply are reasonable and necessary to protect the Company’s legitimate business
interests and shall survive the termination of my employment. I further
acknowledge that the restrictions contained in this Agreement will not prevent
me from earning a livelihood.

                    (g) Nothing contained in this Agreement shall give me any
right to continue to be employed by Klinger. Klinger shall have the right to
terminate my employment at any time, with or without cause or notice and no one
at the Company has made any other representations to me with respect thereto.

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                    I represent and warrant that: (a) I have read this Agreement
and understand all the terms and conditions hereof, (b) I have entered into this
Agreement of my own free will and volition, (c) I have been advised by the
Company that this Agreement is a legally binding contract and that I should seek
my own independent attorney to review it, (d) I have been afforded ample
opportunity to consult with my own attorney regarding this Agreement, and (e)
the terms of this Agreement are fair, reasonable and are being agreed to
voluntarily in exchange for my employment or continued employment by the
Company.

WITNESS:

 

 

 

 

 

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[Employee Name]

 

 

 

 

 

 

Date:

 

Accepted:

 

 

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Georgette Klinger Spas

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

-4-

--------------------------------------------------------------------------------

Exhibit M

Certain Employees

Subsequent to the Closing, the Sellers shall use their commercially reasonable
efforts to take, or cause to be taken, all actions and to do, or cause to be
done, all things necessary, proper or advisable to cause to be delivered to
Buyer copies of the Non-Solicitation Agreement annexed as Exhibit L executed by
the following employees:

TO BE NEGOTIATIED

--------------------------------------------------------------------------------

EXHIBIT N

Assignment of Trademarks

--------------------------------------------------------------------------------

TRADEMARK ASSIGNMENT

          THIS TRADEMARK ASSIGNMENT is made by and between KLINGER ADVANCED
AESTHETICS, LLC, a Delaware limited liability company, KLINGER ADVANCED
AESTHETICS, INC., a Delaware corporation (with Klinger Advanced Aesthetics, LLC,
“Assignors”), and GK ACQUISITION LLC, a Delaware limited liability company
(“Assignee”).

          WHEREAS, subject to the terms and conditions of this Trademark
Assignment, Assignors wish to assign to Assignee, and Assignee wishes to
receive, all right, title, and interest in and to the trademark registrations
set forth on Schedule A and all common law and other rights, worldwide, in and
to the trademarks that are the subject of such registrations (such rights,
collectively, the “Assigned Trademarks”).

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Assignors and Assignee agree as
follows:

          1. Each of the Assignors hereby sell, grant, assign, transfer, and
deliver to Assignee all of its rights, title and interests in and to the
Assigned Trademarks, including without limitation the goodwill of the business
appurtenant thereto and which is symbolized thereby, and the right to renew any
registration therefor, to be held and enjoyed by Assignee for its own use and
benefit and for the use and benefit of its successors, assigns and legal
representatives, to be used as fully and entirely as said rights would have been
held and enjoyed by Assignors had this assignment and sale not been made,
together with all claims for damage by reason of past, present or future
infringement of said Assigned Trademarks with the right to sue and collect the
same for its own use or for the use of its successors, assigns or other legal
representatives.

          2. This Trademark Assignment shall be construed, performed and
enforced in accordance with, and governed by, the laws of the State of New York,
without giving effect to the principles of conflicts of laws thereof.

          3. This Trademark Assignment may be executed simultaneously in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

          4. Assignors and Assignee agree that post closing, the parties will
use their best efforts to negotiate and enter into a mutually acceptable license
agreement that will allow (i) Assignee the right to utilize the Klinger 360
System and certain other marks and (ii) Assignors the right to continue to use
for a reasonable period of time the Klinger name in the various forms used
immediately prior to the date of this Assignment on its Cosmedicine packaging,
corporate and trade names, email and web sites.

          Assignors hereby requests the Commissioner of Patents and Trademarks,
and the corresponding entities or agencies in any applicable foreign countries,
to record Assignee as the assignee and owner of the Assigned Trademarks.

--------------------------------------------------------------------------------

          IN WITNESS WHEREOF, each of the undersigned has caused this Trademark
Assignment to be executed by its officer thereunto duly authorized, as of the
_____ day of May, 2007.

 

 

 

 

KLINGER ADVANCED AESTHETICS, LLC

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title

 

 

 

 

KLINGER ADVANCED AESTHETICS, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title:

 

 

STATE OF ______________)

 

                                                )

 

COUNTY OF ____________)

 

On this ____ day of May, 2007, before me personally appeared
____________________, known to me (or proved to me on the basis of satisfactory
evidence) to be the person whose name is subscribed to the within instrument and
acknowledged to me that she executed the same in her authorized capacities, and
that by her signature on the instrument, the entities upon behalf of which the
person acted, executed the instrument.

WITNESS my hand and official seal.

 

 

 

 

--------------------------------------------------------------------------------

 

My commission expires:_____________________

          NOTARY PUBLIC

 

 

 

 

 

 

GK ACQUISITION LLC

 

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Angela K. Krivulka, Sole Member

 

2

--------------------------------------------------------------------------------

SCHEDULE A

Trademarks

--------------------------------------------------------------------------------

Schedule A
Trademarks

Klinger Advanced Aesthetics, Inc.

U.S. Trademarks

 

 

 

 

 

 

 

 

 

 

 

 

 

Mark

 

Serial No.

 

Filing
Date

 

Registration
No.

 

Registration
Date

 

Status

 

Owner

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

K KLINGER ADVANCED AESTHETICS & Design

 

78/758,271

 

11/21/2005

 

 

 

 

 

Live / Pending

 

Klinger Advanced Aesthetics, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

KLINGER ADVANCED AESTHETICS

 

78/676,288

 

07/22/2005

 

 

 

 

 

Live / Pending

 

Klinger Advanced Aesthetics, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

THE PLACE OF POSSIBILITIES

 

78/655,732

 

06/22/2005

 

 

 

 

 

Live / Pending

 

Klinger Advanced Aesthetics, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

GEORGETTE KLINGER

 

73/115,375

 

02/10/1977

 

1,106,942

 

11/28/1978

 

Live / Registered

 

Klinger Advanced Aesthetics, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

KLINGER

 

73/115,373

 

02/10/1977

 

1,104,128

 

10/17/1978

 

Live / Registered

 

Klinger Advanced Aesthetics, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

GEORGETTE KLINGER

 

73/115,371

 

02/10/1977

 

1,076,178

 

10/25/1977

 

Live / Registered

 

Klinger Advanced Aesthetics, Inc.

Klinger Advanced Aesthetics, Inc.

Foreign Trademarks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mark

 

Country

 

Serial No.

 

Filing
Date

 

Registration
No.

 

Registration
Date

 

Status

 

Owner/
History

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

KLINGER ADVANCED AESTHETICS & Design

 

European Union

 

 

 

 

 

 

 

 

 

 

 

Klinger Advanced Aestheics, Inc.

--------------------------------------------------------------------------------

Klinger Advanced Aesthetics, LLC

U.S. Trademarks

 

 

 

 

 

 

 

 

 

 

 

 

 

Mark

 

Serial No.

 

Filing
Date

 

Registration
No.

 

Registration
Date

 

Status

 

Owner/
History

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

REVIVACELL

 

78/075,787

 

07/26/2001

 

2,619,069

 

09/10/2002

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

ACNE TEEN PLAN and Design

 

76/395,633

 

04/15/2002

 

2,749,681

 

08/12/2003

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

SKIN BOOSTER

 

76/097,353

 

07/26/2000

 

2,508,261

 

11/13/2001

 

Live / Registered on the Supplemental Register

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

ESSENTIAL 9-STEP FACIAL

 

76/066,908

 

06/08/2000

 

2,542,483

 

02/26/2002

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

ADVANCED OXYGEN

 

76/065,770

 

06/08/2000

 

2,453,258

 

05/22/2001

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

LINE SOLUTION

 

76/065,767

 

06/08/2000

 

2,453,257

 

05/22/2001

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

SKIN PROTECTOR

 

76/065,765

 

06/08/2000

 

2,453,256

 

05/22/2001

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

Design

 

75/932,516

 

03/01/2000

 

2,489,314

 

09/11/2001

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

2

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Mark

 

Serial No.

 

Filing
Date

 

Registration
No.

 

Registration
Date

 

Status

 

Owner/
History

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

Design

 

75/932,515

 

03/01/2000

 

2,486,270

 

09/04/2001

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

INSTANT RADIANCE

 

75/660,752

 

03/15/1999

 

2,419,965

 

01/09/2001

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

DAILY 15

 

75/640,434

 

02/11/1999

 

2,632,145

 

10/08/2002

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

HERBAL ESSENTIALS

 

75/578,977

 

10/28/1998

 

2,426,101

 

02/06/2001

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

PRIME TIME

 

75/578,969

 

10/28/1998

 

2,717,662

 

05/20/2003

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

Design

 

73/166,525

 

04/17/1978

 

1,121,229

 

06/26/1979

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

FIRMATIVE

 

73/546,030

 

07/02/1985

 

1,400,036

 

07/08/1986

 

Live / Registered

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

GEORGETTE

 

73/388,758

 

09/24/1982

 

1,284,858

 

07/10/1984

 

Dead / Cancelled

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

GK

 

73/388,809

 

09/24/1982

 

1,284,859

 

07/10/1984

 

Dead / Cancelled

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

KATHRYN

 

73/388,755

 

09/24/1982

 

1,286,713

 

07/24/1984

 

Dead / Cancelled

 

Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

KLINGER

 

73/388,754

 

09/24/1982

 

1,354,848

 

08/20/1985

 

Dead / Cancelled

 

Klinger Advanced Aesthetics, LLC

3

--------------------------------------------------------------------------------

EXHIBIT O

Guaranty

--------------------------------------------------------------------------------

GUARANTY AGREEMENT

          THIS GUARANTY AGREEMENT (this “Guaranty”), dated as of April ___,
2007, is made by TrueYou.Com, a corporation organized under the laws of the
State of Delaware (the “Guarantor”) in favor of GK Acquisition LLC, a Delaware
limited liability company (the “Buyer”).

W I T N E S S E T H:

          WHEREAS, Advanced Aesthetics LLC, a Delaware limited liability company
(“AA”), Klinger Advanced Aesthetics, Inc., a Delaware corporation (“KAA”, and
with AA, the “Sellers”) and the Buyer are parties to a Purchase and Sale
Agreement dated as of the date hereof (as amended from time to time, the
“Agreement”) and certain Seller Ancillary Documents described in the Agreement;

          WHEREAS, as an inducement for the Buyer to enter into the Agreement
and acquire the Business, the Guarantor has agreed to execute and deliver this
Guaranty pursuant to which such Guarantor will guaranty, among other things,
performance by AA and/or KAA of all of their post closing obligations under the
Agreement including but not limited to the payment of all Losses arising from
(i) any inaccuracy in or any breach of any representation, warranty, covenant or
agreement of the Sellers in the Agreement, (ii) any of the Excluded Liabilities
or (iii) any Seller Ancillary Documents or Buyer Ancillary Documents (the
“Transaction Documents”);

          WHEREAS, AA and KAA are wholly-owned subsidiaries of the Guarantor;
and

          WHEREAS, the Guarantor will receive substantial financial benefit from
the sale of the Business to the Buyer.

          NOW, THEREFORE, in consideration of the benefits to the Guarantor and
such other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and in order to induce the Buyer to purchase the
Business, the Guarantor agrees with the Buyer as follows:

          1. Certain Terms.

                    (a) Capitalized terms used herein without definition have
the respective meanings set forth in the Agreement.

                    (b)“Guaranteed Obligations” means collectively all (i)
existing and future obligations, liabilities, duties and undertakings of AA and
KAA under the Agreement and any of the Transaction Documents, and (ii) costs and
expenses (including, without limitation, attorneys’ fees and disbursements)
incurred in connection with the enforcement of this Guaranty.

--------------------------------------------------------------------------------

                    2. Guaranty. The Guarantor hereby absolutely,
unconditionally and irrevocably guaranties to the Buyer the full and punctual
payment and performance of all Guaranteed Obligations of AA and KAA, including
but not limited to (i) the payment of all Losses arising from any inaccuracy in
or any breach of any representation, warranty, covenant or agreement of the
Sellers in the Agreement, (ii) the payment of all Losses arising from any of the
Excluded Liabilities, (iii) all other obligations of AA and KAA present and
future set forth in the Transaction Documents or otherwise owing to the Buyer;
(v) the prompt, complete and full performance, when due and no matter how the
same shall become due, of all obligations owing to the Buyer under the Agreement
and the Transaction Documents, and such guaranty is not conditional or
contingent upon pursuit by the Buyer of any prior action or proceeding for
collection, or for any other remedies that the Buyer may have, against AA, KAA
or any other person.

                    3. Consent. The Guarantor hereby consents and agrees that
the time or place of payment of any Guaranteed Obligation may be exchanged or
extended, in whole or in part, to a time certain or otherwise, and may be
renewed or accelerated, in whole or in part; that the Buyer may be granted
indulgences generally; that any of the provisions of the Agreement or the
Transaction Documents may be amended, modified, increased, accelerated,
compromised, or waived; that AA and/or KAA may be granted indulgences or
released from liability; that neither the insolvency, bankruptcy and/or
dissolution of AA and/or KAA shall affect the obligations hereunder of the
Guarantor; that neither the invalidity or unenforceability of any of the
Guaranteed Obligations shall affect the obligations hereunder of the Guarantor;
that no claim need be asserted against any trustee in bankruptcy or receiver or
other representative in the event that AA and/or KAA is adjudicated bankrupt or
becomes insolvent; and that any property to the credit of AA and/or KAA or any
other person liable for payment of any of the Guaranteed Obligations or liable
upon any security therefor may be released from time to time, in whole or in
part, at, before or after the stated, extended or accelerated maturity of such
Guaranteed Obligations, all of which (a) may be effected without notice to or
further assent by the Guarantor and (b) shall not affect the obligations of the
Guarantor under this Guaranty.

                    4. Waiver. The Guarantor hereby expressly waives:

                         (a) Notice of acceptance of this Guaranty;

                         (b) Presentment and demand for payment of any
Guaranteed Obligation;

                         (c) Protest and notice of dishonor or default to the
Guarantor or to any other party with respect to any Guaranteed Obligation;

                         (d) Demand for payment under this Guaranty; and

                         (e) Any defense by reason of impairment of recourse
against any party liable for the payment of any Guaranteed Obligation.

2

--------------------------------------------------------------------------------

                    5. Guaranty of Payment. This Guaranty is a guaranty of
payment and not of collection. The Guarantor: (a) waives any claim to marshaling
of assets and (b) waives any right to require that an action be brought against
AA and/or KAA or any other Person prior to action against the Guarantor
hereunder. The Guarantor shall be released from all liability hereunder only
upon payment in full of all the Guaranteed Obligations.

                    6. Binding Effect. The provisions of this Guaranty shall be
binding upon the Guarantor and its successors and assigns, and shall inure to
the benefit of the Buyer and its successors and assigns; it being understood
that the Buyer is free to assign its rights, benefits, duties and obligations
under this Guaranty without the consent of any person so long as such assignment
is made together with the Buyer’s rights under the Agreement or the Transaction
Documents, as applicable, and the Guarantor may not assign its rights, benefits,
duties and obligations under this Guaranty without the prior written consent of
the Buyer.

                    7. Subrogation. After (and not before) all amounts payable
under or in respect of the Guaranteed Obligations have been paid, in the event
any amount is thereafter paid with respect to the Guaranteed Obligations, the
Guarantor shall be subrogated to the rights of the Buyer to receive payments in
respect of the Guaranteed Obligations, but only to the extent of amounts payable
by the Guarantor pursuant to this Guaranty.

                    8. No Rights of Set-off. All amounts payable by the
Guarantor shall be paid without set-off or counterclaim and without any
deduction or withholding whatsoever unless and to the extent that the Guarantors
shall be prohibited by law from doing so, in which case the Guarantor shall pay
to the Buyer such additional amount as shall be necessary to ensure that the
Buyer receives the full amount they would have received if no such deduction or
withholding had been made.

                    9. Costs and Expenses. Guarantor agrees to pay reasonable
attorneys’ fees and all other costs and expenses which may be incurred by Buyer
in the enforcement of this Guaranty, but only to the extent that the Guarantor
refuses to honor the terms of this Guaranty and a court or other tribunal
ultimately determines that such refusal was wrongful.

                    10. Covenants. Until the termination of this Guaranty, the
Guarantor covenants and agrees as follows:

                         (a) The Guarantor agrees that it shall maintain its
corporate existence and shall not merge or consolidate with any other entity and
shall not transfer or convey all or substantially all of its assets; provided,
however, that Guarantor may, without violating any provision hereof, merge or
consolidate with any other entity or transfer or convey all or substantially all
of its assets to any entity, if in the reasonable opinion of its Board of
Directors such merger, transfer or conveyance is for fair value, and if the
entity resulting from or surviving such merger or consolidation (if other than
Guarantor) or the entity to which such transfer or conveyance is made shall
either be bound as a matter of law or

3

--------------------------------------------------------------------------------

expressly assume in writing and agree to perform all of Guarantor’s obligations
hereunder; provided, however, that unless Buyer shall agree in writing to
release Guarantor from its rights or obligations hereunder, no such assignment
(whether or not consented to by Buyer) shall in itself relieve or release
Guarantor from its obligations hereunder.

                         (b) Guarantor agrees, upon the request of Buyer, to
execute and deliver to Buyer, from time to time, any additional instruments or
documents reasonably considered necessary by Buyer or its counsel to cause this
Guaranty to be, become or remain valid and effective in accordance with its
terms.

                    11. Enforceability. This Guaranty shall remain in full force
and effect and continue to be effective should any petition be filed by or
against KAA, AA, Guarantor, Buyer or any of their affiliates for liquidation or
reorganization, should KAA, AA, Guarantor, Buyer or any of their affiliates
become insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of the assets
of any of the foregoing, and shall continue to be effective or be reinstated, as
the case may be, if at any time payment and performance of the Guaranteed
Obligations, or any part thereof, is, pursuant to applicable law, rescinded or
reduced in amount, or must otherwise be restored or returned by Buyer as a
“voidable preference”, “fraudulent conveyance” or otherwise, all as though such
payment or performance had not been made. In the event that any payment, or any
part thereof, is rescinded, reduced, restored or returned, the Guaranteed
Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, restored or returned.

                    12. Amendment. This Guaranty may not be modified or amended
except by a writing duly executed by the party to be charged.

                    13. Law. This Guaranty shall be governed by, and construed
and enforced under, the laws of the State of New York.

                    14. Severability. Wherever possible, each provision of this
Guaranty shall be interpreted in such a manner as to be effective and valid
under applicable law, but if any provision of this Guaranty shall be invalid
under such laws, such provision shall be effective only to the extent of such
prohibition or invalidity, without affecting the remainder of such provision or
the remaining provisions of this Guaranty, which shall be binding and
enforceable to the fullest extent allowable by law.

                    15. Waiver. Waiver by the Buyer of a breach of this Guaranty
shall not operate as a waiver of any subsequent breach thereof.

                    16. Signatures. Telefacsimile transmissions of any executed
original document and/or retransmission of any executed telefacsimile
transmission shall be deemed to be the same as the delivery of an executed
original. At the request of any party hereto, the other parties hereto shall
confirm telefacsimile transmissions by

4

--------------------------------------------------------------------------------

executing duplicate original documents and delivering the same to the requesting
party or parties.

                     17. Notices. Any notice required or permitted to be given
hereunder shall be in writing and shall be considered properly given if
delivered personally, sent by prepaid courier or registered mail, or by telefax
to the other party at the address set forth below:

 

 

 

Any notice to the Guarantor shall be addressed to:

 

 

 

TrueYou.Com, Inc.
501 Merritt 7, 5th Floor
Norwalk, CT 06851
Attention: Wade Haddad
Phone no: 203-295-2195
Telefax no:203-295-2102

 

 

 

With a copy sent concurrently to

 

 

 

Troutman Sanders, LLP
405 Lexington Avenue
New York, NY 10174
Attn: Edward Mandell
Telecopier No. 212-704-6160

 

 

 

Any notice to the Buyer shall be addressed to:

 

 

 

GK Acquisition, LLC
c/o Angela L. Krivulka
3 Bucks Mill Lane
Holmdel, New Jersey, 07733
Telephone:
Facsimile: 732-335-4124

 

 

 

with a copy sent concurrently to:

 

 

 

Lowenstein Sandler, PC
65 Livingston Avenue
Roseland, New Jersey
Attn: Michael J. Lerner
Telephone:     973-597-6394
Facsimile:      973-597-6395

or to such other address for such party as may later be notified to the other
party. If sent by mail, the date of receipt shall be deemed to be one week from
the date of mailing. If

5

--------------------------------------------------------------------------------

sent by facsimile, the date of receipt shall be deemed to be the next business
day after actual receipt.

                    18. Consents and Waivers Relating to Legal Proceedings.

                              (a) EACH PARTY TO THIS GUARANTY HEREBY IRREVOCABLY
AGREES THAT THE ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS GUARANTY MAY BE BROUGHT IN THE SUPREME COURT OF THE STATE OF NEW YORK, NEW
YORK COUNTY OR OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK AND HEREBY EXPRESSLY SUBMITS TO THE PERSONAL JURISDICTION AND VENUE OF
SUCH COURTS FOR THE PURPOSES THEREOF AND EXPRESSLY WAIVES ANY CLAIM OF IMPROPER
VENUE AND ANY CLAIM THAT SUCH COURTS ARE AN INCONVENIENT FORUM. EACH PARTY
HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ITS ADDRESS
SET FORTH IN SECTION 17 SUCH SERVICE TO BECOME EFFECTIVE 10 DAYS AFTER SUCH
MAILING.

                              (b) THE GUARANTOR WAIVES ITS RIGHT TO A JURY TRIAL
WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION
WITH THIS GUARANTY, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE OF
SUCH RIGHTS AND OBLIGATIONS. EXCEPT AS PROHIBITED BY LAW, THE GUARANTOR HEREBY
WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO
IN THE PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL
DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE
GUARANTOR (X) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE BUYER
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BUYER WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (Y) ACKNOWLEDGES THAT
THE BUYER HAS BEEN INDUCED TO ENTER INTO THE AGREEMENT BY, AMONG OTHER THINGS,
THE WAIVERS AND CERTIFICATIONS CONTAINED HEREIN.

[Signature Page Follows]

6

--------------------------------------------------------------------------------

                    IN WITNESS WHEREOF, the undersigned has executed this
Guaranty as of the date first above written.

 

 

 

 

 

 

 

 

TRUEYOU.COM, INC.

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Name:

 

 

 

 

Title:

 

 

 

 

 

Agreed to and Acknowledged:

 

 

 

 

 

 

 

 

ADVANCED AESTHETICS, LLC.

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Name:

 

 

 

 

Title:

 

 

 

 

 

 

 

 

KLINGER ADVANCED
AESTHETICS, INC.

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

  Name

 

 

 

 

  Title:

 

 

 

 

 

 

 

 

GK ACQUISITION, LLC

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

     Angela L. Krivulka, Manager

 

 

 

[SIGNATURE PAGE TO GUARANTY]

--------------------------------------------------------------------------------

DISCLOSURE SCHEDULES

to the

PURCHASE AND SALE AGREEMENT

by and among

ADVANCED AESTHETICS, LLC,

KLINGER ADVANCED AESTHETICS, INC.,

and

GK ACQUISITION LLC

May __, 2007

--------------------------------------------------------------------------------

          Reference is made to the Purchase and Sale Agreement (the
“Agreement”), dated as of May__, 2007, by and among Advanced Aesthetics, LLC, a
Delaware limited liability company (“AA”), Klinger Advanced Aesthetics, Inc., a
Delaware corporation (“KAA”) and GK Acquisition LLC, a Delaware limited
liability company (the “Buyer”). Capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to them in the Agreement.

          These Schedules are qualified in their entirety by reference to
specific provisions of the Agreement, and are not intended to constitute, and
shall not be construed as constituting, representations or warranties of AA or
KAA or any other Person except as and to the extent provided in the Agreement. A
disclosure under a certain Schedule shall be deemed to be a disclosure under all
Schedules.

          The disclosure of any matter in any Schedule shall not be deemed to
constitute an admission by AA or KAA or to otherwise imply that any such matter
is material to AA or KAA or the Business for the purposes of the Agreement.

          Matters reflected in these Schedules are not necessarily limited to
matters required by the Agreement to be reflected in these Schedules. Any such
additional matters are set forth for information purposes and do not necessarily
include other matters of a similar nature.

          Headings have been inserted on the sections in these Schedules for
convenience of referral only and shall to no extent have the effect of amending
or changing the express description of the sections as set forth in the
Agreement.

--------------------------------------------------------------------------------

Schedules

 

 

 

 

Schedule 1.1

Equity Interests

 

Schedule 3.4

Liens

 

Schedule 3.5

Consents and Approvals

 

Schedule 3.6(a)

Matters relating to the Purchased Assets

 

Schedule 3.6(b)

Accounts Payable

 

Schedule 3.6(c)

Gift Certificate Liability

 

Schedule 3.7

Material Contracts

 

Schedule 3.8

Liabilities

 

Schedule 3.9

Absence of Certain Developments

 

Schedule 3.10

Leases

 

Schedule 3.13

Intellectual Property

 

Schedule 3.14

Personal Property

 

Schedule 3.15

Employee Benefit Plans

 

Schedule 3.16

Labor Matters

 

Schedule 3.19

Legal Proceedings

 

Schedule 3.20

Insurance

 

Schedule 3.21

Tax Matters

 

Schedule 3.22

Licenses; Permits

 

Schedule 3.23

Related Party Transactions

 

Schedule 3.24

Suppliers

 

Schedule 3.25

Inventory

 

Schedule 5.5

Sellers Post Closing Payables

--------------------------------------------------------------------------------

Schedule 1.1
Capitalization of Subsidiaries

 

Dischino Corporation

Common Stock, par value $0.01, authorized 100 shares, issued and outstanding 50
shares.

 

Klinger Advanced Aesthetics, LLC

100 Units issued and outstanding

 

Anushka Boca, LLC

100 Units issued and outstanding

 

Wild Hare, LLC

100 Units issued and outstanding

 

Anushka PBG, LLC

100 Units issued and outstanding

 

Anushka PBG Acquisition Sub., LLC

100 Units issued and outstanding

 

Anushka Boca Acquisition Sub., LLC

100 Units issued and outstanding

 

Wild Hare Acquisition Sub., LLC

100 Units issued and outstanding

--------------------------------------------------------------------------------

Schedule 3.4
Liens

None.

--------------------------------------------------------------------------------

Schedule 3.5
Consents and Approvals

See Schedule 3.4 regarding the consent of the lenders set forth therein to the
transactions contemplated by the Purchase and Sale Agreement.

See Schedule 3.10 for a list of leases requiring the consent of the landlords
set forth therein to the transactions contemplated by the Purchase and Sale
Agreement.

The following Material Contracts require the consent of the contracting parties
to the transactions contemplated by the Purchase and Sale Agreement:

 

 

 

•

Lease between Canon Business Solutions and Advanced Aesthetics LLC, dated June
6, 2004

 

o

Term: 48 months

Lessee may not change its name, location of chief executive office or corporate
structure, including, without limitation, it jurisdiction of organization,
unless lessor has been given 30 days prior written notice and Lessee has
executed and delivered to lessor such financing statements and other required
documents

 

 

 

•

Lease between Canon Business Solutions and Advanced Aesthetics LLC, dated August
31, 2004

 

o

Term: 48 months

Lessee may not change its name, location of chief executive office or corporate
structure, including, without limitation, it jurisdiction of organization,
unless lessor has been given 30 days prior written notice and Lessee has
executed and delivered to lessor such financing statements and other required
documents

 

 

 

•

Lease between CitiCorp Vendor Finance, Inc. and Advanced Aesthetics LLC, dated
May 26, 2006

 

o

Term: 60 months

Lessee is in default if lessee sells substantially all its assets out of the
ordinary course of business, merges or consolidates with any other person, or
sustains a change in ownership of more than 20% in the aggregate

 

 

 

•

Lease between Key Equipment Finance and Georgette Klinger Inc., dated [November
2003]

 

o

Term: 36 months

Lessee is in default if it merges, consolidates, or transfers all or
substantially all of its assets

 

 

 

•

Lease between Maximum Capital Corporation and Advanced Aesthetics Institute,
LLC, dated _________

 

o

Term: 24 months

 

 

 

•

Lease between Northern Business Systems and Georgette Klinger Inc., dated April
1, 2003

 

o

Term: 36 months

 

o

Lease may not be assigned

 

 

 

•

Lease between GE Capital and Georgette Klinger Inc., dated September 12, 2003

 

o

Term: 48 months

--------------------------------------------------------------------------------

Lessee is in default if it changes its name, state of incorporation, chief
executive office and/or place of residence w/o providing lessor with 30 days
prior written notice

 

 

 

•

Lease between QualPath and Lord & Foursight LLC, dated September 3, 2004

 

o

Term: 39 months

Lessee is in default if it sells, transfers or otherwise sells all or
substantially all of its assets, or without lessor’s prior written consent,
merges or consolidates with any entity and lessee is not the surviving entity

 

 

 

•

Lease between QualPath and Lord & Foursight LLC, dated December 7, 2005

 

o

Term: 60 months

Lessee is in default if it sells, transfers or otherwise sells all or
substantially all of its assets, or without lessor’s prior written consent,
merges or consolidates with any entity and lessee is not the surviving entity

 

 

 

•

Addendum to Equipment Lease Agreement between Heartland Business Credit and
Advanced Aesthetics, Inc. and Advanced K, LLC, dated October 20, 2005

 

o

This amendment authorizes Lessee to correct the equipment description in the
lease (Lease No. 14690.001)

 

o

Lease may not be assigned without Lessor consent

 

o

No change of control provision

 

 

 

•

Addendum to Equipment Lease Agreement between Heartland Business Credit and
Advanced Aesthetics, Inc. and Advanced K, LLC, dated October 20, 2005

 

o

This amendment authorizes Lessee to correct the equipment description in the
lease (Lease No. 14690.003)

 

o

Lease may not be assigned without Lessor consent

 

o

No change of control provision

 

 

 

•

Addendum to Equipment Lease Agreement between Heartland Business Credit and
Advanced Aesthetics, Inc. and Advanced K, LLC, dated October 20, 2005

 

o

This amendment authorizes Lessee to correct the equipment description in the
lease (Lease No. 14690.004)

 

o

Lease may not be assigned without Lessor consent

 

o

No change of control provision

 

 

 

•

Application Service Provider Agreement between the Pyle Group, LLC and Klinger
Advanced Aesthetics, Inc., dated April 23, 2004

 

o

This agreement may not be assigned without the prior written consent of the Pyle
Group, LLC.

 

 

 

•

Lease between Palomar Medical Technologies, Inc. and Advanced Aesthetics, Inc.
and Advanced K, LLC dba Georgette Klinger, dated May 31, 2005

 

Term: 36 months

 

No change in control provision (but can’t relocate equipment or assign lease
with out consent)

--------------------------------------------------------------------------------

 

 

 

•

Lease between Palomar Medical Technologies, Inc. and Advanced Aesthetics, Inc.
and Advanced K, LLC dba Georgette Klinger, dated October 3, 2005

 

          Term: 36 months

 

          No change in control provision (but can’t relocate equipment or assign
lease without consent)

Warehouse and Distribution Agreement between CEI Distribution, LLC and Georgette
Klinger, Inc., dated February 28, 2000 Need consent to assign. The term of this
contract has expired but the parties are acting under the contract.

--------------------------------------------------------------------------------

Schedule 3.6(a)
Third Party Interests In Purchased Assets

Pursuant to the Transition Services Agreement annexed as Exhibit H to the
Agreement, the Sellers are agreeing to provide Buyer for the time period
indicated in the Transition Services Agreement with payroll services and
accounts payable services. It is agreed that Sellers will not be providing Buyer
with supply ordering services, financial control services, accounting services,
and legal services. As of the closing, Buyer will need to supply its own bank
accounts, credit card processing, insurance and other management and back office
support services.

--------------------------------------------------------------------------------

Schedule 3.6(b)
Accounts Payable

Store Payables List as of
Wednesday, April 18, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vendor Code

 

Vendor Name

 

BALANCE

 

CURRENT

 

30 DAYS

 

60 DAYS

 

90 DAYS

 

120 DAYS

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

A+TOW

 

A+ TOWEL & LINEN SUPPLY

 

$

7,831.45

 

$

1,711.57

 

$

4,573.97

 

$

1,545.91

 

$

0.00

 

$

0.00

 

ADMIRAL

 

ADMIRAL SINCE 1946, INC.

 

$

21,116.92

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

21,116.92

 

ADMSEC

 

ADMIRAL SECURITY SERVICE

 

$

8,066.63

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

8,066.63

 

ADP

 

ADP, INC.

 

$

400.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

400.00

 

ADT

 

ADT SECURITY SERVICES, INC

 

$

139.20

 

$

0.00

 

$

139.20

 

$

0.00

 

$

0.00

 

$

0.00

 

AESINS

 

AESTHETICS INSTITUTE OF

 

$

1,100.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,100.00

 

ALDANS

 

ALDAN INTERNATIONAL

 

$

178.25

 

$

178.25

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

ALES

 

ALES GROUP USA, INC

 

$

1,293.07

 

$

736.88

 

$

556.19

 

$

0.00

 

$

0.00

 

$

0.00

 

ALL

 

ALLIED OFFICE PRODUCTS

 

$

1,206.72

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,206.72

 

ALLER

 

ALLERGAN SALES LLC

 

$

87,934.55

 

$

5,050.00

 

$

62,377.35

 

$

15,427.20

 

$

5,080.00

 

$

0.00

 

ALLIEDW

 

ALLIED WASTE SERVICES # 710

 

$

97.87

 

$

39.52

 

$

58.35

 

$

0.00

 

$

0.00

 

$

0.00

 

ALLSCOP

 

ALLSCOPE MEDIA, INC.

 

$

61,300.78

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

61,300.78

 

ALLWEEK

 

ALL WEEK PLUMBING& HEATING INC

 

$

3,196.62

 

$

0.00

 

$

0.00

 

$

0.00

 

$

3,196.62

 

$

0.00

 

AMEREXP

 

AMERICAN EXPRESS

 

$

20,460.20

 

$

51,016.90

 

$

0.00

-

$

39,043.49

 

$

8,483.52

 

$

3.27

 

ANTICA

 

ANTICA FARMACISTA

 

$

5,705.08

 

$

0.00

 

$

0.00

 

$

1,041.06

 

$

0.00

 

$

4,664.02

 

ARCBOT

 

ARCHIPELAGO BOTANICALS

 

$

1,735.17

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,735.17

 

ARCHITR

 

ARCHITRAVE DESIGNS

 

$

316.57

 

$

0.00

 

$

316.57

 

$

0.00

 

$

0.00

 

$

0.00

 

ART

 

ART OF BEAUTY

 

$

46.50

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

46.50

 

AT&T NE

 

AT&T

 

$

120.12

 

$

0.00

 

$

120.12

 

$

0.00

 

$

0.00

 

$

0.00

 

AT&TUB

 

AT&T UNIVERSAL BILLER

 

$

49.95

 

$

49.95

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

AZTIL

 

AZTIL, INC.

 

$

3,700.00

 

$

1,200.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

2,500.00

 

B&F

 

B & F COFFEE SERVICE

 

$

799.25

 

$

799.25

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

BAGS

 

BAGS & BOWS

 

$

141.99

 

$

0.00

 

$

141.99

 

$

0.00

 

$

0.00

 

$

0.00

 

BAYALAR

 

BAY ALARM

 

$

129.00

 

$

0.00

 

$

129.00

 

$

0.00

 

$

0.00

 

$

0.00

 

BEAUTYD

 

BEAUTY DEVELOPMENT

 

$

10,040.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

10,040.00

 

BELL

 

BELL SOUTH

 

$

2,594.77

 

$

2,594.77

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

BERN

 

THE BERNARD GROUP

 

$

2,391.81

 

$

0.00

 

$

2,391.81

 

$

0.00

 

$

0.00

 

$

0.00

 

BESSE

 

BESSE MEDICAL SUPPLY

 

$

2,840.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

2,840.00

 

BI

 

BIO-SPEC, INC

 

$

26.00

 

$

0.00

 

$

26.00

 

$

0.00

 

$

0.00

 

$

0.00

 

BIOMED

 

BioForm MEDICAL INC

 

$

21,690.00

 

$

0.00

 

$

14,640.00

 

$

7,050.00

 

$

0.00

 

$

0.00

 

BIOSEA

 

BIOSEA INTERNATIONAL

 

$

2,534.84

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

2,534.84

 

BLAELE

 

BLACKLAND ELECTRICAL LTD

 

$

1,827.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,827.00

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BLU

 

BLUEWICK HOME & BODY, LLLC

 

$

1,512.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,512.00

 

BORG

 

DONALD BORG CONSTRUCTION CO

 

$

110,234.92

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

110,234.92

 

BOSS

 

BOSS BEAUTY SUPPLY

 

$

66.58

 

$

66.58

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

BRILLIA

 

BRILLIANT

 

$

2,100.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

2,100.00

 

BROG

 

BROGAN TENNYSON GROUP, INC.

 

$

5,127.15

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

5,127.15

 

BROWARD

 

BROWARD PAPER & PACKAGING INC.

 

$

3,103.92

 

$

0.00

 

$

0.00

 

$

2,259.96

 

$

843.96

 

$

0.00

 

BUSI

 

BUSINESS FIRST INSURANCE CO

 

$

6,080.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

6,080.00

 

C&G

 

C&G Delivery

 

$

58.64

 

$

58.64

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

CAND

 

CANDELA CORPORATION

 

$

3,673.89

 

$

0.00

 

$

0.00

 

$

934.49

 

$

2,739.40

 

$

0.00

 

CANON

 

CANON FINANCIAL SERVICES, INC

 

$

130.02

 

$

0.00

 

$

130.02

 

$

0.00

 

$

0.00

 

$

0.00

 

CAPSUPP

 

CAPITAL SUPPLY COMPANY

 

$

6,971.04

 

$

574.88

 

$

2,029.95

 

$

2,840.98

 

$

1,525.23

 

$

0.00

 

CEI

 

COSMETIC ESSENCE INC

 

$

25,218.90

 

$

0.00

 

$

5,231.58

 

$

19,987.32

 

$

0.00

 

$

0.00

 

CHECHA

 

THE CHEVY CHASE LAND COMPANY

 

$

60,128.62

 

$

60,128.62

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

CIGNAGI

 

LINA

 

$

1,220.01

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,220.01

 

CITICOR

 

CITICORP VENDOR FINANCE INC

 

$

2,446.73

 

$

1,455.49

 

$

991.24

 

$

0.00

 

$

0.00

 

$

0.00

 

CITYSEA

 

CITYSEARCH

 

$

4,584.25

 

$

0.00

 

$

0.00

 

$

664.85

 

$

1,579.85

 

$

2,339.55

 

CLABUS

 

CLASSIC BUSINESS SOLUTIONS

 

$

7,878.24

 

$

0.00

 

$

453.80

 

$

7,424.44

 

$

0.00

 

$

0.00

 

CLASSBU

 

DO NOT USE

 

$

1,455.81

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,455.81

 

CLASSRE

 

CLASSIC RECYCLING NEWYORK CORP

 

$

2,261.25

 

$

753.75

 

$

753.75

 

$

753.75

 

$

0.00

 

$

0.00

 

CLEANTR

 

CLEAN & TREAT ENVIRONMENTAL

 

$

340.80

 

$

0.00

 

$

340.80

 

$

0.00

 

$

0.00

 

$

0.00

 

COFFDIS

 

COFFEE DISTRIBUTING CORP.

 

$

3,262.48

 

$

0.00

 

$

0.00

 

$

328.94

 

$

124.77

 

$

2,808.77

 

COLPAR

 

COLONIAL PARKING,INC.

 

$

27,120.00

 

$

13,440.00

 

$

13,440.00

 

$

240.00

 

$

0.00

 

$

0.00

 

COMCAST

 

COMCAST

 

$

264.30

 

$

0.00

 

$

0.00

 

$

264.30

 

$

0.00

 

$

0.00

 

COMCLE

 

COMMERCIAL CLEANING SERVICES

 

$

1,764.48

 

$

1,764.48

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

COMP

 

COMPOUNDING DOCS, INC

 

$

360.00

 

$

360.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

COMPLET

 

COMPLETE LIGHTING AND SUPPLY

 

$

1,411.02

 

$

0.00

 

$

0.00

 

$

0.00

 

$

361.33

 

$

1,049.69

 

CORPO

 

CORPINET, LLC.

 

$

1,390.72

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,390.72

 

COV

 

COVAD COMMUNICATIONS

 

$

199.95

 

$

0.00

 

$

199.95

 

$

0.00

 

$

0.00

 

$

0.00

 

CRY

 

Crystal Springs Inc,

 

$

46.09

 

$

0.00

 

$

46.09

 

$

0.00

 

$

0.00

 

$

0.00

 

CRYROCK

 

CRYSTAL ROCK LLC

 

$

147.13

 

$

24.85

 

$

122.28

 

$

0.00

 

$

0.00

 

$

0.00

 

CYPRESS

 

CYPRESS ROBES/RUSSELL-NEWMAN

 

$

301.40

 

$

301.40

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

DALLFRT

 

D MAGAZINE

 

$

7,110.01

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

7,110.01

 

DART

 

BREAKAWAY COURIER SYSTEMS

 

$

57.80

 

$

57.80

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

DEE

 

DEE MARIA PLUMBING, INC

 

$

127.00

 

$

127.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

DELAGE

 

DE LAGE LANDEN FINANCIAL SVCS.

 

$

428.08

 

$

143.46

 

$

142.31

 

$

142.31

 

$

0.00

 

$

0.00

 

DELFIN

 

DELL FINANCIAL SERVICES

 

$

281.72

 

$

140.86

 

$

140.86

 

$

0.00

 

$

0.00

 

$

0.00

 

DELLMA

 

DELL MARKETING L.P.

 

$

5,583.34

 

$

362.09

 

$

300.33

 

$

2,125.92

 

$

1,723.14

 

$

1,071.86

 

DELU

 

DELUXE BUSINESS FORMS

 

$

53.91

 

$

0.00

 

$

53.91

 

$

0.00

 

$

0.00

 

$

0.00

 

DEMO

 

DEMONACO DESIGNS

 

$

80.00

 

$

80.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEPCON

 

DEPENDABLE CONSTRUCTION

 

$

800.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

800.00

 

DHL EXP

 

DHL Express (USA) Inc.

 

$

289.67

 

$

240.04

 

$

49.63

 

$

0.00

 

$

0.00

 

$

0.00

 

DRAGONF

 

DRAGONFLY

 

$

520.93

 

$

402.13

 

$

118.80

 

$

0.00

 

$

0.00

 

$

0.00

 

DRDEL

 

DR DELPHINIUM DESIGNS & EVENTS

 

$

351.81

 

$

140.73

 

$

211.08

 

$

0.00

 

$

0.00

 

$

0.00

 

DUSA

 

DUSA PHARMACEUTICALS INC

 

$

3,622.75

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

3,622.75

 

EBENTEC

 

EBENTECH

 

$

91,889.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

91,889.00

 

ENVIR

 

ENVIRONMENTAL SERVICE OF NEW

 

$

5,570.14

 

$

0.00

 

$

0.00

 

$

5,570.14

 

$

0.00

 

$

0.00

 

ENVMAN

 

ENVIRONMENTAL MANAGEMENT

 

$

30.00

 

$

30.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

ESSIE

 

ESSIE COSMETICS LTD.

 

$

1,131.31

 

$

398.74

 

$

732.57

 

$

0.00

 

$

0.00

 

$

0.00

 

EXPRESS

 

EXPRESS PARKING, INC.

 

$

945.10

 

$

708.85

 

$

236.25

 

$

0.00

 

$

0.00

 

$

0.00

 

FEDEX

 

FedEX

 

$

963.57

 

$

963.57

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

FENN

 

FENN TERMITE & PEST CONTROL

 

$

100.00

 

$

0.00

 

$

0.00

 

$

50.00

 

$

50.00

 

$

0.00

 

FINEST

 

THE FINEST ACCESSORIES,INC.

 

$

1,004.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,004.00

 

FIRE

 

NYC FIRE DEPARTMENT

 

$

1,732.50

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,732.50

 

FLORAL

 

FLORAL EMPORIUM, INC.

 

$

399.39

 

$

0.00

 

$

266.26

 

$

133.13

 

$

0.00

 

$

0.00

 

FLORSTA

 

FLORIDA DEPARTMENT OF STATE

 

$

158.75

 

$

158.75

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

FOWL

 

FOWLER COMPANIES

 

$

934.12

 

$

0.00

 

$

0.00

 

$

0.00

 

$

332.24

 

$

601.88

 

FOX5

 

FOX5

 

$

2,550.00

 

$

0.00

 

$

2,550.00

 

$

0.00

 

$

0.00

 

$

0.00

 

G&I

 

G & I IV WHARFSIDE LLC

 

$

109,237.85

 

$

19,896.95

 

$

39,793.90

 

$

0.00

 

$

49,547.00

 

$

0.00

 

GECAP

 

GE CAPITAL COLONIAL PACIFIC

 

$

456.85

 

$

99.44

 

$

0.00

 

$

0.00

 

$

357.41

 

$

0.00

 

GEOBLU

 

GEORGIA BLUE PRINT CO, LLC

 

$

733.50

 

$

733.50

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

GIFT

 

GIFT BOX CORPORATION OF AMER

 

$

268.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

268.00

 

GOLDFLO

 

GOLDFLOWER CORP.

 

$

1,500.00

 

$

1,500.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

GOLDWMA

 

GOLDWELL MID-ATLANTIC

 

$

596.42

 

$

0.00

 

$

596.42

 

$

0.00

 

$

0.00

 

$

0.00

 

GRAHAB

 

GRAHAM HABER PHOTOGRAPHY

 

$

2,700.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

2,700.00

 

GTC

 

GLASS TECH CORP.

 

$

6,224.64

 

$

2,835.93

 

$

3,388.71

 

$

0.00

 

$

0.00

 

$

0.00

 

GUEST

 

GUEST DISTRIBUTION

 

$

2,105.41

 

$

270.65

 

$

552.83

 

$

1,281.93

 

$

0.00

 

$

0.00

 

GXS

 

GXS

 

$

26.50

 

$

26.50

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

H&RCOM

 

H&R COMMERCIAL FLOORING

 

$

1,837.72

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,837.72

 

HAIRU

 

HAIR U WEAR INC

 

$

4,215.26

 

$

623.74

 

$

2,122.00

 

$

1,469.52

 

$

0.00

 

$

0.00

 

HAKATAI

 

HAKATAI ENTERPRISES INC

 

$

7,433.25

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

7,433.25

 

HARCAN

 

HARBOR CANDY SHOP

 

$

843.59

 

$

0.00

 

$

0.00

 

$

0.00

 

$

843.59

 

$

0.00

 

HARDEST

 

HARDESTY, INC.

 

$

393.45

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

393.45

 

HBAK

 

HBAKER DEVELOPMENT

 

$

1,472.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,472.00

 

HYGENIC

 

HYGENIC LABORATORIES & COSMETI

 

$

1,976.10

 

$

0.00

 

$

0.00

 

$

0.00

 

$

590.10

 

$

1,386.00

 

HYSUPP

 

HY Supplies Inc

 

$

1,127.83

 

$

1,127.83

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

ICCDEC

 

ICC DECISION SERVICES

 

$

785.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

785.00

 

$

0.00

 

ICEMOU

 

ICE MOUNTAIN

 

$

101.84

 

$

0.00

 

$

101.84

 

$

0.00

 

$

0.00

 

$

0.00

 

IDEARC

 

IDEARC MEDIA CORP

 

$

44.00

 

$

0.00

 

$

44.00

 

$

0.00

 

$

0.00

 

$

0.00

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ILOVEFL

 

I LOVE FLOWERS

 

$

298.72

 

$

74.68

 

$

186.70

 

$

37.34

 

$

0.00

 

$

0.00

 

IMPERIA

 

IMPERIAL COFFEE SERVICE corp.

 

$

1,171.91

 

$

100.00

 

$

1,071.91

 

$

0.00

 

$

0.00

 

$

0.00

 

IMTGRA

 

Imtech Graphics

 

$

11,007.22

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

11,007.22

 

INDEPEN

 

INDEPENDENT SALON RESOURCE

 

$

17,000.00

 

$

11,623.27

 

$

5,376.73

 

$

0.00

 

$

0.00

 

$

0.00

 

INDIRA

 

Indira, Inc

 

$

2,613.60

 

$

0.00

 

$

0.00

 

$

0.00

 

$

2,613.60

 

$

0.00

 

INKCEN

 

INKCENTRIC

 

$

5,212.26

 

$

0.00

 

$

2,197.15

 

$

2,745.11

 

$

0.00

 

$

270.00

 

INNO

 

INNOVATIVE SKINCARE

 

$

60,359.00

 

$

0.00

 

$

60,359.00

 

$

0.00

 

$

0.00

 

$

0.00

 

INTC

 

INTERNATIONAL COFFEE SYSTEMS

 

$

394.58

 

$

394.58

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

JACQU

 

JACQUELINE COSMETICS, INC

 

$

337.05

 

$

337.05

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

JANOFF

 

JANOFF & OLSHAN, INC.

 

$

154,807.30

 

$

53,022.04

 

$

50,892.63

 

$

50,892.63

 

$

0.00

 

$

0.00

 

JULI

 

JULI B. INC.

 

$

4,843.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

4,843.00

 

KCCCLN

 

K C C Cleaning Service Co

 

$

417.30

 

$

417.30

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

KDT

 

KDT Solutions Inc.

 

$

1,630.00

 

$

180.00

 

$

1,200.00

 

$

250.00

 

$

0.00

 

$

0.00

 

KERA

 

KERASTASE PARIS

 

$

2,350.08

 

$

2,350.08

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

KEYEQUI

 

KEY EQUIPMENT FINANCE

 

$

542.34

 

$

271.17

 

$

271.17

 

$

0.00

 

$

0.00

 

$

0.00

 

KINGS

 

KINGS SUPERMARKET INC.

 

$

322.62

 

$

159.83

 

$

162.79

 

$

0.00

 

$

0.00

 

$

0.00

 

LADYLAN

 

LADY LANELL’S, INC.

 

$

1,523.95

 

$

0.00

 

$

1,523.95

 

$

0.00

 

$

0.00

 

$

0.00

 

LAF

 

LAFCO NEW YORK

 

$

2,387.56

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

2,387.56

 

LANAME

 

Landmark American Insurance Co

 

$

34,036.69

 

$

0.00

 

$

9,572.38

 

$

0.00

 

$

14,582.81

 

$

9,881.50

 

LEADS.C

 

LEADS.COM, INC

 

$

1,100.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,100.00

 

LEXI

 

LEXITEL COMMUNICATIONS, LLC

 

$

932.40

 

$

932.40

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

LIDO

 

LIDO LIGHTING CORP

 

$

32,589.01

 

$

0.00

 

$

0.00

 

$

0.00

 

$

955.72

 

$

31,633.29

 

LIGHT

 

LIGHT CONCEPT DISTRIBUTION, IN

 

$

811.43

 

$

0.00

 

$

0.00

 

$

208.73

 

$

602.70

 

$

0.00

 

LOPEZ

 

JENNER LOPEZ

 

$

1,800.00

 

$

1,800.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

LYN

 

CERTE AT LYN’S CAFE

 

$

821.35

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

821.35

 

MARLIN

 

MARLIN LEASING CORP

 

$

1,128.60

 

$

418.81

 

$

376.20

 

$

333.59

 

$

0.00

 

$

0.00

 

MATRIX

 

MATRIX BUSSINESS TECHNOLOGIES

 

$

110.26

 

$

110.26

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

MCKESS

 

MCKESSON

 

$

18,175.00

 

$

18,175.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

MDSKIN

 

MD SKINCARE LLC.

 

$

20,523.75

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,376.02

 

$

19,147.73

 

MEDI

 

MEDICAL ARTS PRESS

 

$

302.69

 

$

302.69

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

MEDUSAS

 

MEDUSA’S HEIRLOOMS, INC

 

$

2,085.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

2,085.00

 

MEIGHAN

 

DANIELLE MEIGHAN

 

$

97.00

 

$

97.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

MESA

 

MESA CONSOLIDATED WATER

 

$

214.72

 

$

0.00

 

$

214.72

 

$

0.00

 

$

0.00

 

$

0.00

 

MGROUP

 

MGROUP

 

$

27,490.78

 

$

0.00

 

$

0.00

 

$

4,690.04

 

$

6,850.82

 

$

15,949.92

 

MILLARD

 

PETER MILLARD

 

$

9,950.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

9,950.00

 

MODERNL

 

Modern Luxury Media, LLC

 

$

3,100.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

3,100.00

 

MOWREY

 

MOWREY ELEVATOR SERVICE, INC.

 

$

117.24

 

$

0.00

 

$

117.24

 

$

0.00

 

$

0.00

 

$

0.00

 

MOWRY

 

MICHELLE MOWRY

 

$

117.24

 

$

117.24

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

MUD

 

MUDLARK

 

$

1,109.84

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,109.84

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAILCO

 

THE NAILCO GROUP

 

$

395.41

 

$

395.41

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

NARS

 

NARS COSMETICS

 

$

9,404.64

 

$

0.00

 

$

1,047.60

 

$

4,513.68

 

$

1,366.56

 

$

2,476.80

 

NATI

 

NATIONWIDE MEDICAL WASTE

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

NATSTO

 

Nature’s Stone

 

$

93.95

 

$

93.95

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

NETUS

 

NETWORK US INC

 

$

19.54

 

$

19.54

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

NEX

 

NEXTECH SYSTEMS, INC.

 

$

7,351.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

7,351.00

 

$

0.00

 

NORMER

 

Northpark MerchantsAssociation

 

$

11,921.17

 

$

1,156.88

 

$

3,394.60

 

$

0.00

 

$

7,369.69

 

$

0.00

 

NORPAR

 

Northpark Partners,LP

 

$

138,784.26

 

$

42,239.12

 

$

96,545.14

 

$

0.00

 

$

0.00

 

$

0.00

 

NOVALAS

 

NOVALASH INC

 

$

275.20

 

$

0.00

 

$

275.20

 

$

0.00

 

$

0.00

 

$

0.00

 

NYJL

 

NEW YORK JUNIOR LEAGUE

 

$

1,500.00

 

$

0.00

 

$

1,500.00

 

$

0.00

 

$

0.00

 

$

0.00

 

OBAGI

 

OBAGI MEDICAL PRODUCTS

 

$

13,326.17

 

$

0.00

 

$

13,326.17

 

$

0.00

 

$

0.00

 

$

0.00

 

OFFICED

 

OFFICE DEPOT

 

$

7,329.02

 

$

1,284.69

 

$

1,959.23

 

$

3,448.76

 

$

636.34

 

$

0.00

 

ONEIP

 

Eon IP VOICE INC

 

$

14,087.42

 

$

0.00

 

$

14,087.42

 

$

0.00

 

$

0.00

 

$

0.00

 

ONEPEST

 

ONE SOURCE PEST CONTROL, INC.

 

$

2,111.76

 

$

527.94

 

$

527.94

 

$

527.94

 

$

527.94

 

$

0.00

 

ONESO

 

ONE SOURCE SERVICE HELP

 

$

861.40

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

861.40

 

PA

 

PALM BEACH GIRL

 

$

1,020.00

 

$

0.00

 

$

1,020.00

 

$

0.00

 

$

0.00

 

$

0.00

 

PALM01

 

PALM BEACH NEWSPAPERS,INC.

 

$

2,094.88

 

$

0.00

 

$

449.00

 

$

0.00

 

$

0.00

 

$

1,645.88

 

PALMBC

 

TAX COLLECTOR PALM BEACH CTY

 

$

34,636.45

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

34,636.45

 

PALMPOS

 

THE PALM BEACH POST

 

$

20.45

 

$

0.00

 

$

20.45

 

$

0.00

 

$

0.00

 

$

0.00

 

PALOMAR

 

PALOMAR MEDICAL TECHNOLOGIES

 

$

942.50

 

$

0.00

 

$

942.50

 

$

0.00

 

$

0.00

 

$

0.00

 

PARKOFF

 

PARK AVENUE OFFICE SVCS., INC.

 

$

3,732.56

 

$

0.00

 

$

275.49

 

$

116.49

 

$

100.59

 

$

3,239.99

 

PBCC

 

PITNEY BOWES CREDIT CORP.

 

$

506.45

 

$

0.00

 

$

506.45

 

$

0.00

 

$

0.00

 

$

0.00

 

PBCSO

 

PALM BEACH COUNTY SHERIFF

 

$

5.00

 

$

5.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

PEOPLE

 

PEOPLE

 

$

39.96

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

39.96

 

PEPCO

 

POTOMAC ELECTRIC POWERCOMPANY

 

$

2,176.70

 

$

2,176.70

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

PHOTOM

 

Photomedex Inc.

 

$

4,562.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

4,562.00

 

PITNEY

 

PITNEY BOWES PURCHASE POWER **

 

$

314.93

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

314.93

 

POL

 

POLAND SPRING WATER

 

$

155.16

 

$

0.00

 

$

155.16

 

$

0.00

 

$

0.00

 

$

0.00

 

PORTWAS

 

PORT WASHINGTON WINDOWCLEAN

 

$

141.21

 

$

141.21

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

PRELAU

 

PREMIUM LAUNDRY & LINENSUPPLY

 

$

5,116.44

 

$

0.00

 

$

5,116.44

 

$

0.00

 

$

0.00

 

$

0.00

 

PRILAU

 

PRIDE LAUNDRY

 

$

60.00

 

$

60.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

PRIN

 

PRINTCO GRAPHICS**

 

$

69.40

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

69.40

 

PRINTCO

 

DISCOUNT OFFICE SUPPY

 

$

2,132.73

 

$

671.99

 

$

498.17

 

$

962.57

 

$

0.00

 

$

0.00

 

PROCYTE

 

PROCYTE CORPORATION

 

$

5,080.47

 

$

0.00

 

$

0.00

 

$

0.00

 

$

3,110.05

 

$

1,970.42

 

PSSDAL

 

PSS DALLAS

 

$

608.27

 

$

608.27

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

PSSFLOR

 

PSS FLORIDA INC.

 

$

482.26

 

$

482.26

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

PSSNJ

 

PSS-NORTHEAST

 

$

106.34

 

$

66.32

 

$

40.02

 

$

0.00

 

$

0.00

 

$

0.00

 

PSSRICH

 

PSS - RICHMOND INC.

 

$

203.81

 

$

203.81

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

PURCHAS

 

PURCHASE POWER

 

$

246.80

 

$

0.00

 

$

6.01

 

$

240.79

 

$

0.00

 

$

0.00

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PYROTEC

 

PYROTECH OF SOUTH FLORIDA

 

$

52.95

 

$

0.00

 

$

52.95

 

$

0.00

 

$

0.00

 

$

0.00

 

QMAX

 

QMAX SYSTEMS

 

$

3,446.13

 

$

0.00

 

$

350.13

 

$

711.60

 

$

0.00

 

$

2,384.40

 

RASPRED

 

RASPBERRY RED MARKETING

 

$

7,000.00

 

$

0.00

 

$

7,000.00

 

$

0.00

 

$

0.00

 

$

0.00

 

RECAL

 

Recall Secure Destruction Serv

 

$

245.38

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

245.38

 

RECALL

 

RECALL - NORTHEAST

 

$

2,560.41

 

$

595.12

 

$

526.65

 

$

631.07

 

$

807.57

 

$

0.00

 

REI

 

REI

 

$

4,136.47

 

$

997.63

 

$

1,210.19

 

$

1,577.75

 

$

350.90

 

$

0.00

 

RHINO

 

RHINOTEK COMPUTER PRODUCTS

 

$

2,042.05

 

$

0.00

 

$

422.99

 

$

0.00

 

$

0.00

 

$

1,619.06

 

ROTA

 

ROTARY SUPPLY, INC.

 

$

1,432.73

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,432.73

 

ROTOROO

 

ROTO ROOTER CORP.

 

$

1,327.61

 

$

0.00

 

$

0.00

 

$

344.34

 

$

983.27

 

$

0.00

 

SAFMAS

 

SAFEMASTERS CO.

 

$

12.47

 

$

0.00

 

$

12.47

 

$

0.00

 

$

0.00

 

$

0.00

 

SAIA

 

SAIA PLUMBING & HEATING CO.

 

$

614.80

 

$

614.80

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

SCHEIN

 

HENRY SCHEIN

 

$

584.32

 

$

187.82

 

$

0.00

 

$

0.00

 

$

0.00

 

$

396.50

 

SCP

 

SOUTH COAST PLAZA

 

$

84,432.69

 

$

33,049.47

 

$

49,822.80

 

$

0.00

 

$

1,560.42

 

$

0.00

 

SFCCLE

 

S.F.C. CLEANING & MAINTENANCE

 

$

8,250.00

 

$

0.00

 

$

500.00

 

$

3,695.00

 

$

4,055.00

 

$

0.00

 

SHEARWO

 

SHEAR WORLD INTERNATIONAL

 

$

252.00

 

$

252.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

SHETRE

 

SHERI RESNICK

 

$

443.10

 

$

0.00

 

$

443.10

 

$

0.00

 

$

0.00

 

$

0.00

 

SHORT

 

SHORT HILLS ASSOCIATES

 

$

35,448.38

 

$

35,448.38

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

SIGSIG

 

SIGNATURE SIGNS & GRAPHICS

 

$

532.50

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

532.50

 

SILK

 

SILK & HALPERN

 

$

83,848.13

 

$

83,848.13

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

SKINMED

 

SKINMEDICA, INC

 

$

4,095.67

 

$

0.00

 

$

0.00

 

$

0.00

 

$

677.52

 

$

3,418.15

 

SLA

 

SLATKIN

 

$

4,883.76

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

4,883.76

 

SOUNDC

 

SOUNDCOM OF FLORIDA LLC

 

$

377.55

 

$

266.05

 

$

111.50

 

$

0.00

 

$

0.00

 

$

0.00

 

SOUT02

 

SOUTHERN CALIFORNIA

 

$

206.02

 

$

206.02

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

SOUTCOA

 

SOUTH COAST PLAZA

 

$

11,400.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

11,400.00

 

SOUTHEA

 

SOUTHEAST COMPUTER SOLUTNS INC

 

$

10,575.00

 

$

0.00

 

$

1,800.00

 

$

8,775.00

 

$

0.00

 

$

0.00

 

SPATECH

 

SPATECH CORP.

 

$

1,993.60

 

$

0.00

 

$

0.00

 

$

0.00

 

$

345.80

 

$

1,647.80

 

SPEEDYC

 

SPEEDYCHEM

 

$

675.80

 

$

308.35

 

$

260.79

 

$

0.00

 

$

0.00

 

$

106.66

 

SQUCLE

 

SQUEAKY CLEAN WINDOW CO.

 

$

405.94

 

$

218.67

 

$

187.27

 

$

0.00

 

$

0.00

 

$

0.00

 

STEINER

 

STEINER PRODUCT SUPPORTUS, LL

 

$

57,871.78

 

$

0.00

 

$

0.00

 

$

249.28

 

$

13,935.70

 

$

43,686.80

 

STEPJOH

 

STEPHANIE JOHNSON INC.

 

$

537.00

 

$

0.00

 

$

0.00

 

$

537.00

 

$

0.00

 

$

0.00

 

STERIC

 

STERICYCLE INC

 

$

21.00

 

$

0.00

 

$

21.00

 

$

0.00

 

$

0.00

 

$

0.00

 

STERITE

 

STERITECH

 

$

137.48

 

$

68.74

 

$

68.74

 

$

0.00

 

$

0.00

 

$

0.00

 

STOREDV

 

COMDATA STORED VALUE SYSTEMS

 

$

10,157.46

 

$

0.00

 

$

0.00

 

$

1,149.49

 

$

2,129.94

 

$

6,878.03

 

STRAITS

 

STRAITSHOT COMMUNICATIONS

 

$

10,497.96

 

$

0.00

 

$

0.00

 

$

10,497.96

 

$

0.00

 

$

0.00

 

STYWES

 

STYLE WEST

 

$

3,072.81

 

$

0.00

 

$

0.00

 

$

405.18

-

$

93.00

 

$

2,760.63

 

SUPERLA

 

SUPERIOR LAUNDRY SYSTEMS, INC.

 

$

345.43

 

$

182.49

 

$

162.94

 

$

0.00

 

$

0.00

 

$

0.00

 

TAKARAB

 

TAKARA BELMONT

 

$

10,527.62

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

10,527.62

 

TEK

 

TEKNIKON GROUP INC.

 

$

288.90

 

$

0.00

 

$

288.90

 

$

0.00

 

$

0.00

 

$

0.00

 

TERINT

 

TERMINIX INTERNATIONAL

 

$

91.59

 

$

0.00

 

$

91.59

 

$

0.00

 

$

0.00

 

$

0.00

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TNA

 

TNA, LLC

 

$

3,820.60

 

$

1,660.30

 

$

2,160.30

 

$

0.00

 

$

0.00

 

$

0.00

 

TO

 

TOPIX PHARMACEUTICALS,INC.

 

$

1,072.44

 

$

0.00

 

$

0.00

 

$

268.35

 

$

0.00

 

$

804.09

 

TOMAR

 

SUPRIYA TOMAR, M.D.P.A.

 

$

19,458.72

 

$

0.00

 

$

19,458.72

 

$

0.00

 

$

0.00

 

$

0.00

 

TOSHI

 

TOSHIBA AMERICA INFO SYSTEMS

 

$

1,851.73

 

$

1,851.73

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

TOSHIBA

 

TOSHIBA AMERICAN INFO SYSTEMS

 

$

40.82

 

$

0.00

 

$

361.04

 

$

0.00

 

$

0.00

-

$

320.22

 

TOSS

 

THE TOSS GROUP, INC

 

$

1,645.05

 

$

0.00

 

$

0.00

 

$

0.00

 

$

104.85

 

$

1,540.20

 

TRANSMA

 

TRANSMARK INCORPORATED

 

$

754.65

 

$

0.00

 

$

754.65

 

$

0.00

 

$

0.00

 

$

0.00

 

TRINORB

 

Tri-North Builders Inc

 

$

159,734.06

 

$

21,473.49

 

$

0.00

 

$

0.00

 

$

0.00

 

$

138,260.57

 

UNIT

 

UNITED BEAUTY PRODUCTSCORP.

 

$

221.22

 

$

221.22

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

UNIVER

 

UNIVERSAL COMPANIES, INC.

 

$

3,304.63

 

$

3,304.63

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

UPS

 

UPS

 

$

1,625.76

 

$

688.27

 

$

937.49

 

$

0.00

 

$

0.00

 

$

0.00

 

UTSOUTH

 

UT Southwestern

 

$

28,122.53

 

$

28,122.53

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

VERIZHQ

 

VERIZON

 

$

801.69

 

$

801.69

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

VITESSE

 

VITESSE PARKING INC.

 

$

4,800.00

 

$

0.00

 

$

4,800.00

 

$

0.00

 

$

0.00

 

$

0.00

 

VOLUSPA

 

VOLUSPA

 

$

4,786.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

4,786.00

 

WASH

 

WASHINGTONIAN

 

$

24,000.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

24,000.00

 

$

0.00

 

WASHGAS

 

WASHINGTON GAS

 

$

310.58

 

$

310.58

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

WASTE

 

WASTE MANAGEMENT OF NEWJERSEY

 

$

506.74

 

$

0.00

 

$

506.74

 

$

0.00

 

$

0.00

 

$

0.00

 

WATER

 

WATER TOWER LLC

 

$

74,195.17

 

$

35,409.84

 

$

38,785.33

 

$

0.00

 

$

0.00

 

$

0.00

 

WEDPAG

 

WEDDINGPAGES INC

 

$

1,188.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,188.00

 

WELLNES

 

WELLNESS CORPORATION

 

$

4,500.00

 

$

0.00

 

$

750.00

 

$

750.00

 

$

750.00

 

$

2,250.00

 

WHOFLO

 

WHOLESALE FLOORING DIST.

 

$

4,266.50

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

4,266.50

 

WILCO

 

WILCO INC.

 

$

9,138.60

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

9,138.60

 

WILROAD

 

WILROAD ASSOC LTD PARTNRSHIP

 

$

360.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

360.00

 

WILS

 

Wilshire Rodeo LLC

 

$

182,940.74

 

$

0.00

 

$

0.00

 

$

0.00

 

$

89,163.68

 

$

93,777.06

 

WORLD W

 

WORLDWIDE EXPRESS

 

$

13,965.95

 

$

4,761.88

 

$

9,204.07

 

$

0.00

 

$

0.00

 

$

0.00

 

WORTHA

 

WORTH AVENUE ASSOCIATION

 

$

1,025.00

 

$

0.00

 

$

1,025.00

 

$

0.00

 

$

0.00

 

$

0.00

 

WORTHNW

 

WORTH AVENUE ASSOCIATESLTD.

 

$

75,027.82

 

$

17,184.27

 

$

30,337.19

 

$

0.00

 

$

27,506.36

 

$

0.00

 

WPBCITY

 

THE CITY OF WEST PALM BEACH

 

$

3,061.31

 

$

1,078.60

 

$

983.48

 

$

999.23

 

$

0.00

 

$

0.00

 

WRQX

 

WRQX RADIO

 

$

750.00

 

$

0.00

 

$

750.00

 

$

0.00

 

$

0.00

 

$

0.00

 

YAHINC

 

YAHOO!, INC

 

$

29,194.16

 

$

0.00

 

$

0.00

 

$

0.00

 

$

21,395.40

 

$

7,798.76

 

YOCHU

 

JOHN R. YOCHUM

 

$

472.50

 

$

385.00

 

$

87.50

 

$

0.00

 

$

0.00

 

$

0.00

 

YOUR

 

YOUR NAME PROFESSIONALBRANDS

 

$

495.53

 

$

0.00

 

$

495.53

 

$

0.00

 

$

0.00

 

$

0.00

 

YSCHANG

 

Y.S. CHANG & ASSOCIATES

 

$

1,020.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

0.00

 

$

1,020.00

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Total

 

 

 

$

2,541,694.95

 

$

587,888.53

 

$

610,558.32

 

$

132,051.58

 

$

313,280.41

 

$

897,916.11

 

--------------------------------------------------------------------------------

Schedule 3.6(c)
Gift Card Liability Summary

Klinger Advanced Aesthetics
Gift Card Liability
12/30/06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period

 

Total
Amount on
the Books

 

Estimated
12 Months
Redemptions

 

Estimated
Redemptions
Months 12-24

 

Total Est.
Redemptions
Next 2 years

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

Paper Cards

 

 

2003 & prior

 

1,551,326

 

 

45,144

 

**

45,144

 

 

90,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greenhouse Cards*

 

 

2003 & prior

 

958,978

 

 

12,944

 

**

12,944

 

 

25,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic GK cards

 

 

2002 - 2006

 

6,907,728

 

 

2,161,600

 

***

268,552

 

***

2,430,152

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,418,032

 

 

2,219,688

 

 

326,640

 

 

2,546,328

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

* Greenhouse Manhasset and Dallas locations acquired in 2003 (plus acquired
mailing list and card liabilities for Costa Mesa)

** Based on Redemptions for the July - Dec. 2006 period. Paper cards = $22,572.
Greenhouse cards = $6,472

*** Based on sample of sales days in which each card used was aged by looking up
the customer record. All stores for April 2006 - July or Aug. 2006

*** See next sheet tab for details by month

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Klinger Card Redemption Summary

 

 

 

 

Cards Sold Prior to April 1, 2005 Redeemed from April ‘06 - March ‘07

 

April

 

May

 

June

 

July

 

Aug

 

Sept

 

Oct

 

Nov - Mar

 

Total

 

 

 

 

Dallas

 

$

18,237

 

$

21,686

 

$

12,292

 

$

4,710

 

$

7,550

 

$

4,476

 

$

2,790

 

$

23,734

 

$

95,475

 

 

 

 

501 Madison (NYC)

 

$

117,579

 

$

128,718

 

$

77,725

 

$

47,690

 

$

127,485

 

$

57,972

 

$

30,092

 

$

231,946

 

$

819,208

 

 

 

 

Manhasset

 

$

32,625

 

$

35,262

 

$

26,431

 

$

22,659

 

$

43,072

 

$

21,054

 

$

12,376

 

$

51,305

 

$

244,785

 

 

 

 

Short Hills

 

$

38,781

 

$

34,305

 

$

23,549

 

$

16,482

 

$

27,857

 

$

17,697

 

$

7,438

 

$

58,814

 

$

224,923

 

 

 

 

PB

 

$

7,578

 

$

7,624

 

$

4,304

 

$

5,411

 

$

10,947

 

$

3,999

 

$

2,718

 

$

35,261

 

$

77,843

 

 

 

 

PBG

 

$

25,024

 

$

30,347

 

$

13,603

 

$

10,233

 

$

6,556

 

$

4,702

 

$

3,043

 

$

34,625

 

$

128,133

 

 

 

 

Boca

 

$

21,925

 

$

28,873

 

$

13,181

 

$

9,095

 

$

9,184

 

$

3,748

 

$

2,364

 

$

17,897

 

$

106,266

 

 

 

 

WPB

 

$

11,514

 

$

12,291

 

$

6,474

 

$

3,204

 

$

5,261

 

$

2,396

 

$

1,709

 

$

30,470

 

$

73,318

 

 

 

 

Chicago

 

$

24,928

 

$

26,210

 

$

17,610

 

$

15,201

 

$

45,489

 

$

10,555

 

$

8,020

 

$

51,293

 

$

199,306

 

 

 

 

DC

 

$

25,808

 

$

10,713

 

$

6,325

 

$

3,849

 

$

6,216

 

$

5,927

 

$

5,587

 

$

41,605

 

$

106,030

 

 

 

 

Costa Mesa

 

$

18,267

 

$

15,068

 

$

9,792

 

$

5,189

 

$

15,476

 

$

4,744

 

$

2,244

 

$

15,533

 

$

86,313

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

342,266

 

$

351,097

 

$

211,286

 

$

143,723

 

$

305,095

 

$

137,269

 

$

78,380

 

$

592,484

 

$

2,161,600

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Redemptions April ‘06 - March ‘07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dallas

 

$

29,396

 

$

41,823

 

$

28,860

 

$

13,385

 

$

28,119

 

$

18,592

 

$

19,868

 

$

169,008

 

$

349,051

 

 

27

%

501 Madison (NYC)

 

$

156,097

 

$

198,226

 

$

139,996

 

$

95,380

 

$

295,229

 

$

147,565

 

$

131,312

 

$

1,012,130

 

$

2,175,933

 

 

38

%

Manhasset

 

$

69,246

 

$

94,032

 

$

78,539

 

$

73,643

 

$

159,982

 

$

99,526

 

$

100,290

 

$

415,770

 

$

1,091,029

 

 

22

%

Short Hills

 

$

71,921

 

$

83,313

 

$

66,721

 

$

60,043

 

$

113,658

 

$

75,211

 

$

54,189

 

$

428,502

 

$

953,558

 

 

24

%

PB

 

$

12,551

 

$

14,432

 

$

8,773

 

$

11,031

 

$

22,316

 

$

8,479

 

$

9,877

 

$

128,149

 

$

215,608

 

 

36

%

PBG

 

$

39,422

 

$

59,150

 

$

34,764

 

$

30,968

 

$

26,000

 

$

22,529

 

$

24,993

 

$

284,419

 

$

522,244

 

 

25

%

Boca

 

$

30,571

 

$

45,372

 

$

26,098

 

$

20,464

 

$

27,551

 

$

15,459

 

$

16,718

 

$

126,560

 

$

308,793

 

 

34

%

WPB

 

$

18,023

 

$

23,287

 

$

15,537

 

$

9,613

 

$

21,044

 

$

12,320

 

$

15,063

 

$

268,636

 

$

383,522

 

 

19

%

Chicago

 

$

59,012

 

$

70,707

 

$

49,822

 

$

50,380

 

$

175,892

 

$

40,814

 

$

53,163

 

$

339,996

 

$

839,787

 

 

24

%

DC

 

$

49,197

 

$

24,203

 

$

17,538

 

$

13,043

 

$

27,084

 

$

25,823

 

$

41,730

 

$

310,767

 

$

509,386

 

 

21

%

Costa Mesa

 

$

25,195

 

$

30,137

 

$

27,977

 

$

20,755

 

$

77,382

 

$

23,722

 

$

19,237

 

$

133,136

 

$

357,541

 

 

24

%

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

560,631

 

$

684,682

 

$

494,626

 

$

398,703

 

$

974,256

 

$

490,039

 

$

486,441

 

$

3,617,073

 

$

7,706,452

 

 

28

%

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of period that was sold prior to Apr. ‘06

 

 

61

%

 

51

%

 

43

%

 

36

%

 

31

%

 

28

%

 

16

%

 

16

%

 

28

%

 

 

 

--------------------------------------------------------------------------------

Schedule 3.7
Material Contracts

See Schedule 3.5 for a list of Material Contracts requiring the consent of the
contracting parties to the transactions contemplated by the Purchase and Sale
Agreement.

See Schedule 3.10 for a list of lease documents pertaining to locations in which
the operation of the Business is currently conducted and a description of
certain circumstances pertaining to the lease for the Beverly Hills store.

KAA maintains the following consulting agreements through its trade name
Advanced Aesthetics Inc. (“AAI”):

 

 

 

 

•

Carlotta Veasy (H.1.3.1): training and recruiting services agreement with AAI;
expired 2/1/07; confidentiality and non-solicitation provisions in effect until
2/1/09. Ms Veasy no longer provides services.

 

 

 

 

•

Shawna Flanagan (H.1.3.2): Collaborative Practice Agreement between Bonnie
Marting (nurse) and Shawna Flanagan (physician); term: 1/10/2006-1/10/2009; can
be terminated by either party at any time upon 30-day notice.

 

 

 

 

•

Catarina Lam (H.1.3.4): training and recruiting services agreement with AAI;
expired 2/6/07 (Ms. Lam no longer provides services; confidentiality and
non-solicitation provisions in effect until 2/6/09.

 

 

 

 

•

Christine N. Zarb (H.1.3.5): training and recruiting services agreement with
AAI; expired 2/1/07; confidentiality and non-solicitation provisions in effect
until 2/1/09. Terminated 1/31/07.

 

 

 

 

•

Yvonne Schwetz (H.1.3.6): training and recruiting services agreement with AAI;
expired 9/1/06; confidentiality and non-solicitation provisions in effect until
9/1/08. Terminated 8/31/06.

 

 

 

 

•

Stacy Piper (H.1.3.7): training and recruiting services agreement with AAI;
expired 9/1/06, but Ms Piper was previously terminated for cause on April 28,
2006; confidentiality and non-solicitation provisions in effect until 9/1/08

 

 

 

 

•

Lauren B. Marinelli (H.1.3.8): Compensation Management Services agreement with
AAI; expired and subject to review in January 2007; confidentiality provisions
in effect for 5 years after termination. Ms. Marinelli was converted to a full
time employee on April 9, 2007.

 

 

 

 

•

Jamie Brooke Katz (H.1.3.9): training and recruiting services agreement with
AAI; expired 6/1/06; confidentiality and non-solicitation provisions in effect
until 6/1/08. Ms Katz no longer provides services to the company.

 

 

 

 

•

Bruce Alexander (H.1.3.10): effective 6/1/06; consulting services provided on an
as-needed basis; confidentiality and non-solicitation provisions in effect for 2
years after termination. Mr. Alexander no longer provides services.

 

 

 

 

•

Nancy McDonald (H.1.3.10): Compensation Management Services agreement with AAI,
dated 8/8/06; termination by either party at any time upon 30-day notice;
confidentiality provisions in effect for 5 years after termination

 

 

•

KAA maintains the following offer letters for at-will employment, with no set
term of employment and no terms regarding confidentiality or
non-compete/non-solicit. To the extent that an agreement included a set term of
employment; confidentiality or non-compete/non-solicit language, or some other
special term, it is noted below.

KAA as employer:

--------------------------------------------------------------------------------

 

 

•

Jared Newton (H.1.1.8) - option to purchase unspecified number of shares of
TrueYou.com to be determined after close of fiscal year on June 30, 2006;
current

 

 

•

Tiffany Pellegrino (H.1.1.9) - 1 year term of employment (expired March 13,
2007); current

 

 

•

Bianca Piarulli (H.1.1.10) - 1 year term of employment (expired March 13, 2007);
current

 

 

•

George Ryan (H.1.1.12) - 3 year term of employment (expires March 13, 2009);
current

 

 

•

Peter Kain Villavicencio (H.1.1.17) - option to purchase 5000 shares of KAA;
vesting 25%/year; $4/share. There is no record that this person was hired.

 

 

•

Santos Carrero (H.1.1.26) - option to purchase 5,000 shares of KAA; vesting
25%/year; $2.25/share; terminated on 11/16/06

 

 

•

Linda Green (H.1.1.31) - option to purchase 5,000 shares of KAA; vesting
25%/year; $2.25/share; terminated on 4/13/07

 

 

•

Shelley Kramer (H.1.1.44) - option to purchase 50,000 shares of TrueYou.com;
vesting 25%/year; current

 

 

•

Ivetta Karapetian (H.1.1.47) - option to purchase 1,000 shares of KAA; vesting
25%/year; $2.25/share; current

 

 

•

Jennifer Bigsby (H.1.1.49) - grant of option to purchase unspecified number of
shares of TrueYou.com to be determined after close of fiscal year on June 20,
2006; terminated on 1/30/07

 

 

•

Mary Thornton (H.1.1.56) - option to purchase 500 shares of KAA; vesting
25%/year; $2.25/share. There is no record that this person was hired.

 

 

•

Beth Bradley (H.1.1.62) - 1 year term of employment (expired March 13, 2007);
terminated on 2/1/2005

 

 

•

Drake Brown (H.1.1.64) - option to purchase 2,500 shares of KAA; vesting
25%/year; $2.25/share; current

 

 

•

Amy Grant (H.1.1.66) - option to purchase 2,000 shares of KAA; vesting 25%/year;
$2.25/share; current

 

 

•

Jason Hamacher (H.1.1.69) - option to purchase 2,500 shares of KAA; vesting
25%/year; $2.25/share; cuurent

 

 

•

Michael Acord (H.1.1.73) -.

 

 

 

 

o

Option to purchase 35,000 shares of KAA; vesting 25%/year; $2.25/share

 

 

 

 

o

Agreement includes confidentiality and non-compete provisions - effective for
duration of employment and 2 years post-termination.

 

 

 

 

o

Note: This agreement was negotiated but he was never hired.

 

 

•

Edmond Soriero (H.1.1.74) - 3 year term of employment (expires March 13, 2009);
current

 

 

•

Damian Santiago (H.1.1.75)

 

 

 

 

o

3 year term of employment (expires March 13, 2009)

 

 

 

 

o

option to purchase 35,000 shares of KAA; vesting 25%/year; $2.25/share

 

 

 

 

o

Note: This agreement was negotiated but he was never hired.

AAI as employer:

 

 

•

Cynthia Murray (H.1.1.22) - option to purchase 5,000 shares of AAI; vesting
25%/year; $4/share; current

 

 

•

Carolyn Aversano (H.1.1.25) - option to purchase 50,000 shares of AAI; vesting
25%/year; $4/share; terminated on 1/12/07

 

 

•

Kelly Charron (H.1.1.27) - agreement for consulting services to be provided from
April 28, 2003 through closing of AAI; after closing, consultant becomes
employee and eligible for stock options; current

 

 

•

Sean Donaldson (H.1.1.28) - option to purchase 25,000 shares of AAI; vesting
25%/year; $4/share; current

 

 

•

Kevin Gonzalez (H.1.1.29) - option to purchase 5,000 shares of AAI; vesting
25%/year; $4/share; current

 

 

•

Sabrina Gordon (H.1.1.30) - upon becoming eligible for promotion will be granted
option to purchase 2,500 shares of AAI; vesting 25% year; $4/share; current

 

 

•

Ford Malmin (H.1.1.32)

--------------------------------------------------------------------------------

 

 

 

 

o

option to purchase 50,000 shares of AAI; vesting 25%/year; $4/share

 

 

 

 

o

unsigned side letter stating that if terminated without cause, the stock options
will vest immediately

 

 

 

 

o

6 months severance pay ($175,000 salary); termination date was 10/04/06

 

 

•

Snow Proudlove (H.1.1.35) - option to purchase 5,000 shares of AAI; vesting
25%/year; $4/share; current

 

 

•

Michael Rodriguez (H.1.1.36) - option to purchase 40,000 shares of [AAI];
vesting $25%/year; $4/share; current

 

 

•

Elan Sassoon (H.1.1.37) - states that employee was already offered unspecified
number of options of AAI; vesting 25%/year; $4/share; current

 

 

•

Sherry Taylor (H.1.1.38) - option to purchase 2,500 shares of AAI; vesting
25%/year; $4/share; terminated on 12/20/07

 

 

•

Adam Vagley (H.1.1.39) - option to purchase 2,000 shares of AAI; vesting
25%/year; $4/share; current

 

 

•

Janice Worth (H.1.1.40)

 

 

 

 

o

option to purchase 100,000 shares of AAI; vesting 25%/year; $4/share

 

 

 

 

o

6 months severance pay, as long as not competing (salary $100,000)

 

 

 

 

o

states that non-competes in January 1, 2004 Employment Agreement and November 4,
2003 Asset Contribution and Exchange Agreement remains effective through
December 31, 2006

 

 

•

David Kingston (H.1.1.42) - option to purchase 5,000 shares of AAI; vesting
25%/year; $4/share; current

 

 

•

John Higgins (H.1.1.48)

 

 

 

 

o

option to purchase 300,000 shares of AAI; vesting 25%/year; $4/share

 

 

 

 

o

6 months severance pay; after 1 year of employment, entitled 9 months severance
pay (salary $250,000) - specifically states that this survives change in
control; terminated 5/31/2006

 

 

•

Joseph Alafano (H.1.1.51) - option to purchase 35,000 shares of AAI; vesting
25%/year; $4/share; Terminated 4/12/2006

 

 

•

Lucinda Faulkner (H.1.1.55)

 

 

 

 

o

Option to purchase 5,000 shares of AAI; vesting 25%/year; $2.25/share

 

 

 

 

o

Must get 90 days notice of termination of employment

 

 

 

 

o

3 months severance pay ($90,000 salary); terminated 4/28/06

 

 

 

 

o

AAI pays employee’s malpractice insurance (employee is nurse practitioner)

 

 

•

Michelle Mowry (H.1.1.57)

 

 

 

 

o

Employment contingent upon signing separate non-compete Never signed a
non-compete

 

 

 

 

o

Option to purchase 5,000 shares of AAI; vesting 25%/year; $4/share

 

 

 

 

o

Terminated 1/12/07

 

 

•

Robert Butt (H.1.1.59) - After second year of employment, option to purchase
5,000 shares of AAI; vesting 25%/year; $4/share; terminated 12/5/05

 

 

•

Mark Peterson (H.1.1.61) - possibility of stock options in [AAI] after 6 months
of employment (unspecified number); current

 

 

•

Moira Grasso (H.1.1.67) - option to purchase 1,000 shares of AAI; vesting
25%/year; $4/share; current

 

 

•

Nsombi Hale (H.1.1.68) - option to purchase 1,000 shares of AAI; vesting
25%/year; $4/share; current

 

 

•

Charles Hunter (H.1.1.70) - option to purchase 1,000 shares of AAI; vesting
25%/year; $2.25/share; current

 

 

•

Ana Blau (H.1.1.71)

 

 

 

 

o

Option to purchase 30,000 shares of AAI; vesting 25%/year; $4/share

 

 

 

 

o

6 months severance pay, unless competing ($100,000 salary)

 

 

 

 

o

states that non-competes in January 1, 2004 Employment Agreement and November 4,
2003 Asset Contribution and Exchange Agreement remains effective through
December 31, 2006

--------------------------------------------------------------------------------

          Anuska PBG Acquisition Sub, LLC Employment Agreement dated as of
January 1, 2004

 

 

 

 

•

Ana Blau hired as Vice President, Cellulite Systems of Anushka PBG Acquisition
Sub, LLC (pursuant to the Asset Contribution and Exchange Agreement b/w ANushka
PBG Acquisition Sub, LLC and Lord & Foursight, LLC, d/b/a Anushka Spa and
Sanctuary, dated November 25, 2003)

 

 

 

 

•

Annual salary $200,000

 

 

 

 

•

Granted stock options (# to be determined by Ana’s performance)

 

 

 

 

•

Ana is subject to non-solicitation (of employees) for term of employment plus 2
years thereafter

 

 

 

 

•

Ana is subject to non-compete (within 50 miles) for term of employment plus 1
year thereafter

 

 

 

 

•

Set term of employment for 2 years from effective date of agreement (so, term
expired on January 1, 2006). Thereafter, employee-at-will.

 

 

•

Bonnie Marting (H.1.1.72) - option to purchase 5,000 shares of AAI; vesting
25%/year; $4/share

KAA maintains the following Confidentiality and Non-Solicitation Agreements with
the following employees:

 

 

 

 

1.

Alla Minduin

 

2.

Jamie Moreiand

 

3.

Lili Mofliadam

 

4.

N. Kharonov

 

5.

Danuta Kleiner

 

6.

Lyudmila Kuritsa

 

7.

Vita Levitskaya

 

8.

Marina Lisettkais

 

9.

Martita Medina

 

10.

Nataliya Mednikov

 

11.

Linda Miguel

 

12.

Luba Mosionznik

 

13.

Augustina Muica

 

14.

Nijole Novikas

 

15.

Arzu Ors

 

16.

Perhacs Euua

 

17.

Fran Pinkowitz

 

18.

Yelena Polinousky

 

19.

R. Polo

 

20.

Marisa LoConte-Pomonte

 

21.

Nicoleta Rasulescu

 

22.

Dawn Ramundo

 

23.

Olga Razumova

 

24.

Rosalba Renderos

 

25.

Jenny Roberts

 

26.

Michelle Rizzo

 

27.

N. Rondino

 

28.

Nicoleta Rosa

 

29.

Sima Rudich

 

30.

Eugenia Sakhary

 

31.

Elvira Ortiz Sandelov

 

32.

Lizabeth Sbar

 

33.

Anna Slezingr

--------------------------------------------------------------------------------

 

 

 

 

34.

Rosemaria Soliman

 

35.

Dewar Sugim-Singh

 

36.

Maria Torreblanca Pilais

 

37.

Jaime Torrez

 

38.

Phuong Anh Tran

 

39.

Veronica Vastas

 

40.

Rachael Wilson

 

41.

Vera Yahlonskaya

 

42.

Arisa Yaker

 

43.

Monica Mrdek

 

44.

Nisha Alonzo Diaz

 

45.

Diana Alvarez

 

46.

Dora Ayala

 

47.

Dana Barry

 

48.

Lucinda Bernsten

 

49.

Firoza Bharucha

 

50.

Romanta Bosnar

 

51.

Olga Brin

 

52.

Kevin Brown

 

53.

Sandra Burdette

 

54.

Ida Chupenko

 

55.

Milagro Constantino

 

56.

Dasalange Mestawat

 

57.

Elisa DeJesus

 

58.

Fejereoh Delnessaw

 

59.

Clif de Rauta

 

60.

Irina Elkutska

 

61.

Brigid Carmella Farrell

 

62.

Pamela Franklin

 

63.

Roza Furman

 

64.

Carol Gilpathis

 

65.

Hiruth Girma

 

66.

Meaza T. Gudeta

 

67.

Nicholas Guercio

 

68.

Mary Hetziantoniou

 

69.

Sofia Hess

 

70.

Yvonne Hu

 

71.

Rodica Ionescu

 

72.

Martha Joauos

 

73.

Bella Kashtelyan

 

74.

Anna Khadzhi

KAA maintains separation agreements with the following former employees. The
form contains the following provisions:

 

 

 

 

•

Mutual release of all claims between terminated employee and AAI and affiliates,
arising before or during period of employment by AAI and affiliates

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

Ø

Includes civil rights and ADA claims

 

 

 

 

•

Non-solicitation of employees or consultants

 

•

Compensation of terminated employee for releasing AAI and affiliates, including:

 

 

 

Ø

Severance pay (e.g., a-few-weeks-worth pay, vacation days)

 

 

Ø

Vesting of stock options (from several hundreds to several thousands)

 

The features of the specific agreements are as follows:

 

•

Wahkuna Vega:

 

 

Ø

termination on 7/5/05

 

 

Ø

severance pay = 4 weeks

 

 

Ø

vesting of 500 stock options at $4 each

 

 

Ø

two-year non-solicit

 

 

 

 

•

Alba Zuniga:

 

 

Ø

termination on 7/5/05

 

 

Ø

severance pay = 4 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Mercedes Zuniga:

 

 

Ø

termination on 7/5/05

 

 

Ø

severance pay = 4 weeks

 

 

Ø

one-day vacation pay

 

 

Ø

two-year non-solicit

 

 

 

 

•

Garry Chocky:

 

 

Ø

termination on 1/20/06

 

 

Ø

severance pay = 2 months

 

 

Ø

25-day vacation pay

 

 

Ø

two-year non-solicit

 

 

Ø

no 7-day revocation period

 

 

 

 

•

Johanna Fangmeyer:

 

 

Ø

termination on 3/15/06

 

 

Ø

severance pay = 2 months

 

 

Ø

pay for “2 additional months in consideration for FMLA, which the employee did
not yet qualify for in not meeting the 12 month employment with the company”

 

 

Ø

two-year non-solicit

 

 

Ø

no 7-day revocation period

 

 

 

 

•

Marina Kanes:

 

 

Ø

termination on 5/1/06

 

 

Ø

severance pay = 2 months

 

 

Ø

two-year non-solicit

 

 

 

 

•

Lucinda Faulkner:

 

 

Ø

termination on 4/28/06

 

 

Ø

two-year non-solicit

 

 

 

 

•

Sue Riley:

 

 

Ø

termination on 3/1/06

 

 

Ø

2-week vacation pay

--------------------------------------------------------------------------------

 

 

 

 

 

 

Ø

vesting of 83,333 stock options, which must be exercised within one year of
termination at $2.25 each

 

 

Ø

two-year non-solicit

 

 

 

 

•

Tricia Brown:

 

 

Ø

termination on 4/28/06

 

 

Ø

severance pay = 3 months

 

 

Ø

20-day vacation pay

 

 

Ø

two-year non-solicit

 

 

 

 

•

Michael Andrea:

 

 

Ø

termination on 4/28/06

 

 

Ø

severance pay = 3 months

 

 

Ø

20-day vacation pay

 

 

Ø

two-year non-solicit

 

 

 

 

•

Brenda Gallagher:

 

 

Ø

termination on 7/12/05

 

 

Ø

severance pay = 4 months

 

 

Ø

17.5-day vacation pay

 

 

Ø

vesting of 5,000 stock options at $4 each

 

 

Ø

more detailed confidentiality provisions

 

 

Ø

two-year non-solicit

 

 

 

 

•

Michelle Wolk-Steinhauer:

 

 

Ø

termination on 1/12/07

 

 

Ø

severance pay = 8 weeks

 

 

Ø

one-year non-solicit

 

 

 

 

•

Natasha L. Turlinski:

 

 

Ø

termination on 1/5/07

 

 

Ø

severance pay = 2 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Angela C. Tillis:

 

 

Ø

termination on 12/29/06

 

 

Ø

severance pay = 6 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Sheryl A. Taylor:

 

 

Ø

termination on 12/20/06

 

 

Ø

severance pay = 4 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Jody A. Schifler:

 

 

Ø

termination on 12/20/06

 

 

Ø

severance pay = 6 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Dianne Rosenfeld (consultant, not employee):

 

 

Ø

termination on 2/3/07

 

 

Ø

Consultant continues to receive pay until 4/30/07 (about $16,000 per month).

 

 

Ø

Consultant receives 586,971 stock options to purchase shares of TrueYou.com at
an exercise price of $0.34 per share. Must be exercised within 90 days of
registration of TrueYou.com shares with the SEC.

--------------------------------------------------------------------------------

 

 

 

 

 

 

Ø

Consultant to provide limited consulting services until 4/30/07

 

 

Ø

Mutual releases of all claims between the two parties

 

 

 

 

•

Douglas J. Roedel:

 

 

Ø

termination on 12/29/06

 

 

Ø

severance pay = 8 weeks

 

 

Ø

“The True You equivalent of 2,500 shares of AAI stock shall be vested to
Employee. Subject to TrueYou’s Board of Director approval, KAA shall allow
Employee three (3) months after TrueYou’s stock is fully registered to exercise
such options granted to Employee.” These are options.

 

 

Ø

two-year non-solicit

 

 

 

 

•

Diana Picarazzi:

 

 

Ø

termination on 12/29/06

 

 

Ø

severance pay = 4 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Jennie Angela Ocheltree:

 

 

Ø

termination on 1/5/07

 

 

Ø

Terminated employee remains available to former employer as a consultant on an
as-needed basis. Consulting agreement to be agreed upon before consulting work
starts. To our knowledge, no such consulting agreement was entered into.

 

 

Ø

severance pay = 16 weeks

 

 

Ø

Terminated employee can take advantage of employee discount for a year after
termination

 

 

Ø

all stock options fully granted

 

 

Ø

two-year non-solicit

 

 

 

 

•

Stacey L. Macchia:

 

 

Ø

termination on 12/22/06

 

 

Ø

severance pay = 3 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Judith K. Ingber:

 

 

Ø

termination on 1/12/07

 

 

Ø

severance pay = 4 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Carolyn Aversano:

 

 

Ø

termination on 1/12/07

 

 

Ø

severance pay = 16 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Shelly Kramer:

 

 

 

This agreement contains no term.

 

 

 

Non-Disclosure, Non-Competition, Non-Solicitation

 

 

 

and Employment Agreement

 

 

 

 

 

 

 

 

 

 

Ø

confidentiality provisions

 

 

 

 

Ø

non-competition: 15-mile radius of any employer location where employee worked

 

 

 

 

Ø

non-solicitation of customers

 

 

 

 

Ø

non-solicitation of employees

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

Ø

term: 24 months after termination and, if applicable, 24 months after the end of
any violation of this agreement by former employee

 

 

 

 

Ø

Any injunction obtained to enforce this agreement to last 24 months; former
employee liable for cost of enforcing this agreement

 

 

 

 

•

Stella Pereira:

 

 

Ø

termination on 12/9/05

 

 

Ø

severance pay = 9 weeks

 

 

Ø

two-year non-solicit

 

 

 

 

•

Robert Butt:

 

 

Ø

termination on 12/1/05

 

 

Ø

severance pay = $5,000

 

 

Ø

two-year non-solicit

 

 

Ø

no 7-day revocation period

 

 

 

 

•

Patricia O’Connor:

 

 

Ø

termination on 9/15/05

 

 

Ø

severance pay = 2 months

 

 

Ø

more detailed confidentiality provisions

 

 

Ø

two-year non-solicit

 

 

 

 

•

Noah Davila:

 

 

Ø

termination on 7/5/05

 

 

Ø

severance pay = 4 weeks

 

 

Ø

10-day vacation pay

 

 

Ø

two-year non-solicit

 

 

 

 

•

Sherri Lava:

 

 

Ø

termination on 10/14/05

 

 

Ø

severance pay = 4 weeks

 

 

Ø

more detailed confidentiality provisions

 

 

Ø

two-year non-solicit

 

 

 

 

•

Daniel Davila:

 

 

Ø

termination on 7/5/05

 

 

Ø

severance pay = 4 weeks

 

 

Ø

10-day vacation pay

 

 

Ø

two-year non-solicit

 

 

 

 

•

Toby Bartosh:

 

 

Ø

termination on 7/5/05

 

 

Ø

severance pay = 3 months

 

 

Ø

10-day vacation pay

 

 

Ø

vesting of 30,000 stock options at $4 a share

 

 

Ø

two-year non-solicit

 

 

 

 

•

Application Service Provider Agreement (“ASP”) between the Pyle Group, LLC, and
Klinger Advanced Aesthetics, Inc. (formerly Advanced K, LLC), dated 4/23/04

 

 

 

 

 

 

 

 

 

 

Ø

IT services agreement

 

 

 

 

Ø

KAA must indemnify Pyle Group for claims filed by service users or third-party
vendors/suppliers.

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

Ø

Pyle Group must indemnify KAA for claims that services infringe IP.

 

 

 

 

Ø

Pyle Group warranties:

 

 

 

 

 

 

- standard of service

 

 

 

 

 

- all necessary ready-to-use third-party products

 

 

 

 

 

- exclusion of all other warranties

 

 

 

 

 

Ø

KAA’s remedies for breach of warranty by Pyle Group are limited to a
reperformance of services by Pyle Group or a refund.

 

 

 

 

Ø

Limitation of both parties’ liability:

 

 

 

 

 

 

- exclusion of incidental and consequential damages

 

 

 

 

 

- The maximum liability of one party to the other is the amount of fees paid by
KAA to Pyle Group for the 6 months preceding the event from which liability
arises.

 

 

 

 

 

Ø

Limitation of liability applies even if the express warranties “fail of their
essential purpose.”

 

 

 

 

Ø

Limitation of liability does not apply to KAA’s payment obligations and both
parties’ indemnification obligations.

 

 

 

 

Ø

KAA may not assign agreement without Pyle Group’s prior written consent.

 

 

 

 

•

Amendment to ASP, dated 4/13/05:

 

 

Ø

Modifies fee provisions

 

 

Ø

Extends term to 10/22/06

 

 

 

 

•

Amendment to ASP, dated 10/23/2006

 

 

Ø

Modifies fee provisions

 

 

Ø

Extends term to 10/22/09; then automatic one-month renewals

 

 

Ø

Modifies termination provisions: after 10/22/08, agreement may be terminated by
either party with 180-day written notice.

 

 

 

 

Settlement of case in Florida state court between KAA et al. (plaintiffs) and
JJM Oasis, LLC, et al. (defendants), dated 5/1/06

 

 

Ø

Handwritten

 

Ø

Defendants agree to pay $230,000, payable in installments, to plaintiffs.

 

Ø

Mutual releases

 

Ø

Defendants agree to one-year non-solicitation of employees.

 

Ø

Release of any of JJM Oasis’s employees from any employment agreement “allegedly
in favor of the plaintiff or its assignors, or assignees”

 

Ø

Dismissal of Tammy Meckins-Ross and Julie Czarnecki

 

Handwritten settlement supposed to be detailed in additional documents. If no
such additional documents exist, then this handwritten settlement is final.

 

Biomedical Waste Services Agreement between AAI (Florida) and Stericycle, Inc.,
dated 2/5/07

 

 

Ø

term: 60 months, then month-to-month

 

 

Ø

If AAI breaches, liquidated damages (formula based on average monthly charge)

Each party must indemnify the other for its gross negligence or willful
misconduct.

--------------------------------------------------------------------------------

Dermatologist Agreement between Advanced Aesthetics, LLC and Dr. Supriya Tomar,
M.D., P.A., dated July 13, 2004.

 

 

 

 

 

Subject Matter: Dr. to use AA’s facilities to offer dermatology services to
Dr.’s patientTerm: Initial term - 1 year (expired July 2005). Agreement may be
renewed for successive 1 year periods. [Per call with Wade 4/17, agreement
hasn’t been renewed but parties are still operating under it.]

 

 

o

Termination Rights: Either party may terminate for convenience upon 30 days
prior notice.

 

 

o

Non-Solicit: Applies for duration of agreement, plus 1 year thereafter. Doesn’t
apply with respect to Dr. Shawna Flanagan.

 

 

o

Non-Compete: Applies for duration of agreement, plus 1 year thereafter. Doesn’t
survive if AA terminates for convenience, or if Dr. terminates for cause. Dr.
gets option to purchase 1,000 shares of common stock of AA’s parent company at
fair market value, as consideration for non-compete (vesting 25%/year); will be
eligible to receive additional options throughout term of agreement.

 

 

o

Change in Control Restrictions: None.

 

o

Notes: Unsigned, undated proposed amendment to agreement, sent to AA by Dr.

 

Physician Agreement between Advanced Aesthetics, LLC & Dr. Shawna Flanagan,
dated ______, 2004

 

 

•

Subject Matter: Dr. to use AA’s facilities to offer services to her patients.

 

 

•

Term: Initial term of 1 year; automatically renews for successive 1 year terms,
unless terminated by either party.

 

 

•

Termination Rights: Mutual termination for convenience. (45 days notice required
if AA terminates; 30 days notice required if Dr. terminates).

 

 

•

Non-solicit: Applies for duration of agreement, plus 1 year thereafter.

 

 

•

Non-Compete: Applies for duration of agreement, plus 1 year thereafter. Doesn’t
survive if AA terminates for convenience, or if Dr. terminates for cause. Dr.
gets option to purchase 20,000 shares of common stock of AA’s parent at $4/share
(vesting 25%/year) pursuant to attached Stock Option Agreement as consideration
for non-compete.

 

 

•

Change in Control Restrictions: None.

 

 

•

Notes: Letter between Dr. & KAA, dated December 21, 2006 terminates agreement
effective June 11, 2007 and releases Michelle Mowry to become full-time employee
of Dr.’s private practice w/o any legal ramifications.

Proposal between L’Oreal and AAI, dated October 20, 2005: AAI to purchase from
L’Oreal’s Direct Chain Program, certain products at certain discounts; proposed
duration of relationship is 3 years. The parties never signed a definitive
agreement, but AAI has been purchasing products from L’Oreal under the proposal.

Proposal with Kerastase USA: AAI to place Kerastase Brand products in 12
locations. AAI agrees to represent a maximum of 5 haircare lines or less,
including Kerastase. AAI salons agree to carry Keraspase as thir exclusive
in-salon treatment line. The placement of products is conditioned on AAI
renovating each location.

Warehouse and Distribution Agreement between CEI Distribution, LLC and Georgette
Klinger, Inc., dated February 28, 2000 Need consent to assign. The term of the
contract has expired but the parties have continued to act under it.

--------------------------------------------------------------------------------

Equipment Leases

 

 

•

Lease between Palomar Medical Technologies, Inc. and Advanced Aesthetics, Inc.
and Advanced K, LLC dba Georgette Klinger, dated May 31, 2005

 

 

          Term: 36 months

 

          No change in control provision (but can’t relocate equipment or assign
lease with out consent)

 

•

Lease between Palomar Medical Technologies, Inc. and Advanced Aesthetics, Inc.
and Advanced K, LLC dba Georgette Klinger, dated October 3, 2005

 

 

          Term: 36 months

 

          No change in control provision (but can’t relocate equipment or assign
lease without consent)

Real Estate Leases
See real property leases set forth on Schedule 3.10.

License and Management Agreement dated as of July __, 2006 by and between
Klinger Advanced Aesthetics, LLC and Johns Hopkins University.

License and Management Agreement dated as of July 18, 2006 by and between
Klinger Advanced Aesthetics, LLC and The University of Texas Southwestern
Medical Center at Dallas.

--------------------------------------------------------------------------------

Schedule 3.8
Liabilities

None.

--------------------------------------------------------------------------------

Schedule 3.9
Certain Developments

TrueYou’s quarterly report on Form 10-Q for the quarter ended September 30, 2006
indicates that the financial statements contained therein have been prepared on
a going concern basis which contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business, that the Company
had an accumulated deficit of $190.6 million and a working capital deficiency of
$39.4 million, and that these factors raise substantial doubt about TrueYou’s
ability to continue as a going concern. TrueYou is the direct and indirect sole
owner of the Sellers and the Subsidiaries.

See Schedule 3.4.

TrueYou entered into a loan agreement dated as of December 22, 2006 (the “Senior
Subordinated Loan Agreement”) with certain senior subordinated lenders (the
“Senior Subordinated Lenders”), pursuant to which the Senior Subordinated
Lenders loaned TrueYou $3.0 million (the “Senior Subordinated Loan”). TrueYou
was also issued on April 23, 2004 certain subordinated debt in the amount of
$1.0 million (the “April 2004 Subordinated Debt”). Pursuant to a Subordination
Agreement dated as of December 22, 2006, between such Senior Subordinated
Lenders, previous subordinated lenders to TrueYou and Laurus, the Senior
Subordinated Loan is subordinated to TrueYou’s existing senior indebtedness to
Laurus. As a result of the Notice of Default and Acceleration received from
Laurus described in Schedule 3.4, the Senior Subordinated Lendersand the lender
of the April 2004 Subordinated Debt may accelerate TrueYou’s payment obligation
under the Senior Subordinated Loan. TrueYou does not have sufficient funds to
pay any accelerated amounts.

On February 8, 2006, TrueYou reached an agreement with the landlord at Beverly
Hills to surrender the leased property. Due to the limited capital and a revised
business plan, TrueYou (through its indirect wholly owned subsidiary Klinger
Advanced Aesthetics, LLC) is unable to complete the remodeling and re-open the
store. As a result of this agreement, TrueYou anticipates a charge of $0.6
million to write-off all of the net assets of the Beverly Hills facility.

Laudati salon case. Florida state court case; Advanced Aesthetics, LLC, and
Dischino Corp. v. Laudati Salon et al.; resulted in 2/6/07 injunction against
Laudati defendants and former employee for violation of noncompete.

TrueYou is currently undergoing sales tax audits by the New York, Illinois and
California taxing authorities.

--------------------------------------------------------------------------------

Schedule 3.10
Leases

The following lease documents, pertaining to locations in which the operation of
the Business is currently conducted, have been previously provided to the Buyer
by Seller on the website https://datasite.merrillcorp.com (the “Datasite”); to
the extent a lease document is not listed in this Schedule 3.10, it was not
previously delivered to Buyer:

 

 

 

 

 

1.

501 Madison Avenue, New York, New York (Consent not required for sale of
substantially all assets/stock, provided Tenant not in default)

 

 

 

 

 

•

          Lease dated 7/12/84 between Silk & Halpern Realty Associates, Inc.
(“Madison Landlord”) and Georgette Klinger, Inc. (“Klinger”), as tenant.

 

 

 

 

 

 

•

          Extension Agreement dated 6/25/90 between Madison Landlord and Klinger

 

 

 

 

 

 

•

          Additional Space Agreement Extension dated 11/29/93 between Madison
Landlord and Klinger.

 

 

 

 

 

 

•

          Agreement for Additional Space and Extension and Modification
Agreement dated 1/98 between Madison Landlord and Klinger.

 

 

 

 

 

 

•

          Agreement for Extension and Modification of Lease dated 7/00 between
Madison Landlord and Klinger. (Not executed)

 

 

 

 

 

 

•

          Agreement for Additional Space and Extension and Modification of Lease
dated 9/00 between Madison Landlord and Klinger.

 

 

 

 

 

 

•

          Assignment and Assumption of Lease, Consent to Assignment and
Assumption of Lease and Landlord’s Estoppel Certificate dated 4/23/04 between
Klinger, as assignor, Advanced Aesthetics, Inc. (“AA”), as assignee, and Madison
Landlord.

 

 

 

 

 

2.

Boca Raton, Florida (Consent required, not to be unreasonably withheld)

 

 

 

 

 

 

•

          Lease dated 7/21/93 between MDN Wharfside, Ltd. (“BR Landlord”) and
Fore’Le, Ltd., Inc. (d/b/a Wild Hare Spa), predecessor-in-interest to Anushka
Boca Acquisition Sub, LLC (“BR Tenant”) [Executed by Landlord only] (“Lease A”).

 

 

 

 

 

 

•

          Lease dated 7/28/93 between BR Landlord and The Wild Hare South, Inc.,
as tenant (d/b/a Wild Hare Salon) predecessor-in-interest to BR Tenant (“Lease
B”.

 

 

 

 

 

 

•

          Addendum to Lease dated 7/__/93 between Wharfside at Boca Pointe,
Inc., as landlord, and Fore’le, Ltd., Inc., as tenant.

 

 

 

 

 

 

•

          Addendum #2 to Lease [undated] between BR Landlord (by assignment from
Wharfside Holding, Inc.), as landlord, and Fore’le Ltd., Inc., as tenant. [Not
executed by either party]. (According to Seller, no executed copy in file,
however, parties have been acting under agreement).

 

 

 

 

 

 

•

          Landlord’s Consent, Estoppel Certificate and Lease Addendum dated
11/4/03 between BR Tenant and its parent AA, together as assignee, and For’Le
Ltd., Inc. and Ford H. Malmin, together as assignor, assigning assignor’s
obligations under Lease A (as amended by Addendum and Addendum #2) to assignee,
consented to by BR Landlord (successor-in-interest to Wharside at Boca Pointe,
Inc.).

 

 

 

 

 

 

•

          Landlord’s Consent Estoppel Certificate and Lease Addendum dated
11/24/03 between Wild Hare Acquisition Sub, LLC, as assignee, Advanced
Aesthetics, Inc. and Robert and Catherine Amoroso Irrevocable Trust, Wild Hare
South, Inc. (together as assignor) and MDN Wharfside Ltd., as landlord, assigns
assignor’s obligations under Lease B.

--------------------------------------------------------------------------------

 

 

 

 

 

3.

Chevy Chase, Maryland- (No consent required, provided notice delivered to CC
Landlord)

 

 

 

 

 

•

Lease dated 9/14/05 between The Chevy Chase Land Company of Montgomery County
Maryland (“CC Landlord”) and Advanced K, LLC (“Advanced K”), as tenant.

 

 

 

 

 

 

•

Guaranty dated 9/14/05 made by Advanced Aesthetics, Inc. (“AA”), as guarantor,
in favor of CC Landlord.

 

 

 

 

 

 

•

Letter dated 1/12/06 from CC Landlord to Advanced K.

 

 

 

 

 

 

•

Subordination Non-Disturbance and Attornment Agreement dated 10/06/05 between
Teachers Insurance and Annuity Association of America and Bank of America, N.A.,
together as lenders, and Advanced K.

 

 

 

 

 

4.

Manhasset, New York (Consent not required for sale of substantially all
assets/stock)

 

 

 

 

 

•

          Sublease Agreement dated 3/__/03 between Greenhouse Day Spa Group,
Inc. (“Sublandlord”) and Klinger, as subtenant (contains as exhibit, the
“Overlease” between KMO-361 Realty Associates (“Overlandlord”) and Sublandlord’s
predecessor-in-interest, Thermolase Corporation, undated; as assigned by
Assignment and Assumption of Lease with Landlord’s Consent dated 6/23/00 between
Thermolase Corporation and GH Day Spas, Inc., and as further assigned by
Assignment and Assumption of Lease with Landlord’s Consent dated 6/1/00 between
GH Day Spas, Inc. and Sublandlord).

 

 

 

 

 

 

•

          Termination of Sublease Agreement dated 4/23/04 between Klinger and
Advanced K.

 

 

 

 

 

 

•

          Assignment and Assumption of Lease dated 4/23/04 between Klinger, as
assignor, Advanced K, as assignee.

 

 

 

 

 

 

•

          Agreement dated April 23, 2004 between Sublandlord, Klinger and
Advanced K, whereby Sublandlord assigned its interests in the Overlease to
Advanced K and Klinger and AA. caused Overlandlord to release Sublandlord from
the lease; Overlandlord agreed to assign the Overlease directly to Advanced K
and to release Sublandlord from liability (Overlandlord and Advanced K are now
Landlord and Tenant directly).

 

 

 

 

 

 

•

          Guaranty made by AA, as guarantor, in favor of Sublandlord dated
4/23/04

 

 

 

 

 

 

•

          Letter dated April 25, 2006 from Klinger Advanced Aesthetics to
Overlandlord (now as direct landlord) exercising the option to extend lease
pursuant to Section 3.3(b) of the Lease, until January 31, 2012.

 

 

 

 

 

5.

North Park, Dallas, Texas (Consent not required for sale of substantially all
assets/stock)

 

 

 

 

 

 

•

Lease dated 3/31/06 between NorthPark Partners, LP (“NP Landlord”) and Klinger
Advanced Aesthetics, LLC (“NP Tenant”).

 

 

 

 

 

 

•

Guaranty dated 1/18/06 made by Klinger Advanced Aesthetics, Inc., as guarantor,
in favor of NP Landlord effective as of 3/31/06.

 

 

 

 

 

 

•

Letter from NP Landlord to NP Tenant dated July 24, 2006 setting July 19, 2006
as the Rental Commencement Date

 

 

 

 

 

6.

Palm Beach, Florida (Worth Avenue) (Consent not required for sale of
substantially all of assets/stock, provided net worth of assignee is at least
equal to that of tenant at the time of the transfer)

 

 

 

 

 

•

          Lease Agreement dated 8/10/99 by and between Worth Avenue Associates,
Ltd. (“PB Landlord”) and Klinger, as tenant.

 

 

 

 

 

 

•

          Assignment and Assumption of Lease dated 4/23/04 between Klinger, as
assignor, Advanced K, as assignee, and PB Landlord.

--------------------------------------------------------------------------------

 

 

 

 

 

 

•

          Guaranty by AA, as guarantor, dated 4/23/04 in favor of PB Landlord.

 

 

 

 

 

 

•

          Tenant Estoppel Certificate made by Advanced K for the benefit of Bank
of America, N.A. dated in 2005 setting forth, among other things, the expiration
date of the lease as May 31, 2010.

 

 

 

 

 

7.

PGA, Palm Beach Gardens, Florida (Consent required, not to be unreasonably
withheld; notice must be given to PGA Landlord prior to transfer)`

 

 

 

 

 

•

          Lease dated 3/8/01 between PGA Commons, LLC, (“PGA Landlord”) and
FourSight, LLC (“Four”), predecessor-in-interest to Anushka PBG Acquisition Sub,
LLC (“PGA Tenant”).

 

 

 

 

 

 

•

          First Amendment to Lease dated 6/13/01 between PGA Landlord and Four.

 

 

 

 

 

 

•

          Second Amendment to Lease dated 8/8/03 between PGA Landlord and Four.

 

 

 

 

 

 

•

          Assignment and Assumption of Lease dated 11/25/03 between Lord &
Foursight, LLC, as assignor, and PGA Tenant, as assignee.

 

 

 

 

 

 

•

          Guaranty by Ford H. Malmin and Ellie Malmin and Jorge Tomas Blau and
Ana Elena Blau (jointly as guarantors) in favor of PGA Landlord dated July 9,
2001.

 

 

 

 

 

 

•

          Consent to Assignment of Lease dated 11/25/03 between PGA Landlord,
PGA Tenant and PGA Tenant’s predecessor-in-interest

 

 

 

 

 

8.

Short Hills, New Jersey (Consent required, no reasonable requirement)

 

 

 

 

 

•

          Assignment, Assumption and Consent Agreement dated 4/22/04 between
Advanced K, as assignee, and Klinger, as assignor, and Short Hills Associates
L.L.C. (“SH Landlord”).

 

 

 

 

 

 

•

          Lease dated 5/15/98 between Klinger, as tenant and SH Landlord.

 

 

 

 

 

 

•

          First Modification of Lease dated 4/23/04 between SH Landlord and
Advanced K, as tenant.

 

 

 

 

 

 

•

          Guaranty of Lease dated 3/22/04 by AA, as guarantor, in favor of SH
Landlord.

 

 

 

 

 

 

•

          Lease set to expire January 31, 2008.

 

 

 

 

 

9.

South Coast Plaza, Costa Mesa, California (Consent not required for sale of
substantially all stock/assets, provided assignees net worth is at least
$5,000,000 or the current net worth of tenant at the time of the transfer,
whichever is higher)

 

 

 

 

 

•

Lease dated 6/1/96 between South Coast Plaza (“CM Landlord”) and Klinger, as
tenant.

 

 

 

 

 

 

•

Assignment and Assumption of Lease and First Amendment dated 7/21/98 between
Klinger, as assignor, and GK Acquisition Corp., as assignee

 

 

 

 

 

 

•

Assignment and Assumption of Lease, Consent to Assignment and Assumption of
Lease, Landlord’s Estoppel and Amendment to Lease dated 4/23/04 between Klinger,
as assignor, Advanced K, as assignee, and CM Landlord.

 

 

 

 

 

 

•

Third Amendment to Lease dated 7/6/06 between CM Landlord and Advanced K.

 

 

 

 

 

10.

Water Tower, Chicago, Illinois Consent not required for sale of all
stock/assets, provided, among other things, tenant is not in default)

 

 

 

 

 

•

          Lease dated 10/21/02 between LaSalle Bank National Association, as
Trustee under Trust Agreement dated 6/10/70 as Trust No. 40940, (“Chicago
Landlord”), and Klinger, as tenant.

 

 

 

 

 

 

•

          Assignment and Amendment to Lease dated 4/23/04 between Chicago
Landlord, Klinger, as assignor, and Advanced K, as assignee.

--------------------------------------------------------------------------------

 

 

 

 

 

11.

Dixie Highway, West Palm Beach, Florida (Consent not required for sale of
substantially all assets/stock)

 

 

 

 

 

•

Lease dated 6/30/03 between Christal, Inc., (“WPB Landlord”) and Dischino
Corporation d/b/a Cosmo & Co. (“ WPB Tenant”).

 

 

 

 

 

12.

Rodeo Drive, Beverly Hills, California (Consent not required for sale of
substantially all assets/stock)

 

 

 

 

 

•

Fourth Amendment to Retail Lease dated 6/29/05 between Wilshire Rodeo Fee LLC
(“Rodeo Landlord”) and Advanced K, as tenant.

 

 

 

 

 

 

•

Third Amendment to Lease dated 4/23/04 between Georgette Klinger, Inc.
(predecessor in interest to Rodeo Tenant) (“Klinger”), Advanced K, as assignee,
and Wilroad Associates Limited Partnership (Rodeo Landlord’s predecessor in
interest).

 

 

 

 

 

 

•

Assignment and Assumption of Lease and Consent to Assignment and Assumption of
Lease dated 4/23/04 between Klinger, Advanced K and Rodeo Landlord’s predecessor
in interest.

 

 

 

 

 

 

•

Second Amendment to Lease dated 3/1/96 between Rodeo Landlord’s predecessor in
interest and Klinger.

 

 

 

 

 

 

•

First Amendment to Lease dated 12/7/95 between Rodeo Landlord’s predecessor in
interest and Klinger. (lease of 500 s/f of storage space)

 

 

 

 

 

 

•

Lease dated 12/7/95 between Rodeo Landlord’s predecessor in interest and
Klinger, as tenant.

Notice from Arongberg Goldgehn dated April 4, 2007 to Klinger Advanced
Aesthetics Institute regarding filing of that certain Contractor’s Claim for a
Mechanics Lien dated March 26, 2007 and filed on April 2, 2007 in the Cook
County Recorder of Deeds in the State of Illinois in the amount of $90,944 has
been filed against Water Tower, LLC, as owner, General Growth Properties, Inc.,
as owner’s agent and Georgette Klinger Water Tower Place (“Lien”). In connection
with this Lien, Tenant has not yet received notice of default by the Landlord.

Default Notice dated April 12, 2007 from Linowes and Blocher LLP, attorneys for
the CC Landlord, to Klinger Advanced Aesthetics, LLC (f/k/a Advanced K, LLC), as
tenant, and Klinger Advanced Aesthetics, Inc., as guarantor, in connection with
tenant and guarantor’s failure to post a $645,000 letter of credit and failure
to pay rent in the amount of $80,452.12 (as of April 9, 2007). Previous notices
of default for same dated February 27, 2007 and April 9, 2007 are referenced but
were not provided to Purchaser.

The 501 Madison Avenue, New York, New York spa facility is antiquated and in
need of refurbishment including the electrical and cooling capacities, and
Seller has no Knowledge nor have they been given notice that such issues are a
violation of governmental statutes or regulations. When the facility is at full
capacity, circuit breakers have needed to be reset. It is believed that the
issue with the cooling capacity is that the cooling system was designed and
installed in such a manner that the coils to the system cannot be properly
cleaned and maintained reducing the effective capacity of the system.

The Water Tower facility requires new carpet at an estimated cost of about
$12,000. There are also some construction items of approximately $15,000 that
remain from the recent remodeling done at the facility.

The Palm Beach Gardens facility requires a new storefront sign due to the
expiration of the license to use the “Anushka” trade name.

--------------------------------------------------------------------------------

An odor was detected at the West Palm location. Store management had a mold
analysis conducted. No air borne mold was detected. Some mold was detected in
some walls, which will need to be cleaned and or remediated. The formal report
has not yet been received and the cost is unknown.

See the disclosure in Schedule 3.9 regarding the Beverly Hills store.

The facility in Boca Raton has not fully recovered from hurricane damage that
was sustained in October, 2005. The facility had to be closed after the
hurricane due to damage, and a significant number of employees left for a number
of reasons including as a result of the damage sustained. Revenues dropped by
$1.7 million at this facility for [2006.] There is no clear indication if the
facility will return to prior revenue levels without significant resources
added. The damage has been fixed, but the facility needs to be renovated.

 

 

 

The following rental payments and other occupancy charges are owing for each of
the following locations as of May 3, 2007.

Outstanding Facility Lease Obligations

3-May-07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December ’06

 

January ’07

 

February ’07

 

March ’07

 

Marketing

 

April ’07

 

Marketing

 

Total

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Costa Mesa

 

 

$

0

 

 

 

$

1,560

 

 

 

$

24,911

 

 

$

24,911

 

 

$

11,400

 

 

$

33,049

 

 

$

0

 

 

$

95,833

 

Short Hills

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

$

0

 

 

$

5,127

 

 

$

0

 

 

$

4,498

 

 

$

9,625

 

Manhassett

 

 

$

0

 

 

 

$

0

 

 

 

$

50,893

 

 

$

50,893

 

 

$

0

 

 

$

53,022

 

 

$

0

 

 

$

154,808

 

Chicago

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

$

38,785

 

 

$

0

 

 

$

35,410

 

 

$

0

 

 

$

74,195

 

501 Madison Ave

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

$

0

 

 

$

0

 

 

$

83,848

 

 

$

0

 

 

$

83,848

 

Palm Beach Gardens

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

$

0

 

 

$

0

 

 

$

0

 

 

$

0

 

 

$

0

 

West Palm Beach

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

$

0

 

 

$

0

 

 

$

0

 

 

$

0

 

 

$

0

 

Chevy Chase

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

$

13,419

 

 

$

0

 

 

$

26,710

 

 

$

0

 

 

$

40,129

 

Dallas

 

 

$

0

 

 

 

$

0

 

 

 

$

50,144

 

 

 

46.401.62

 

 

$

10,764

 

 

$

42,239

 

 

$

1,157

 

 

$

104,304

 

Boca

 

 

$

4,650

 

 

 

$

19,897

 

 

 

$

19,897

 

 

$

19,897

 

 

$

0

 

 

$

19,897

 

 

$

1,025

 

 

$

85,263

 

Palm Beach Island

 

 

$

12,506

 

 

 

$

0

 

 

 

$

15,158

 

 

$

15,172

 

 

$

0

 

 

$

17,184

 

 

 

 

$

60,021

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Total

 

 

$

17,156

 

 

 

$

21,457

 

 

 

$

161,002

 

 

$

163,078

 

 

$

27,291

 

 

$

311,359

 

 

$

6,679

 

 

$

708,024

 

--------------------------------------------------------------------------------

Schedule 3.13
Intellectual Property

Trademarks filed under Klinger Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

UNITED STATES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

T15717US00

 

ACNE TEEN PLAN & Design

 

4/15/2002

 

76/395,633

 

8/12/2003

 

2,749,681

 

REGISTERED

 

44

 

 

8/12/2009

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/12/2013

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

44 - Beauty care, skin care, and scalp care services, namely a customized
program designed for controlling teenage acne through professional facials and
scalp treatments, and providing recommendations for treatment and products for
daily skin care at home

 

 

T15688US00

 

ADVANCED OXYGEN

 

6/8/2000

 

76/065,770

 

5/22/2001

 

2,453,258

 

REGISTERED

 

03

 

 

5/22/2007

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5/22/2011

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - face moisturizer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

T15723US00

 

DAILY 15

 

 

 

2/11/1999

 

75/640,434

 

10/8/2002

 

2,632,145

 

REGISTERED

 

03

 

 

10/8/2008

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/8/2012

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - COSMETICS; NAMELY, SKIN CREAMS, SKIN LOTIONS, SKIN CLEANSERS; SKIN MAKEUP
REMOVERS, SKIN MASKS, SKIN MOISTURIZERS AND EYE CREAMS

 

 

T15718US00

 

ESSENTIAL 9-STEP FACIAL

 

6/8/2000

 

76/066,908

 

2/26/2002

 

2,542,483

 

REGISTERED

 

42

 

 

2/26/2008

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2/26/2012

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

42 - beauty salon services

 

 

T15398US00

 

FIRMATIVE

 

 

 

7/2/1985

 

73/546,030

 

7/8/1986

 

1,400,036

 

ABANDONED

 

03

03 - Cosmetics for men and women, namely, skin moisturizers and lotions, and
facial masks.

 

 

T15731US00

 

GEORGETTE

 

 

 

9/24/1982

 

73/388,758

 

7/10/1984

 

1,284,858

 

REGISTERED

 

03

 

 

7/10/2014

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - Toiletries-Namely, Perfumes, Colognes and Cosmetic Body Creams

 

 

T15730US00

 

GK

 

 

 

9/24/1982

 

73/388,809

 

7/10/1984

 

1,284,859

 

REGISTERED

 

03

 

 

7/10/2014

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - Toiletries-Namely, Perfumes, Colognes and Cosmetic Body Creams

 

 

T15684US00

 

HERBAL ESSENTIALS

 

10/28/1998

 

75/578,977

 

2/6/2001

 

2,426,101

 

ABANDONED

 

03

03 - COSMETICS; NAMELY, SKIN CREAMS, SKIN LOTIONS, SKIN CLEANSERS; SKIN MAKE-UP
REMOVERS, SKIN MASKS, SKIN MOISTURIZERS AND EYE CREAMS

 

 

T15683US00

 

INSTANT RADIANCE

 

3/15/1999

 

75/660,752

 

1/9/2001

 

2,419,965

 

REGISTERED

 

03

 

 

7/9/2007

 

AFF. OF USE - GRACE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1/9/2011

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - facial mask

 

 

T15734US00

 

KATHRYN

 

 

 

9/24/1982

 

73/388,755

 

7/24/1984

 

1,286,713

 

REGISTERED

 

03

 

 

7/24/2014

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - Toiletries-Namely, Perfumes, Colognes and Cosmetic Body Creams

 

 

T15356US00

 

KLINGER

 

 

 

9/24/1982

 

73/388,754

 

8/20/1985

 

1,354,848

 

ABANDONED

 

03

03 - Men’s Toiletries-Namely, Cleansing Pads, Skin Lubricating Creams, Eye
Creams, Masks for Dry Skin, Masks for Oily Skin,Cologne, After Shave
Lotion,Pre-Shave Softeners, Shaving Cream

 

 

T15669US00

 

Lily of the Valley Design

 

4/17/1978

 

73/166,525

 

6/26/1979

 

1,121,229

 

REGISTERED

 

42

 

 

6/26/2009

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

42 - SKIN, SCALP AND HAIR CARE SERVICES

 

 

T15715US00

 

Lily of the Valley Design (2)

 

3/1/2000

 

75/932,516

 

9/11/2001

 

2,489,314

 

REGISTERED

 

42

 

 

9/11/2007

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/11/2011

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42 - beauty care and skin care services, namely providing facial treatments,
massages and body treatments, manicures, pedicures and hair services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademark Report by Country

 

 

 

 

 

 

 

 

 

Printed: 3/29/2007

 

Page    2

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNITED STATES continued…

 

 

 

 

 

 

 

 

 

 

 

 

T15721US00

 

Lily of the Valley Design in Box Design

 

3/1/2000

 

75/932,515

 

9/4/2001

 

2,486,270

 

REGISTERED

 

03

 

 

9/4/2007

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/4/2011

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - cosmetic and fragrance products, namely after-shave lotions, after-sun
lotions, anti-bacterial soap, anti-wrinkle cream, aromatherapy oils,
astringents, bath beads, bath crystals, bath foam, bath gel, bath oil, bath
powder, bath salts, blusher, body cream, body emulsions, body masks, body oil,
body powder, body scrubs, bubble bath, cologne, concealers, cosmetic pencils,
cuticle cream, eau de perfume, eau de toilette, essential oils for personal use,
eye cream, eye gels, eye makeup remover, eye makeup, eye shadow, eyebrow
pencils, eyeliners, facial cleansers, facial creams, facial emulsions, facials
masks, facial scrubs, foundation, hair shampoo, hair conditioners, hair gel,
hair mousse, hair rinses, hair spray, hair styling preparations, hand cream, lip
cream, lip gloss, lip liner, lipstick, makeup remover, facial makeup, eye makeup
remover, mascara, massage oil, skin moisturizer, nail buffing preparations, nail
cream, nail enamel, nail hardeners, nail polish base coat, nail polish remover,
nail polish top coat, nail polish, nail strengtheners, night cream, perfume
oils, perfume, potpourri, face powder, talcum powder, pre-moistened cosmetic
wipes, sachets, scented body spray, sculpting gel, self-tanning lotions, hair
shampoo, shaving balm, shaving cream, shaving foam, shaving gel, shower gel,
skin clarifiers, skin cleansers, skin cream, skin emollients, skin gels for
accelerating, enhancing or extending tans; skin lotion, skin texturizers, skin
toners, toilet soap, sun block preparations, sun screen preparations, sun
tanning preparations

 

 

T15687US00

 

LINE SOLUTION

 

 

 

6/8/2000

 

76/065,767

 

5/22/2001

 

2,453,257

 

REGISTERED

 

03

 

 

5/22/2007

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5/22/2011

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - face cream

 

 

T15722US00

 

PRIME TIME

 

 

 

10/28/1998

 

75/578,969

 

5/20/2003

 

2,717,662

 

REGISTERED

 

03

 

 

5/20/2009

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5/20/2013

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - SKIN CARE PREPARATIONS, NAMELY SKIN MOISTURIZERS, SKIN LUBRICATING CREAMS,
SKIN NIGHT TREATMENTS AND BODY LOTIONS

 

 

T15263US01

 

REVIVACELL

 

 

 

7/26/2001

 

78/075,787

 

9/10/2002

 

2,619,069

 

REGISTERED

 

42

 

 

9/10/2008

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/10/2012

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

42 - BEAUTY CARE SERVICES, NAMELY, MICRODERMABRASION SKIN TREATMENT FOR FACE,
NECK, HANDS AND OTHER PARTS OF THE BODY, HYDRATING FACIAL TREATMENT, AND
MOISTURIZING MASSAGE

 

 

T15656US00

 

SKIN BOOSTER

 

 

 

7/26/2000

 

76/097,353

 

11/13/2001

 

2,508,261

 

REGISTERED

 

03

 

 

11/13/2007

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11/13/2011

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - Facial lotion

 

 

T15689US00

 

SKIN PROTECTOR

 

6/8/2000

 

76/065,765

 

5/22/2001

 

2,453,256

 

REGISTERED

 

03

 

 

5/22/2007

 

AFFIDAVIT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5/22/2011

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - face cream

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks Filed Under Advanced Aesthetics, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademark Report by Country

 

 

 

 

 

 

 

Printed: 3/29/2007

 

Page   1

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Trademark Report by Country

 

 

 

 

 

 

 

Printed: 3/29/2007

 

Page   2

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

CANADA continued…

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EUROPEAN UNION (CTM)

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Trademark Report by Country

 

 

 

 

 

 

 

 

 

Printed: 3/29/2007

 

Page   3

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

EUROPEAN UNION (CTM) continued…

 

 

 

 

 

 

 

 

 

 

 

 

T16179EU00

 

KLINGER ADVANCED

 

 

 

 

 

 

 

 

 

MAILED

 

03,05,10

 

 

AESTHETICS & Design

 

 

 

 

 

 

 

 

 

 

 

44

 

 

4/30/2007

 

STATUS CHECK

 

 

 

 

 

 

 

 

03 - Hair colorings, color rinses, hair bleaches, color developers, color
intensifiers, hair conditioners, hair detanglers, shampoos, hair styling mousse,
gel and spray, rouge, hand lotion, hand cream, face lotion, face cream, face
powder, lip stick, lip glosses, eye makeup, eye shadow, makeup, pressed powder,
blusher, under-eye concealer, loose powder, mascara, eyeliner, lip liner, eye
brow pencil, perfume, cologne, suntan oil, nail polish, nail enamel, bath and
shower gels and bath salts; toilet soaps; body deodorants; cosmetics, namely,
creams, milks, lotions, gels and powders for the face, the body and the hands;
sun care preparations, namely, sun block, sun screen, sun creams, sun tan
lotion, sun tan gel and sun tan oil; gels, sprays, mousses and balms for the
hair styling and hair care; hair lacquers; hair coloring and hair decolorant
preparations; permanent waving and curling preparations; essential oils for
personal use; dentifrices; nail care preparations; non-medicated skin care
preparations.

05 - Dental cement of resin; denture adhesives; fillings for teeth; composite
resin for dental use namely, dental impression materials; dental prosthetic
materials, namely, dental veneers, crowns, and bridges; dental coating
materials, namely, dental desensitizers, and teeth protectors; other dental
materials, namely, dental abrasives, dental polish, and dental rinse; diagnostic
preparations for clinical or medical laboratory use; biological tissue intended
for subsequent implantation of bone, skin, and teeth;pharmaceutical
preparations, namely, dermatological preparations, medicated skin care
preparations, anti-acne preparations, antibiotic preparations, antifungal
preparations, anti-infective preparations, corticosteroid preparations,
medicated shampoos, preparations for treatment of inflammatory skin disorders,
preparations for treatment of rosacea, and preparations for treatment of
pigmentation disorders, uneven pigmentation and actinic aging; pharmaceutical
products used in connection with breast aesthetic, facial aesthetic and
reconstruction, facial aesthetic and anti-obesity surgery, cosmetic surgery,
plastic surgery, cosmetic dentistry, dental surgery; cosmetic and medical
injectibles for cosmetic conditions

10 - Medical devices, namely, lasers and like devices for the removal of
unwanted hair and treatment of skin blemishes, scars, and other aesthetic
issues, microdermabrasion machines, and devices used to aid in teeth whitening,
used in connection with breast aesthetic, facial aesthetic and reconstruction,
facial aesthetic and anti-obesity surgery, cosmetic surgery, plastic surgery,
dental surgery, and cosmetic dentistry; medical apparatus, namely therapeutic
ultrasound systems.

44 - Medical services, namely, laser hair removal, laser vein removal,
sclerotherapy and microdermabrasion; botulinum toxin type A, hyaluronic acid,
and collagen injections, cosmetic surgery, plastic surgery, cosmetic dentistry,
dental surgery;skin and hair care services, namely, chemical peels, acne
treatments, microdermabrasion treatments, botulinum toxin type A, hyaluronic
acid, and collagen injections, laser procedures for the removal of wrinkles,
capillaries, red spots, brown spots, age spots, spider veins, facial and body
hair, laser procedures for stimulating collagen production, evening skin tone
and skin resurfacing; and rendering consultation and advisory services in
connection with the aforesaid; beauty salon services; health spa services,
namely, massage services and cosmetic body care services and treatments;
cosmetic medical and surgical services and treatments; cosmetic dentistry and
consulting services relating to the same; informational services in the field of
facial aesthetic and anti-obesity surgery, cosmetic surgery, plastic surgery,
microdermabrasion, laser treatment, namely sclerotherapy and hair removal,
treatment of fatty deposits using ultrasound; medical diagnostic services,
namely, providing ultrasound screening and diagnosis, measurement of skin and
hair condition; medical services for skin treatment, namely dermatology clinic
and skin health restoration medical procedures for physician- or
nurse-practitioner-administered or directed exfoliation of skin and associated
procedures for post-exfoliation treatment; hygienic and beauty services for
skin, namely treatment, health restoration, care therapy, timed application of
gels, cleansers, lighteners, exfoliants, blenders, toners and creams; skin care
salon; skin massage therapy; cosmetic surgery, cosmetic dentistry, plastic
surgery, dental surgery; spa services providing body and skin treatments namely
massages, applications of lotions and compositions including skin lighteners,
skin masks, antioxidant treatments, skin peels, pre-operative skin care,
post-operative camouflage make-up, deep cleansing facial treatments, manicures,
pedicures, face and body waxing, hair design, color, perms and full body
massage, facials; salon services providing hair care, hair coloring, manicures,
pedicures, and makeup; services relating to cosmetic/medical injectibles.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Trademark Report by Country

 

 

 

 

 

 

 

Printed: 3/29/2007

 

Page   7

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

UNITED STATES continued…

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Trademark Report by Country

 

 

 

 

 

 

 

Printed: 3/29/2007

 

Page   13

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

UNITED STATES continued…

 

 

 

 

 

 

 

 

 

 

 

 

T15907US00

 

KLINGER ADVANCED

 

7/22/2005

 

78/676,288

 

 

 

 

 

PENDING

 

03,05,10

 

 

AESTHETICS

 

 

 

 

 

 

 

 

 

 

 

 

 

44

 

 

3/30/2007

 

STATUS CHECK

 

 

 

 

 

 

 

 

 

 

03 - Hair colorings, color rinses, hair bleaches, color developers, color
intensifiers, hair conditioners, hair detanglers, shampoos, hair styling mousse,
gel and spray, rouge, hand lotion, hand cream, face lotion, face cream, face
powder, lip stick, lip glosses, eye makeup, eye

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

shadow, makeup, pressed face powder, blusher, under-eye concealer, loose face
powder, mascara, eyeliner, lip liner, eye brow pencil, perfume, cologne, suntan
oil, nail polish, nail enamel, bath and shower gels and bath salts; toilet
soaps; body deodorants; cosmetics, namely, creams, milks, lotions, gels and
powders for the face, the body and the hands; sun care preparations, namely, sun
block, sun screen, sun creams, sun tan lotion, sun tan gel and sun tan oil;
gels, sprays, mousses and balms for the hair styling and hair care; hair
lacquers; hair coloring and hair decolorant preparations; permanent waving and
curling preparations; essential oils for personal use; dentifrices; nail care
preparations; non-medicated skin care preparations.

05 - Dental cement of resin; denture adhesives; fillings for teeth; composite
resin for dental use, namely, dental impression materials; dental prosthetic
materials, namely, dental veneers; dental coating materials, namely, dental
restoration compounds; other dental materials, namely, dental abrasives, dental
polish, and dental rinse; diagnostic preparations for clinical or medical
laboratory use; biological pharmaceutical preparations, namely, dermatological
preparations, medicated skin care preparations, anti-acne preparations,
antibiotic preparations, antifungal preparations, anti-infective preparations,
corticosteroid preparations, medicated shampoos, preparations for treatment of
inflammatory skin disorders, preparations for treatment of rosacea, and
preparations for treatment of pigmentation disorders, uneven pigmentation and
actinic aging; pharmaceutical products used in connection with breast aesthetic,
facial aesthetic and reconstruction, facial aesthetic and anti-obesity surgery,
cosmetic surgery, plastic surgery, cosmetic dentistry and dental surgery;
medical injectibles preparations for cosmetic conditions and diseases.

10 - Medical apparatus, namely, therapeutic ultrasound systems; dental crowns,
dental bridges, and teeth protectors, namely mouth guards for medical purposes;
Medical devices, namely, lasers and like devices for the removal of unwanted
hair and treatment of skin blemishes, scars, and other aesthetic issues,
microdermabrasion machines, and devices used to aid in teeth whitening, used in
connection with breast aesthetic, facial aesthetic and reconstruction, facial
aesthetic and anti-obesity surgery, cosmetic surgery, plastic surgery, dental
surgery, and cosmetic dentistry; medical apparatus, namely therapeutic
ultrasound systems.

44 - Medical services, namely, laser hair removal, laser vein removal,
sclerotherapy and microdermabrasion; botulinum toxin type A, hyaluronic acid,
and collagen injections, cosmetic surgery, plastic surgery, cosmetic dentistry,
dental surgery; cosmetic skin and hair care services, namely, chemical peels,
acne treatments, microdermabrasion treatments, botulinum toxin type A,
hyaluronic acid, and collagen injections, laser procedures for the removal of
wrinkles, capillaries, red spots, brown spots, age spots, spider veins, facial
and body hair, laser procedures for stimulating collagen production, evening
skin tone and skin resurfacing; rendering consultation and advisory services in
connection with the aforesaid; beauty salon services; health spa services,
namely, massage services and cosmetic body care services and; cosmetic medical
and surgical services and medical services for cosmetic purposes; cosmetic
surgery; cosmetic dentistry and consulting services relating to the same;
providing information in the field of facial aesthetic and anti-obesity surgery,
cosmetic surgery, plastic surgery, microdermabrasion, laser treatment, namely
sclerotherapy and hair removal, treatment of fatty deposits using ultrasound;
medical diagnostic services, namely, providing ultrasound screening and
diagnosis, measurement of skin and hair condition; medical services for skin
treatment, namely dermatology clinic and skin health restoration medical
procedures for physician- or nurse-practitioner-administered or directed
exfoliation of skin and associated procedures for post-exfoliation treatment;
hygienic and beauty services for skin, namely treatment, health restoration,
care therapy, timed application of gels, cleansers, lighteners, exfoliants,
blenders, toners and creams; skin care salon; skin massage therapy; cosmetic
surgery, cosmetic dentistry, plastic surgery, dental surgery; health spa
services for body and skin treatments, namely massages, applications of lotions
and compositions including skin lighteners, skin masks, antioxidant treatments,
skin peels, preoperative skin care, post-operative camouflage make-up, deep
cleansing facial treatments, manicures, pedicures, face and body waxing, hair
design, color, perms and full body massage, facials; beauty salon services for
providing hair care, hair coloring, manicures, pedicures, and makeup; injection
of medical injectables for cosmetic conditions and diseases.]

 

 

 

 

 

 

 

 

 

 

 

 

 

[Trademark Report by Country

 

 

 

 

 

 

 

Printed: 3/29/2007

 

Page   14

   REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

   UNITED STATES continued…

 

 

 

 

 

 

 

 

 

 

 

 

   T16179US00

KLINGER ADVANCED

 

11/21/2005

 

78/758,271

 

 

 

 

 

PENDING

 

03,05,10

 

 

AESTHETICS & Design

 

 

 

 

 

 

 

 

 

 

 

44

 

 

3/30/2007

 

STATUS CHECK

 

 

 

 

 

 

 

 

 

 

 

 

03 - Hair colorings, color rinses, hair bleaches, color developers, color
intensifiers, hair conditioners, hair detanglers, shampoos, hair styling mousse,
gel and spray, rouge, hand lotion, hand cream, face lotion, face cream, face
powder, lip stick, lip glosses, eye makeup, eye shadow, makeup, pressed face
powder, blusher, under-eye concealer, loose face powder, mascara, eyeliner, lip
liner, eye brow pencil, perfume, cologne, suntan oil, nail polish, nail enamel,
bath and shower gels and bath salts; toilet soaps; body deodorants; cosmetics,
namely, creams, milks, lotions, gels and powders for the face, the body and the
hands; sun care preparations, namely, sun block, sun screen, sun creams, sun tan
lotion, sun tan gel and sun tan oil; gels, sprays, mousses and balms for the
hair styling and hair care; hair lacquers; hair coloring and hair decolorant
preparations; permanent waving and curling preparations; essential oils for
personal use; dentifrices; nail care preparations; non-medicated skin care
preparations.

05 - Dental cement of resin; denture adhesives; fillings for teeth; composite
resin for dental use, namely, dental impression materials; dental prosthetic
materials, namely, dental veneers; dental coating materials, namely, dental
restoration compounds; other dental materials, namely, dental abrasives, dental
polish, and dental rinse; diagnostic preparations for clinical or medical
laboratory use; biological pharmaceutical preparations, namely, dermatological
preparations, medicated skin care preparations, anti-acne preparations,
antibiotic preparations, antifungal preparations, anti-infective preparations,
corticosteroid preparations, medicated shampoos, preparations for treatment of
inflammatory skin disorders, preparations for treatment of rosacea, and
preparations for treatment of pigmentation disorders, uneven pigmentation and
actinic aging; pharmaceutical products used in connection with breast aesthetic,
facial aesthetic and reconstruction, facial aesthetic and anti-obesity surgery,
cosmetic surgery, plastic surgery, cosmetic dentistry and dental surgery;
medical injectible preparations for cosmetic conditions and diseases.

10 - Medical apparatus, namely therapeutic ultrasound systems; dental crowns,
dental bridges, and teeth protectors, namely, mouth guards for medical purposes;
Medical devices, namely, lasers and like devices for the removal of unwanted
hair and treatment of skin blemishes, scars, and other aesthetic issues,
microdermabrasion machines, and devices used to aid in teeth whitening, used in
connection with breast

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

aesthetic, facial aesthetic and reconstruction, facial aesthetic and
anti-obesity surgery, cosmetic surgery, plastic surgery, dental surgery,

44 - Medical services, namely, laser hair removal, laser vein removal,
sclerotherapy and microdermabrasion; botulinum toxin type A, hyaluronic acid,
and collagen injections, cosmetic surgery, plastic surgery, cosmetic dentistry,
dental surgery; cosmetic skin and hair care services, namely, chemical peels,
acne treatments, microdermabrasion treatments, botulinum toxin type A,
hyaluronic acid, and collagen injections, laser procedures for the removal of
wrinkles, capillaries, red spots, brown spots, age spots, spider veins, facial
and body hair, laser procedures for stimulating collagen production, evening
skin tone and skin resurfacing; rendering consultation and advisory services in
connection with the aforesaid; beauty salon services; health spa services,
namely, massage services and cosmetic body care services and; cosmetic medical
and surgical services and medical services for cosmetic purposes; cosmetic
surgery; cosmetic dentistry and consulting services relating to the same;
providing information in the field of facial aesthetic and anti-obesity surgery,
cosmetic surgery, plastic surgery, microdermabrasion, laser treatment, namely
sclerotherapy and hair removal, treatment of fatty deposits using ultrasound;
medical diagnostic services, namely, providing ultrasound screening and
diagnosis, measurement of skin and hair condition; medical services for skin
treatment, namely dermatology clinic and skin health restoration medical
procedures for physician- or nurse-practitioner-administered or directed
exfoliation of skin and associated procedures for post-exfoliation treatment;
hygienic and beauty services for skin, namely treatment, health restoration,
care therapy, timed application of gels, cleansers, lighteners, exfoliants,
blenders, toners and creams; skin care salon; skin massage therapy; cosmetic
surgery, cosmetic dentistry, plastic surgery, dental surgery; health spa
services for body and skin treatments, namely massages, applications of lotions
and compositions including skin lighteners, skin! masks, antioxidant treatments,
skin peels, pre-operative skin care, post-operative camouflage make-up, deep
cleansing facial treatments, manicures, pedicures, face and body waxing, hair
design, color, perms and full body massage, facials; beauty salon services
providing hair care, hair coloring, manicures, pedicures, and makeup; injection
of medical injectables for cosmetic conditions and diseases.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademark Report by Country

 

 

 

 

 

 

 

Printed: 3/29/2007  

Page   15

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)]

 

 

 

 

 

 

 

 

 

 

 

 

[UNITED STATES continued…

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Trademark Report by Country

 

 

 

 

 

 

 

Printed: 3/29/2007  

Page   17

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

T15756US00

 

THE PLACE OF POSSIBILITIES

 

6/22/2005

 

78/655,732

 

 

 

 

 

ALLOWED

 

44

 

 

6/19/2007

 

STATUS CHECK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/19/2007

 

STATUS CHECK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/19/2007

 

STATEMENT OF USE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/19/2007

 

FILE ITU EXTENSION

 

 

 

 

 

 

 

 

 

 

 

 

44 - Beauty salon services; health spa services, namely, massage services and
cosmetic body care services and providing treatments relating to the same;
cosmetic medical and surgical services and providing treatments relating to the
same; cosmetic dentistry and consulting services relating to the same; providing
informational services in the field of facial aesthetic and anti-obesity
surgery, cosmetic surgery, plastic surgery, microdermabrasion, laser treatment,
namely, sclerotherapy and hair removal, treatment of fatty deposits using
ultrasound; medical diagnostic services, namely, providing ultrasound screening
and diagnosis, measurement of skin and hair condition; medical services for skin
treatment, namely, dermatology clinic and skin health restoration medical
procedures for physician- or nurse-practitioner-administered or directed
exfoliation of skin and associated procedures for post-exfoliation treatment;
hygienic and beauty services for skin, namely, treatment, health restoration,
care therapy, timed application of gels, cleansers, lighteners, exfoliants,
blenders, toners and creams; skin care salon; skin massage therapy; cosmetic
surgery, cosmetic dentistry, plastic surgery, dental surgery; spa services,
namely, providing body and skin treatments namely, massages, applications of
lotions and compositions including skin lighteners, skin masks, antioxidant
treatments, skin peels, preoperative skin care, post-operative camouflage
make-up, deep cleansing facial treatments, manicures, pedicures, face and body
waxing, hair design, color, perms and full body massage, facials; salon services
in the nature of providing hair care, hair coloring, manicures, pedicures, and
makeup application; medical services, namely, laser hair removal, laser vein
removal, sclerotherapy and microdermabrasion; botulinum toxin type A, hyaluronic
acid, and collagen injections; cosmetic surgery, plastic surgery, cosmetic
dentistry, dental surgery; skin and hair care services, namely, chemical peels,
acne treatments, laser procedures for the removal of wrinkles, capillaries, red
spots, brown spots, age spots, spider veins, facial and body hair, laser
procedures for stimulating collagen production, evening skin tone and skin
resurfacing; and rendering consultation and advisory services in connection with
all aforesaid services.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Trademark Report by Country

 

 

 

 

 

 

 

Printed: 3/29/2007  

Page   18

REFERENCE

 

MARK

 

 

 

FILED

 

APPL#

 

REGDT

 

REG#

 

STATUS

 

CLASSES

 

 

All Actions Due (Original)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

aforesaid.]

 

 

 

non-medicated skin care lotions and preparations.]

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

END OF REPORT

 

 

TOTAL ITEMS SELECTED =  43

Trademark Rights to be transferred to KAA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  T15654US00

 

GEORGETTE KLINGER

 

2/10/1977

 

73/115,371

 

10/25/1977

 

1,076,178

 

 

 

 

REGISTERED

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/25/2007

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

42 - SKIN, SCALP AND HAIR CARE SERVICES

   T15654US01

 

GEORGETTE KLINGER

 

2/10/1977

 

73/115,375

 

11/28/1978

 

1,106,942

 

 

 

 

REGISTERED

 

03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11/28/2008

 

RENEWAL

 

 

 

 

 

 

 

 

 

 

 

 

03 - SKIN CARE, HAIR AND SCALP TREATMENT AND COSMETIC PREPARATIONS-NAMELY,
MAKEUP AND MAKEUP REMOVERS, CLEANSING LOTIONS, MOISTURIZERS, LUBRICATING CREAMS,
NIGHT TREATMENTS, SKIN MASKS, DRYING LOTIONS, DRYING CREAMS, SUN BLOCK CREAMS,
SUN SCREEN CREAMS, SKI LOTIONS, HAND CREAMS, HERBAL TEAS FOR USE AS COSMETICS,
BODY LOTIONS, FOUNDATIONS, SHAMPOOS, SCALP CONDITIONERS, TANGLE FREE LOTIOS, MUD
PACKS AND HERBAL PACKS]

 

 

[Klinger Serial No. 73/115,373 Filing Date 02/10/1977 Registration No. 1,104,128
Registration Date 10/17/1978 Status Live/Registered Owner Klinger Advanced
Aesthetics, Inc.]

Licenses used in the Business

22 Nextech Licenses fully paid. No expiration to the licenses but must pay for
upgrades and support calls.

Klinger 360 is used in the NorthPark and Chevy Chase locations. This is a custom
system developed by Klinger Advanced Aesthetics, Inc. and it is currently
licensed to the medical providers of those two facilities.

Citrix – which has an annual renewal fee of $6,500 and is in the process of
being paid.

MAS – licenses full paid. NO renewal fee.

Millennium License – fully purchased.

Sellers and their affiliates own the following domain names:

Registrant:
Georgette Klinger, Inc.
501 Merritt 7, 5th Floor
Norwalk, CT 06851
US

Domain Name: GEORGETTEKLINGER.COM

Administrative Contact, Technical Contact:
Saffer, Marc marc@raspberryred.com
Klinger Advanced Aesthetics
501 Merritt 7, 5th Floor
Norwalk, CT 06851
US
203-295-2114 fax: (201) 438-4555

Record expires on 14-Oct-2010.

--------------------------------------------------------------------------------

Record created on 15-Oct-1998.
Database last updated on 10-Apr-2007 14:29:05 EDT.

Domain servers in listed order:

NS25.WORLDNIC.COM 205.178.190.13
NS26.WORLDNIC.COM 205.178.189.13

Registrant:
Georgette Klinger
501 Madison Avenue
New York, NY 10022
US

Domain Name: GKSPA.COM

Administrative Contact, Technical Contact:
Georgette Klinger spike8mp9@aol.com
501 Madison Avenue
New York, NY 10022
US
212.838.7080 x 305

Record expires on 13-Sep-2007.
Record created on 13-Sep-2004.
Database last updated on 10-Apr-2007 14:29:01 EDT.

Domain servers in listed order:

AUTH00.NS.COLOSPACE.COM
AUTH01.NS.COLOSPACE.COM 63.251.136.100

Registration Service Provided By: buffalo web labs
Contact: accounting@heavenspa.com

Domain name: georgetteklinger.net

Registrant:
AAI
501 Madison Avenue
Suite 407
New York, NY 10022
US

Domain Name: KLINGER.COM

Administrative Contact, Technical Contact:
AAI admin@raspberryred.com
501 Madison Avenue
Suite 407
New York, NY 10022
US
212-838-7080 x303

Record expires on 20-Dec-2014.

--------------------------------------------------------------------------------

Record created on 21-Dec-1995.
Database last updated on 10-Apr-2007 14:55:38 EDT.

Domain servers in listed order:

NS81.WORLDNIC.COM 205.178.190.41
NS82.WORLDNIC.COM 205.178.189.41

--------------------------------------------------------------------------------

Schedule 3.14
Personal Property

Filed separately with this Report

--------------------------------------------------------------------------------

Schedule 3.15
Employee Benefit Plans

1. 401(k) Plans

Georgette Klinger 401(k) Savings Plan   6-11216
Principal Financial Group – Plan Sponsor

Matthew Burris – Plan Fiduciary
Andrena Carroll-Gerace - Plan and Loan Administrator

The plan is under a Voluntary Correction Program (VCP) due to late contributions
made to the plan during the past year and failure to have open enrollment since
KAA took over the plan. The VCP should take approximately 8 months to complete.
We started the process on March 20, 2007.

Once the VCP is completed the plan will then be opened up to all employees.
Currently, there is approximately $500,000.00 in assets.

All tax filings are current for this plan.

Dischino Corp 401(k)
CITISTREET – Plan Sponsor

Plan is being closed out. This 401(k) was available only to Dischino employees.
All participants have received their funds.

Final Form 5500 will be filled at the close of the 2007 calendar year.

2. Health and Welfare Plans

Benefits are offered to Management the first of the month following their date
of hire. Staff and hourly employees may enroll the first of the month following
90 days of full time employment (32 hours or more each week).

KAA Health and Welfare plans are brokered through Egan, Amato & O’Connor.
Matthew Burris is the Plan Fiduciary for all plans and Andrena Carroll-Gerace is
the Administrator for all plans. The plans are marketed each year for best
pricing. Open enrollment is in June of each year with an annual renewal on July
1st.

There are 4 tiers of coverage for medical, dental and vision. There is Employee
only, Employee plus Spouse, Employee plus Children, and Employee plus Family.

Medical and Dental plans are insured through CIGNA, Policy Number is 13867.

--------------------------------------------------------------------------------

There are 3 medical options offered to Hourly and Staff employees - POS, HMO2
and HMO Base plan. Manager and Executives have 2 medical options - POS and HMO2.

There are 2 dental options available to all employees – PPO1 and PPO2.

Vision coverage is insured through Vision Services Plan (VSP). The Policy Number
is 30 000098.

Life and Long Term Disability (LTD) are insured by CIGNA Life, the policy number
is 0651174522. Life and LTD is offered to all full time employees who meet the
eligibility requirements listed above.

Staff and hourly employees have $20,000.00 in Life Insurance (company paid) and
60% up to a maximum of $1,000.00 monthly of income replacement (LTD).

Management employees have $50,000.00 in Life Insurance (company paid) and 60% up
to a maximum of $5,000.00 monthly of income replacement (LTD).

Executives have $50,000.00 in Life Insurance (company paid) and 60% up to a
maximum of $10,000.00 monthly of income replacement (LTD).

All employees have the option of purchasing supplemental Life Insurance and
additional Long Term Disability insurance through payroll deductions.

Additional Insurance policies:

Short Term Disability (STD) insured through AFLAC, completely voluntary and 100%
employee paid. Provides income replacement should the employee need to be out of
work for medical reasons.

Sick and Accidental coverage - insured through AFLAC, completely voluntary and
100% employee paid. Offers a reimbursement schedule should employee get sick or
be involved in an accident.

Cancer Coverage - insured through AFLAC, completely voluntary and 100% employee
paid. Offers a reimbursement schedule should employee be diagnosed with Cancer.

--------------------------------------------------------------------------------

Schedule 3.16
Labor Matters

[Due diligence materials include Employment Agreements and/or Confidentiality /
Solicitation Agreements with the following individuals; however, they do not
appear on the payroll registers, and when LS inquired about these individuals,
W. Haddad responded that there is “no record” of these individuals:]

Leslie Wood[Pat Jones]  - Declined offer
Mary Thornton [Pat Jones] – Declined offer.
Larisa Kulagina [Pat Jones] – No Record in Payroll
Patricia Lopez[Pat Jones]  - No Record in Payroll
Kaye Babez Melne Malones [Pat Jones] –No Record in Payroll
Rosica L. Heagn [Pat Jones] –No Record in Payroll
Peter Kain Villavicencio[Pat Jones]  Declined off
Yvonne Schewtz (Ms. Schewtz was a nurse practitioner in California; she was on
the payroll registers for a short period of time but later became an independent
contractor.)
Jaime Torrez, Massage Therapist at 501 Madison paid on commission–last pay was
07/21/06
Ida Chupenko paid on commission –YTD $6,049.05 as of payroll 03/02/07.

Also see attached list [Doc. # 2157076].

--------------------------------------------------------------------------------

Schedule 3.19
Proceedings

 

 

 

 

1.

Three Day Notice to Pay or to Quit given by South Coast Plaza for unpaid rent in
the amount of $115,782.69.

 

 

 

 

2.

Biosea II International, Inc. v Klinger Advanced Aesthetics, LLC Palm Beach
County Circuit Court, FL case number 2007 CA003669XXXXMB. This case is to
prohibit Defendant’s use of the Anushka trade name and to allow Plaintiffs to
void certain restrictive covenants.

 

 

 

 

3.

Complainant John Curcio filed a retaliatory discharge claim with the EEOC,
charge number 510-2006-02737, against Anushka PBG Acquisition, LLC. Received
notice week of April 30 that EEOC is terminating its processing.

 

 

 

 

4.

Complainant Gisele Dinardo filed a retaliatory discharge claim with the EEOC,
charge number 510-2007-02001, against the Wild Hare Acquisition LLC. She also
filed a worker’s compensation claim.

 

 

 

 

5.

G & I IV Wharfside, LLC v. Wild Hare Acquisition Sub, LLC, Palm Beach County, FL
case no 502007CC003037XXXXSB. A complaint for possession has been settled
through agreement by Defendant Tenant to make certain payments, but if Defendant
fails to make such payments, Plaintiff Landlord shall be entitled to immediately
enter a final judgment for eviction and writ of possession.

 

 

 

 

6.

Main Electric Supply Company v. Klinger Advanced Aesthetics, LLC, Los Angeles
County Superior Court, CA case number 06C02137. Action to foreclose mechanic’s
lien related to the Beverly Hills construction.

 

 

 

 

7.

Watson Construction v. Klinger Advanced Aesthetics, LLC, Los Angeles County
Superior Court, CA case number SC091490. Action to foreclose a mechanic’s lien
related to the Beverly Hills construction.

 

 

 

 

8.

Borg Construction v. Klinger Advanced Aesthetics, LLC, case number 0706039055,
Plaintiff filed a contractor’s lien for work completed at the Water Tower
location.

 

 

 

 

9.

TREA Wilshire Rodeo LLC has a claim against Klinger Advanced Aesthetics, LLC
(formerly Advanced K, LLC) for unpaid and back and future rent related to
Tenant’s closing of the store in Beverly Hills.

 

 

 

 

10.

Klinger Advanced Aesthetics, Inc. has entered into a settlement agreement with
Tri-North Builders to delay Tri-North’s lien rights in exchange for certain
payments to be made to Tri-North.

In addition, please note the following:

Dinaro: former employee claims that after suffering an injury at work she was
terminated in violation of Florida law, ADA, and FMLA

Johnson: former employee’s breach-of-employment-contract, tort, and retaliation
claims

--------------------------------------------------------------------------------

Jones: EEOC claim under ADA and Civil Rights Act by former employee

SDOC 1089: letter addressed to the USDOJ responding to request for information
about Klinger’s compliance with the ADA; Client History Forms and Informed
Consent Forms for procedures performed at Klinger salons, addressed to USDOJ.

Laura Crystal: Claim alleging disability discrimination. Ms Crystal had recently
undergone cancer surgery and was told that she needed to sign a waiver or
provide a note from a physician stating that it was safe for her to have a full
body massage. She refused and left without obtaining any treatments. The
Department of Justice has not asked for any further information.

The Landlord of the West Palm facility, Christal, Inc., filed an action on March
7, 2007 in Palm Beach County Court (Case number 502007CC003069XXXXMB) against,
Dischino Corporation, claiming that there had been a rental shortfall due to the
fact that the leased premises are larger than what is indicated in the lease
agreement. Landlord further claimed that Tenant owed amounts due for an increase
in real estate taxes due to the increase in the assessed value of the property
due to Tenant’s improvements. Landlord failed to provide any proof for either
claim and at a hearing in the case, the judge dismissed the action. An order for
dismissal is being drafted and will be entered with the court. Although,
Landlord failed to provide any proof, there may be some merit to Landlord’s
claim. Landlord and Tenant are currently in discussions to resolve the matter,
although no agreement had been reached.

The Sellers have been notified of the following suits:

 

 

•

Palm Beach County Circuit Court Local Defendant Suite, Case No.
502004CA001186XXXXMB, 2/4/04, Plaintiff: PGA Commons LLC

 

 

•

New York County, New York, Case No. 603260-2006, 9/15/06, Plaintiff: UBS
Securities, LLC

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

AMOUNT
INSURED  

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

Schedule 3.20

 

 

 

 

 

 

Insurance   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

 TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

Healthcare Professional & General Liability

 

 

 

 

Lexington Ins. Co.
Policy # 6794119

 

07/01/2006-
07/01/2007

 

$280,638
(Including Surplus
            Lines Tax & Fee)

 

 

 

 

 

 

 

 

 

 

Healthcare Professional Liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate Limit

 

$

5,000,000

 

 

 

 

 

 

Each Medical Incident

 

$

5,000,000

 

 

 

 

 

 

Deductible

 

$

25,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retroactive Date: 07/01/2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare General Liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate Limit

 

$

5,000,000

 

 

 

 

 

 

Products/Completed Operations Limit

 

$

5,000,000

 

 

 

 

 

 

Each Occurrence Limit

 

$

5,000,000

 

 

 

 

 

 

Personal/Advertising Injury Limit

 

$

5,000,000

 

 

 

 

 

 

Fire Damage Limit

 

$

50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

Medical Expense Limit

 

$

5,000

 

 

 

 

 

 

Deductible

 

$

25,000

 

 

 

 

 

 

Retroactive Date: 07/01/2003

Applicable Coverage, Forms and Endorsements:

 

 

 

 

•

Healthcare PL-CM & Healthcare GL-CM, Form # 79223 (10/03)

 

•

Healthcare GL-CM Coverage Part, Form # 79228 (01/05)

 

•

Healthcare PL-CM Coverage Part, Form # 79225 (07/03)

 

•

Healthcare PL & GL – Policy Provisions & Conditions, Form # 79229 (01/05)

 

•

Terrorism Exclusion, Form # 79110 (12/01)

 

•

Extended Reporting Period Amendatory Endorsement, Form # 83790 (01/04)

 

•

Coverage Territory Amendatory – OFAC, Form # 90255 (01/06)

 

•

Connecticut Cancellation/NonRenewal Amendatory Endt , Form # 77657 (02/01)

 

•

Minimum Earned Premium Endorsement , Form # 74778 (12/99)

 

•

Expenses Within Limit of Insurance, Form # 80022 (05/02)

 

•

Auditable Premium Endorsement, Form # 83799 (01/04)

 

•

Schedule of Named Insureds (CM), Form # 80027 (05/02)

 

•

Violation of FDA Protocol Exclusion, Form # MNSCPT (06/06)

Additional Coverage Information:

 

 

 

 

•

The Minimum Earned Premium is 25% of the annual premium

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

•

The additional premium for and the term of the Optional Extended Reporting
Period shall be determined at the time it is elected

 

•

Defense costs are a part of and not in addition to the policy limits

 

•

Physicians professional liability is excluded

 

•

Premium is auditable at an average rate of $4.90 per $1,000 for all revenues in
excess of $53,575,000 at 6/30/2007

 

•

Schedule of Named Insureds:

 

 

 

 

 

 

 

 

o

TrueYou.com, Inc. DBA: Klinger Advanced Aesthetics

 

 

 

o

Georgette Klinger, Inc.

 

 

 

o

New Aesthetics, LLC

 

 

 

o

Advanced K Insured

 

 

 

o

Advanced Aesthetics Sub, Inc.

 

 

 

o

Advanced Aesthetics, LLC

 

 

 

o

Klinger Advanced Aesthetics, Inc. FKA: Advanced Aesthetics, Inc. Retroactive
Date: 10/28/2003 (Healthcare Professional Liability), 7/1/2004 (Commercial
Liability)

 

 

 

o

Klinger Advanced Aesthetics, LLC Retroactive Date: 3/16/2004 (Healthcare
Professional Liability), 7/1/2004 (Commercial General Liability)

 

 

 

o

Anushka Boca, LLC Retroactive Date: 11/3/2003 (Healthcare Professional
Liability), 7/1/2004 (Commercial General Liability)

 

 

 

o

Wild Hare, LLC Retroactive Date: 11/3/2003 (Healthcare Professional Liability),
7/1/2004 (Commercial General Liability)

 

 

 

o

Dischino Corporation Retroactive Date: 7/1/2003 (Healthcare Professional
Liability), 7/1/2004 (Commercial General Liability)

 

 

 

o

Anushka PBG Acquisition Sub, LLC Retroactive Date: 11/3/2003 (Healthcare
Professional Liability), 7/1/2004 (Commercial General Liability)

 

 

 

o

Anushka Boca Acquisition Sub, LLC Retroactive Date: 11/3/2003 (Healthcare
Professional Liability), 7/1/2004 (Commercial General Liability)

 

 

 

o

Wild Hare Acquisition Sub, LLC Retroactive Date: 11/3/2003 (Healthcare
Professional Liability), 7/1/2004 (Commercial General Liability)

 

 

 

o

Coverage is not provided for the use of products not used in accordance with FDA
protocols

 

 

 

 

 

 

 

 

 

 

Excess Professional Liability

 

 

 

 

Lexington Insurance Co.
Policy # 6794120

 

07/01/2006-
07/01/2007

 

$50,869 (plus NY
Surplus Lines Tax

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

and Fee)

A. Excess Healthcare Professional Liability

 

 

 

 

Each Medical Incident

$5,000,000

 

Retained Limit Amount

Refer to the Schedule of Underlying Insurance

 

 

 

 

B. Healthcare Umbrella Liability

 

 

 

 

 

Each Occurrence Limit

$5,000,000

 

Retained Limit Amount

Refer to the Schedule of Underlying Insurance

 

 

 

 

C. General Aggregate Limit

$5,000,000

 

 

 

 

Schedule of Underlying Insurance:

 

 

 

 

•

Healthcare Professional Liability, Lexington Insurance Company, Policy #
6794119, Policy Term: 07/01/2006 – 07/01/2007, Retroactive Date: 7/1/2003,
Limits of Liability: $5,000,000 Each Medical Incident, $5,000,000 Annual
Aggregate

 

•

Commercial General Liability, Lexington Insurance Company, Policy # 6794119,
Policy Term: 07/01/2006- 07/01/2007, Retroactive Date: 7/1/2004, Limits of
Liability: $5,000,000 Each Occurrence, $5,000,000 Annual Aggregate

 

 

 

Applicable Coverage, Forms and Endorsements:

 

 

 

 

•

Dec-X/S CM PL & Umb w/Single Agg Limit, Form # 79243 (10/03)

 

•

Coverage Part-CM Umb, Form # 79254 (07/03)

 

•

Coverage Part-X/S CM Follow Form PL, Form # 79249 (07/03)

 

•

General Policy Provisions & Conditions – XS Liab, Form # 79255 (01/05)

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

COVERAGE

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

•

Schedule of Underlying, Form # 80158 (05/02)

 

•

Terrorism Exclusion, Form # 79110 (12/01)

 

•

Extended Reporting Period Amendatory Endorsement, Form # 83789 (01/04)

 

•

Coverage Territory Amendatory – OFAC, Form # 90255 (01/06)

 

•

Connecticut Cancellation/NonRenewal Amendatory Endt, Form # 77657 (02/01)

 

•

Minimum Earned Premium Endorsement, Form # 74778 (12/99)

 

•

Expenses Within The Limits of Insurance, Form # 79566 (05/02)

 

•

Auditable Premium Endorsement, Form # 83799 (01/04)

 

•

XS – Schedule of Named Insureds (CM), Form # 79569 (05/02)

 

•

Violation of FDA Protocol Exclusion, Form # MNSCPT (06/06)

 

 

 

 

 

PROPERTY All Risk Policy Coverage

 

 

 

 

 

 

 

 

 

Building Business Personal Property, Business Interruption, Extra Expense -as
more fully defined by manuscript form

Primary $2,500,000 per occurrence EXCEPT as respects the following sublimits:

United States Fire
244-1894202

7/1/06
7/1/07

$274,500 (including Certified and Non- Certified TRIA, B&M any taxes or other
fees)

 

 

 

 

 

 

 

 

 

25% min earned prem sprinkler warranty where applicable

 

 

 

 

 

SUBLIMITS

 

 

 

 

 

 

 

 

 

Earthquake

$ 2,500,000 Annual Aggregate

 

Earthquake in CA and Pacific NW

$ 2,500,000 Annual Aggregate

 

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

Flood

 

$

2,500,000 Annual Aggregate

 

Flood Zones A&V

 

$

1,000,000 Annual Aggregate

 

90 Days Per occurrence as respects Extended
Period of Indemnity

 

 

 

 

Demolition and Increased Cost of Construction

 

$

1,000,000 Per occurrence

 

Pollutant Clean-Up and Removal

 

$

250,000 Annual Aggregate

 

Debris Removal or 25% of Loss, greater of

 

$

2,500,000 Per occurrence

 

Fire Department Service Charges

 

$

10,000 Per occurrence

 

Interruption by Civil/ Military Authority (30 day limit)

 

$

1,000,000 Per occurrence

 

Ingress/ Egress (30 day limit)

 

$

1,000,000 Per occurrence

 

Leasehold Interest

 

$

1,000,000 Per occurrence

 

Unnamed Locations

 

$

1,000,000 Per occurrence

 

Newly Acquired/Automatic Coverage (90 days)

 

$

1,000,000 Per occurrence

 

Extra Expense

 

$

1,000,000 Per occurrence

 

Accounts Receivable

 

$

500,000 Per occurrence

 

Valuable Papers

 

$

500,000 Per occurrence

 

Transit

 

$

250,000 Per occurrence

 

Equipment Floater

 

$

100,000 Per Occurrence

 

Personal Property of Others

 

$

500,000 Per occurrence

 

Trees and Shrubs ($1,000 any single tree or shrub)

 

$

50,000 Per occurrence

 

Utility Service BI - Direct Damage

 

$

500,000 Per occurrence

 

Service Interruption

 

$

500,000 Per occurrence

 

Property in the Course of Construction

 

$

1,000,000 Per occurrence

 

Commissions, Profits, and Royalties

 

$

1,000,000 Per occurrence

 

DEDUCTIBLES:

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

EXCEPT:

 

$10,000 Per occurrence

 

 

 

 

Earthquake EXCEPT:

 

$50,000 Per occurrence

 

 

 

 

3% or $100,000 minimum Per occurrence as respects CA and Pacific NW Earthquake

 

 

 

 

 

 

Flood except.

 

$50,000 Per occurrence

 

 

 

 

Max NFIP available (purchased or not)

 

 

 

 

 

 

Flood A or V

 

$500k minimum, Per occurrence

 

 

 

 

Tier 1 Wind and Hail

 

5% or $100,000 minimum per occ.

 

 

 

 

 

 

 

 

 

 

 

Co-Insurance: Agreed Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

Cause of Loss: All Risk of Direct Physical Loss Including Flood and Earthquake
and Excluding Mold, Cyber Risk

Policy Form : Broker Manuscript Form, Cyber Risk Exclusion, Mold Exclusion,
Flood Endorsement

 

 

 

 

 

 

 

 

•

Personal Property

 

$5,000,000 xs $2,500,000 per occ

 

Illinois Union
D36064596001

 

7/1/2006
7/1/2007

 

$125,000 Incldg Terrorism 25% Min Earned Add’l $7000 exclusions, incldg but not
limited to Prem for Terrorism, plus Nuclear, Biological and Chemical any Taxes &
Fees exclusions

 

 

•

Improvements and Betterments

 

 

 

 

 

 

•

Electronic Data Processing

 

 

 

 

 

 

 

 

•

Fine Arts

 

 

 

 

 

 

 

 

 

•

Business Income w/ Extra Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Perils: All Risks of Direct Physical Loss or Damage including Flood except
excluding Flood Zone A & V, including Earthquake except excluding California
Earthquake,

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                    and including Boiler and Machinery with other exclusions per
policy forms and as specified below.

 

 

 

 

 

 

 

 

 

 

SUBLIMITS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida locations

 

$2,500,000 Per Occ xs $2,500,000 Per Occ

 

 

 

Flood

 

$2,500,000 Per Occ and Annual Aggregate xs

 

 

$2,500,000 Per Occ and Annual Aggregate

 

 

 

Earthquake

 

$2,500,000 Per Occ and Annual Aggregate xs

 

 

$2,500,000 Per Occ and Annual Aggregate

 

 

 

 

 

 

 

 

 

 

Locations: Per schedule totalling the TIV denoted herein ($36,477,061) on file
with the company

 

 

Deductibles:

Per Primary

 

 

Policy Forms:

ACE Excess Form

 

 

Cancellation :

90 Days Except 10 Days for non payment of premium.

 

 

Subject to:

Inspection and compliance with any recommendations deemed essential by the
company

 

 

Mandatory Exclusions and Amendments:

 

All policy form exclusions including the following ACE Exclusions: Pollution &
Contamination, Asbestos, Electronic Data/Cyber risk, Mold/Fungus, Nuclear
Biological and Chemical Exclusions, Occurrence Limit of Liability Endorsement,
Definition of Occurrence Endorsement.

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

 

AMOUNT
INSURED

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

Remarks:

Attached Please find a Disclosure Notice required by The Federal Risk Insurance
Act of 2002 (“The Act”). The premium charge for the terrorism coverage is set
forth on the Disclosure Notice. This forms part of the overall premium quoted
above for the Company’s Participation.

 

 

 

 

 

 

 

 

 

 

 

 

•

Personal Property including EDP

$2,500,000 xs

 

Traders and Pacific

 

7/1/06

 

$82,500 inclds TRIA
Plus Surplus Lines Taxes & Fees
Plus 6.84% Citizens FL
Surcharge applicable
To all FL values/prem
and applicable on all
endorsement

•

Fine Arts, Tenants

$5,000,000 per occ

 

CPN10000194900

 

7/1/07

 

•

Tenants Improvements & Betterments

 

 

 

 

 

 

•

Time Element including Business Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your Scoverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Perils:

All Risk Excluding Earthquake and Flood

 

 

 

Policy Form:

Traders and Pacific Excess Following Form

 

 

 

Deductibles:

5% or $100,000 minimum per occurrence as respects Wind $10,000 per occurrence
for All Other Perils

 

 

 

Total Insurable Values:

$13,042,222

 

 

 

Locations:

As per schedule on file with Company

 

 

 

State(s) Covered:

Florida

 

 

 

Terms & Conditions:

 

 

 

 

 

 

•

Absolute Pollution Exclusion - ECP 0501 0505

 

•

Asbestos Exclusion - ECP 0502 0505

 

•

Absolute Mold Exclusion - ECP 0505 0505

 

•

Service of Suit Endorsement - ECP 1307 0505

 

•

War and Terrorism Exclusion Endorsement - ECP 0507 0505

 

•

Loss Adjustment Endorsement - ECP 1301 0505

 

•

Statement of Values Endorsein 0505 1

 

•

Minimum Earned Premium Clause - ECP 1302 0505

 

•

Electronic Data and Computer Systems Exclusion - ECP 0603 0505

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

Special Conditions:

 

          1. Cancellation- 60 days except 10 days for non payment

          2. 25 % Minimum Earned Premium

          3. Valuation - Replacement cost as respects Real and Personal
Property. Actual Loss Sustained as respects Time Element

          4. Quote valid until 7-1-06

 

Subjectivities:

 

Agree to follow the underlying (C.N.A or ACE) provided the carrier receives the
policy within 75 days of binding, otherwise carrier will issue their own forms.
This confirmation may differ from the terms and conditions presented in the
submission. The confirmation represents the terms and conditions that Endurance
is offering for this insured

 

All Real and Personal Property including Business Interruption , Improvements
and Betterments, EDP and Fine Arts

 

$2.5M x/s $7.5M

 

Commonwealth Insurance

 

7/1/06

 

$85,000

 

 

 

 

 

 

7/1/07

 

TRIA - $5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Risks excluding Flood and Earthquake

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Flood and earthquake, excess of

$2,500,000 per occurrence and in the aggregate annually separately

Flood and earthquake, excess of deductibles

$7,500,000 per occurrence and in the aggregate annually separately

Flood (Annual Aggregate)

$7,500,000

Earthquake (Annual Aggregate)

$7,500,000

 

 

DEDUCTIBLE(S):

$ 10,000 AOP, per occurrence
5% of the values at the time of loss as respects Wind and resulting
damages, subject to a minimum of $100,000
5% of the values at the time of loss as respects California Earthquake
and resulting damages, subject to a minimum of $100,000

 

 

TOTAL INSURED VALUES:

$ 36,477,061

 

 

TERRITORY:

The United States of America as per the submission on file with this Company

 

 

VALUATION:

Replacement Cost if repaired or replaced, otherwise Actual Cash Value Actual
Loss Sustained on Time Element

 

 

FORM:

Commonwealth Excess Following Form over Crum & Forster Primary

 

 

CONDITIONS:

Commonwealth Seepage and/or Pollution and/or Contamination Exclusion
Commonwealth Service of Suit Endorsement Commonwealth Cyber Risk Exclusion
Endorsement Commonwealth Electronic Date Recognition Endorsement Commonwealth
Mold Exclusion Endorsement Loss Occurrence Limit of Liability Terrorism
Exclusion with TRIA Extension 25% Minimum Earned Premium

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

DIRECTORS AND OFFICERS LIABILITY

 

 

 

 

Illinois National

 

12/20/2005-

 

$150,000

 

 

 

 

 

Insurance Company

 

12/20/2006

 

 

 

 

 

 

 

Policy# 006257425

 

 

 

 

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

      PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

Policy Aggregate:

 

$10,000,000

 

Deductible:

 

$150,000 (Employment Practices Claims)

 

 

 

$150,000 (Security Claims-other than private placements)

 

 

 

$150,000 (All other Claims-including private placements)

 

 

 

 

 

 

 

 

 

 

 

Endorsements:

 

 

 

 

 

 

 

 

 

 

“No Liability” Provision Deleted and Securities Claim Retention Applies to all
losses

 

Nuclear Energy Liability Exclusion

 

Captive Insurance Company

 

Coverage Territory Endorsement (OFAC)

 

Forms Index Endorsement

 

Discovery Amended: 1 year 150%, all others TBD

 

New York Claims Made Amendatory

 

New York Discovery Endorsement

 

New York Reg. 110 Retention Coinsurance Endorsement

 

New York Reg. 121 Application Disclosure

 

New York Reg. 121 Dec. Disclosure

 

NY Cancellation/Nonrenewal

 

Final Determination Wording

 

Commission Exclusion

 

Failure to Effect And/or Maintain Insurance with defense costs carve back

 

Severability of the Application

COMMERCIAL CRIME LIABILITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

National Union Fire Insurance Company

 

07/01/2006-

 

$14,900

 

 

 

 

Policy# 006728473

 

07/01/2007

 

 

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

Limit of Liability:

 

$3,000,000

 

 

Deductible:

 

$35,000

 

 

 

 

Coverage Forms:

 

Employee Theft

 

Forgery or Alteration

 

Inside Premises – Theft of Money & Securities

 

Inside Premises – Robbery, Safe Burglary – Other Prop.

 

Outside Premises

 

Computer Fraud

 

Money Order and Counterfeit Paper Currency

 

 

Endorsements:

 

Connecticut Changes

 

Coverage Territory Endorsement (OFAC)

 

Forms Index Endorsement

 

 

FIDUCIARY LIABILITY

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

TERM             

 

PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American International Specialty Ins. Co.

 

07/01/2006-

 

$4,905

 

 

 

 

 

 

Policy# 006728475

 

07/01/2007

 

 

 

Policy Aggregate:

 

5,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deductible:

 

$25,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Endorsements:

 

6/01 Employee Benefit Plan Fiduciary Liability Amendatory

 

Coverage Territory Endorsement (OFAC)

 

Forms Index Endorsement

 

HIP AA Extension

EMPLOYMENT PRACTICES LIABILITY

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

TrueYou.com
Schedule of Insurance 2006 -2007

 

 

 

 

 

 

 

 

 

 

COVERAGE

 

AMOUNT
INSURED

 

COMPANY &
POLICY NUMBER

 

       TERM

 

              PREMIUM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illinois National Ins. Co.

 

07/01/2006-

 

$29,290

 

 

 

 

 

Policy# 006728520

 

07/01/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Aggregate:

 

$3,000,000

 

 

 

 

 

 

Deductible:

 

$100,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Endorsements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Connecticut Cancellation/Non-renewal Amendatory Endorsement

 

Coverage Territory Endorsement (OFAC)

 

Forms Index Endorsement

 

No Liability Provision Deleted

 

Willis Endorsement

 

--------------------------------------------------------------------------------

The information contained herein is intended to serve only as an outline of your
various coverages. It does not alter, amend or change your coverage. Reference
should be made to the respective policies for complete details and terms and
conditions of coverage.

--------------------------------------------------------------------------------

 

 

 

 

(RSUI LOGO) [c48412001.jpg]

Loss Information by Policy - LHC706955 00

 

 

As Of 04/23/2007

Report ID:

CLMACT001

Includes History

Date:

04/23/2007

 

Time:

8:25:17 AM

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Insured Name:

KLINGER ADVANCED AESTHETICS

 

Policy No:

LHC706955

00

Term:

07/01/2005 - 07/01/2006

 

Underwriter:

Davies, Nancy

Policy Limit:

$2,000,000

 

 

 

 

 

 

 

Claim Prof:

Haskins

Deductible:

O

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Claim No:

7030008289

 

Status: C

 

Date of Loss:

 

12/02/2005

Location of Loss:

 

UNKNOWN, FL

 

 

 

 

 

Date Reported:

 

12/13/2005

Loss Description:

 

CLAIMANT ALLEGES HAIR BREAKAGE AS A RESULT OF HAIR STRAIGHTENING

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Claimants:

 

Suffix

 

 

Claimant

 

 

 

Status

 

Paid

 

Reserve

 

Incurred

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

00

 

 

SALAMEH, SUZIE

 

 

 

C

 

$0.00

 

$0.00

 

$0.00

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim No:

7030009392

 

Status: C

 

Date of Loss:

 

02/24/2006

Location of Loss:

 

WEST PALM BEACH, FL

 

 

 

 

 

Date Reported:

 

03/09/2006

Loss Description:

 

ALLEGES INSURED NEGLIGENTLY HIGHLIGHTED AND/OR COLORED PLAINTIFF’S
HAIR CAUSING HER SCALP TO BE BURNED AND SEVERELY DAMAGING HER HAIR.

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Claimants:

 

Suffix

 

 

Claimant

 

 

 

Status

 

Paid

 

Reserve

 

Incurred

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

00

 

DAYMON, CHERYL AND DENNIS

 

C

 

$11,953.88

 

$0.00

 

$11,953.88

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim No:

7030010388

 

Status: O

 

Date of Loss:

 

03/07/2006

Location of Loss:

PALM BEACH GARDENS, FL

 

 

 

 

 

Date Reported:

 

05/17/2006

Loss Description:

ALLEGES CLAIMANT’S CAROTID ARTERY WAS IMPROPERLY COMPRESSED BY THE MASSEAUSE
RESULTING IN LOSS OF CONSCIOUSNESS.

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Claimants:

 

Suffix

 

 

Claimant

 

 

Status

 

Paid

 

Reserve

 

Incurred

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

00

 

 

ELLIOT, MELISSA

 

 

O

 

$0.00

 

$10,001.00

 

$10,001.00

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Gross Incurred

Paid

 

Reserve

 

Incurred  

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Indemnity

$0.00

 

$1.00

 

$1.00  

 

 

 

 

 

 

Expense

$11,953.88

 

$10,000.00

 

$21,953.88  

 

 

 

 

 

 

Total

$11,953.88

 

$10,001.00

 

$21,954.88  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Insured Name:

ADVANCED AESTHETICS INC

 

Policy No:

LHC704447

00

Term:

07/01/2004 - 07/01/2005

 

Underwriter:

Davies, Nancy

Policy Limit:

$2,000,000

 

 

 

 

 

 

 

Claim Prof:

Poortinga

Deductible:

O

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Claim No:

7030003036

 

Status: C

 

Date of Loss:

 

10/13/2004

Location of Loss:

 

WEST PALM BEACH, FL

 

 

 

 

 

Date Reported:

 

10/13/2004

Loss Description:

 

ALLEGING CHEMICAL REACTION AND LOSS OF HAIR TO CLIENT BY WORK
PERFORMED BY INSURED’S HAIR DRESSER.

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Claimants:

 

Suffix

 

 

Claimant

 

 

 

Status

 

Paid

 

Reserve

 

Incurred  

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

00

 

 

OPPLINGER, LAUREN

 

 

 

C

 

$50,000.00

 

$0.00

 

$50,000.00

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim No:

7030004079

 

Status: C

 

Date of Loss:

 

10/01/2004

Location of Loss:

 

NEW YORK, NY

 

 

 

 

 

Date Reported:

 

02/02/2005

Loss Description:

 

CLAIMANT REPRESENTED BY ATTORNEY - ALLEGES FIRST DEGREE BURN AND SCARRING
FOLLOWING 9 STEP FACIAL AND PEEL.

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Claimants:

 

Suffix

 

 

Claimant

 

 

 

Status

 

Paid

 

Reserve

 

Incurred

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

00

 

 

JOSEPH, CLAUDETTE

 

 

 

C

 

$28,853.54

 

$0.00

 

$28,853.54

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

RSUI Group, Inc.

(1 of 2)

 

--------------------------------------------------------------------------------

 

 

 

 

(RSUI LOGO) [c48412001.jpg]

Loss Information by Policy - LHC706955 00

 

 

As Of 04/23/2007

Report ID:

CLMACT001

Includes History

Date:

04/23/2007

 

Time:

8:25:17 AM

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Policy No:    LHC704447  00 (cont.)

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Claim No:

 

7030004094

 

Status: C

 

Date of Loss:

 

01/31/2005

 

Location of Loss:

 

UNKNOWN, CA

 

 

 

 

 

 

Date Reported:

 

01/31/2005

 

Loss Description:

 

POTENTIAL - CLAIMANT’S FACE BROKEN OUT/INFLAMMED FOLLOWING FACIAL.

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

Claimants:

 

Suffix

 

 

 

Claimant

 

 

Status

 

Paid

 

Reserve

 

Incurred

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

00

 

 

TENDLER, JULIE

 

C

 

$0.00

 

$0.00

 

$0.00

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim No:

 

7030004239

 

Status: C

 

Date of Loss:

 

02/22/2005

 

Location of Loss:

 

UNKNOWN, FL

 

 

 

 

 

 

Date Reported:

 

02/22/2005

 

Loss Description:

 

POTENTIAL - POTENTIAL SCARRING FROM PERMANT MAKE TREATMENTS

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

Claimants:

 

Suffix

 

 

 

Claimant

 

 

Status

 

Paid

 

Reserve

 

Incurred

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

00

 

 

WEISBERG, JOAN

 

C

 

$0.00

 

$0.00

 

$0.00

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim No:

 

7030004240

 

Status: C

 

Date of Loss:

 

02/22/2005

 

Location of Loss:

 

UNKNOWN, FL

 

 

 

 

 

 

Date Reported:

 

02/22/2005

 

Loss Description:

 

POTENTIAL CLAIM - CLAIMANT DISAPPOINTED WITH PERMANANT MAKE-UP

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

Claimants:

 

Suffix

 

 

 

Claimant

 

 

Status

 

Paid

 

Reserve

 

Incurred

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

00

 

 

BULLOCK, DIANE

 

C

 

$20,624.15

 

$0.00

 

$20,624.15

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim No:

 

7030004241

 

Status: C

 

Date of Loss:

 

02/22/2005

 

Location of Loss:

 

UNKNOWN, FL

 

 

 

 

 

 

Date Reported:

 

02/22/2005

 

Loss Description:

 

POTENTIAL CLAIM - CLAIMANT'S EYEBROWS ARE TWO DIFFERENT COLORS.
APPEAR SATURATED WITH PARTIAL AREAS OF ATROPHY

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

Claimants:

 

Suffix

 

 

 

Claimant

 

 

Status

 

Paid

 

Reserve

 

Incurred

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

00

 

 

CROSETTI, JANICE

 

C

 

$0.00

 

$0.00

 

$0.00

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim No:

 

7030005093

 

Status: C

 

Date of Loss:

 

05/10/2005

 

Location of Loss:

 

WEST PALM BEACH, FL

 

 

 

 

 

 

Date Reported:

 

05/23/2005

 

Loss Description:

 

CLAIMANT ALLEGING DISCRIMINATION CHARGES.

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

Claimants:

 

Suffix

 

 

 

Claimant

 

 

Status

 

Paid

 

Reserve

 

Incurred

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

00

 

        CONLEY, LEONORA ANN

C

 

$0.00

 

$0.00

 

$0.00

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Gross Incurred

 

Paid

 

Reserve

 

Incurred  

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

Indemnity

 

$87,000.00

 

$0.00

 

$87,000.00  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense

 

$12,477.69

 

$0.00

 

$12,477.69  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$99,477.69

 

$0.00

 

$99,477.69  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Gross Incurred

 

Paid

 

Reserve

 

Incurred  

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

Indemnity

 

$  87,000.00

 

$         1.00

 

$  87,001.00  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense

 

$  24,431.57

 

$10,000.00

 

$  34,431.57  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$111,431.57

 

$10,001.00

 

$121,432.57  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RSUI Group, Inc.

(2 of 2)

 

--------------------------------------------------------------------------------

 

 

Itemized Statement of Loss - Claim

(WAUSAU LOGO) [c48412003.jpg]

Warning: The information contained in this document is confidential and
proprietary.
The output below displays only Billable Expenses.
It is for the exclusive use of Liberty Mutual and its Policyholder. Do not
distribute beyond these groups.

 

 

 

LOB: Workers Compensation

 

Minimum Policy Effective Date: 08/20/2005

Valuation Date: 03/31/2007

 

Maximum Policy Effective Date: 04/30/2007

Account Numbers: 9438683

 

Run Date: 04/30/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim Number

 

Claim ID

 

Claimant Name

 

Status

 

Policy

 

 

 

Inc Indem

 

Inc Med

 

Inc Exp

 

Total Inc

Loss Date

 

Report Date

 

Close Date

 

Tenure

 

Effective Date

 

 

 

Paid Indem

 

Paid Med

 

Paid Exp

 

Total Paid

Jurisdiction State

 

 

 

Location Code/Desc

 

 

 

 

 

 

 

 

 

 

 

 

 

O/S Reserve

Nature of Injury

 

 

 

Part of Body

 

Catalyst

 

 

 

Cause

 

 

 

 

 

 

 

 

Supp Nature of Injury

 

 

 

Supp Part of Body

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Effective Date: 08/20/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Number: WCC-Z91-438683-01-92 - KLINGER ADVANCED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WC 204613910

 

26568585

 

LOWY, BARBARA

 

Closed

 

WCC-Z91-438683-01-92

 

 

 

$0

 

$209

 

$31

 

$240

09/15/2005

 

09/16/2005

 

09/16/2005

 

16

 

08/20/2005

 

 

 

$0

 

$209

 

$31

 

$240

NY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0

10 -CONTUSION

 

 

 

57-TOE(S)

 

 

 

0000-

 

 

 

0RB-STRUCK BY FALLING OBJECTS

 

 

 

 

0-

 

 

 

0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WC 204623549

 

897193075

 

OSTROWSKA, HALINA

 

Closed

 

WCC-Z91-438683-01-92

 

 

 

$0

 

$131

 

$15

 

$146

04/20/2006

 

04/20/2006

 

04/20/2006

 

0

 

08/20/2005

 

 

 

$0

 

$131

 

$15

 

$146

NY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0

04-BURN

 

 

 

35-HAND

 

 

 

0000-

 

 

 

0T3-CONTACT WITH TEMP EXTREME HOT OBJECT OR SUBSTA

0-

 

 

 

0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WC 204625569

 

797292375

 

CORNELL, CARMEN

 

Closed

 

WCC-Z91-438683-01-92

 

 

 

$0

 

$188

 

$30

 

$218

06/02/2006

 

06/05/2006

 

06/05/2006

 

0

 

08/20/2005

 

 

 

$0

 

$188

 

$30

 

$218

NY

 

 

 

501-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0

52-STRAIN

 

 

 

90-MULTIPLE BODY PARTS

 

0000-

 

 

 

0DA-FALLS FROM ELEVATION

 

 

 

 

0-

 

 

 

0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total For Policy Number: WCC-Z91-438683-01-92 - KLINGER ADVANCED

 

 

 

 

 

 

 

 

 

 

 

 

Claim Count: 3

 

 

 

Accident Count: 3

 

 

 

$0

 

$528

 

$76

 

$604

 

 

 

 

 

 

 

 

 

 

$0

 

$528

 

$76

 

$604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Report Generated by Liberty Mutual Group Information Warehouse Environment

 

Page 1

--------------------------------------------------------------------------------

 

 

Itemized Statement of Loss - Claim

(WAUSAU LOGO) [c48412003.jpg]

Warning: The information contained in this document is confidential and
proprietary.
The output below displays only Billable Expenses.
It is for the exclusive use of Liberty Mutual and its Policyholder. Do not
distribute beyond these groups.

 

 

 

LOB: Workers Compensation

 

Minimum Policy Effective Date: 08/20/2005

Valuation Date: 03/31/2007

 

Maximum Policy Effective Date: 04/30/2007

Account Numbers: 9438683

 

Run Date: 04/30/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim Number

 

Claim ID

 

Claimant Name

 

Status

 

Policy

 

 

 

Inc Indem

 

Inc Med

 

Inc Exp

 

Total Inc

Loss Date

 

Report Date

 

Close Date

 

Tenure

 

Effective Date

 

 

 

Paid Indem

 

Paid Med

 

Paid Exp

 

Total Paid

Jurisdiction State

 

 

 

Location Code/Desc

 

 

 

 

 

 

 

 

 

 

 

 

 

O/S Reserve

Nature of Injury

 

 

 

Part of Body

 

Catalyst

 

 

 

Cause

 

 

 

 

 

 

 

 

Supp Nature of Injury

 

 

 

Supp Part of Body

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Effective Date: 08/20/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Number: WCC-Z91-438683-01-92 - KLINGER ADVANCED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total For Effective Date: 08/20/2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Claim Count : 3

 

 

 

Accident Count: 3

 

 

 

$0

 

$528

 

$76

 

$604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0

 

$528

 

$76

 

$604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Effective Date: 08/20/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Number: WCC-Z91-438683-01-92 - KLINGER ADVANCED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WC 125731140

 

337507175

 

MCBEE THORSEN, JANI

 

Closed

 

WCC-Z91-438683-01-92

 

 

 

$0

 

$0

 

$0

 

$0

09/01/2006

 

09/01/2006

 

09/01/2006

 

2

 

08/20/2006

 

 

 

$0

 

$0

 

$0

 

$0

FL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0

52 -STRAIN

 

 

 

10-MULTIPLE HEAD INJUR

 

1910-CHAIRS & SEATS

 

0DA-FALLS FROM ELEVATION

 

 

 

 

317-

 

 

 

100-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WC 125733162

 

637583175

 

KINSER, ANNA MAY

 

Open

 

WCC-Z91-438683-01-92

 

 

 

$50,623

 

$29,472

 

$11,874

 

$91,969

09/30/2006

 

10/04/2006

 

 

 

3

 

08/20/2006

 

 

 

$14,205

 

$2,333

 

$1,300

 

$17,838

FL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$74,131

59-ALL OTHER

 

 

 

53-KNEE

 

0000-

 

 

 

0AA- FALLS ON SAME LEVEL

 

 

 

 

0-

 

 

 

0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WC 125735031

 

417653575

 

SCOTT, PATRICIA C

 

Closed

 

WCC-Z91-438683-01-92

 

 

 

$0

 

$462

 

$63

 

$525

10/27/2006

 

11/02/2006

 

11/02/2006

 

0

 

08/20/2006

 

 

 

$0

 

$462

 

$63

 

$525

FL

 

 

 

BOCA-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0

59-ALL OTHER

 

 

 

44-CHEST (INC. RIBS, S

 

0000-

 

 

 

0RA-STRUCK BY/AGAINST OBJECTS

 

 

 

 

0-

 

 

 

0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Report Generated by Liberty Mutual Group Information Warehouse Environment

 

Page 2

--------------------------------------------------------------------------------

 

 

Itemized Statement of Loss - Claim

(WAUSAU LOGO) [c48412003.jpg]

Warning: The information contained in this document is confidential and
proprietary.
The output below displays only Billable Expenses.
It is for the exclusive use of Liberty Mutual and its Policyholder. Do not
distribute beyond these groups.

 

 

 

LOB: Workers Compensation

 

Minimum Policy Effective Date: 08/20/2005

Valuation Date: 03/31/2007

 

Maximum Policy Effective Date: 04/30/2007

Account Numbers: 9438683

 

Run Date: 04/30/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim Number

 

Claim ID

 

Claimant Name

 

Status

 

Policy

 

 

 

Inc Indem

 

Inc Med

 

Inc Exp

 

Total Inc

Loss Date

 

Report Date

 

Close Date

 

Tenure

 

Effective Date

 

 

 

Paid Indem

 

Paid Med

 

Paid Exp

 

Total Paid

Jurisdiction State

 

Location Code/Desc

 

 

 

 

 

 

 

 

 

 

 

 

 

O/S Reserve

Nature of Injury

 

Part of Body

 

Catalyst

 

 

 

Cause

 

 

 

 

 

 

 

 

Supp Nature of Injury

 

Supp Part of Body

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Effective Date: 08/20/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Number: WCC-Z91-438683-01-92 - KLINGER ADVANCED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WC 125735035

 

77653575

 

ALDOUS, CHARLES

 

Open

 

WCC-Z91-438683-01-92

 

 

 

$0

 

$2,500

 

$1,500

 

$4,000

08/25/2006

 

11/02/2006

 

 

 

0

 

08/20/2006

 

 

 

$0

 

$0

 

$0

 

$0

FL

 

 

 

BR-

 

 

 

 

 

 

 

 

 

 

 

 

 

$4,000

28-FRACTURE

 

 

 

44-CHEST (INC. RIBS, S

 

0000-

 

 

 

OAA- FALLS ON SAME LEVEL

0-

 

 

 

0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WC 125735297

 

577663175

 

BARRON, ROCCIO

 

Closed

 

WCC-Z91-438683-01-92

 

 

 

$0

 

$0

 

$0

 

$0

11/07/2006

 

11/07/2006

 

12/05/2006

 

0

 

08/20/2006

 

 

 

$0

 

$0

 

$0

 

$0

FL

 

 

 

BR-

 

 

 

 

 

 

 

 

 

 

 

 

 

$0

53-SYNCOPE

 

 

 

66-NO PHYSICAL INJURY

 

0000-

 

 

 

OYA-MISCELLANEOUS-NOC

 

 

0-

 

 

 

0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WC 125738349

 

127778275

 

DINARDO, GISELE

 

Open

 

WCC-Z91-438683-01-92

 

 

 

$4,683

 

$5,200

 

$1,865

 

$11,748

12/21/2006

 

12/28/2006

 

 

 

2

 

08/20/2006

 

 

 

$0

 

$0

 

$15

 

$15

FL

 

 

 

48-

 

 

 

 

 

 

 

 

 

 

 

 

 

$11,733

59-ALL OTHER

 

 

 

10-MULTIPLE HEAD INJUR

 

0000-

 

 

 

OAA- FALLS ON SAME LEVEL

 

 

0-

 

 

 

0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total For Policy Number: WCC-Z91-438683-01-92 - KLINGER ADVANCED

 

 

 

 

 

 

 

 

 

 

 

 

Claim Count: 6

 

 

 

Accident Count: 6

 

 

 

$55,306

 

$37,634

 

$15,302

 

$108,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$14,205

 

$2,795

 

$1,378

 

$18,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$89,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

Report Generated by Liberty Mutual Group Information Warehouse Environment

Page 3

--------------------------------------------------------------------------------

 

 

Itemized Statement of Loss - Claim

(WAUSAU LOGO) [c48412003.jpg]

Warning: The information contained in this document is confidential and
proprietary.
The output below displays only Billable Expenses.
It is for the exclusive use of Liberty Mutual and its Policyholder. Do not
distribute beyond these groups.

 

 

 

LOB: Workers Compensation

 

Minimum Policy Effective Date: 08/20/2005

Valuation Date: 03/31/2007

 

Maximum Policy Effective Date: 04/30/2007

Account Numbers: 9438683

 

Run Date: 04/30/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim Number

 

Claim ID

 

Claimant Name

 

Status

 

Policy

 

 

 

Inc Indem

 

Inc Med

 

Inc Exp

 

Total Inc

Loss Date

 

Report Date

 

Close Date

 

Tenure

 

Effective Date

 

 

 

Paid Indem

 

Paid Med

 

Paid Exp

 

Total Paid

Jurisdiction State

 

Location Code/Desc

 

 

 

 

 

 

 

 

 

 

 

 

 

O/S Reserve

Nature of Injury

 

Part of Body

 

Catalyst

 

 

 

Cause

 

 

 

 

 

 

 

 

Supp Nature of Injury

 

Supp Part of Body

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Effective Date: 08/20/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Number: WCC-Z91-438683-01-92 - KLINGER ADVANCED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total For Effective Date: 08/20/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Claim Count: 6

 

 

 

Accident Count: 6

 

 

 

$55,306

 

$37,634

 

$15,302

 

$108,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$14,205

 

$2,795

 

$1,378

 

$18,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$89,864

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

Report Generated by Liberty Mutual Group Information Warehouse Environment

Page 4

--------------------------------------------------------------------------------

 

 

Itemized Statement of Loss - Claim

(WAUSAU LOGO) [c48412003.jpg]

Warning: The information contained in this document is confidential and
proprietary.
The output below displays only Billable Expenses.
It is for the exclusive use of Liberty Mutual and its Policyholder. Do not
distribute beyond these groups.

 

 

 

LOB: Workers Compensation

 

Minimum Policy Effective Date: 08/20/2005

Valuation Date: 03/31/2007

 

Maximum Policy Effective Date: 04/30/2007

Account Numbers: 9438683

 

Run Date: 04/30/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Claim Number

 

Claim ID

 

Claimant Name

 

Status

 

Policy

 

 

 

Inc Indem

 

Inc Med

 

Inc Exp

 

Total Inc

Loss Date

 

Report Date

 

Close Date

 

Tenure

 

Effective Date

 

 

 

Paid Indem

 

Paid Med

 

Paid Exp

 

Total Paid

Jurisdiction State

 

 

 

Location Code/Desc

 

 

 

 

 

 

 

 

 

 

 

 

 

O/S Reserve

Nature of Injury

 

 

 

Part of Body

 

Catalyst

 

 

 

Cause

 

 

 

 

 

 

 

 

Supp Nature of Injury

 

 

 

Supp Part of Body

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Grand Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Claim Count: 9

 

 

 

Accident Count: 9

 

 

 

$55,306

 

$38,162

 

$15,378

 

$108,846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$14,205

 

$3,323

 

$1,454

 

$18,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$89,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

Report Generated by Liberty Mutual Group Information Warehouse Environment

Page 5

--------------------------------------------------------------------------------

Schedule 3.21
Tax Matters

TrueYou is currently undergoing sales tax audits by the New York, Illinois and
California taxing authorities.

The New York taxing authority has requested that TrueYou provide proof of
previously paid sales tax with regards to certain sales of services and goods by
KAA and the Subsidiaries. In the event that the New York taxing authority does
not accept the proof offered by TrueYou, then TrueYou may have to pay the New
York taxing authority certain amounts for sales taxes assessed during certain
periods prior to the Closing.

TrueYou has obtained an Illinois sales tax waiver for the period beginning on
January 1, 2004 and ending on June 30, 2006. The waiver allows the state to
audit these periods up until December 31, 2007.

TrueYou has received a notice that it has failed to file a franchise tax return
with the Florida Department of Revenue for 2005.

True You has received a notice of delinquent property taxes for Dallas Texas.
The Company had already issued a check, cashed on April 16, 2007 but not
reflected on the notice that covers most of the liability. The remaining
liability is $2,826.07.

--------------------------------------------------------------------------------

Schedule 3.22
Licenses; Permits

LIST OF LICENSES AND PERMITS

 

 

 

 

 

 

 

 

 

License Type

 

License/ ID #

 

Expiration
Date

 

Effective
Date

 

Notes

 

 

 

 

 

 

 

 

 

Chicago

 

 

 

 

 

 

 

 

Certificate of Registration

 

IBT # 3527-7580

 

4/23/2009

 

 

 

 

Limited Business License

 

1547066

 

5/15/2006

 

 

 

Under renewal

Massage Establishment

 

1547067

 

5/15/2006

 

 

 

Under renewal

State of Illinois Salon/Shop Registration

 

189-009246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dallas

 

 

 

 

 

 

 

 

TEXAS COSMETOLOGY SALON - Beauty Salon

 

694914

 

12/22/2008

 

 

 

 

TEXAS COSMETOLOGY SALON - Barber Shop

 

220632

 

12/22/2008

 

 

 

 

Certificate of Occupancy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costa Mesa

 

 

 

 

 

 

 

 

Business License

 

BL 025062

 

3/31/2006

 

12/13/2004

 

Renewal in process

Massage Manager

 

04-36301

Under review - Background Check Required

Establishment License

 

A 231970

 

1/31/2007

 

 

 

Renewal in process

 

 

 

 

 

 

 

 

 

501 Madison, NYC

 

 

 

 

 

 

 

 

Certificate of Authority

 

200368801C

 

 

 

7/21/2004

 

 

Appearance Enhancement Business

 

21GE1206404

 

8/1/2006

 

8/1/2004

 

Renewal in process

 

 

 

 

 

 

 

 

 

Short Hills

 

 

 

 

 

 

 

 

Shop License

 

32WD02506600

 

7/31/2006

 

6/8/2005

 

Renewal in process

CCO - Certificate of Inspection

 

32950/20050358

 

 

 

5/2/2005

 

 

 

 

 

 

 

 

 

 

 

Manhasset

 

 

 

 

 

 

 

 

Certificate of Authority

 

200368801C

 

 

 

7/21/2004

 

 

Appearance Enhancement Business

 

21GE1206403

 

 

 

 

 

Renewal in process

 

 

 

 

 

 

 

 

 

Chevy Chase

 

 

 

 

 

 

 

 

Cosmetology Hair Salon

 

15251409

 

4/15/2008

 

 

 

 

Certificate of Registration

 

350000053955

 

 

 

08/19/04

 

 

 

 

 

 

 

 

 

 

 

All South Florida Locations have Name Change Applications pending.

 

 

 

 

 

 

 

 

 

 

 

 

 

Boca

 

 

 

 

 

 

 

 

ATM - Boca

 

2006-13355

 

9/30/2007

 

 

 

 

Beauty Supply Store - Boca

 

2006-13352

 

9/30/2007

 

 

 

 

Cosmetology Salon

 

CE 9964911

 

11/30/2007

 

01/21/05

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

Cosmetology Salon - Boca

 

2006-13351

 

9/30/2007

 

 

 

 

Massage Establishment - Boca

 

2003-01231

 

9/30/2007

 

 

 

 

Massage Establishment - Boca

 

MM 17277

 

8/31/2007

 

 

 

 

State of Florida Cosmetology License

 

CE9964895

 

 

 

 

 

 

State of Florida Cosmetology License

 

CE9962949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Palm Beach Island

 

 

 

 

 

 

 

 

Cosmetology Salon

 

2005-18330

 

9/30/2007

 

 

 

 

Cosmetology Salon

 

CL0151889

 

9/30/2007

 

 

 

 

Massage Establishment

 

MM 16273

 

8/31/2007

 

 

 

 

Massage Establishment

 

MM1884/MA14244

 

9/30/2007

 

 

 

 

Massage Establishment - PB

 

2005-18328

 

9/30/2007

 

 

 

 

Merchant Skin Care Products

 

100630

 

9/30/2007

 

03/08/05

 

 

Skin Care Products - PB

 

2005-18327

 

9/30/2007

 

03/08/05

 

 

Uniform Business Report

 

M04000001476

 

9/30/2007

 

9/26/2006

 

 

Town of Palm Beach Occupational License

 

#100189

 

 

 

 

 

 

Town of Palm Beach Occupational License

 

#34804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Palm Beach Gardens

 

 

 

 

 

 

 

 

Beauty Supply Store - PBG

 

2002-06069

 

9/30/2007

 

 

 

 

Massage Establishment - PBG

 

MM17228

 

8/31/2007

 

 

 

 

Uniform Business Report

 

M03000003684

 

9/30/2007

 

9/27/2006

 

 

Uniform Business Report

 

M74327

 

09/30/07

 

 

 

 

 

 

 

 

 

 

 

 

 

West Palm Beach

 

 

 

 

 

 

 

 

Beauty Supply Store - WPB

 

2002-16306

 

9/30/2007

 

 

 

 

Cosmetology Salon

 

2002-10212

 

9/30/2007

 

 

 

 

Massage Establishment - WPB

 

2004-12423

 

9/30/2007

 

 

 

 

Cosmetology Salon - WPB

 

CE 9964912

 

11/30/2007

 

01/21/05

 

 

Massage Establishment - WPB

 

MM-17263

 

8/31/2007

 

 

 

 

Retail Store/Manicurist Shop/Beauty Shop

 

22335/26860/6672/21543

 

9/30/2007

 

 

 

 

Uniform Business Report

 

M03000003683

 

9/30/2007

 

9/27/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

File Number

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

Anushka PBG, LLC

 

LP/LLC TAX

 

 

 

3722749

 

6/1/2007

Anushka PBG ACQUISITION SUB, LLC

 

LP/LLC TAX

 

 

 

3722762

 

6/1/2007

Anushka BOCA, LLC

 

LP/LLC TAX

 

 

 

3722740

 

6/1/2007

Anushka BOCA ACQUISITION SUB, LLC

 

LP/LLC TAX

 

 

 

3722765

 

6/1/2007

WILD HARE, LLC

 

LP/LLC TAX

 

 

 

3722746

 

6/1/2007

WILD HARE ACQUISITION SUB, LLC

 

LP/LLC TAX

 

 

 

3722764

 

6/1/2007

Advanced Aesthetics, LLC

 

LP/LLC TAX

 

 

 

3583246

 

6/1/2007

Klinger Advanced Aesthetics, LLC

 

LP/LLC TAX

 

 

 

3777451

 

6/1/2007

 

 

 

 

 

 

 

 

 

Boca - Resale Cerificate for Sales Tax

 

60-8013015526-3

 

12/31/2007

 

 

 

 

PB - Resale Cerificate for Sales Tax

 

60-8013129420-8

 

12/31/2007

 

 

 

 

PBG - Resale Cerificate for Sales Tax

 

60-8013027211-3

 

12/31/2007

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

WPB - Resale Cerificate for Sales Tax

 

60-8013164754-3

 

12/31/2007

 

 

 

 

FL CORP - Resale Cerificate for Sales Tax

 

80-8013171650

 

12/31/2007

 

 

 

 

CALIFORNIA - Consolidated Seller’s Permit

 

100-434266

 

N/A

 

 

 

 

CHICAGO - Certificate of Registration

 

IBT # 3527-7580

 

4/23/2009

 

 

 

 

COSTA MESA - Seller’s Permit

 

100-434266 00002 EAA

 

N/A

 

 

 

 

DALLAS - Sales And Use Tax Permit

 

1-20-0368801-2

 

N/A

 

 

 

 

MANHASSET - Certificate of Authority

 

200368801C

 

 

 

 

 

 

NEW YORK CITY - Certificate of Authority

 

20-0368801C

 

 

 

 

 

 

SHORT HILLS - Sales & Use Tax Permit

 

200-368-801/000

 

N/A

 

 

 

 

MARYLAND - Sales & Use Tax

 

11581929

 

 

 

 

 

 

LIST OF NON-TRANSFERABLE LICENSES

 

 

 

 

•

State of Florida Cosmetology License # CE9964895

 

 

•

State of Florida Cosmetology License # CE9962949

 

 

•

State of Florida Cosmetology License # CE9964912

 

 

•

State of Florida Cosmetology License # CE9964911

 

 

•

City of Chicago Massage Establishment License # 1547067

 

 

•

City of Chicago Limited Business License # 1547066

 

 

•

State of New York Appearance Enhancement Business License # 21GE1206404

 

 

•

State of California Establishment License # A 231970

The following licenses are transferable to a new owner if evidence of sale is
provided, original license is surrendered and transfer fee is paid:

 

 

 

 

•

West Palm Beach, FL Occupational License # 2005-18327

 

 

•

West Palm Beach, FL Occupational License # 2005-18330

 

 

•

West Palm Beach, FL Occupational License #2005-18328

--------------------------------------------------------------------------------

Schedule 3.23
Related Party Transactions

None.

--------------------------------------------------------------------------------

Schedule 3.24
Suppliers

 

 

 

 

 

Vendor Name

                 Full Vendor Name

1

ABULL

A Bullet Locksmith, Inc

2

 

A&M Painting & Decorating

3

A+TOW

A+ Towel & Linen Supply

4

 

Ace Beauty Company Corp

5

 

Action Bag Company, Inc

6

ADMSEC

Admiral Security Service

7

 

Admiral Since 1946, Inc

8

ADPSERV

Adp Service Corp.

9

 

ADP, Inc.

10

 

ADT Security Services, Inc.

11

ADT

Adt Security Services,Inc

12

 

Advanced County Locksmiths

13

AESINS

Aesthetics Institute Of

14

ALES

Ales Group Usa, Inc

15

 

All Week Plumbing & Heating, Inc.

16

ALLWEEK

All Week Plumbing& Heating Inc

17

ALLER

Allergan Sales Llc

18

 

Allied Office Products, Inc.

19

ALL

Allied Office Productsinc.

20

 

Allied Waste Services #710

21

ALLSCOP

Allscope Media, Inc.

22

 

Altair Instruments, Inc

23

 

American Commercial Appliance

24

 

American Express

25

 

American Security Alarm System

26

AMER

American Security Alarmsystem

27

ANNLOPE

Anna C Lopez

28

ANTICA

Antica Farmacista

29

ARCBOT

Archipelago Botanicals

30

ARCHITR

Architrave Designs

31

ART

Art Of Beauty

32

AT&T CA

At&T

33

AT&TUB

At&T Universal Biller

34

AZTIL

Aztil, Inc.

35

B&F

B & F Coffee Service

36

 

Bacou-Dalloz

37

BAGS

Bags & Bows

38

 

Bay Alarm

39

BEAUTYD

Beauty Development

40

BESSE

Besse Medical Supply

41

BIOMED

Bioform Medical Inc

--------------------------------------------------------------------------------

 

 

 

 

42

 

Bioform Medical Inc

43

BIOSEA

Biosea International

44

BI

Bio-Spec, Inc

45

BLAELE

Blackland Electrical Ltd

46

 

Bluewick Home & Body, LLC

47

BLU

Bluewick Home & Body,Llc

48

 

Bolton Industrial Property

49

 

Boss Beauty Supply

50

 

BP3 Solutions, LLC

51

DART

Breakaway Courier Systems

52

BRILLIA

Brilliant

53

 

Brogan Tennyson Group, Inc.

54

BROG

Brogan Tennyson Group,Inc.

55

 

Broward Paper & Packaging, Inc.

56

BUM

Bumble & Bumble

57

 

Business First Insurance Co

58

 

C & G Del, Inc./Delta Finance

59

C&G

C&G Delivery

60

CAND

Candela Corporation

61

 

Canon Business Solutions - East

62

CAN

Canon Business Solutions- East

63

CANON

Canon Financial Services, Inc.

64

CAPSUPP

Capital Supply Company

65

CEN

Central Lewmar

66

LYN

Certe At Lyn’S Cafe

67

 

Champion Graphics & Pro Motions

68

CGLICBL

Cigna - Cglic-Bloomfield Easc

69

CITT

Cit Technology Fin. Serv, Inc.

70

 

Citicorp Vendor Finance, Inc.

71

CITICOR

Citicorp Vendor Financeinc

72

 

Citistreet, Llc

73

 

City Of Beverly Hills

74

CITYSEA

Citysearch

75

CLABUS

Classic Business Solutions

76

 

Classic Recycling New York Corp

77

CLASSRE

Classic Recycling Newyork Corp

78

CLEANTR

Clean & Treat Environmental

79

CLPFCHE

Clpf Chevy Chase Pavilion

80

COFFDIS

Coffee Distributing Corp.

81

 

Colonial Parking, Inc.

82

COLPAR

Colonial Parking,Inc.

83

COMCAST

Comcast

84

STOREDV

Comdata Stored Value Systems

85

COMCLE

Commercial Cleaning Services

86

COMM

Commercial Laundry Equip

87

 

Complete Lighting And Supply

88

COMPLET

Complete Lighting Andsupply

--------------------------------------------------------------------------------

 

 

 

 

89

 

Compounding Docs, Inc

90

 

Connecticut Sales and Use Tax

91

COOL

Cool World, Inc.

92

CORPO

Corpinet, Llc.

93

CORPEXP

Corporate Express

94

CEI

Cosmetic Essence Inc

95

COSTWHO

Costco Wholesale Membership

96

CRYROCK

Crystal Rock Llc

97

CRY

Crystal Springs Inc,

98

CUREWAT

Cure Water Systems Inc.

99

 

Cypress Robes/Russell-Newman

100

DALLFRT

D Magazine

101

 

David Childs

102

DELAGE

De Lage Landen Financial Svcs.

103

DEE

Dee Maria Plumbing, Inc.

104

 

Dell Financial Services

105

 

Dell Marketing L.P.

106

DEMO

Demonaco Designs

107

DEN

Denman Us

108

DEPCON

Dependable Construction

109

 

DHL Express (USA) Inc,

110

PRINTCO

Discount Office Suppy

111

BORG

Donald Borg Construction Co

112

RELAX

Dorothy Lee

113

 

Dr Delphinium Designs & Events

114

DRDEL

Dr Delphinium Designs&Events

115

DRAGONF

Dragonfly

116

DUSA

Dusa Pharmaceuticals Inc

117

 

Dusa Pharmaceuticals Inc.

118

EBENTEC

Ebentech

119

ECCC

Eeast Coast Commercialcleaning

120

ELEY’S

Eley’S Inc

121

 

Emiliani

122

 

Environmental Service Of New York

123

ENVIR

Environmental Serviceof New

124

ESSIE

Essie Cosmetics Ltd.

125

EXPRESS

Express Parking, Inc.

126

 

Fedex

127

 

Fedex

128

 

Fetpak, Inc

129

FIRESH

Fire Shield

130

FLORAL

Floral Emporium, Inc.

131

 

Florida Factory Service, Inc.

132

FPL

Florida Power & Lightco.

133

FOWL

Fowler Companies

134

FOX5

Fox5

135

 

Frank Ferguson

--------------------------------------------------------------------------------

 

 

 

 

136

G&I

G & I Iv Wharfside Llc

137

 

G & IIV Wharfside LLC

138

GECAP

Ge Capital Colonial Pacific

139

GIFT

Gift Box Corporation Ofamer

140

GTC

Glass Tech Corp.

141

GOLDFLO

Goldflower Corp.

142

GOLDWMA

Goldwell Mid-Atlantic

143

 

Graham Haber Photography

144

 

Guest Distribution

145

H&L

H & L Lighting

146

 

H Baker Development

147

 

H D S Cosmetics Labs, Inc.

148

H&RCOM

H&R Commercial Flooring

149

HAIRU

Hair U Wear Inc

150

HAKATAI

Hakatai Enterprises Inc.

151

HARCAN

Harbor Candy Shop

152

HARBAZ

Harper’S Bazaar

153

HBAK

Hbaker Development

154

 

Heart Strung

155

SCHEIN

Henry Schein

156

HERMAN

Herman/Stewart Construction

157

HIGHOUS

Highland House Apartmetns

158

 

Hy Supplies Inc

159

 

Hygenic Laboratories & Cometics

160

HYGENIC

Hygenic Laboratories &Cosmeti

161

ILOVEFL

I Love Flowers

162

IDCSER

Idcservco

163

 

Idearc Media Corp

164

WOLFE

Ilene Wolfe

165

 

Imperial Coffee Service Corp.

166

IMPERIA

Imperial Coffee Servicecorp.

167

IMTGRA

Imtech Graphics

168

INDEPEN

Independent Salon Resource

169

INDIRA

Indira, Inc

170

INKCEN

Inkcentric

171

INNO

Innovative Skincare

172

INTEGRE

Integremed/Integrated

173

INTC

International Coffee Systems

174

 

J. Sisters Import Export Corp

175

 

Jacqueline Cosmetics, Inc

176

JACQU

Jacqueline Cosmetics,Inc

177

JAMAICA

Jamaica Ash & Rubbishremoval

178

JANOFF

Janoff & Olshan, Inc.

179

 

Jenner Lopez

180

YOCHU

John R. Yochum

181

JULI

Juli B. Inc.

182

KANG

Kangaroo Courier Inc.

--------------------------------------------------------------------------------

 

 

 

 

183

KDT

Kdt Solutions Inc.

184

KERA

Kerastase Paris

185

KEYEQUI

Key Equipment Finance

186

KEYSPAN

Keyspan Energy Delivery

187

KINGS

Kings Supermarket Inc.

188

LADYLAN

Lady Lanell’S, Inc.

189

LAF

Lafco New York

190

 

Landmark American Insurance Co

191

LEADS.C

Leads.Com, Inc

192

 

Lexitel Communications, LLC

193

LIDO

Lido Lighting Corp

194

LIGHT

Light Concept Distribution, In

195

CIGNAGI

Lina

196

LIVIN

Living Earth Crafts Inc

197

LIPA

Long Island Power Authority

198

 

L’Oreal Professionnel

199

 

M group

200

 

Madeline Blondman

201

 

Mana Products

202

MLWD

Manhasset-Lakeville Water Dist

203

 

Marino Sandals

204

 

Marlene Feinstein

205

MARLIN

Marlin Leasing Corp

206

 

Martha Godwin

207

MATRIX

Matrix Bussiness Technologies

208

MCI

Mci

209

MCKESS

Mckesson

210

MDSKIN

Md Skincare Llc.

211

 

Med/Spa Distributors, Inc

212

MEDSPA

Med/Spa Distributors,Inc

213

 

Medusa’s Heirlooms, Inc

214

MEDUSAS

Medusa’S Heirlooms, Inc.

215

MESA

Mesa Consolidated Water

216

MGROUP

Mgroup

217

 

Milbon USA, Inc.

218

MLIS

Mlis Inc

219

MODERNL

Modern Luxury Media, Llc

220

MOWREY

Mowrey Elevator Service, Inc.

221

MUD

Mudlark

222

 

Muzak LLC

223

NARS

Nars Cosmetics

224

NATI

Nationwide Medical Waste

225

NATSTO

Nature’S Stone

226

 

Neopost Leasing

227

 

Network Us Inc

228

NYJL

New York Junior League

229

NEX

Nextech Systems, Inc.

--------------------------------------------------------------------------------

 

 

 

 

230

 

Nightmares Inc

231

 

Northern Business Systems

232

 

Northpark Merchants Association

233

NORPAR

Northpark Partners,Lp

234

NOVALAS

Novalash Inc

235

NUDELL

Nudell Architects Inc.

236

FIRE

Nyc Fire Department

237

OBAGI

Obagi Medical Products

238

OFFICED

Office Depot

239

OFFICE

Office Team

240

 

Officemax Contract Inc.

241

ONEIP

One Ip Voice Inc

242

ONEPEST

One Source Pest Control, Inc.

243

ONESO

One Source Service Help

244

 

Palm Beach Newspapers, Inc.

245

PALM01

Palm Beach Newspapers,Inc.

246

 

Palomar Medical Technologies

247

PARKOFF

Park Avenue Office Svcs., Inc.

248

PEOPLE

People

249

MILLARD

Peter Millard

250

PHOTOM

Photomedex Inc.

251

PBCC

Pitney Bowes Credit Corp.

252

PITN

Pitney Bowes Inc

253

 

Pitney Bowes Purchase Power

254

PITNEY

Pitney Bowes Purchasepower

255

POL

Poland Spring Water

256

 

Port Washington Window Clean

257

PORTWAS

Port Washington Windowclean

258

 

Potomac Electric Power Company

259

 

Premium Laundry & Linen Supply

260

PRILAU

Pride Laundry

261

 

Printco Graphics

262

PROCYTE

Procyte Corporation

263

 

P-Ryton Corporation

264

 

Ps Texas Holdings, LTD

265

PSSRICH

Pss - Richmond Inc.

266

PSSDAL

Pss Dallas

267

PSSFLOR

Pss Florida Inc.

268

PSSNJ

Pss-Northeast

269

PUBLIC

Public Storage

270

PURCHAS

Purchase Power

271

QMAX

Qmax Systems

272

 

R. Hochman Papers Inc.

273

 

Randy’s Drain Cleaning

274

 

Raspberry Red Marketing

275

RECALL

Recall - Northeast

276

RECAL

Recall Secure Destruction Serv

--------------------------------------------------------------------------------

 

 

 

 

277

 

Redken Laboratories

278

 

REI

279

 

Rhinotek Computer Products

280

ROCIO

Rocio Del Sol

281

ROTA

Rotary Supply, Inc.

282

ROTOROO

Roto Rooter Corp.

283

SFCCLE

S.F.C. Cleaning & Maintenance

284

SAFMAS

Safemasters Co.

285

 

Saia Plumbing & Heating Co.

286

 

San - Mar Laboratories Inc.

287

SEC

Securint - Account #8752

288

 

Shear World International

289

SHETRE

Sheri Resnick

290

SIGSIG

Signature Signs & Graphics

291

SIGVARI

Sigvaris, Inc.

292

 

Skin Inc.

293

SKINMED

Skinmedica, Inc

294

SLA

Slatkin

295

 

Slim, Inc.

296

 

Smyth Air Condiitoning, Inc.

297

SMYTH

Smyth Air Condiitoning,Inc.

298

SOUNDC

Soundcom Of Florida Llc

299

SOUTCOA

South Coast Plaza

300

SCP

South Coast Plaza

301

 

Southeast Computer Solutns Inc

302

 

Southern California

303

SPATECH

Spatech Corp.

304

SPEEDYC

Speedychem

305

 

Sprint (Cell)

306

 

Squeaky Clean Window Co

307

SQUCLE

Squeaky Clean Window Co.

308

 

State Of NJ - Sales & Use Tax

309

 

Statewide Plumbing Inc.

310

 

Steiner Product Support US, LL

311

STEINER

Steiner Product Supportus, Ll

312

STEPJOH

Stephanie Johnson Inc.

313

 

Stericycle Inc

314

 

Sterigard Inc.

315

STERITE

Steritech

316

STRAITS

Straitshot Communications

317

STYWES

Style West

318

SUPERLA

Superior Laundry Systems, Inc.

319

TOMAR

Supriya Tomar, M.D.P.A.

320

SWISSLI

Swiss Line Usa, Inc.

321

TAKARAB

Takara Belmont

322

TALIKA

Talika Usa Llc

323

PALMBC

Tax Collector Palm Beach Cty

--------------------------------------------------------------------------------

 

 

 

 

324

 

Ted Brown Enterprises, Inc.

325

TEK

Teknikon Group Inc.

326

 

Telecheck Services, Inc

327

TEND

Tend Skin

328

TERINT

Terminix International

329

 

Texas Department of

330

BERN

The Bernard Group

331

CHECHA

The Chevy Chase Land Company

332

 

The City Of West Palm Beach

333

 

The Finest Accessories, Inc.

334

NAILCO

The Nailco Group

335

PALMPOS

The Palm Beach Post

336

TOSS

The Toss Group, Inc

337

 

TNA, LLC

338

 

Topix Pharmaceuticals, Inc.

339

TO

Topix Pharmaceuticals, Inc.

340

TOSHI

Toshiba America Info Systems

341

 

Toshiba American Info Systems

342

TOSHIBA

Toshiba American Infosystems

343

 

Touch America Inc.

344

TRAD

Trade Subscription Services Ll

345

 

Trade Subscription Services LLC

346

TRANSMA

Transmark Incorporated

347

TRINORB

Tri-North Builders Inc

348

TROP

Tropic Sunrise, Inc.

349

 

Tropical Mist Tanning LLC

350

 

United Beauty Products Corp.

351

UNIT

United Beauty Productscorp.

352

UNIVER

Universal Companies, Inc.

353

UPS

Ups

354

UTSOUTH

Ut Southwestern

355

VANS

Van’S Comfortemp Corp.

356

 

Violet Love

357

 

Vision Service Plan

358

 

Visionary Professional Prod

359

VITESSE

Vitesse Parking Inc.

360

 

Vivian Galle

361

VOLUSPA

Voluspa

362

WASH

Washingtonian

363

WASTE

Waste Management Of Newjersey

364

WATER

Water Tower Llc

365

WEDPAG

Weddingpages Inc

366

 

White Palms Fire Equipment Inc

367

WHOFLO

Wholesale Flooring Dist.

368

WILCO

Wilco Inc.

369

WILROAD

Wilroad Assoc Ltd Partnrship

370

WILS

Wilshire Rodeo Llc

--------------------------------------------------------------------------------

 

 

 

 

371

 

World Trading Inc

372

WORLD W

Worldwide Express

373

 

Worth Avenue Associates LTD.

374

WORTHNW

Worth Avenue Associatesltd.

375

WRQX

Wrqx Radio

376

 

Xerox Corporation

377

XM

Xm Satellite Radio

378

 

Y.S. Chang & Associates

379

YAHINC

Yahoo!, Inc

380

 

Yellow Pages Processing Center

381

YELLO P

Yellow Pages Processingcenter

382

 

Your Name Professional Brands

383

 

YP.Com

--------------------------------------------------------------------------------

Schedule 3.25
Inventory

As of 4/2/07 - Post Physical Inventory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

501

 

Chevy

 

Dallas

 

Manhasset

 

Chicago

 

SH

 

CM

 

PB

 

WPB

 

PBG

 

Boca

 

Salon Ttl

 

CDC

 

Ttl

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

108,761

 

$

69,403

 

$

53,054

 

$

34,540

 

$

17,244

 

$

35,075

 

$

21,670

 

$

22,194

 

$

54,133

 

$

65,967

 

$

33,301

 

$

515,342

 

$

313,161

 

$

828,503

 

Core

 

$

106,703

 

$

69,261

 

$

52,666

 

$

24,223

 

$

16,367

 

$

33,609

 

$

21,353

 

$

17,391

 

$

49,200

 

$

46,487

 

$

27,507

 

$

464,767

 

$

313,161

 

$

777,928

 

Non-Core

 

$

2,058

 

$

142

 

$

388

 

$

10,317

 

$

877

 

$

1,466

 

$

317

 

$

4,803

 

$

4,933

 

$

19,480

 

$

5,794

 

$

50,575

 

$

0

 

$

50,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BackBar

 

$

46,677

 

$

29,153

 

$

32,221

 

$

16,223

 

$

7,044

 

$

24,027

 

$

13,847

 

$

5,684

 

$

31,377

 

$

38,288

 

$

29,208

 

$

273,749

 

$

286,678

 

$

560,427

 

Core

 

$

40,401

 

$

29,153

 

$

31,732

 

$

16,154

 

$

5,272

 

$

23,878

 

$

13,099

 

$

4,775

 

$

29,032

 

$

29,771

 

$

24,552

 

$

247,819

 

$

286,678

 

$

534,497

 

Non-Core

 

$

6,276

 

$

0

 

$

489

 

$

69

 

$

1,772

 

$

149

 

$

748

 

$

909

 

$

2,345

 

$

8,517

 

$

4,656

 

$

25,930

 

$

0

 

$

25,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

155,438

 

$

98,556

 

$

85,275

 

$

50,763

 

$

24,288

 

$

59,102

 

$

35,517

 

$

27,878

 

$

85,510

 

$

104,255

 

$

62,509

 

$

789,091

 

$

599,839

 

$

1,388,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical inventory*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

30,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components and packaging**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

173,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

143,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,735,723

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 *Includes Botox, Restalyn, etc.

**Inventory for GK products

--------------------------------------------------------------------------------

Value Report Summary
As of 4/2/07 - Post Physical Inventory
Brand Detail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

501

 

Chevy

 

Dallas

 

Manhasset

 

Chicago

 

SH

 

CM

 

PB

 

WPB

 

PBG

 

Boca

 

Salon Ttl

 

CDC

 

Ttl

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

108,761

 

$

69,403

 

$

53,054

 

$

34,540

 

$

17,244

 

$

35,075

 

$

21,670

 

$

22,194

 

$

54,133

 

$

65,967

 

$

33,301

 

$

515,342

 

$

313,161

 

$

828,503

 

Core

 

$

106,703

 

$

69,261

 

$

52,666

 

$

24,223

 

$

16,367

 

$

33,609

 

$

21,353

 

$

17,391

 

$

49,200

 

$

46,487

 

$

27,507

 

$

464,767

 

$

313,161

 

$

777,928

 

Antica

 

$

1,187

 

$

116

 

$

1,633

 

$

218

 

$

112

 

$

211

 

$

2,842

 

$

1,002

 

$

1,221

 

$

1,440

 

$

145

 

$

10,127

 

$

174

 

$

10,301

 

Anushka

 

$

1,645

 

 

 

 

 

 

 

$

474

 

 

 

 

$

1,731

 

$

55

 

$

282

 

 

 

 

$

551

 

$

95

 

$

4,833

 

$

632

 

$

5,465

 

Archipelago

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

144

 

 

 

 

 

 

 

$

144

 

 

 

 

$

144

 

Beuy Pro (B&M)

 

 

 

 

$

51

 

$

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

93

 

 

 

 

$

93

 

Belt Asst.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

45

 

$

45

 

 

 

 

$

45

 

Bluewick

 

 

 

 

 

 

 

$

393

 

 

 

 

 

 

 

 

 

 

 

 

 

$

196

 

 

 

 

 

 

 

$

160

 

$

749

 

$

1,121

 

$

1,870

 

Bumble

 

$

12,509

 

$

3,685

 

$

4,805

 

$

210

 

$

2,597

 

$

4,140

 

$

927

 

$

158

 

$

5,260

 

$

4,694

 

$

3,409

 

$

42,394

 

$

5,779

 

$

48,173

 

Candle Asst.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

$

0

 

CHD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

118

 

$

295

 

 

 

 

$

413

 

 

 

 

$

413

 

Claus Porto

 

$

96

 

$

247

 

$

525

 

 

 

 

 

 

 

 

 

 

 

 

 

$

36

 

 

 

 

 

 

 

$

100

 

$

1,004

 

 

 

 

$

1,004

 

Creative Nail Design

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

91

 

 

 

 

$

113

 

 

 

 

 

 

 

$

204

 

 

 

 

$

204

 

Cosmedicine

 

$

8,068

 

$

3,851

 

$

6,741

 

$

4,990

 

$

4,048

 

$

4,211

 

$

2,722

 

$

1,590

 

$

2,248

 

$

2,937

 

$

2,630

 

$

44,036

 

$

12,833

 

$

56,869

 

Darphin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

$

0

 

Davines

 

 

 

 

$

3,013

 

$

1,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,860

 

$

4,493

 

$

9,353

 

DDF

 

$

909

 

 

 

 

 

 

 

$

324

 

 

 

 

 

 

 

 

 

 

 

 

 

$

135

 

$

252

 

 

 

 

$

1,620

 

$

1,905

 

$

3,525

 

Denman

 

 

 

 

$

234

 

$

194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

428

 

$

397

 

$

825

 

Eau d’Italie

 

$

1,798

 

$

1,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

22

 

 

 

 

 

 

 

 

 

 

$

3,752

 

 

 

 

$

3,752

 

Elchim (Dryers)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

65

 

$

65

 

 

 

 

$

65

 

Elemis

 

$

315

 

$

1,681

 

 

 

 

$

88

 

 

 

 

$

255

 

$

198

 

$

261

 

 

 

 

 

 

 

$

3,120

 

$

5,918

 

$

3,952

 

$

9,870

 

Essie

 

$

607

 

 

 

 

 

 

 

 

 

 

$

808

 

 

 

 

 

 

 

 

 

 

 

 

 

$

311

 

$

18

 

$

1,744

 

 

 

 

$

1,744

 

FHI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

585

 

 

 

 

$

585

 

 

 

 

$

585

 

Gift Asst

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

789

 

 

 

 

 

 

 

$

789

 

 

 

 

$

789

 

GK

 

$

21,560

 

$

6,085

 

$

4,660

 

$

6,102

 

$

4,902

 

$

5,144

 

$

3,569

 

$

7,061

 

 

 

 

 

 

 

 

 

 

$

59,083

 

$

210,500

 

$

269,583

 

GoSmile

 

$

510

 

$

522

 

$

1,861

 

 

 

 

 

 

 

 

 

 

$

215

 

$

487

 

$

214

 

 

 

 

 

 

 

$

3,809

 

 

 

 

$

3,809

 

Hair Asst

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,073

 

$

1,867

 

$

409

 

$

3,349

 

 

 

 

$

3,349

 

Havaianas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

34

 

$

32

 

$

478

 

$

134

 

$

678

 

 

 

 

$

678

 

IS Clinical

 

 

 

 

$

9,438

 

$

7,291

 

$

5,917

 

$

3,481

 

$

7,072

 

$

7,797

 

$

4,074

 

$

6,780

 

$

1,847

 

$

4,606

 

$

58,303

 

$

31,214

 

$

89,517

 

Jewlery Asst

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

7,042

 

$

728

 

$

7,770

 

 

 

 

$

7,770

 

Kerastase

 

 

 

 

$

9,746

 

$

15,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

5,363

 

$

6,449

 

$

9,975

 

$

46,911

 

 

 

 

$

46,911

 

LaTherapie

 

 

 

 

 

 

 

 

 

 

$

3,254

 

 

 

 

$

8,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

11,874

 

$

8,286

 

$

20,160

 

L’Oreal

 

$

1,027

 

$

1,416

 

$

827

 

 

 

 

 

 

 

 

 

 

$

1,215

 

$

53

 

$

821

 

$

806

 

$

614

 

$

6,779

 

$

157

 

$

6,936

 

Luxor (B&M)

 

 

 

 

$

30

 

$

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

5

 

 

 

 

 

 

 

$

49

 

 

 

 

$

49

 

Marilyn (B&M)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

$

0

 

MD Forte

 

 

 

 

$

874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

874

 

 

 

 

$

874

 

MD Skincare

 

$

12,051

 

$

2,133

 

 

 

 

$

265

 

$

297

 

$

1,044

 

$

629

 

 

 

 

$

1,843

 

$

2,121

 

 

 

 

$

20,383

 

$

8,811

 

$

29,194

 

Milbon

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

247

 

$

94

 

$

341

 

 

 

 

$

341

 

Mudlark

 

 

 

 

$

111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

111

 

 

 

 

$

111

 

Nars

 

$

23,894

 

$

14,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

18,727

 

$

13,619

 

 

 

 

$

70,915

 

$

11,028

 

$

81,943

 

Neova

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

236

 

 

 

 

$

272

 

$

492

 

$

1,000

 

$

5,911

 

$

6,911

 

Obagi

 

 

 

 

$

7,553

 

$

3,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

11,461

 

 

 

 

$

11,461

 

PhytoSpecific

 

 

 

 

$

1,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,199

 

 

 

 

$

1,199

 

Prevage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

$

0

 

Redken

 

 

 

 

$

534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

534

 

$

1,058

 

$

1,592

 

Skinceuticals

 

$

19,001

 

 

 

 

$

1,085

 

$

1,581

 

 

 

 

$

833

 

 

 

 

 

 

 

$

2,565

 

 

 

 

 

 

 

$

25,065

 

$

2,845

 

$

27,910

 

Slatkin

 

$

566

 

 

 

 

 

 

 

$

800

 

 

 

 

 

 

 

 

 

 

$

122

 

 

 

 

 

 

 

$

110

 

$

1,598

 

 

 

 

$

1,598

 

Spatech

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

7

 

$

474

 

 

 

 

 

 

 

$

185

 

$

666

 

$

1,013

 

$

1,679

 

Stephanie Johnson

 

 

 

 

 

 

 

$

1,167

 

 

 

 

 

 

 

 

 

 

 

 

 

$

658

 

$

918

 

$

106

 

$

69

 

$

2,918

 

$

624

 

$

3,542

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strivectin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

$

0

 

Swissline

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

$

0

 

Talika

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

146

 

$

1,086

 

$

645

 

$

271

 

 

 

 

$

8

 

$

2,156

 

$

222

 

$

2,378

 

Tendskin

 

$

226

 

 

 

 

 

 

 

 

 

 

$

122

 

$

202

 

 

 

 

 

 

 

$

426

 

 

 

 

$

296

 

$

1,272

 

$

206

 

$

1,478

 

TIF

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

$

0

 

Turbo Power (B&M)

 

 

 

 

$

135

 

$

215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

350

 

 

 

 

$

350

 

Voluspa

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

134

 

$

568

 

 

 

 

$

702

 

 

 

 

$

702

 

Wahl (B&M)

 

 

 

 

 

 

 

$

80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

80

 

 

 

 

$

80

 

Wella

 

$

734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

734

 

 

 

 

$

734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Core

 

$

2,058

 

$

142

 

$

388

 

$

10,317

 

$

877

 

$

1,466

 

$

317

 

$

4,803

 

$

4,933

 

$

19,480

 

$

5,794

 

$

50,575

 

$

0

 

$

50,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Back Bar

 

$

46,677

 

$

29,153

 

$

32,221

 

$

16,223

 

$

7,044

 

$

24,027

 

$

13,847

 

$

5,684

 

$

31,377

 

$

38,288

 

$

29,208

 

$

273,749

 

$

286,678

 

$

560,427

 

Core

 

$

40,401

 

$

29,153

 

$

31,732

 

$

16,154

 

$

5,272

 

$

23,878

 

$

13,099

 

$

4,775

 

$

29,032

 

$

29,771

 

$

24,552

 

$

247,819

 

$

286,678

 

$

534,497

 

Antica

 

$

247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

15

 

$

72

 

 

 

 

$

231

 

 

 

 

$

565

 

$

73

 

$

638

 

Anushka

 

$

987

 

 

 

 

 

 

 

 

 

 

 

 

 

$

100

 

$

241

 

 

 

 

 

 

 

 

 

 

$

251

 

$

1,579

 

$

1,370

 

$

2,949

 

Biotone

 

$

350

 

$

638

 

$

267

 

 

 

 

$

120

 

 

 

 

 

 

 

 

 

 

$

159

 

 

 

 

$

50

 

$

1,584

 

 

 

 

$

1,584

 

Bluewick

 

 

 

 

 

 

 

$

22

 

 

 

 

 

 

 

 

 

 

 

 

 

$

7

 

 

 

 

 

 

 

 

 

 

$

29

 

$

90

 

$

119

 

Bumble

 

$

1,700

 

$

149

 

 

 

 

 

 

 

 

 

 

$

576

 

 

 

 

$

24

 

$

870

 

$

1,594

 

$

938

 

$

5,851

 

$

1,465

 

$

7,316

 

Claus Porto

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

$

0

 

Cosmedicine

 

$

10,357

 

$

3,888

 

$

3,504

 

$

5,478

 

$

4,567

 

$

4,644

 

$

3,667

 

$

2,202

 

$

3,375

 

$

3,144

 

$

3,950

 

$

48,776

 

$

43,267

 

$

92,043

 

Davines

 

 

 

 

$

662

 

$

393

 

 

 

 

 

 

 

$

182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,237

 

$

37

 

$

1,274

 

DDF

 

$

554

 

$

60

 

 

 

 

 

 

 

 

 

 

 

 

 

$

755

 

 

 

 

 

 

 

 

 

 

$

650

 

$

2,019

 

 

 

 

$

2,019

 

Dragonfly

 

$

7,207

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,367

 

$

3,698

 

$

233

 

 

 

 

 

 

 

 

 

 

$

13,505

 

$

2,934

 

$

16,439

 

Elemis

 

$

1,596

 

$

3,363

 

$

670

 

$

3,042

 

 

 

 

$

2,042

 

$

1,564

 

$

302

 

 

 

 

 

 

 

$

877

 

$

13,456

 

$

7,913

 

$

21,369

 

ESS Aromatherapy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

$

4

 

$

4

 

Essie

 

$

2,236

 

 

 

 

 

 

 

$

2,356

 

 

 

 

$

171

 

$

279

 

 

 

 

 

 

 

$

527

 

$

158

 

$

5,727

 

$

0

 

$

5,727

 

GK

 

$

3,134

 

$

231

 

$

15

 

$

40

 

 

 

 

$

2,030

 

$

1,726

 

$

148

 

 

 

 

 

 

 

 

 

 

$

7,324

 

$

131,526

 

$

138,850

 

Goldwell

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,334

 

 

 

 

$

3,334

 

IS Clinical

 

 

 

 

$

1,319

 

 

 

 

$

3,564

 

$

65

 

$

5,106

 

 

 

 

 

 

 

 

 

 

$

1,179

 

$

2,254

 

$

13,487

 

$

4,788

 

$

18,275

 

Kerastase

 

 

 

 

$

5,815

 

$

7,468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,787

 

$

2,916

 

$

7,404

 

$

25,390

 

 

 

 

$

25,390

 

LaTherapie

 

 

 

 

 

 

 

 

 

 

$

1,177

 

 

 

 

$

694

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,871

 

 

 

 

$

1,871

 

L’Oreal

 

$

3,131

 

$

9,634

 

$

18,798

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,543

 

$

20,106

 

$

13,073

 

$

3,920

 

$

70,205

 

$

60,583

 

$

130,788

 

Mana

 

$

446

 

$

13

 

 

 

 

 

 

 

$

327

 

$

374

 

 

 

 

$

53

 

 

 

 

 

 

 

 

 

 

$

1,213

 

 

 

 

$

1,213

 

MD Skincare

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

150

 

 

 

 

$

700

 

$

204

 

 

 

 

$

1,054

 

 

 

 

$

1,054

 

Milbon

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

220

 

$

826

 

$

1,046

 

 

 

 

$

1,046

 

Nars

 

$

42

 

 

 

 

 

 

 

$

497

 

 

 

 

$

418

 

$

66

 

 

 

 

$

11

 

 

 

 

$

116

 

$

1,150

 

$

439

 

$

1,589

 

Naturalessa (ANU)

 

$

468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

90

 

$

558

 

 

 

 

$

558

 

PhytoSpecific

 

 

 

 

$

270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

60

 

$

330

 

$

30

 

$

360

 

Redken

 

$

1,789

 

$

1,683

 

 

 

 

 

 

 

$

141

 

 

 

 

 

 

 

$

161

 

$

1,314

 

$

3,574

 

$

1,856

 

$

10,518

 

$

7,449

 

$

17,967

 

Skinceuticals

 

 

 

 

 

 

 

$

595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

595

 

 

 

 

$

595

 

Spatech

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

500

 

 

 

 

$

500

 

Swissline

 

 

 

 

 

 

 

 

 

 

 

 

 

$

52

 

 

 

 

 

 

 

 

 

 

 

 

 

$

178

 

$

312

 

$

542

 

 

 

 

$

542

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tri-K (Collagen Sheets)

 

$

6,157

 

$

1,428

 

 

 

 

 

 

 

 

 

 

$

1,340

 

$

938

 

$

30

 

 

 

 

$

2,931

 

 

 

 

$

12,824

 

$

24,710

 

$

37,534

 

Wella

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

710

 

 

 

 

$

840

 

$

1,550

 

 

 

 

$

1,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Core

 

$

6,276

 

$

0

 

$

489

 

$

69

 

$

1,772

 

$

149

 

$

748

 

$

909

 

$

2,345

 

$

8,517

 

$

4,656

 

$

25,930

 

$

0

 

$

25,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory Total

 

$

155,438

 

$

98,556

 

$

85,275

 

$

50,763

 

$

24,288

 

$

59,102

 

$

35,517

 

$

27,878

 

$

85,510

 

$

104,255

 

$

62,509

 

$

789,091

 

$

599,839

 

$

1,388,930

 

--------------------------------------------------------------------------------