MINUTES OF THE FIFTEENTH ANNUAL GENERAL MEETING

OF

SPACE ENVIRONMENT CORPORATION

October 20, 2001

The fifteenth annual general meeting of Space Environment Corporation was held in the Conference Room at the Wyndham at 215 W. South Temple, Salt Lake City, Utah, on October 20, 2001.

Present: J. V. Eccles, R. W. Schunk, J. J. Sojka, V. B. Wickwar.

Noted absence: W. J. Raitt

The meeting was called to order by the president at 8:40 a.m.

Minutes of the Fourteenth Annual General Meeting

The Company Secretary presented the minutes of the previous year's annual general meeting. R. W. Schunk moved to accept the minutes of the Fourteenth Annual General Meeting. V. B. Wickwar seconded the motion. The motion was passed unanimously.

President's Report

See attached President's Report dated October 20, 2001.

The report covers company activity from the previous Annual General Meeting (October 30, 2000). J. V. Eccles moved to accept the President's report with minor changes. J. J. Sojka seconded the motion. It passed unanimously.

Treasurer's Report

See attached sheets.

J. V. Eccles moved that the Treasurer's Report be accepted. R. W. Schunk seconded the motion. It was passed unanimously.

General Discussion

J. J. Sojka reported that the SEC Pension fund is typically invested in January. The pension money is set aside in the SEC checking account at the end of the fiscal year then invested in the Nvest Mutual Fund account the following January. The delay is allowable and provides SEC with a cash float necessary to pay employees when government voucher payment is delayed. However, the present climate for investment may be especially good now. He requested permission to invest the pension money earlier than January 2002. V. B. Wickwar moved to allow J. J. Sojka to invest the pension money in Nvest Mutual Fund before January at J. J. Sojka's best judgement. R. W. Schunk seconded the motion. It passed unanimously.

J. J. Sojka stated that SEC needs to have a flyer to help advertise our abilities as a company. During this year he sought two bids for a flyer, but stopped the production before costs were incurred. J. J. Sojka learned from the DFAR that all SEC advertising must be done on fee rather than Overhead. The need for an advertisement flyer remains. J. J. Sojka moved to use fee to produce an advertising brochure for SEC. V. B. Wickwar seconded the motion. The motion was unanimously passed.

R. W. Schunk identified a problem with SEC's fee charge placed on current contracts. The fee presently stands at 4% of total contract cost. It has been at 4% since 1990. This is lower than fees assessed by similar businesses. The government recognizes the necessity of the fee, e.g., cost of advertising, etc., to grow the business. R. W. Schunk suggested that the fee needs to be raised for future contracts for several reasons:

After contacting the SEC accountant and the government contract monitor, it was found that all that SEC needs to do to increase the fee is to submit the higher fee on the next proposal. If the increased fee is too large, then the government contract office will negotiate for the final fee and contract price. It is also noted that fee is waived when a grant is received from the National Science Foundation. R. W. Schunk moved that the fee should be raised on contract proposals, not grants, from 4% to 6% to cover above mentioned costs. J. V. Eccles seconded the motion. The motion was passed unanimously.

J. V. Eccles reported on SEC's presence at the Bear Lake Observatory (BLO). We pay $200/ month to operate several experiments at BLO, a magnetometer, a GPS scintillation monitor, and an ionosonde. SEC will continue operating at BLO for at least 2 years under the present AFSBIR contract and its 2-year extension. These data are placed on the SEC web site for other scientists to use.

R. W. Schunk indicated that the Policies and Procedures Manual does not account for Bereavement Leave. R. W. Schunk moved that the Sick leave include leave for Bereavement leave for deaths in the immediate family. J. V. Eccles seconded. The motion passed unanimously.

J. J. Sojka identified that SEC is growing in contract money and employees. The Overhead spending rates have been very low due to the conservative operating expenses. However, we need to improve business capability and space to accommodate the growth. Presently, we have approximately 1000-sq. ft. and need at least 2000 sq. ft. now. The following expenditures need to be examined to meet the growing needs:

J. J. Sojka moved and J. V. Eccles seconded to adjourn the meeting at 11:30am.

 

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J. Vincent Eccles, Secretary