All Members Present

1. Tim moved to Adopt Minutes of April 23, 1998 Meeting. Motion passed.

1. Financial Report

Art gave brief update of account transfers and status along with a new expense claim form for Council Members. Vito moved to implement a flat rate per diem of $70 for meals with no receipts, when meals are not provided. If meals are provided, member will deduct appropriate reimbursement rate (e.g. if dinner is provided, deduct maximum allowable amount for dinner). Motion passed.

1. Unfinished Business - none

4. Review and discussion of NEC Meeting Agenda Items

• MCI Catalog
• Dealer Recruitment/market saturation
• Platinum Program
• Items from February list
• Growth Groups & Consortiums buying interconnects

Motion by Mike to question Tom Burger re his view on distribution channels so that NECSI dealers can make strategic plans in a changing industry. Motion passed.

5. Committee Reports:

• Marketing Committee -Tim

NECSI Brochure is complete and paid for. Further developments on NECSI Brochure: offer dealer imprint on brochure. Tim is working on this as well as cost to do a video. Discuss viability of using NECSI for regional/national hospitality market.

• Multi-Location Committee - Mark

ML Agreement has been revised and posted.

• Training Committee - Maureen, Mark

Suggestions will be presented to Victor Foia to streamline software training due to massive dealer associate concerns about cost and frequency of training and impact on manpower resources.

• NEAX 2400 Committee - Mike

Discussion of Mitel's purchase of Centigram..implications for other partnerships. Request NEC to clarify their future direction with similar Mfr. alliance(s).

• NEAX 2000 Committee - Ken

Dan Allman's long promised enhancement list is still unkept. Dealers should continue to add to 2000 Wish List on web site.

• Membership Committee - Mark, Suzanne

Membership down by 40, and Mark is going to talk to RCR re a more aggressive approach with new dealers.. Also will request a report on steps taken to retain existing members plus quarterly report as to what works/what doesn't. Directory was published earlier this year due to the earlier NEC Advantage date--in the past, unpaid members were omitted from Directory and this provided an incentive to pay dues on time.

• Key System Committee - Ron

Received very few quotes on competitive products for comparison (features, functionality & price) to EPRO 120. Of the ones received, Nitsuko Optima won on all counts. Voice messaging options were presented to Council by CTL, Inc. of Shelton, CT., and Enhanced Systems (Vodavi) of Scottsdale, AZ. Both companies gave very strong presentations for their feature rich, price competitive SOHO systems. Council voted unanimouslyto endorse both companies' systems as an alternative solution, giving choice to individual dealers. Will again ask NEC to provide a digital integration for PRO I.

• Product & Other Committees

Steve wrote Policy #5, Product and Other Committees. Tim moved to approve Policy #5 as written. Motion passed.

6. New Business

• Council Elections - Mike Fisher will run elections again this year. Seats up: Ron, Mike, Tim
• Proposed By-Laws Amendment

Steve proposed: add the following to the By-Laws Article VII, Item 4 (Item 2 deals with elections and Item 4 deals with Council membership requirements)

g. A Council member who: fails to participate in meetings without a valid excuse; fails to respond to correspondence and discussion via email (or other); or, in the opinion of the other Council members, fails to abide by the policies and directives of the NECSI Board, can be removed by the Council with a two-thirds vote.

Meeting Adjourned 4:30 p.m.