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DOCUMENT TITLE: Re: Church of Spiritual Technology
SUBJECT: Correcting a Supplemental Submission from Church of Spiritual Technology (CST) to IRS concerning tax exemption
PARTIES: Lyman Spurlock, "co-founder" and President of CST; Marvin Friedlander, Exempt Organizations Ruling Branch, Internal Revenue Service; Religious Technology Center (RTC); Sherman Lenske, Stephen Lenske, and Lawrence E. Heller, silent in this record, but Special Directors of CST; Purportedly, L. Ron Hubbard

BACKGROUND AND NOTES

This 21 May 1987 letter from CST "co-founder" and President Lyman Spurlock to IRS's Marvin Friedlander is significant for several things.

First, it gives us our only glimpse and knowledge of an "Option Agreement" purportedly executed on 10 May 1982 by and between "L. Ron Hubbard" and a party or parties unknown representing CST. The only problem is that CST didn't exist on 10 May 1982.

The letter also reveals the existence of two proposed, but never signed, assignment agreements of 10 May 1982: one for the Advanced Technology, and one for the marks (trademarks and service marks).

Unfortunately, Spurlock also contradicts fellow CST "co-founder" Sherman Lenske by claiming that the actual final assignment agreements involving RTC--one for the Advanced Technology, one for the marks--were both executed by "Hubbard" and RTC on 16 May 1982, not by Hubbard on 10 May 1982 and RTC on 16 May 1982 as Lenske has claimed. Lenske, in a 1995 Declaration, tells an elaborate story to account for the fact that "Hubbard's" notary put 10 May 1982 on both documents for Hubbard's signing, while the notary for the RTC signors put 16 May 1982, and both documents have 16 May 1982 written in at the top.

It's all very muddied and contradictory, so typical of lying criminals attempting to cover up their crimes, but there's no reason to get as confused as they would like you to get: we've got all the documents laid out in chronological order, even accounting for the phantom "Option Agreement" between "LRH" and CST, plus the phantom "proposed" AT Agreement and "proposed" marks Agreement that Spurlock says were never executed. We've got all the lies and contradictory stories documented. Of course the IRS has all these phantom documents, and if you think they ought to cough them up, let 'em know about it.



{CHURCH OF SPIRITUAL TECHNOLOGY LETTERHEAD}

                                        May 21, 1987

Mr. Marvin Friedlander
Exempt Organizations Ruling Branch
Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, DC 20224

Attn:           OP:E:EO:R:3-RHD, Room 6033

                Re:   Church of Spiritual Technology

Dear Marvin:

As you have been informed by our authorized representative, the discussion relating to L. Ron Hubbard's retained rights to the Advanced Technology in the Supplemental Submission the Church of Spiritual Technology ("CST") recently filed has several inaccuracies.  The purpose of this letter is to correct these inaccuracies.  Notably, these errors do not affect CST's position in the Supplemental Submission that it must be treated as a separate organization for tax purposes.

The Supplemental submission erroeously states in several places that Mr. Hubbard retained a right of reversion in the Advanced Technology.  These statements were based on an assignment agreement Mr. Hubbard proposed to enter into with Religious Technology Center ("RTC") on May 10, 1982, the date he granted CST the option to the Advanced Technology. Paragraph 3 of this proposed assignment agreement provides that Mr. Hubbard or his heirs, successors or assigns had a right of reversion with respect to the Advced Technology Mr. Hubbard assigned to RTC if RTC fails to obtain tax-exempt status under section 501(c)(3).  A copy of this proposed assignment agreement was attached to CST's option agreement, which was submitted in the record of this determination proceeding.

In fact, Mr. Hubbard and RTC did not execute the proposed agreement.  In the actual assignment agreement, which Mr. Hubbard and RTC executed on May 16, 1982, Mr. Hubbard retained only a limited power of appointment over the Advanced

Mr. Marvin Friedlander
Internal Revenue Service
May 21, 1987
Page 2

Technology.  Paragraph 4 of the actual agreement provides that if RTC does not obtain recognition of its exemption under section 501(c)(3), it must transfer its rights to the Advanced Technology "to another Scientology entity having such tax-exempt status" as designated by Mr. Hubbard or his heirs, successors or assigns.

Thus, Mr. Hubbard did not retain a right of reversion in the Advanced Technology; he retained only a limited power to designate a section 501(c)(3) organization to receive RTC's rights in the event RTC does not obtain tax-exempt status.

The actual assignment agreement is in the record in RTC's determination proceeding but was not submitted in this proceeding.  A copy of the actual agreement therefore is enclosed for inclusion in CST's record.  You should note that while RTC's record contained the actual agreement, your initial adverse determination letter to RTC also erroneously assumed that Mr. Hubbard retained a right of reversion in the Advanced Technology (as well as the marks).  See January 7, 1986 letter to RTC at 20.

In order to clarify the administrative record, we revised the reference in CST's Supplemental Submission to Mr. Hubbard's retained rights in the Advanced Technology to reflect the actual facts.  Copies of revised pages B-15, B-19, B-21, E-10, E-25 and E-26 are enclosed.  Also enclosed are copies of the marked-up pages that indicate all changes.

The assignment agreement between Mr. Hubbard and RTC with respect to the marks that is included in the record of this proceeding also is a proposed agreement that was attached to the option agreement between Mr. Hubbard and CST [dated earlier in this letter at 10 May 1982].  While the assignment agreement they actually executed on May 16, 1982 was not changed, a copy of the executed agreement also is enclosed to [sic] CST's record will be complete.

Thank you for your cooperation in correcting these errors.  If you have any questions, please be in touch.

                                   Sincerely yours,

                                   {SIGNATURE}
                                   Reverend Lyman Spurlock
                                   President

Enclosures

                           ASSIGNMENT AGREEMENT (LRH/RTC)
                           (Advanced Technology-U.S.)

     This Assignment Agreement is made this 16th day of
May, 198_, by and between:

     LAFAYETTE RONALD HUBBARD, also known as L. RON HUBBARD,
whose address is c/o The Explorers Club, 46 East 70th Street,
New York, New York 10021, and whose former addresses include
Saint Hill Manor, East Grinstead, Sussex, England; 1827
19th St., N.W., Washington, D.C.; 37 Fitzroy St., London,
W.l, England; 2005 West 9th Street, Los Angeles, California;
and Fort Harrison Avenue No. 210, Clearwater, Florida,
(hereinafter referred to as "LRH"); and

     RELIGIOUS TECHNOLOGY CENTER, a California non-profit
religious corporation having a place of business at 6517
Sunset Boulevard, Los Angeles, California 90028 (hereinafter
referred to as "RTC").

                    RECITALS

     A.  LRH is the founder of the religion of Scientology
which is based on a body of truths, and the technology for
applying them, that were discovered, described and refined by
LRH through research and study which have continued for more

than forty years, and are contained in the writings and recorded
spoken words of LRH with respect to Scientology and the organi-
zations formed to disseminate the religion of Scientology
(hereinafter referred to as "the Scientology Scriptures").

     B.  LRH has published much of the Scientology Scriptures
for the use and benefit of mankind through the religion and
organizations of Scientology.  Included in the Scientology
Scriptures is a substantial body of confidential advanced
technology that has not been published by LRH, but instead
has been protected and maintained as confidential
property of LRH (hereinafter referred to as "the Advanced
Technology"), and issued to Advanced Scientology Organizations
for their good usage.  The Advanced Scientology Organizations,
in turn, have made the Advanced Technology available
to those who have attained, through processing, an appropriate
level of development in the religion of Scientology to
properly grasp and utilize the Advanced Technology, and only
upon a confidential basis and with an absolute obligation to
protect and maintain its confidentiality.  The right to use
the Advanced Technology and make it available to others has
been, and is, subject to the permission of LRH.

     C.  RTC was formed by Scientologists, with the approval
of LRH, to act as the protector of the religion of Scientology
and to own, protect, and control the utilization of the
Advanced Technology in the United States of America and its
territories and possessions (hereinafter referred to as "the

                                                 -2-

U.S.A.").  Representatives of RTC have received the Advanced
Technology and confidential materials containing the Advanced
Technology in the U.S.A., under the obligation of confidentiality
to LRH.  Lists of the Advanced Technology and the confidential
materials are attached as Exhibit 1 (Preclear/Pre-OT Processing
Levels) and Exhibit 2 (Auditor Training).

     D.  The purpose of this Assignment Agreement is to transfer
all rights in the Advanced Technology in the U.S.A to RTC, and
to prescribe certain terms and conditions governing its owner-
ship and use and the disposition of income received by RTC by
reason of its ownership and use.

                    AGREEMENT

     1.  Recitals.  The recitals are hereby made part of this
Agreement and are acknowledged to be true.

     2.  Assignment

          a.  Subject to the Option in Paragraph 3 hereof and the
Right of Reversion in Paragraph 4, LRH hereby assigns to RTC
his entire right, title and interest in and to the Advanced
Technology in the U.S.A., including all rights to use and to
license the use of the Advanced Technology in the U.S.A.
          b.  This assignment includes all rights owned by LRH
to protect the confidentiality of the Advanced Technology and

                                               -3-

to enforce in the U.S.A. the obligations of confidentiality of
those who have received the Advanced Technology in the past.

     3.  Option.  This assignment is subject to an option granted
by LRH to Church of Spiritual Technology, a California corpora-
tion (hereinafter "CST"), to purchase all of the rights assigned
to RTC under and pursuant to this Agreement for the sum of One
Hundred Dollars ($100.00).  This option shall be exercisable by
CST at any time if CST decides, in its sole discretion and
judgment, that RTC has failed to preserve and maintain the con-
fidentiality, purity and ethical use of the Advanced Technology
in accordance with the Scientology Scriptures, or that RTC's
ownership of the Advanced Technology in any way places the
Advanced Technology in danger of appropriation by any entity
that is outside or hostile to the religion of Scientology, or
that RTC has permitted and is permitng use of the Advanced
Technology in any way that is contrary to the Scientology
Scriptures and seriously damages the religion of Scientology.

     4.  Transfer if Tax-Exempt Status is Not Obtained
If at any time after one year from the date of execution of
this Agreement, RTC has not obtained tax-exempt status under
Section 501(c)(3) of the Internal Revenue Code of 1954, as
amended, and does not have a pending application for such
status or an appeal from a denial of such status in which
all administrative and judicial remedies have not been
exhausted, RTC shall transfer all of the rights assigned to

                                                 -4-

RTC under and pursuant to this Agreement to another Scientology
entity having such tax-exempt status, as designated by LRH,
his heirs, successors or assigns, subject to the Option in
Paragraph 3.

     5.  Disposition of Income Received
          a.  It is understood and agreed that RTC will make
appropriate charges, to be determined by RTC, for access to and
training in the Advanced Technology.
          b.  RTC shall apply at least ninety percent (90%) of
the gross income it receives by reason of the Advanced Tech-
nology to religious and charitable purposes, to be determined
by the Directors of RTC, other than the support of RTC and its
operations, that either are within purposes of the religion of
Scientology according to the Scientology Scriptures, or are for
the general purpose of advancing the moral and ethical level of
mankind.  Without limiting the generality of the foregoing,
acceptable purposes for use of this income shall be:

          (1)  establishing and maintaining an indestructible
                 record of the Scientology Scriptures;
          (2)  establishing and maintaining a museum of the
                 religion of Scientology;
          (3)  establishing religious schools, scholarships
                 and retreats;

                                            -5-

          (4)  supporting other qualified organizations of
                 the religion of Scientology; and
          (5)  publishing, disseminating and promoting
                 literature that is not part of the Scientology
                 Scriptures but which, in the judgment of the
                 Directors of RTC, is in concert with the broad
                 goals of Scientology and is worthy of support
                 for the general benefit of mankind.

          c.  RTC may retain up to ten percent (10%) of the gross
income derived by RTC by reason of the Advanced Technology, tos
support the operating and overhead expenses of RTC.

     Signed in duplicate at Los Angeles, California on the
date first above written.

                                            {SIGNATURE}
                                            Lafayette Ronald Hubbard

STATE OF CALIFORNIA         )
                            )   ss.
COUNTY OF Los Angeles       )

     On this 10th day of May, 1982, before
me, a Notary Public in and for said County and State, personally
appeared LAFAYETTE RONALD HUBBARD, known to me to be the person
described in, whose name is subscribed to, and who executed the
within instrument, and acknowledged to me that he executed the
same.

                                                 -6-

     IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my official seal, the day and year in this certificate
first above written.

                             {SIGNATURE}
                             Notary Public in and for Said County and State

{OFFICIAL SEAL
DAVID MISCAVIGE
NOTARY PUBLIC - CALIFORNIA
LOS ANGELES COUNTY
My comm. expires JAN 11, 1985}

                                            RELIGIOUS TECHNOLOGY CENTER
                                            By {SIGNATURE}
                                                   Its President
                                            By {SIGNATURE}
                                                   Its Secretary

STATE OF CALIFORNIA         )
                            )   ss.
COUNTY OF Los Angeles       )

     On this 16th day of May, 1982, before me,
a Notary Public in and for said County and State, personally
appeared Stephen Glen Marlowe and Laura Marlowe,
who, being duly swon, acknowledged themselves to be the
President and Secretary, respectively of RELIGIOUS TECHNOLOGY
CENTER, and that they, as such officers of such corporation,
being authorized so to do, duly executed the foregoing Agreement
as an act and deed of said corporation and for the purposes
therein contained.

     IN WITNESS THEREOF, I have hereunto set my hand and
affixed my official seal, the day and year in this certificate
first above written.

                             {SIGNATURE}
                             Notary Public in and for Said County and State

{OFFICIAL SEAL
BEV MUSTARD
NOTARY PUBLIC - CALIFORNIA
LOS ANGELES COUNTY
My comm. expires JAN 27, 1984}

                                      -7-

                     PRECLEAR/PRE-OT PROCESSING LEVELS

GRADE/LEVEL                        MATERIALS/STATE ATTAINED

Grade V & VA Release               The Power and Power Plus Processes
                                   (Power Release)
Grade VI Release                   R6 End Words (Whole Track Release)
Clear                              Clearing Course
OT I                               Section One Operating Thetan
OT II                              Section Two Operating Thetan
OT III                             Section Three Operating Thetan
OT IV                              Section Four Operating Thetan
OT V                               Section Five Operating Thetan
OT VI                              Section Six Operating Thetan
OT VII                             Section Seven Operating Thetan
OT VIII and above                  Section Eight Operating Thetan
                                   and above
NOTS OT Drug Rundown               New Era Dianetics for Operating
                                   Thetan Drug Rundown Completion
NED for OTs                        New Era Dianetics for Operating
                                   Thetans Completion
Solo NOTS                          Solo New Era Dianetics for Operating
                                   Thetans Completion
L - 10                             List 10
L - 11                             New Life Rundown
L - 12                             Flag OT Executive Rundown
OT Review Auditing

                               Exhibit 1              Page 1 of 1
                                -8-

                     AUDITOR TRAINING

CLASS-DESCRIPTION                  CERTIFICATE/FORMAL NAME

Class VII Auditor                  Hubbard Graduate Auditor
Class VII Case Supervisor          Hubbard Graduate Case Supervisor
Class VIII Auditor
(Confid. Section)                  Hubbard Standard Technical Specialist
Solo Case Supervisor               Hubbard Solo Case Supervisor
Class X Auditor                    Class X Auditor
Class XI Case Supervisor           Class XI Case Supervisor
Class XI Auditor                   Class XI Auditor
Class XII Case Supervisor          Class XII Case Supervisor
Class XII Auditor                  Class XII Auditor
NED for OT's Auditor               Hubbard Advanced Course Specialist
NED for OT's Case Supervisor       Hubbard Advanced Court Specialist
                                   Case Supervisor
Confidential Section of the
Solo Auditor Course
(R6EW Materials)
Senior NOT's Course
New Vitality Rundown Auditor's
Course
New Vitality Rundown
Supervisor Course

                               Exhibit 2
                                                      Page 1 of 1

                             ADDENDUM

     THIS ADDENDUM is effective January 19, 1982, and modifies
the Assignment Agreement - Advanced Technology - U.S. dated for
reference January 1, 1982, by replacing Exhibit 1 with the
following list of Preclear/Pre-OT Processing Levels.  With this
change only, the Agreement remains in effect.

                     PRECLEAR/PRE-OT PROCESSING LEVELS

GRADE/LEVEL                        MATERIALS/STATE ATTAINED

Grade V & VA Release               The Power and Power Plus Processes
                                   (Power Release)
Grade VI Release                   R6 End Words (Whole Track Release)
Clear                              Clearing Course
OT I                               Section One Operating Thetan
OT II                              Section Two Operating Thetan
OT III                             Section Three Operating Thetan
New OT IV                          Operating Thetan Drug Rundown
                                   Completion
New OT V                           Audited New Era Dianetics for
                                   Operating Thetans
New OT VI                          Hubbard Solo New Era Dianetics for
                                   Operating Thetans Auditing Course
New OT VII                         Solo New Era Dianetics for Operating
                                   Thetans Completion

                                  -1-

New OT VIII                        Truth Revealed
New OT IX                          Character
New OT X                           Operating
New OT XI                          Future
L - 10                             List 10
L - 11                             New Life Rundown
L - 12                             Flag OT Executive Rundown
OT Review Auditing

                                   {SIGNATURE}
                                   L. RON HUBBARD

                                   RELIGIOUS TECHNOLOGY CENTER

                                   By {SIGNATURE}
                                      Its President

                                   By {SIGNATURE}
                                      Its Secretary

                                  -2-

                           ASSIGNMENT AGREEMENT (LRH/RTC)
                                      (Marks)

     THIS ASSIGNMENT AGREEMENT is made this 16th day of
May, 1982, by and between:

     LAFAYETTE RONALD HUBBARD, also known as L. RON HUBBARD,
whose address is c/o The Explorers Club, 46 East 70th Street,
New York, New York 10021, and whose former addresses include
Saint Hill Manor, East Grinstead, Sussex, England; 1827
19th St., N.W., Washington, D.C.; 37 Fitzroy St., London,
W.l, England; 2005 West 9th Street, Los Angeles, California;
and Fort Harrison Avenue No. 210, Clearwater, Florida,
(hereinafter referred to as "LRH"); and

     RELIGIOUS TECHNOLOGY CENTER, a California non-profit
religious corporation having a place of business at 6517
Sunset Boulevard, Los Angeles, California 90028 (herein-
after referred to as "RTC").

                          RECITALS

     A.  LRH is the founder of the religion of Scientology
and has discovered, described and developed the religious
doctrines, beliefs, tenets, and practices upon which the
religion of Scientology is based, as contained in the writings
and recorded spoken words of LRH with respect to Scientology
and the organization formed for the purposes thereof (herein-
after referred to as "the Scientology Scriptures").

     B.  LRH originated, adopted and used, both personally and
through licensees, and, prior to this agreement, has been the
sole owner of, the terms SCIENTOLOGY and DIANETICS as service
marks for identifying services relating to applied religious
philosophy and spiritual healing technology, respectively, and
other service marks and trademarks relating to SCIENTOLOGY
applied religious philosophy, DIANETICS spiritual healing
technology, and the organizations relating thereto, including
the marks identified in the list attached as Exhibit A (herein-
after "the Marks").  LRH has caused the Marks to be registered
in many countries on this planet, and has caused applications
for other registrations to be filed, as indicated in the lists
attached as Exhibits B through T.

     C.  LRH has used and owned, and permitted others to use,
his name, initials and parts of his name in various ways in
connection with the services and organizations of the religion
of Scientology, as names, service marks and trademarks, in-
cluding use in titles of organizations, posts and courses, and
on certificates, and these uses are included within the term
"the Marks" as used in this Agreement, subject to the reserva-
tion by LRH of all rights of an individual regarding use of his
name, initials and parts thereof.

                            -2-

     D.  The hierarchy of the religion of Scientology has been
organized with the Church of Scientology International, a
California corporation (hereinafter "CSI"), as the Mother
Church and the highest ecclesiastical authority of the religion
of Scientology, committed and dedicated to the advancement and
dissemination of the religion of Scientology in accordance with
the Scientology Scriptures, and with other organizations of the
religion of Scientology under the ecclesiastical control and
supervision of CSI.

     E.  RTC was formed with the approval of LRH to be the
protector of the religion of Scientology and to maintain the
purity and ethical use of the philosophy and technology of the
religion, including services rendered under the Marks and
products associated with the Marks, and to own the Marks, with
all of the rights and responsibilities that are incident to and
required by ownership of the Marks in order to maintain their
validity, to protect the exclusivity of their use by faithful
organizations of the religion of Scientology, and to insure that
the nature and quality of all services and products that are
associated with the Marks are in accordance with the Scientology
Scriptures.

                            -3-

     F.  LRH wishes to transfer ownership, supervision and
control of the Marks and the goodwill associated with the
Marks to RTC, along with the authority and responsibility for
supervising the use of the Marks by CSI, and through CSI by all
of the organizations of the religion of Scientology that are
within the hierarchy governed by CSI, all in accordance with
the Scientology Scriptures, subject to the following terms,
conditions and reservations.

                         AGREEMENT

     1.  Recitals.  The recitals are hereby made part of
this Agreement and are acknowledged to be true.

     2.  Assignment.  Subject to the reservation of rights in
Paragraph 3 hereof, and the Right of Reversion and the Option
in Paragraphs 4 and 5, LRH hereby assigns to RTC his entire
right, title and interest in and to the Marks, and all registra-
tions and applications for registrations of the Marks that are
owned by LRH, including those identified in Exhibits B through T,
all goodwill of LRH associated with and relating to the Marks,
registrations and aplications, and all rights LRH may have to
apply for and receive registrations of the Marks that have not
been registered or applied for.

                            -4-

     3.  Reservation of Rights.
         a.  LRH hereby reserves and retains, for himself and
his heirs, successors and assigns, the nonexclusive right
to sell products and to license and contract with others to
sell products, relating to the religion and organizations of
Scientology and bearing or embodying any or all of the Marks
assigned by this Agreement, and to make appropriate use of, and
to license and contract with others to make appropriate use of,
the Marks in connection with administrative technology services
based upon the secular applications of the technology of LRH in
non-religious fields all free of any payment of compensation to
RTC.

         b.  Without limiting the generality of the Reservation
of Rights in subparagraph 3(a), categories of products that
are expressly included within this reserved right include books
and other publications, recordings including films, tapes
and phonograph records, electrometers, emblems and insignia,
and jewelry.

         c.  All embodiments of the Marks, including use as
emblems, insignia and jewelry, shall be accurate reproductions
of the Marks as used by RTC and those who are authorized by
RTC to do so.

         d.  The subject matter of all products, as defined
above, with which any of the Marks are used pursuant to this
reservation of rights shall be subject to the supervision

                            -5-

and approval of RTC.  Approval is hereby confirmed and
granted by RTC for all products that previously have been
sold by LRH or licensees of LRH bearing or embodying the
Marks, including the books, writings and lectures of LRH
prior to this Agreement, and the approval of RTC shall be
deemed to have been granted for all products that are
sold by LRH or licensees of LRH if RTC does not express its
disapproval, in writing, witihn ten (10) days after it
receives notice from LRH or his representatives of the
intention to tell any such product.

     e.  This reservation of rights shall not include the
right to use the Marks in connection with religious services.

     4.  Option.  This assignment is subject to an option granted
by LRH to Church of Spiritual Technology, a California corpora-
tion (hereinafter "CST"), to purchase all of the rights assigned
to RTC under and pursuant to this Agreement for the sum of One
Hundred Dollars ($100.00).  This option shall be exercisable by
CST at any time if CST decides, in its sole discretion and
judgment, that RTC has failed to preserve and maintain the
ethical use of the Marks in accordance with the Scientology
Scriptures, or that RTC's ownership of the Marks in any way
places the Marks in danger of appropriation by any entity that
is outside or hostile to the religion of Scientology, or that

                             -6-

RTC has permitted and is permitting use of the Marks in any way
that is contrary to the Scientology Scriptures and seriously
damages the religion of Scientology or the image or repute of
LRH.

     5.  Transfer If Tax-Exempt Status is Not Obtained.

If at any time after one year from the date of execution of
this Agreement, RTC has not obtained tax-exempt status under
Section 501(c)(3) of the Internal Revenue Code of 1954, as
amended, and does not have a pending application for such
status or an appeal from a denial of such status in which
all administrative and judicial remedies have not been
exhausted, RTC shall transfer all of the rights assigned to
RTC under and pursuant to this Agreement to another Scientology
entity having such tax-exempt status, as designated by LRH,
his heirs, successors or assigns, subject to the Option in
Paragraph 4.

     6.  Enforcement.  LRH expressly grants to RTC all rights
he may have to recover for past infringement of any of the
Marks, and all rights to enjoin future infringement and misuse
of the Marks and to recover damages for such future infringement
and misuse.  LRH retains no rights and no responsibility whatso-
ever with respect to enforcement of rights in the Marks, except
as to any of the Marks which are his name or initials.  As to

                             -7-

these, LRH retains all rights of an individual with respect to
the personal use of his own name and initials, and in particular
the right to use his name in all ways in connection with his
works and writings.

     7.  Recordings and Further Documents.
          a.  LRH shall cooperate with RTC in perfecting and
recording the title of RTC in all of the Marks, registrations,

and applications for registrations that are assigned by this
agreement, and shall execute all "Short Form" assignments
for recording, and all further documents that may be deemed
necessary or desirable by RTC for this purpose, at no expense
to LRH.  RTC shall be responsible for all recordings and
further proceedings, at its own expense.  If the reservation of
rights provided in Paragraph 3 should ever place any of the
Marks in danger of falling into the public domain because of
loss of distinctiveness as an indication of origin, LRH shall
cooperate with RTC in preventing the Marks from falling into
the public domain, including modification of the reservation of
rights, if necessary.

     8.  Assignment of Licenses

     Subject to the reservation of rights in Paragraph 3 here?
the option in Paragraph 4, and the transfer if tax exempt status ?
obtained in Paragraph 5, LRH hereby assigns to RTC all of his rights ?

                             -8-

title and interest in and to all oral and written licenses
which LRH has granted to others to use any of the marks in any
country on this planet, including the right to supervise and
control all licensed users, and to terminate all uses that are
not in accordance with the Scientology Scriptures.  Without
limiting the generality of the foregoing, expressly excluded
from this grant are certain licenses between LRH and AOSH DK
Publications Department A/S of Copenhagen, Denmark, now known
as New Era Publications (hereinafter referred to as "NEP")
pursuant to which LRH has authorized NEP to use some of the
Marks on certain products, including products in the cate-
gories identified in Paragraph 3b, hereof.  LRH retains the
right to maintain these agreements and other agreements of
this kind in effect, subject to the limitations that are
provided by this agreement.

     9.  License With CSI.  It is understood and agreed that
RTC shall enter into a License Agreement with CSI, substan-
tially in the form attached hereto as Exhibit U, and that
this License Agreement shall serve as the governing document
with respect to the rights and responsibilities of RTC and
CSI.

     10.  Ownership and Indemnity.

     a.  RTC acknowledges its full responsibility for the
Marks as owner thereof, assumes all existing obligations

                            -9-

relative thereto, and agrees to take all action necessary to
inform the public with respect to its ownership and control
of the Marks pursuant to this Agremeent.
     b.  RTC hereby indemnifies LRH and agrees to hold him
harmless from and against all liabilities, claims and
actions of any kind, and costs, including attorneys' fees,
which relate to the Marks or services in connection with
which they are used.

     Signed in duplicate at Los Angeles, California on the
date first above written.

                                {SIGNATURE}
                                Lafayette Ronald Hubbard

STATE OF CALIFORNIA         )
                            )   ss.
COUNTY OF Los Angeles       )

     On this 10th day of May, 1982, before
me, a Notary Public in and for said County and State, personally
appeared LAFAYETTE RONALD HUBBARD, known to me to be the person
described in, whose name is subscribed to, and who executed the
within instrument, and acknowledged to me that he executed the
same.

     IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my official seal, the day and year in this certificate
first above written.

                             {SIGNATURE}
                             Notary Public in and for Said County and State

                                        -10-

{OFFICIAL SEAL
DAVID MISCAVIGE
NOTARY PUBLIC - CALIFORNIA
LOS ANGELES COUNTY
My comm. expires JAN 11, 1985}

                                            RELIGIOUS TECHNOLOGY CENTER
                                            By {SIGNATURE}
                                                   Its President
                                            By {SIGNATURE}
                                                   Its Secretary

STATE OF CALIFORNIA         )
                            )   ss.
COUNTY OF Los Angeles       )

     On this 16th day of May, 1982, before me,
a Notary Public in and for said County and State, personally
appeared Laura Marlow and Stephen Glen Marlowe,
who, being duly swon, acknowledged themselves to be the
President and Secretary, respectively of RELIGIOUS TECHNOLOGY
CENTER, and that they, as such officers of such corporation,
being authorized so to do, duly executed the foregoing Agreement
as an act and deed of said corporation and for the purposes
therein contained.

     IN WITNESS THEREOF, I have hereunto set my hand and
affixed my official seal, the day and year in this certificate
first above written.

                             {SIGNATURE}
                             Notary Public in and for Said County and State

                                        -11-

{OFFICIAL SEAL
BEV MUSTARD
NOTARY PUBLIC - CALIFORNIA
LOS ANGELES COUNTY
My comm. expires JAN 27, 1984}

                                 TRADEMARKS
                                (WORD MARKS)

ABILITY
APPLIED PHILOSOPHY

COMMUNICATION MAGAZINE
DIANETICA
DIANETICS
DIANETIK
E-METER
HASI
HCO
LA DIANETIQUE
LA SCIENTOLOGIE
LRH
L.R.H. SCIENTOLOGY
L. RON HUBBARD
HUBBARD

OYOTETSUGAKU
SCIENTOLOGI
SCIENTOLOGIA
SCIENTOLOGY
SCIENTOLOGY E-METER
STANDARD DIANETICS
UNDERSTANDING

                                             EXHIBIT ?
                                             Page 1 of ?

                                 TRADEMARKS
                           (DEVICE & DESIGN NAMES)

    {SYMBOL}                           {SYMBOL}
   DIANETICS                   S & R IN DOUBLE TRIANGLE
     SYMBOL                          RELEASE PIN

    {SYMBOL}                           {SYMBOL}
SCIENTOLOGY CROSS              S & R IN DOUBLE TRIANGLE
   (Pointed)                       IN TWO CIRCLES

    {SYMBOL}                           {SYMBOL}
SCIENTOLOGY CROSS                    DIV VI SYMBOL
   (Rounded)

                                                     EXHIBIT ?
                                                     Page 2 of ?

{Further enclosed exhibits are degraded in transmission
and too damaged to be transcribed.  The remainder includes at
least thirty-five pages of further trademarks and registration
numbers, including trademarks registered in Australia, Benelux,
Bo?uthatswana, Canada, Denmark, France, West Germany, Great Britain,
Israel, Italy, Japan, Lesotho, South Africa, Swaziland, Sweden,
Zimbabwe, two or more unidentified countries.}

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