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TranceNet Letter 1:

from Attorney Catherine Dziuba, Esq.

Catherine Dziuba, Esq.

17310 Sunset Blvd. Pacific Palisades, CA 90272
Telephone 510-459-2258 Fax 310-459-8146

gif facsimile

November 15, 1994

Maharishi Foundation, Ltd. is the owner of proprietary rights in trademarks, trade secrets, and confidential information concerning the "Transcendental Meditation" program. "Transcendental Meditation" and "TM" are federally registered trademarks that are owned by Maharishi Foundation, Ltd., a non-profit organization. [We have not yet been able to confirm whether "TM" and "Transcendental Meditation" are registered trademarks, and by whom they are held. See the MIU/MUM page for conflicting description.] World Plan Executive Council-U.S. ("WPEC") and its affiliates are non-profit educational organizations that hold a license from Maharishi Foundation, Ltd. to offer the Transcendental Meditation program and to use the "TM" and "Transcendental Meditation" trademarks in the United States. Obviously, these trademarks are some of the most valuable assets of these organizations. As owner of these marks, Maharishi Foundation, Ltd. promulgates quality control standards and financial (royalty) policies concerning the teaching of the Transcendental Meditation program. WPEC is authorized to promote these standards and policies and to assist Maharishi Foundation Ltd. in ensuring that these trademarks are not infringed.

As this letter explains, you have failed to observe teaching policies and standards. As a result, you have infringed these trademarks, misappropriated trade secrets and confidential information, and are in breach of contract. Therefore, this letter will serve as formal notice to you that your previous authorization to teach the Transcendental Meditation program has been revoked, and you are no longer an authorized teacher of the Transcendental Meditation program. This will also serve as a formal demand that you discontinue teaching the Transcendental Meditation course and any related programs, and for an accounting and reimbursement of revenues that you have received from teaching the Transcendental Meditation course since July 1, 1993. As a teacher of the Transcendental Meditation program, you agreed to always maintain the purity of the Transcendental Meditation program teaching. In this connection, you have previously signed at least two contracts that establish the parameters under which you were authorized to teach the TM program. You signed one contract on May 8, 1973 at the time of your Teacher Training Course. You signed the second contract on October 2, 1977 on your Governor Training Course. By entering into these contracts, you acknowledged the unique and confidential nature of the Teaching imparted to you as a teacher of the Transcendental Meditation Program. You specifically agreed that you would forever hold the Teaching in strict trust and confidence. You agreed that you would never disclose this information except when teaching the TM program in affiliation with an organization specifically authorized to offer the Transcendental Meditation program and to promote the teaching standards established by Maharishi Foundation, Ltd.

Under these contracts, you agreed to always observe these standards when teaching the TM program. You have been a teacher of the TM program for many years. You are well aware that teaching standards require that you always notify the authorized organization about each student receiving instruction in the TM course, that you always teach the TM program according to the established seven step course structure, that you observe financial policies, and obtain and submit the appropriate course fee ($1,000) to an authorized organization, i.e., Maharishi Vedic Education Development Corporation ("MVED").

By your own admission during telephone conversations with employees of Maharishi Vedic School ("MVS"), as well as through other sources, we have become aware that you have not been notifying MVED about students taking the TM course; you have not been teaching according to the correct course structure; you have not been charging the appropriate course fee, and you have not been submitting royalty payments. As a result, you are in breach of the contracts that allowed you to become a teacher of the TM program and that authorized you to teach the TM program in the United States. Additionally, you are now liable for misappropriation of trade secrets and confidential information, and for trademark infringement for unauthorized use of the trademarks "TM" and "Transcendental Meditation".

These trademarks--TM and Transcendental Meditation--have gained recognition in the public domain, and signify an effective personal development program that begins with instruction in the Transcendental Meditation technique. As a teacher of the TM program, you know that when people receive instruction in the TM technique from an authorized teacher, they become eligible for followup and advanced courses available through the authorized organization. Because you have not been following quality control and financial requirements, and have not been teaching in affiliation with an authorized organization, your students are not eligible to participate in programs that are related to the TM program. Thus, you have been falsely telling people that you are offering the TM program, when, in fact, you are not. Your misrepresentation has had the effect of depriving these individuals of the benefits of this unique and precious program for developing consciousness, improving health, and increasing success and overall well-being.

Your authorization to use the trademarks "TM" and "Transcendental Meditation" was specifically contingent upon your observation of all teaching policies and procedures. Because you have violated these policies and procedures, you are now absolutely prohibited from using the trademarks "TM" and "Transcendental Meditation" in connection with your activity. Furthermore, you are prohibited from teaching the Transcendental Meditation course under any other similar name. This is also an infringement of the "TM" and "Transcendental Meditation" trademarks as well as a misappropriation of confidential information.

Moreover, because you have engaged in unauthorized use of this unique and confidential information, you are absolutely prohibited from teaching the Transcendental Meditation program and from using the information embodied in the TM program teaching process under any circumstances. Any use of this information by you constitutes a misappropriation of trade secrets and confidential information in breach of your contractual obligations. You may not use this information for your own economic advantage, regardless of what you call it.

Because every teacher's authorization to teach the TM program is contingent on his/her consistently following established teaching procedures, the program has maintained its high standard of quality. As a result, the ability to offer the public a consistently effective program has continued. It is our intention to maintain the effectiveness of the program, and the reputation that the Transcendental Meditation program has gained throughout the years, as well as the good will of the organizations authorized to teach the TM program. Your unauthorized teaching of the Transcendental Meditation course is likely to create confusion and deception in the public, and to endanger the reputation, good will and prospective economic advantage of Maharishi Foundation, Ltd., WPEC, and their affiliate organizations.

You are hereby notified that you must immediately:

(1) Stop teaching the Transcendental Meditation course and any related programs under any name;

(2) Discontinue all use of the confidential information embodied in the Transcendental Meditation program that was imparted to you as a former teacher of the program ;

(3) Discontinue all telephone services or listings using the trademarks "TM" and/or "Transcendental Meditation";

(4) Discontinue any advertising, solicitation, or promotions in the name of "TM" and/or "Transcendental Meditation";

(5) Notify any source of Transcendental Meditation course referrals to discontinue their referrals to you, and to instead, direct all referrals to a campus of Maharishi Vedic School ("MVS"), identified on the enclosed list of MVS campuses; (6) Direct all referrals for the Transcendental Meditation program to a campus of MVS;

(7) Submit an accounting of revenues that you have received from teaching the Transcendental Meditation course and from any other activity related to the Transcendental Meditation program since July 1, 1993, along with a cashier's check or money order for this amount within 15 days from the date of this letter payable to MVED;

(8) Within fifteen [15] days from the date of this letter, make your books and records concerning all of your teaching and other activity related to the Transcendental Meditation program available to an agent of Maharishi Foundation, Ltd., or WPEC; and

(9) Within fifteen [15] days from the date of this letter, return your written confirmation to me at the above address that you will immediately commence to abide by the demands of this letter.

We sincerely hope that we can promptly resolve this matter without further proceedings. However, if necessary, Maharishi Foundation, Ltd. and WPEC will take any and all actions necessary to protect their rights under the law, including obtaining injunctive relief and monetary damages.

Very truly yours,

[signature]

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