Umm... couldn't you just use costumes and broadcast dead?
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This works:
First make a Lives Variable
Now Put a script on your "bad guy" :
<when green flag clicked>
<if><touching[ Enemy ]>
<change{ Lives }by( -1 ) >
<glide( 1 )secs to x Starting Position )y
Starting position ) >
<end>
Now if you touch it it will make your sprite lose a "life" and go to whatever position you specify.
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