ent001424-077

February 6th, 1958 Angelbread Foundation, Ino. 'f Las Vegas, Nevada Dear Sirs: Confirming our several oral discussions, we hereby agree to develop a market for Angelbread baked from a recipe used by the Sisters of St. Dominic, at Rose de Lisa Hospital, at Henderson, Nevada, from which recipe we have developed a technique for baking this bread and using the recipe in commercial bakeries. Our proposal is conditioned upon your granting to us the exclusive right and privilege to bake and sell the bread produced from this recipe, with such modifications as may be In our opinion necessary to make the bread produced practical and adaptable to production in various commercial bakeries* this exclusive grant referred to shall include all markets throughout the United States of America, its possessions, and the Dominion of Canada except in the City of Las Vegas, State of Nevada and its surrounding trade area* We agree to use our best efforts to make necessary arrangements with various bakeries to carry out the terms of this agreement. In consideration of the exclusive rights hereby granted, we agree that there shall be paid a royalty or charge in the sum of three cents per leaf on net sales (the term "net sales" shall not include returned merchandise or damaged or crippled products) of said bread to be allocated as follows: One cent thereof shall belong to you as your property; one cent thereof shall belong to us as our property; and one cent thereof shall be available for advertising, developing, marketing, and other expenses to be spent at our Joint direction and under our Joint supervision. It shall be a part of our agreement that the wrapper shall be substantially as designed by the Angelbread Foundation and shall bear legends to the effeot that the product is prepared from a baking recipe or formula used at Rose de Lima Hospital, Sands Hotel* Las Vegas* Nevada. We are, also* of the opinion that agreements with bakeries for the production and sals of the bread should be made by Angelbread Foundation* and, accordingly ask that you grant us exclusive authority to make such agreements on behalf of the Foundation. You, of course, understand that we cannot guarantee the payment of royalties from bakeries with whoa we deal but we shall use our best efforts and Judgment in the selection of responsible bakeries to become a part of this program Thais will undoubtedly arise a number of details to be worked out from time to time when we finally go into the baking, marketing and developing of this product, but it appears to us that with this basic understanding you may feel that we have committed ourselves and we* in turn, will be able to proceed with the assurance that you have committed yourselves*