August 4, 2002

Dr. Finus Gaston
Alabama Football
323 Bryant Drive
Tuscaloosa, AL 35487

Dear Finus:

I hope all is going well with you. Just to let you know, I had a conversation with Bill Battle on Friday. I called him to see about setting up a standard licensing agreement for Set #3 of my Collector’s Mugs Series. As you know, sets #1 and #2 were both licensed by the University. Bill suggested that I send you a proposal of what we would like to do with set #3 and copy him with same. I have enclosed proofs of the proposed box layout, showing just how the University's marks would be used—very similar to the first two sets.

Because the sales of sets #1 and #2 of the Collector's Mugs were not what we expected them to be, I plan to cut down on the number of mug sets in #3. It will be limited to just 5,000 sets, but the pricing will remain the same: $69.95 retail and approximately $35.00 wholesale for a set of four mugs.

Also, I have not heard back from you regarding my proposal for creating licensed calendars for 2003. I have changed #78 to #72 in The Gamebreaker to prevent any roadblock by the NCAA regulations. If you are interested in pursuing that project, I need to hear from you no later than the end of this week, as we are gearing up for an immediate production run. Should you elect not to participate in the calendar project, I will (of course) not include the verbiage or the marks, which are owned by the University as shown on the prototype that I sent to you. And, I would like to offer this food for thought on the issue of the University/CLC's position claiming the right to license its marks, used either outright or implied, as they might appear in works of art. It seems that we are all in agreement that the issue remains a cloudy one—albeit perhaps, less cloudy now on the side of the artists. While the University/CLC has founded its position on advice from paid attorneys, who clearly have the financial interests of the University/CLC at heart, the artists' position has been reinforced by a non-biased federal judge's ruling of our First Amendment Rights as litigated in the Tiger Wood/Rick Rush case. The University/CLC is hoping that the ruling is overturned on appeal. The artists are praying that it does not. I propose that in the meantime, we maintain good relationships by licensing the usage of the marks on these things we both agree are subject to licensing. After all, either way that ruling ends up, will not the University/CLC still want to continue to license its mark to artists? And, like I explained to you that day in your office, even if the ruling stands I will want to work with you on licensing certain artwork in the future. There are many ways that I can utilize the marks outside the realm of the constitutionally protected artwork, therefore necessitating such licensing.

Please call me at 205-979-5088 after you have had a chance to review this proposal. If I do not hear back from you or Bill by the end of the week, I shall assume that you are declining to participate in both the calendar project and the mug project.

Best wishes and Roll Tide!

Respectfully submitted,

Daniel A. Moore, President
NEW LIFE ART, INC.

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