Exhibit 10.11

LAURUS MASTER FUND, LTD.
c/o M&C Corporate Services Limited
P.O. Box 309 GT
Ugland House
South Church Street
George Town
Grand Cayman, Cayman Islands

May 4, 2007

TrueYou.com Inc.
7 Corporate Park, Building 501
Norwalk, CT 06851
Attn: Matthew Burris

 

 

 

 

Re: Restricted Account: Account Number 270-405-0470,

 

Account Name: Laurus Master Fund - TUYU, maintained at North Fork Bank (the
“Restricted Account”).

          Reference is made to (i) that certain Amended and Restated Securities
Purchase Agreement, dated as of March 4, 2007 (as amended, modified, restated or
supplemented from time to time, the “Purchase Agreement”), by and between
TrueYou.com Inc., a Delaware corporation (the “Company”), and Laurus Master
Fund, Ltd. (the “Purchaser”); (ii) that certain Restricted Account Agreement,
dated as of May 4, 2007 (as amended, modified, restated or supplemented from
time to time, the “Restricted Account Agreement”), by and among the Company,
Laurus and North Fork Bank (the “Bank”). Capitalized terms used but not defined
herein shall have the meanings ascribed them in the Purchase Agreement or the
Restricted Account Agreement, as applicable.

 

 

 

 

I.

Funding Amount.

          Pursuant to Section 3.2 of the Purchase Agreement, the Company is
required to place $12,914,256.61 (the “Funding Amount”) in the Restricted
Account and, subject to the provisions of this letter, the Purchase Agreement
and any Related Agreement, maintain such amount in the Restricted Account until
such time as the Company and its Subsidiaries shall have satisfied all of the
Funding Amount Conditions (as defined herein) and to assign the Restricted
Account for the benefit of the Purchaser as security for the performance of the
Company’s obligations to the Purchaser.

          The Purchaser and the Company desire to clarify certain aspects
regarding the use of the Funding Amount contained in the Restricted Account, and
for good consideration, the receipt and sufficiency of which is here
acknowledged, the Company and the Purchaser agree that, upon the satisfaction of
the Funding Amount Conditions, the Purchaser shall direct the Bank, pursuant to
a Release Notice (as defined in the Restricted Account Agreement), to wire the
Funding Amount to such bank account as the Company may direct the Purchaser in
writing. The Purchaser shall not be under any obligation to release any amount
pursuant to this paragraph and the release of such

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amounts shall be in the Purchaser’s sole and absolute discretion. Releases in
accordance with the cash requirements of the Company, as outlined in the Budget
attached hereto as Exhibit A (the “Budget”), shall not deviate from the amounts
detailed in the Budget by greater than 10% of such amount.

 

 

 

 

II.

General.

                    In the event of any Event of Default under the Purchase
Agreement or under any of the Related Agreements the Funding Amount and the
Interest Amount shall revert to the Purchaser, and the Purchaser reserves all
rights and remedies contained in the Purchase Agreement and the Related
Agreements.

                    This letter may not be amended or waived except by an
instrument in writing signed by the Company and the Purchaser. This letter may
be executed in any number of counterparts of the entire document or of the
signature pages hereto, each of which shall be an original and all of which,
when taken together, shall constitute one agreement. Delivery of an executed
signature page of this letter by facsimile transmission shall be effective as
delivery of a manually executed counterpart hereof or thereof, as the case may
be. This letter shall be governed by, and construed in accordance with, the laws
of the State of New York. This letter sets forth the entire agreement between
the parties hereto as to the matters set forth herein and supersede all prior
communications, written or oral, with respect to the matters herein.

          If the foregoing meets with your approval please signify your
acceptance of the terms hereof by signing below.

 

 

 

 

Signed,

 

 

 

 

Laurus Master Fund, Ltd.

 

 

 

 

By: 

 

 

 

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Name:

 

Title:

Agreed and Accepted this 4th day of May 2007.

 

 

 

TrueYou.com Inc.

 

 

 

By: 

 

 

 

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Name:

 

Title:

 

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Schedule A

Budget

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