SpaMedica Medical Group Philosophy and Mission Statement

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SpaMedica Medical Group Philosophy and Mission Statement SpaMedica is North America s oldest freestanding, retail space medical spa. I started SpaMedica 7 years ago and since that time it has grown in size, reputation and sophistication. I have opened and operated other SpaMedica retail locations and during this time have built a sophisticated and coordinated business operation. As we have grown, learned, evolved and improved, our success has stemmed from our underlying retail value proposition and our vision and mission statements have remained the same: SpaMedica Credo Awesome customer service, excellent clinical outcomes for ALL of our patients, ALL of the time. I created the SpaMedica Medical Group to facilitate the vision of the SpaMedica franchise system, namely to provide a very high quality, safe, efficacious and legal medical advisory and medical director structure for the growing number of SpaMedica franchisees, all of whom must be able to deliver the SpaMedica Credo. The corporate practice of medicine in the United States and the myriad of federal and state laws and regulations require a very vigilant medical group to facilitate the growth, expansion and service delivery of retail outlet SpaMedica clinical services. The franchisee AND the physician medical directors must BOTH benefit financially and be protected professionally and legally. Above all, the SpaMedica credo of awesome service and excellent outcomes for all of the patients, all of the time, must be paramount. Awesome service and excellent outcomes mean a high value must be placed on training to ensure the proper delegation and execution of these services. The SpaMedica Franchisee Clinical Services training manual outlines and details the nature of my philosophy on delegation that places value on training. The franchisee will send their delegated act professional(s) (Nurse, Licensed Nurse Practitioner, Physician s Assistant, Medical Assistant or Aesthetician), depending upon the state regulations on the delegation of laser and needle based therapy. It is required that each physician in our medical group also come up for, or provide evidence of similar certification. Physicians are under siege from managed care all over North America. The aesthetic enhancement industry is booming and SpaMedica is the market leader in the medical spa sector. I hope, through your roles and relationships with the SpaMedica Medical Group that physicians and franchisees will flourish and profit together, while our SpaMedica patients receive the awesome service and excellent medspa outcomes they deserve. I 2.1

SpaMedica Delegation of Services Protocol 1. All Nurses, Nurse Practitioners, Physician s Assistants, Medical Assistants and aestheticians must complete the SpaMedica Franchisee Clinical services training program. 2. All physician members of the SpaMedica Medical Corporation must view the DVD series and pass the examinations with an 80%, as must all the franchisee Professionals (RNs, LPNs, PAs, aestheticians, etc.). 3. All Nurses, Nurse Practitioners, Physician Assistants, Medical Assistants and Aestheticians must pass the certification exam. 4. The initial certification and examination process will consist of over 80 hours of hands-on training in the following categories: First 20 hours 1. Laser Physics 2. Laser Safety 3. Basic Science of the Skin 4. Basic Science of Skin Aging 5. Clinical Laser Procedures FotoFacial technique FotoFirm technique ALA Acne technique Hair Removal technique 6. Basic Science of Fat and Cellulite VelaSmooth technique Second 64 hours 7. Needle based therapy Botox Fillers 8. SonoPeel : Treatment of the Stratum corneum 9. SonoFacial : Product treatment of the dermis 10. MyoFacial : Non surgical lifting of the aging face and neck 11. SpaMedica Skin care I 2.2

SpaMedica Franchisee Clinical Services Exam 5. Completion of the Advanced FotoFacial RF course. 6. Successful completion of the laser and M.E.D.U.C.E. II company inservice course and complete review of the operations manual. 7. Ongoing yearly Clinical CME and updates will be required by the SpaMedica Medical Group and franchisor. 8. Onsite assessments and evaluation (announced and unannounced) will be conducted intermittently throughout the year and must pass in order to maintain certification. I 2.3

Your SpaMedica Franchisee Clinical Training Program The SpaMedica Franchisee clinical training program is the most comprehensive of its kind. You will spend almost 100 hours of time learning and mastering the SpaMedica method of delivering awesome service and excellent outcomes. We set our training standards as high for our Franchisee professionals as we have established the SpaMedica brand of excellence in the marketplace. The week you spend in the SpaMedica Franchisee Clinical Training school will be the kickstart you will need to launch successfully. SpaMedica Medical Corporation will be an ongoing commitment the maintenance of excellent clinical service skills for all franchisees and we will work with all of our franchisee partners to ensure our clinical expertise continues to set the standard for excellence throughout the medical spa industry. Your SpaMedica Franchisee Clinical Services Training Manual You will find our SpaMedica services menu unique and compelling. A unique and compelling services menu demands a rigorous training manual. Ideally, we strive to get the Franchisee Clinical services manual out to each franchisee trainee well in advance of the training week, so that you have had an opportunity to READ THE MANUAL ONCE THOROUGHLY BEFORE YOU COME UP FOR THE TRAINING. During your training week, you will be reading the manual again each evening, reviewing all the material for the next day. How to Use the SpaMedica Franchisee Training Manual The SpaMedica Franchisee Training Manual is but one part of the coordinated SpaMedica comprehensive clinical training program. The Manual itself or the DVD series are not substitutes for live demonstrations, hands-on learning and experience. The Manual and the DVD series should NEVER BE USED IN ISOLATION without the SpaMedica live demonstrations and hands-on experience. Ultimately, the hours of hard work you put into this SpaMedica Franchisee clinical training will pay off in an enhanced ability to deliver the awesome service and excellent outcomes that SpaMedica is known for. Of course, successful completion of the SpaMedica Clinical Franchisee Training Program, either in part, or in full, in no way guarantees clinical or economic success. Clinical and economic success will require hard work, dedication, passion, focus and commitment. I 1.1

The Daily Program The Clinical Services manual follows the logical sequence of therapeutic intervention and the step ladder of options that SpaMedica offers it clients. In general, your training will follow closely this sequence. Each day during the Clinical Training week there will be clinical topics, live demonstrations and live hands-on treatment training. The night before each day you will be asked to have read and reviewed the manual and viewed the DVD series on the topics for the following day. Thus, each day you arrive you will have already read the manual and viewed the DVD for that day s work and will be prepared for the examination at the end of the day. The Acknowledgement of Complete Comprehension At SpaMedica Franchisee Clinical Training school, we are here to ensure all your questions are thoroughly answered. Each and every Franchisee professional is empowered to go out and provide awesome service and excellent clinical outcomes. At the end of each chapter and section in your clinical manual you will find an Acknowledgment of Complete Comprehension form. You must sign this sheet and hand it in each day from the night before. Feel free to write down any questions on any topics or areas of the manual that do not understand and only sign each sheet when you have no unanswered questions from that section or chapter and you understood all the text within its pages. Your Acknowledgement of Complete Comprehension forms will be collected each morning and time afforded for answering each and every question. The Clinical Examinations At the end of each day there will be a written clinical examination. The written examination will cover the clinical and basic science topics from that day and from your reading and DVD viewing the night before. You must achieve a score of 80% on each test in order to pass. You will have an opportunity to rewrite any examination that you failed to achieve the minimum score, BUT, you must achieve the 80% on each test BEFORE you finish the SpaMedica Franchisee clinical training week. The Medical Spa Market What is a medical Spa you ask? The medical spa, as the name implies, is a retail space where medical aesthetic services, treatments and products are delivered. The medical spa market grew out of a need for a middle ground and alternative delivery environment than the basic visit to the doctor s office and the traditional day spa. The visit to the doctor s office is most often associated in the consumers mind with lengthy waiting time to book an appointment, poor service when you show up, little in the way of service excellence, unwell people in reception and a managed care feel. Despite the limitations of a doctor s office for the delivery of aesthetic services, this is still where the majority of medical spa treatments are performed. This is good for a business like SpaMedica, as we excel in awesome service and excellent outcomes. The traditional day spa, however, is all about service. Personal, hands-on attention, but the delivery I 1.2

of non-medical, puff and fluff type therapies, with little long-term efficacy and no medical validity. There will always be a role for massage, aromatherapy, traditional facials, body wraps and incense; however, it is not the tremendous growth market, nor profit model that the medical spa industry is witnessing. There will be some traditional day spas that attempt to incorporate the medical procedures, but increasingly stringent state laws will minimize this encroachment. The medical spa is the middle ground between the doctor s office and the day spa, hence the name SpaMedica!!!!! Where the biological credibility, validity and efficacy of medicine meets the luxury, service and ambiance of a day spa. SpaMedica is arguably the oldest and most reputable medspa in North America. Dr. Mulholland created, patented, taught and popularized most of the services offered in a medical spa and has created the SpaMedica Franchisee Clinical Services Manual and DVD training series. The consumer market is ready for the MEDSPA! In fact, the timing for this retail medicine model is perfect. North America is a fast-paced, retail oriented, service and convenience driven environment. Those baby boomers who consume aesthetic medical services in the greatest numbers have long since lost the stigma or social embarrassment over having a medical spa treatment. Every week in magazines, newspapers, TV shows like the Swan, Extreme Makeover or Nip and Tuck, the concept of using non-invasive aesthetic medicine to look good as well as feel good has become well entrenched. Cosmetic medicine is here to stay. The question is where will consumers want to have these procedures. SpaMedica has led the retail market in this sector by proving that consumers would much rather seek these non-invasive treatments in the convenience, comfort and safety of a local SpaMedica located in an open-air or closed-air suburban or urban retail mall environment where they can rejuvenate at the same time as they address the many other weekly needs that draw them to these retail spaces. Who are these consumers? Who are the baby boomers? Baby boomers are those individuals born between 1946 1964 who now comprise almost 50% of all North Americans. That s 150 million people! In fact, there is a person turning 50 years old every 8 seconds! That s one female every 16 seconds! Now these baby boomers are not like their parents none of that growing old gracefully stuff. Baby boomers created the cult of youth and vitality from jogging to yoga from diets to palates baby boomers have a mantra I want to look good and feel good. The problem as we age, is that often we do feel good, but we look older and less vital than we feel. Baby boomers are also self-actualizers and if someone can fix a problem or concern about themselves, they will do so. Hence the growth in medical spa services. The aesthetic medical services sector (non-medically necessary cosmetic medical treatments) totaled 1.9 billion dollars in 2003 and is expected to grow to over 10 billion dollars over the next few years. When you look at the American Society of Plastic Surgeons stats, already 40% of all procedures are non- I 1.3

surgical and these are the fastest growing treatments. SpaMedica is a unique retail opportunity! One of the country s leading medical spas opening in a retail space model that is preferred by the baby boomer consumer, with a unique services menu that bundles and retains clients and a business and marketing franchisor support structure enveloping it all! It is an exciting time to be in this medical spa market and it is exciting to have you grow with us. The demand for SpaMedica and the medical spa industry it leads will grow for the next 15 20 years. You are ideally situated to gain a foothold, to secure some market share and grow with this expansive and dynamic market segment. We look forward to growing with you. R. Stephen Mulholland, M.D. I 1.4