MINUTES OF THE SIXTEENTH ANNUAL GENERAL MEETING

OF

SPACE ENVIRONMENT CORPORATION

November 9, 2002

The sixteenth annual general meeting of Space Environment Corporation was held in the Conference Room at the Corporation Headquarters at 221 N. Spring Creek Parkway, Suite A, Providence, Utah, on November 9, 2002.

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

The meeting was called to order by Company President R. W. Schunk at 8:15 a.m.

Minutes of the Fifteenth Annual General Meeting

The Company Secretary presented the minutes of the previous year's Annual General Meeting. W. J. Raitt moved to accept the Minutes of the Fifteenth Annual General Meeting with minor corrections. J. J. Sojka seconded the motion. The motion was passed unanimously.

President's Report

See attached President's Report dated November 9, 2002.

The report covers company activity from the previous Annual General Meeting on October 20, 2001. V. B. Wickwar moved to accept the President's Report. J. J. Sojka seconded the motion. The motion passed unanimously.

Treasurer's Report

See attached Treasure's Report for Year Ending June 30, 2002.

V. B. Wickwar moved that the Treasurer's Report be accepted. W. J. Raitt seconded the motion. The motion was passed unanimously.

General Discussion

J. J. Sojka presented the results of the multi-year tax issue with the California Franchise Tax Board. For SEC's 3-year involvement with Robert McPherron as an employee in California, the company incurred taxes and failed to understand appropriate filing procedures. In 2002, the full amount due California Franchise Tax Board with penalties was paid. All accounts with California are closed. See attachment for exact amounts. It was noted that SEC has an employee in Boulder Colorado (David Anderson) and the SEC accountants have assured us that all Colorado Tax Board filing requirements have been met.

R. W. Schunk stated that the fee applied to all new proposals has been raised from 4% to 6% based on reasons stated in the Minutes of the Fifteenth Annual General Meeting. Two contracts were initiated in 2002 under the new 6% fee and government auditors approved the new fee.

R.W. Schunk noted the new facility for Space Environment Corporation, which is rented from Nebulous Properties. The increased space was required to accomplish the increased contract work. The new address of Space Environment Corporation main office is 221 North Spring Creek Parkway, Suite A, Providence, Utah 84332-9791.

A discussion followed on the needs or not of a Space Environment Corporation flyer. It was agreed that the $1000 to $3000 commercial flyer was too extravagant at this time. Rather with SEC new 2-sided color printer and publication software, "we" should proceed to make an in house SEC flyer. Issues of professional appearance and content could be reviewed when a draft is available.

J. V. Eccles reported on the successes of fielding three instruments at Bear Lake Observatory: Canadian Digital Ionosonde, magnetometer, and a GPS scintillation monitor. A fourth instrument will be deployed in November, an HF monitor to infer D-Region absorption effects on HF signals.

V. B. Wickwar moved and W. J. Raitt seconded to adjourn the meeting at 9:36am.

 

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J. Vincent Eccles, Secretary