ASSOCIATES ADVISORY COUNCIL

(fka NEC Dealers Association)

MINUTES - ANNUAL MEETING - November, 1992

The annual meeting was held at the Sheraton-Washington DC on the Sunday evening before the annual NATA convention.

1. Prior to the annual meeting, a literature exchange took place. Several dealers brought brochures and hand-outs that they use in the marketplace.

2. A lengthy discussion took place concerning the need for an effective National Accounts program. The conclusions reached were:

a. The dealers need to set up their own Dealer National Account program designed to encourage dealers to sell multiple systems with guaranteed installation rates. Association members would be asked to sign an agreement to install at these rates (probably same or similar rates we have with NEC now). The association would publish a list of members agreeing to install and service national accounts at these rates.

b. NEC be asked to actively contact at least Fortune 100 companies to set up a National Account.

c. The Association should publish a list of member dealers so that potential National Account customers would see the list of service centers.

d. Allen Wood, Jr. (Scientific Telecom) and Elisha Kusen (Deltacom) agreed to develop a proposed National Account Dealer Agreement for the dealers to review.

3. Allen Wood, Jr. reminded those present that when NEC ships equipment, it belongs to you when it leaves their dock. Make sure your insurance covers losses of equipment coming to you in transit.

4. Mark Ware (First Telecom) discussed the IVR product that they have developed and announced that they are looking for partners to market and install their IVR products. He described their voice mail application for banks where the bank provides a homework hotline for the local schools. This helps the bank meet requirements of the Community Reinvestment Act.

5. The annual business meeting was called to order at 7:10pm. Steve Autor reviewed the progress for the first year of operation. Several discounts were obtained for dealers and some progress had been made in working with NEC, but the general consensus has been that we need to meet face to face with NEC leadership on a regular basis and that the $100 per dealer dues were not adequate to fund this. Over 30 dealers have started using the Dealer Bulletin board, which is set up with classified ads, discussion areas for the 1400 and the Electra Professional. Invoices had been sent out to all dealers and just over half had paid. Several checks were received in recent weeks. We need to make a determined effort to collect dues next year.

Vito Marrone (Tele-Pro) announced that we have a balance of $6,507.05 before annual meeting expenses. Funds this year paid for telephone bills (conference calls and fax) and a computer for the bulletin board. Vito moved and Allen seconded that non-members would no longer be allowed to have access to association services, discounts, or the dealer bulletin board. Discussion followed and consensus was that only dues paying members should serve on the Dealer Council from now on. Motion passed unanimously. Americom (Ron Brennan/Jim Sopinski) will furnish a representative for the East Region to replace the vacancy from AIM.

Proposed new goals for the coming year were presented. It was decided to narrow our efforts to only three areas for the coming year and try to set up and fund regular meetings with NEC which the members present felt were necessary to accomplish these goals: I. Continue to locate, develop and implement programs to help dealers be profitable. II. Work with NEC to develop an effective National Accounts and GSA program. III. Provide on-going input concerning needed product development and marketing strategies in order to help dealers sell more NEC products.

A budget was adopted ($30,000) and dues were set at $300 per dealer per year. The major increase was a budget line item of $10,000 to reimburse for travel expenses for dealer council members to meet with NEC at least quarterly. Also, part time secretary help was approved to assist with mailings etc.

Allen Wood moved and Jim Sopinski seconded to have a national Dealer meeting on March 5, 1993. Discussion was held as to the location. Atlanta and Dallas were suggested and Atlanta was selected. (NOTE: With the recent staff reorganization at NEC/Melville, many Melville jobs are being transferred to Dallas, so there may be some reasons to move the meeting to Dallas.

It was suggested that we investigate group buying discounts for surge protectors. We could survey the dealers to find brands that work well, then approach manufacturers for volume discounts. Perhaps NEC engineers would verify that the product is appropriate.

The meeting adjourned at 9pm. On Monday, Gail Fisher did a presentation on the Electra Professional. Also, Frank Jacono's presentation on the Series 700 software for the 1400 was taped. Both presentations were video taped and a copy is available to association members for $10, non-member $20. The tape may be useful for sales reps to see. To order a tape, please fax me a note on your letter head to 217-442-0974.