TYPES OF CONTRACTS

Dear Sir,

SITUATION

Several situations have necessitated a review and handling of the enrollment forms, staff covenants and releases for orgs and missions as well as licenses for SMI, IHELP Field Auditors and ABLE/SBC groups.

DATA

A. ENROLLMENT FORMS

1. Existing Enrollment Forms

The current Enrollment Forms have been in use since 2000. These forms, along with other actions taken have cut off new damages litigation. In general, these forms and the releases and waivers are legally correct; the only outness is where they are not being used. However, after 7 years they should be reviewed by counsel in all areas to confirm no new changes in law need be incorporated.

The following Enrollment Forms and Waivers were implemented in 2000:

• Religious Service Application and General Release (Tab A1)
• Confidential PC Folder Agreement (Tab A2)
• Spiritual Assistance Agreement (Tab A3)
• Orientation Attestation (Tab A4)
• Confidentiality Agreement (for OT materials at AOs) (Tab A5)

Since then an enrollment form for brand-new public was added:

• Introductory Service Release (Tab A6)

This was worked out and implemented in 2003 because reports from a variety of orgs said many new public bugged on the Religious Services Enrollment form. Thus, an Introductory Service Form (First Start Form) was developed and piloted in LA Day. The new form improved the speed a lot and no particular problems were reported. Once the public finished their first service, they had no problem then signing the standard enrollment form. It was issued to all orgs and missions.

This proposed handling is to get all existing forms (a) reviewed in a new unit of time against any changes in law and (b) forcefully re-implement the program because reports from Legal Safeguards Chief OSA Int revealed that Legal OSA Int has no reliable information that all orgs and missions are using enrollment forms correctly in present time.

To implement this evolution, the OSA Int program, which originally put in the forms in 2000, has been brought up to date. (Tab A7)

Likewise with the implementation program for DSAs. (Tab A8)

A program for the renewed implementation of enrollment forms and waivers in Missions in the US and non-US was also prepared. (Tab A9)

Along with the programs we also have AN OSA INT ED and two SPDs that were part of the original implementation which I propose be reissued. These were reviewed and updated so they are totally in PT:

• OSA INT ED – “Enrollment Form Lines in Orgs” – Int level issue (Tab A10)
• SPD – “Enrollment Form Lines in Your Org” – Org level issue (Tab A11)
• SPD – “Enrollment Form Lines in Your Mission” – issue for Missions (Tab A12)

2. Re-Stocking of Enrollment Forms

The re-stocking of forms by the orgs and missions needs to be resolved. Specifically, the initial quantities were distributed to each org and mission with the plan for Dissem ILO to receive re-orders from the orgs, re-print them, and ship them out. This has proven unworkable because many orgs ran out of forms but didn’t reorder them for want of money. When this happened, the org either xeroxed the forms or they didn’t get used.

The handling is to supply the orgs, missions and IHELP with a CD that contains the forms (laid out text, logo elements) and a spec sheet that tells them how to print these locally. In that way the orgs and field delivery terminals can print the forms locally. Each org or mission will receive two CDs. One will go to HCO Dept. 2 to be used for the re-printing, the other will stay with the DSA as a back-up master.

The other point to make re-stocking faster and cheaper is that the original forms were designed with gold foil and embossing, which added tremendously to the cost. In fact, some Cl V org forms began to be printed in 4 colors without the embossing and foil for this reason. (Please ref. to Tab A1 for a 4-color sample) Thus, to make the appearance of Cl V forms uniform and lower the cost, it is now proposed that the foiling and embossing is done only for FSO, FSSO and Sea Org Orgs as well as CC Int, where the classy looking forms add to the image of these orgs and “higher org” aura. (Sample at Tab A13)

The targets that lay out how restocking is to be gotten in fully—for the OSA Int/ ILO level and the org and mission level—are included in the implementation programs.

3. Dianetics Seminars – Enrollment Form and Disclaimer

With the books coming out, including the package of Dianetics books, the Dianetics Seminars planned by COB last year will be launched soon and will trigger a boom with public showing up en masse at orgs or a hotel to start. It will be mass inflow and there won’t be time to debug persons who get hung up on a hard-to-read legal form. (See also the data about the Introductory Service Form on p.1) Thus, a simplified enrollment form for this Dianetics-oriented public is proposed. It covers all the main points we want to have in a general release. (Tab A14)

Adding to this protection is a disclaimer for the Seminar Manual. (Tab A15) Both these documents match the Dianetics language in our enrollment forms (ref. back to Tab A1) and Dianetics books disclaimer. (Tab A15-1) The disclaimer says by accepting the Manual the persons signifies understanding of all the information in the disclaimer. I didn’t just adopt the book disclaimer because it refers to the E-Meter, which might give an MU to a brand-new person and there won’t be enough time to clear this up during mass registration.

B. STAFF COVENANTS & AGREEMENTS

1. Staff Confidentiality Agreements

Over the last couple of years there have been several ex-CSI staff from the Int Base or ILO level “going public” with fallacious stories. One part of handling this situation is to get all staff to sign up to date confidentiality Agreements.

These have been drawn up for CSI, the SO Service Orgs and other SO units and all Cl V Org staff. These Agreements were worked out for the US by counsel—the non-US ones need local attorney review and adaptation to local laws as covered in the implementation programs below. Attached are Agreements for:

• CSI (Tab B1)
• Sea Org Orgs (Tab B2)
• Class V Orgs (Tab B3)

2. Staff Member Covenant

A. SO Members Covenant

The apostates who have gone to the media complained about points that were clearly part of the working conditions of the Sea Org they joined. Thus we will also get each SO member to sign a Covenant for Service as a Religious Worker, which sets forth the basic rules and conditions of employment for Sea Org members. (Tab B4)

B. Cl V Staff Member Covenant

The Staff Covenants of Cl V org staff members also need to be reviewed in a new unit of time and updated if necessary because such hasn’t been done for years.

3. SO Staff Member Release

To generate an even greater barrier against treasonous disaffecteds from lying about the SO, a legal document was drawn up—to be signed by all existing and future SO members upon commencing their employment for an SO Org—which releases the SO Org corporation and its agents as well as senior orgs and execs from any liability.

• A form was drafted for SO Orgs based in California (due to special California law provisions pertaining to releases). (Tab B5)
• One form was drafted for SO Orgs in Florida and NY State. (Tab B6)
• A separate Release was done for the non-US SO Orgs. (Tab B7)

IMPLEMENTATION OF STAFF COVENANTS AND AGREEMENTS

CSI staff all signed the form last year. To get all the documents signed by all staff, I wrote five programs—one for the U.S. S.O. (Tab B8), where these forms already have attorney okay and just need to be signed, one for non-US S.O. installations (Tab B9), where the three forms need to be checked against and adapted to local laws by an attorney and a third one for the Freewinds crew which also need to be checked against local law. (Tab B10)

The fourth and fifth programs covers the Cl V Orgs US and Non U.S.: The DSAs must get a qualified attorney to review and update the Staff Covenant and adapt the Staff Confidentiality Agreement for their jurisdiction. As soon as Legal Aide OSA Int okays them, the DSA must get all staff to sign the docs. This program is at (Tab B11 and 12).

To get the three legal documents (Confidentiality, Religious Worker Covenant, Release) signed by the SO members of IASA, ASI and CST, the Legal Safeguards Chief OSA Int will send a written briefing to the terminals handling Legal matters at these orgs, provide them with the documents and lay out the steps to get this done.

C. ABLE LICENSING

1. Licensing Structure Revision

ABLE is changing its pattern of operation, which affects the licensing structure of the sector. Currently ABLE Int licenses only the Int SBCs, which, in turn, license all the SBC groups underneath them.

However, this is changing with the Int SBCs no longer managing the SBC groups—ABLE INT will. As the trademark license requires that the trademark standards be actively enforced, ABLE INT will be licensing the groups directly as the Int SBCs will no longer be in a position to enforce those marks. ABLE Int will operate Cont ABLE units, which will be responsible for the Cont SBCs and groups in their zone. The Int SBCs’ role and functions will change to being training, marketing and PR units—they will no longer have any management function.

This change of management structure needs to be reflected in the trademark license structure to protect the marks and enable ABLE to see to their enforcement.

To get the correct licensing structure worked out, approved and implemented, a program was written for the DSA ABLE INT and the CORP & TAX CHIEF OSA INT to get done. (Tab C1)

2. SBC Licensing Situations

Several types of activities do not have proper licenses. Specifically:

1. The licenses include language that a non-Scientologist cannot understand. Needed is a simplified license for use with wog groups that want to implement specific LRH tech into their organizations such as other churches. Some of these groups deliver a mix of services and can’t be categorized under one of the existing SBCs. WLC is an example as they are currently licensed under Criminon due to handling criminal youth but they also deliver Study tech programs and Narconon drug education.
2. Licenses must be formulated for groups that are government-funded and operate in government institutions such as the Second Chance program.
3. A license or contract for wogs who want to represent ABLE in other countries to promote and fundraise for ABLE and implement the programs. (This came up in Indonesia and Palestine where ABLE’s top government allies there are retiring and asked to work for ABLE in their countries to get all our programs funded and set up.)
4. An interim group license for use in forming groups like Narconon centers or schools so they can be gotten into effective action right away, doing drug ed lectures and starting fundraising activities while the preparatory steps are done to qualify for full licensing.
5. Study Tech to Business delivery groups. This needs a separate corporate set up and a license so it does not endanger the Applied Scholastics exemption since these groups are benefiting businesses.
6. TWTH has no licenses with ABLE—Their Publishing License is with L. Ron Hubbard Library but there is no agreement for ABLE’s relationship with TWTH Int or Cont/regional offices. Review is needed to formalize lines and functions.
7. Detox license for doctor clinics.

Also, in addition to the above, the existing licensing and waivers for all ABLE activities need to be fully reviewed. This has not been done in a long time and they may need to be updated due to changes in law. The product is to have the correct licenses and waivers for every type of ABLE activity.

To work out correct licenses covering the various types of delivery operations, to get these approved and implemented, a program has been written with the PURPOSE: “To set up the ABLE sector for worldwide expansion by safeguarding the ABLE trademarks and the LRH services they represent through correct licenses & waivers for all types of ABLE activities.” (Tab C2)

D. SMI/IHELP LICENSING IN CIS

In a recent dispatch, COB mentioned that something appeared out of order with regard to how the SMI Missions in CIS are licensed. A review of the data showed that because of the prohibitive cost of registering TM licenses—a new Mission would have an initial outlay of almost $15,000 and a Field Auditor of $3,300 just to get the license—a line was put in in 2003, which makes Missions members of the OTL partnership. This enables them to use the marks under the OTL’s aegis. The OTL is licensed by RTC directly. Missions pay 7.5% and Field Auditors 7% to SMI and IHELP, respectively, but there is no data why these non-standard fees.

While this solution may have resolved how Missions can legally use the marks, it is not known by us at this time whether this structure incurs a liability for the OTL for claims against a Mission. Or, can other partners be dragged into a proceeding and be held accountable? It could also be that there has been a change of law or practice to our advantage by Russia’s Patent Office over the last 4 years, and we may be able to institute our routine licenses.

To address and investigate this situation, a program has been written for OSA CIS to carry out. The purpose is to discover if the current licensing line for Missions and Field Auditors possibly sets up a problem or if avenues have opened up over the last few years enabling us to get the licensing line standardized. (Tab D1)

SOLUTION

A. ENROLLMENT FORMS

1. Authorize the review, updating and re-implementation of the Enrollment Forms and Releases for Orgs, Missions and IHELP.
   
   
   

   OK __________________    NOT OK ________________



2. Authorize that the revised and updated programs and SPDs get sent to OSA Int to implement the enrollment form evolution in a new unit of time.
   
   
   

   OK __________________    NOT OK ________________



3. Approve the DN Seminar Enrollment Form and the Seminar Manual Disclaimer.
   
   
   

   OK __________________    NOT OK ________________

B. STAFF COVENANTS

1. Authorize the Confidentiality Covenants for CSI, Sea Org orgs and Cl V Orgs.
   
   
   

   OK __________________    NOT OK ________________



2. Authorize that the SO Staff Member Covenant and its implementation.
   
   
   

   OK __________________    NOT OK ________________



3. Authorize the SO staff member Releases for SO Orgs in California, other US states and the non-US and their implementation.
   
   
   

   OK __________________    NOT OK ________________



4. Authorize the programs to implement these Covenants in SO Orgs in the US and the non-US as well as Cl V Orgs, and that the programs to get this done get sent to OSA Int to be launched.
   
   
   

   OK __________________    NOT OK ________________

C. ABLE LICENSING

1. Authorize the program to revise, get approved and implement a licensing structure for the ABLE sector that comports with the functions of ABLE Int, Conts and Int SBCs.
   
   
   

   OK __________________    NOT OK ________________



2. Authorize the program to get ABLE’s other licensing situations handled.
   
   
   

   OK __________________    NOT OK ________________



3. Authorize that the above two programs are sent to OSA and ABLE INT to execute.
   
   
   

   OK __________________    NOT OK ________________

D. SMI LICENSES IN CIS

1. Authorize the program to re-examine in a new unit of time the licensing set-up for missions and field auditors in CIS.
   
   
   

   OK __________________    NOT OK ________________



2. Authorize that this program is sent to OSA Int to get executed.
   
   
   

   OK __________________    NOT OK ________________