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OFFICE OF THE STATE ATTORNEY SIXTH JUDICI.AL CIRCUIT OF FLORIDA

PASCO AND PINELLAS COUNTIES

February 4, 1999

Mr. David Miscavige

Chairman of the Board

Religious Technology Center

do Mr. Morris “Sandy” Weinberg, Jr., Esq.

Suite 2525

Tampa, FL 33602

Flag Service Organization, Inc.

CRC982O377CFANO S

Dear Mr. Miscavige:

I have received your letter of January 22, 1999 as well as the memorandum from Williams & Connelly to which your letter refers. While I do not agree with all of your comments concerning our prior discussions, I will concentrate on responding to the primary issues raised in your written proposal.

You suggest that your intent is “peaceful” and, in deciding to respond in detail, we have taken you at your word. The initial “offer” made to Mr. Crow and Mr. Burgess, however, requested outright dismissal of the charges in exchange for a $500,000 donation to a local emergency medical care trust fund, repayment of investigative costs, enactment of certain corporate policies, and a somewhat ambiguous amount of “restitution” which was intended as some sort of reimbursement to my office rather than payment for the permissible financial losses, if there are any, suffered by the victim or her estate. Your oral proposal made clear that if we failed to accede to the requested dismissal, a “holy war” of litigation would result, lasting years and winnowing our office’s human and financial resources.

I rejected this proposal but acceded to your request for a more direct discussion between you and your attorneys and me and my staff. Your offer in this second meeting restated essentially the same proposal with the caveat that only one charge (the second degree felony of abuse of a disabled adult)

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BERNIE McCABE

State Attorney

Post Office Box 5028, Clearwater, Florida 33758 Telephone (813) 464-6221