Mr. Larry Brennan
Scientology Publications
Organization
Store Kongensgade 55, 1264
Copenhagen K, DENMARK
Re: L. Ron Hubbard: An Authorized Biography
Dear Larry:
Thank you for your November 10, 1980
letter concerning
the above matter.
I am advised that Mr. Hubbard has
approved Omar V.
Garrison as the author of a literary work based on his life
(hereafter "the Biography"). I am further advised that
Mr. Hubbard is willing to make his personal files and records
available to PDK and Mr. Garrison. In addition to all of the
personal letters, journals, diaries, photographs, etc. set
forth in your letter, we will also be able to provide you
with family trees and histories written by Mr. Hubbard's
father.
Since Mr. Hubbard's personal records and
his
authorization of Mr. Garrison's endeavors are vital to the
success of this project, and since Mr. Hubbard's personal
services will be necessary to locate, sort through, compile
and identify thousands and thousands of documents, photographs
and memorabilia (hereafter "the Archives"), we should agree on
a fair and equitable means of compensating Mr. Hubbard for his
contributions to the Biography.
Subject to Mr. Hubbard's approval and the
approval
of his financial and tax advisors, I suggest the following:
LAW OFFICES
ROSENFELD, MEYER & SUSMAN
Mr. Larry Brennan
November 17, 1980
Page Two
First, while Mr. Hubbard may be willing
to waive
an up-front payment or advance, he must be reimbursed for
his out-of-pocket expenses in connection with the compilation
of the Archives, including, without limitation, salaries paid
to employees hired by him in connection with said compilation,
office supplies, duplicating costs, postage and any necessary
travel expenses.
Second, before the Archives are delivered
or made
available to PDK, to Mr. Garrison or to any other approved
third party, the safety and security of the Archives must be
totally assured. I would appreciate your suggestions on
this; at a minimum, PDK should purchase, at its expense,
a policy or policies of insurance.
Third, Mr. Hubbard's actual compensation
should be
divided into two parts: one in consideration of his compilation
and consulting services; and another in consideration of his
authorization of the Biography and his permission to utilize
the Archives in connection therewith. With respect to his
services, I think Mr. Hubbard should receive the same royalty
as Mr. Garrison. In consideration of his authorization and
permission as aforesaid, I think Mr. Hubbard should receive
amounts equal to the difference between his royalty and 50%
of PDK's net proceeds.
As used in the preceding sentence, "
net proceeds"
means PDK's gross receipts derived from the sale and other
exploitation of the Biography throughout the world, less
actual monies spent by PDK (and not reimbursed) on account of
printing costs, advertising, shipping, taxes and the royalties
paid to Messrs. Garrison and Hubbard. No deduction should be
made for overhead (e.g., rent, employees' salaries) or
distribution fees. Where any of the foregoing costs (e.g.,
shipping, advertising) relates to the Biography and any other
work(s) published by PDK, allocations must be made in a fair
and reasonable manner. Mr. Hubbard's royalty and his share
of the net proceeds should be paid on a quarterly basis, and
an accounting statement should be enclosed with each such
payment.
Fourth, as indicated above, Mr. Hubbard
will consult
with Mr. Garrison at reasonable times, subject, of course,
to Mr. Hubbard's availability and subject to reimbursement for
first-class transportation and reasonable living expenses. We
LAW OFFICES
ROSENFELD, MEYER & SUSMAN
Mr. Larry Brennan
November 17, 1980
Page Three
will also provide PDK and Mr. Garrison with a "letter of
introduction" notifying potential interviewees that this
is an authorized biography and requesting their cooperation
therewith. In connection with the foregoing, however, it
must be understood that Mr. Hubbard must have final approval
over the manuscript. In the event of his disapproval for any
reason, any and all passages which relate to or rely on the
Archives, meetings with Mr. Hubbard or meetings with third
parties who would not, but for the aforesaid letters of
introduction, have consented to an interview, must be removed
from the Biography.
Please review the foregoing proposal and
give me
your thoughts.
Kind regards.