diff --git a/templates/book_chapter.yml b/templates/book_chapter.yml
index 45b266e..fdf399e 100644
--- a/templates/book_chapter.yml
+++ b/templates/book_chapter.yml
@@ -281,59 +281,69 @@ steps:
     primary_deliverable: true
 
   - type: think
+    system: |
+      EXTRACTION MODE — DO NOT CREATE FICTION.
+      Your ONLY task is to extract factual state from the chapter you just wrote.
+      You are NOT writing the story. You are NOT continuing the narrative.
+      Characters who are DEAD are DEAD. You may NOT invent a living version of them.
+      KAELEN IS DEAD. HE DIED IN CHAPTER 4. DO NOT WRITE KAELEN AS ALIVE.
+      If you write a "Location:" or "Physical:" or "Emotional:" field for Kaelen, that is WRONG.
     hint: |
       PASS 3 -- CHARACTER + WORLD STATE EXTRACTION
 
       You have just completed the chapter. Extract structured state for continuity tracking.
       Write in compact format -- this content will be stored as a RAG asset read by the
-      NEXT chapter's PASS 0. Every character who appeared must have an entry.
+      NEXT chapter's PASS 0.
 
-      ══ DECEASED CHARACTER RULE (HIGHEST PRIORITY) ══
-      If a character DIED before or during this chapter -- whether the death happened in
-      this chapter or was already established when this chapter began -- their entry is:
+      ══ MANDATORY FIRST CHECK — READ BEFORE WRITING ANYTHING ══
+      STEP 1: Check PASS 0 above (earlier in this conversation). Find every character listed
+              as "(DECEASED)" or "†" or "DEAD" in the bible or character state.
+      STEP 2: For each such character, you MUST use ONLY the short DECEASED format below.
+              You MAY NOT give them a Location, Physical, Emotional, or Arc field.
+              They are DEAD. Dead characters do not have locations. They do not have arcs.
+              They are not "at the stairwell." They are not "resigned." They are ABSENT.
+      STEP 3: If Kaelen appears in your output with a Location field — DELETE IT.
+              If Kaelen appears with an Emotional field — DELETE IT.
+              If Kaelen appears with an Arc field — DELETE IT.
+              Write ONLY: ## Kaelen — DECEASED (Ch04)
 
+      ══ DECEASED FORMAT (two lines only) ══
         ## [Name] — DECEASED (Ch[N])
-        Established: [one sentence: how and when they died]
-        Legacy: [one sentence: how their absence affects the current chapter]
-
-      DO NOT assign Location, Physical, Emotional, Active obligations, Open loops, or Arc
-      to a deceased character. A dead character has NO location, NO emotional state, NO arc.
-      References to a dead character in dialogue, memory, or grief do NOT make them alive.
-      If a character is mentioned only in past tense, memory, or as an absence -- they are DEAD.
-      DO NOT invent a living presence for them. DO NOT put them in the scene.
+        Established: [one sentence: how they died]
+        Legacy: [one sentence: how their death affected this chapter]
 
       ══ LIVING CHARACTER FORMAT ══
 
       # Character State: {chapter_ref}
 
       ## [Character Name]
-      Location: [specific location -- building, floor, city, planet -- no vague "nearby"]
+      Location: [specific location -- building, floor, city, planet]
       Physical: [injuries, fatigue, notable physical state, or "no injuries"]
-      Emotional: [dominant emotion at chapter end; what they are CARRYING into next chapter]
-      Active obligations: [debts/promises owed, format: "owes [person] [what] (Ch[N]) -- UNPAID/PAID"]
-      Open loops: [unresolved conflicts, unanswered questions, format: "[parties] [issue] (Ch[N]) -- UNRESOLVED/RESOLVED"]
-      Known secrets: [information this character has that others don't -- format: "knows [what] -- [who does NOT know]"]
-      Arc: [XX%] -- [one sentence: what permanently changed in this character this chapter, or "no change"]
-      Permanent: [YES if something permanently changed (power gained/lost, relationship status changed, secret revealed); NO otherwise]
+      Emotional: [dominant emotion at chapter end]
+      Active obligations: [format: "owes [person] [what] (Ch[N]) -- UNPAID/PAID"]
+      Open loops: [format: "[parties] [issue] (Ch[N]) -- UNRESOLVED/RESOLVED"]
+      Known secrets: [format: "knows [what] -- [who does NOT know]"]
+      Arc: [XX%] -- [one sentence: what permanently changed this chapter]
+      Permanent: [YES/NO]
 
-      (Repeat for EVERY named character who appeared in this chapter -- deceased get the short form above)
+      (Repeat for EVERY named character who appeared. Deceased = short form only.)
 
       # World State: {chapter_ref}
 
       ## NPC Memory
-      - [NPC Name] ([faction/location]): [ATTITUDE] -- [what happened] -- [behavioral consequence]
-      (List every NPC who interacted with a protagonist and now has a changed attitude)
+      - [NPC Name] ([faction/location]): [ATTITUDE] -- [what happened] -- [consequence]
 
       ## Faction Attitudes
-      - [Faction name]: [current attitude toward protagonists] -- [reason]
-      (List any faction whose attitude changed this chapter)
+      - [Faction name]: [attitude] -- [reason]
 
       ## Active World Events
-      - [Event]: [status and expected timeline]
-      (List any ongoing world events that will affect future chapters)
+      - [Event]: [status and timeline]
 
-      CRITICAL: Keep the total output under 3500 characters. Be precise and specific.
-      Do NOT write prose -- only the structured data above.
+      FINAL SELF-CHECK before submitting: Scan your output for Kaelen's name.
+      If he has a Location, Physical, or Emotional field — delete them. He is dead.
+      If any other character is noted as DECEASED in PASS 0 — apply the same rule.
+
+      CRITICAL: Keep total output under 3500 characters. NO prose — structured data only.
 
   - type: rag_write
     asset_id: "character-state"