Minutes of the National Association of Rocketry Board of Trustees Meeting

Minutes of the National Association of Rocketry Board of Trustees Meeting Draft pending NAR Board vote of approval. April 12-13, 2012 at NARCON-2012, Hutchinson, Kansas The National Association of Rocketry Board of Trustees convened at 7 PM Thursday, April 12, 2012 at the Ramada Hotel in Hutchinson, Kansas. The following Board members were present: Trip Barber, President Ted Cochran, Vice President John Lyngdal Jennifer Ash-Poole John Hochheimer Vince Huegele Tom Ha Ryan Coleman Absent: Joyce Guzik, Secretary (joined by conference call at 9:15 AM Friday) The Board entered executive session at 7 PM and came out of executive session at 8 PM. No decisions were made in the executive session. NAR Member Concerns. Group Memberships for Student Rocket Programs. NAR member Matthew Gentile from the Cornell University SEDS (Students for the Exploration and Development of Space) chapter requested that the NAR Board consider offering a group rate/club membership similar to what is offered to TARC teams for other student programs that involve rocket flying. The Board declined to expand the current program for offering group or other membership discount rates beyond TARC and SLI, the two student programs officially endorsed and co-sponsored by the NAR. Outreach Recognition. NAR member Tim Quigg of Washington requested that the NAR Board consider establishing a new category of recognition awards for members who go above and beyond in their efforts to conduct outreach events on behalf of the NAR and of the hobby. The Board decided that the current practice of using the NAR President s Award at the discretion of the NAR President (including awarding more than one per year if appropriate) as the recognition for such exceptional service should be continued, rather than establishing a whole new category of award with its own judging criteria. Cannon Grant Eligibility. NAR member Giovanni Colberg of Virginia requested that the NAR Board consider expanding eligibility for Cannon Grants, currently awarded only to certified teachers in schools, to also include persons doing structured educational outreach programs outside of school, such as the NASA DEVELOP program with which he is affiliated. This issue was deferred for discussion during the Education Committee time slot on Friday, when Dr. Joyce Guzik, who administers the NAR Cannon Grant program, was going to be available by conference call. High Power Certification Lapse Policy. NAR member Jim Hussey of Oregon requested that the NAR Board reconsider its policy of not restoring previously-earned high power user certifications when a member rejoins after a lapse of more than one year in membership. The Board discussed this issue at some length, and could not decide what the real difference was between a person who earned a high-power certification and never subsequently flew to that level of high power but maintained continuous membership for many years, and therefore retained that NAR Board of Trustees Minutes 1 April 2012

certification, and a person who earned a certification then departed the NAR and returned that same number of years later, but lost the certification due to the membership lapse. Motion by Ted Cochran, seconded by John Hochheimer: Members having been certified in high power with the NAR may retain that certification when renewing their membership regardless of the length of their membership lapse. Passed 5/1/1 Yea: Cochran, Hochheimer, Ha, Huegele, Coleman. Nay: Lyngdal. Abstain: Ash-Poole. Treasurer and Financial. The NAR s financial position continues to be very sound. Total cash balance on hand is about $353K as of 31 December 2011, of which $46K is in restricted-purpose funds (for the Alway R&D Prizes and Cannon Educator Grants) that were funded by donations and can only be spent on that specific activity. The NAR Emergency Reserve Fund, funded by the legal fee rebate from BATFE and by life membership dues, is another $59K of this balance. The NAR s overall unrestricted cash balance at the end of 2011 was $34K higher than it was at the end of 2010, although the 2011 budget had projected a deficit of $6K. The growth in cash position in 2011 was largely due to much stronger levels of membership than had been predicted for 2011. The Board agreed that the NAR s unrestricted fund balance is about $50K higher than the level generally recognized as the best practices minimum for a non-profit association of our annual income. The draft budget for 2012 submitted by the Treasurer based on continuation of currently-approved programs and levels of service (and a projected membership of 5300) projected a surplus of an additional $15K. The Board concluded after the financial review that the NAR can afford to and should increase spending in 2012 for service enhancements in areas identified in membership surveys as places where our services are not as strong as the membership wants them to be. These opportunities were discussed, and where appropriate approved, in later parts of the Board meeting. The Treasurer noted to the Board that IRS regulations for non-profit associations have recently been expanded and tightened, and that the NAR s IRS 990 tax return has become lengthy and complex as a result. He also noted that these regulations require that he circulate the IRS 990 to all Board members and make a record of the acknowledgment of each Board member that they had reviewed this return for accuracy. The Board directed that the Treasurer consult with expert accountant and NAR volunteer Gary Cole concerning the appearance of propriety of using the credit union where Treasurer Tom Ha is employed as the financial institution used by the NAR for the certificates of deposit that we use to hold our cash balance. The Board recognized that by use of this credit union we were benefiting with much higher interest rates than in any alternative investment location. The Board considered a proposal by our insurance agent Bob Blomster that we adopt an expansion of insurance coverage to provide $25,000 of coverage for injuries that may be incurred by members while participating in a NAR rocketry activity, replacing the current $5,000 medical payments coverage, which is payable only to non-members. This new additional coverage would be excess coverage, effective only to the degree not already covered by the injured party s personal health insurance. The premium for this new coverage would be $10,800 per year. The Board declined this expansion of coverage due to cost; it is more economical to self-insure the NAR using the Emergency Fund than to spend this much money for coverage that is limited to $25K, is only excess, and is for an event that has never previously resulted in an insurance claim. The NAR President expressed concern that NAR officers whose duties involve travel to do the business of the NAR and/or represent the organization at events important to the Association, or who require professional memberships to do their duties effectively, are currently paying the expenses for these items out of pocket. While this has not been a problem recently for those officers, he said that continuing to do this is in some cases becoming a deterrent to the most talented volunteers choosing to serve in such positions. He proposed a revision to the NAR policy on volunteer reimbursement as follows: NAR Trustees may be reimbursed up to $500 per meeting for travel and lodging expenses actually incurred in connection with attending the meeting. This shall not apply to Board members who were in office as of March 2011. The NAR President may be reimbursed up to this same limit for attending other NAR national NAR Board of Trustees Minutes 2 April 2012

events not involving a Board meeting. Other NAR officers who attend non-nar business meetings to represent the NAR when requested to do so by the NAR President or NAR Board may be reimbursed up to the full cost of their travel. The NAR President may be reimbursed for membership in the American Society of Association Executives, and the NAR NFPA representative for membership in the NFPA. Motion by John Hochheimer, Seconded by Jennifer Ash-Poole. The volunteer reimbursement policy proposal shall be accepted as presented. Passed unanimously. The Board meeting adjourned at 10:00 pm Thursday and reconvened at 8:00 am Friday, April 13. Membership Committee. The Board reviewed the report from Committee Chair Todd Schweim, who joined the Board in person. NAR membership has increased at a strong rate for the last six months (starting in the fall of 2011) and has now reached 5400. This has been the result of a combination of increased numbers of all-new members joining, and an increase in the rate at which current members choose to renew and former members choose to return. The reasons for this growth are not directly traceable to any single factor due to the large number of different initiatives taken over the past year to improve publicity (to attract new members) and to improve member connection and satisfaction (to retain current members). These include: Recruiting bonuses of $5 paid to current members for signing up new ones (238 new members in the past year) Recruiting bonuses of $5 paid to hobby shops for signing up new NAR members (17 new members) Kit stuffers and website publicity from cooperating rocket manufacturers (185 new members) Shift to preprinted renewal reminder membership forms (now sent twice) Addition of two automated e-mail reminders: membership renewal and membership lapse Extensive publicity to participants in the TARC and SLI programs Addition of automated e-mails sent to new members at 30, 60, and 90 days after joining publicizing different areas of NAR services Implementation of a program to send a free NAR HPR certification level pin to each member as they attain a new certification level Motion by John Hochheimer, Seconded by Vince Huegele: The individual member recruitment bonus of $5 as currently implemented shall be continued. Passed unanimously. The Board took note with thanks of the efforts of Tom Ha to get NAR promotional banners made and sent free to all NAR sections who asked for one over the past winter. Tom got 150 banners produced and personally shipped 97 of them to requesting sections, all within the allowed budget of $6K (actually spending $5526), then transported the remaining banners to NAR HQ in shipping tubes for future free distribution to new sections. The Board asked the Membership Committee to develop a proposal for the next meeting for how to recognize or reward manufacturers whose advertising of the NAR leads to new members joining the NAR. Periodicals Committee. The Board reviewed the report from Committee Chair Mark Bundick. Mark and Todd Schweim had developed a detailed cost analysis of the NAR s principal paper publications, Sport Rocketry magazine and the Member Guidebook. They evaluated the net cost of these to the NAR, and developed options for Sport Rocketry that showed its cost as a function of page count and press run. The Board affirmed the current planning factors for Sport Rocketry, making every issue 56 pages and paying for selected feature articles. The Board evaluated the cost information on newsstand/hobby shop sales of Sport Rocketry and noted that this was a net money-losing enterprise for the NAR (as it is for most magazines) in terms of cost to print and distribute vs NAR Board of Trustees Minutes 3 April 2012

return from sales. The Board agreed to continue to distribute the magazine in this manner, in the interests of exposure of the hobby as the sole remaining rocketry magazine that is available in such stores. The Board directed Todd Schweim to begin putting a membership-recruitment insert in copies of the magazine sold via this route, and to develop separate productivity figures for each of the three distributors that we send newsstand copies through, to see if any of these are outliers in terms of low productivity. Education Committee. Committee Chair Vince Huegele presented his report in person. Joyce Guzik joined the Board meeting by telephone for the review of this committee s report and departed at the end of this session. Vince s report reflected the wide range of different effective outreach and educator-support programs his committee and its numerous volunteers have underway. These programs include the national partnership with 4-H, which has increased TARC 4 H enrollment and has identified 45 4-H rocket clubs nationally; efforts to initiate a partnership or at least a close working relationship with Civil Air Patrol as they try to move into a Junior HPR program; an arrangement with the U.S. Space and Rocket Center in Huntsville to distribute NAR and TARC material to Space Camp participants; and the bimonthly NAR Educator Newsletter written and sent electronically to over 2000 teacher contacts by Dr. Roy Houchin. The Board reviewed the report on NAR participation in National Science Teacher Association conventions, where we currently partner with AIA to run a TARC-NAR booth (funded by AIA) at the annual national convention, and run our own solo booth (funded by the NAR) at one regional convention per year. CATO section, led by Al Gloer, ran the NAR booth at the northeast regional NSTA convention in Hartford, CT in October, 2011; and ROCI section, led by Mario Perdue, ran the NAR-AIA booth at the national NSTA convention in Indianapolis in March, 2012. The Board discussed whether the regional NSTA event provides the best return on our $2000 investment in terms of contacts made, compared to other potential convention/trade show events such as ihobby. The Board concluded that the NAR should continue to do both NSTA events, within the limits of volunteer availability to do this work, and should add to that participation in this year s ihobby in Cleveland in October to see if this is a productive venue for establishing contacts with hobby stores and companies. Joyce Guzik reviewed with the Board the criteria currently being applied for eligibility for Cannon Teacher Grants. These criteria give preference to teachers in formal school settings but applications are considered from educators who work in settings outside of schools although the eligibility criteria do not currently say this explicitly. The Board asked Joyce to amplify the published rules for Cannon Grant eligibility for the 2013 program, to clarify that this support is intended for structured programs and must be made payable to a school or educational group, not to a private individual. John Lyngdal reported no issues with execution of the NASA Student Launch Program that he manages, where the NAR provides launch services to NASA under a contract that reimburses our expenses including lodging for the staff volunteers. This program has expanded to over 50 participating/launching high school and college teams this year. This year s contract required the NAR to supply an additional 8 large high-power pads to support the increased size of the launch. John personally fabricated and shipped these, and will lead the NAR team of 23 skilled high-power flier volunteers who support this event in Huntsville in April. The Board considered a proposal by Jack & Kathy Colpas for the NAR to become involved in the Reach for the Stars Rocket Competition program that they run. The Board considered this to be a worthy program but could discern no particular advantage to the NAR from extending our involvement into a commercial (if non-profit) program such as this, and declined to establish any formal partnership arrangement. Technology Committee. Committee Chair Jennifer Ash-Poole presented her report in person. Jonathan Rains and Jennifer Ash-Poole had both traveled to NAR HQ in March to do a complete make-over of the HQ computer and office equipment infrastructure and to review all administrative processes with the HQ Manager NAR Board of Trustees Minutes 4 April 2012

in order to see what assistance she might need with resolving process issues that created difficulty or extra work for her. Their reports identified some areas where the NAR HQ Neon web-based database management system needed custom programming to better support NAR member renewal processes. The $3000 cost for this custom programming was added to the NAR 2012 budget. The Board reviewed with Bruce Canino by phone and online the current status of his development of the new, restructured NAR website. Bruce reported that he was behind his originally-planned schedule but still thought he could have the project finished and the new website open before NARAM. The Board asked Bruce to provide a schedule of work reflecting configuration freeze and transfer of the old website content to the new website structure and software on July 1, and completion of proofing by July 15. Bruce also reported that the process for posting, commenting, and voting on changes to the US Model Rocket Sporting Code has been successfully moved to a purely online technique using a forum in the Neon headquarters software, effective this year, making publication of this material in the annual paper Model Rocketeer unnecessary. The Board received a report from Jonathan Rains concerning the project he had volunteered to do in getting new, better-looking NAR membership cards (credit card style with color graphics) developed and implemented. Jonathan got price quotes from a variety of vendors to outsource this operation from NAR HQ where current membership cards are printed. The best value bid was for about $1.23 per card, stuffed into an envelope with accompanying NAR literature, not including postage, when sent in batches every two weeks. This compares to $0.75 for the current card plus enclosures, not counting the extensive manual labor involved by the NAR HQ manager in stuffing and addressing envelopes. The current card is also sent out in bi-weekly batches. Jonathan also priced an option to do a one-time mail-out of a new card to every current NAR member to get the new program underway. The cost for this was estimated at $8,200. Motion by John Hochheimer, Seconded by Ted Cochran: The new membership card program shall be implemented as presented. Passed unanimously. Section Activities Committee. Committee Chair John Hochheimer presented his report in person. There were 127 NAR sections in 42 states as of April 1, 2012. Of the 8 states without a section, only 4 have more than 10 NAR members in that state; only Kentucky has more than 20. The process for supporting NAR sections doing their annual renewal online turned out to be far more difficult to execute in the Neon headquarters system than anticipated and was not implemented in 2012. Randy Boadway has developed a new program for recognition of section overall excellence and plans to have this in place in 2012 to support awards at NARAM-54. The Board identified prompt implementation of this program as the top priority for this Committee s near-term efforts. The Board identified the second priority for the committee to be taking the pulse of the current NAR sections by contact, survey, etc. to see what their priorities are for actions within the power of the NAR to do in order to support them better. Randy Boadway will be taking over Section Activities Committee by the end of May and he and John are currently engaged in turnover. The Board asked John before his departure from this position to develop a briefing or document reflecting lessons learned from his experience as the committee chair in advising sections on the best practices for gaining or maintaining access to launch sites. The Board reviewed the current fee structure for chartering or renewing the charter of an NAR section. In view of the NAR s current good financial situation and the priority that the Board places on tangible support to NAR sections, the Board could find no good reason to continue charging a $25 annual section charter fee. Motion by Ted Cochran, Seconded by Vince Huegele. All fees for establishment and renewal of NAR section charters shall be discontinued. Passed unanimously. NAR Board of Trustees Minutes 5 April 2012

Safety Committee. The Board reviewed the report from Committee Chair Steve Lubliner. Steve requested guidance from the Board concerning whether a 2012 Section Safety Grant program should be approved and announced, and if so on what the conditions or limitations would be for how the grant money could be spent. Steve reported that the final round of Section Safety Grants in 2011only resulted in $7910 in requests against an authorized $10,000 in available funding, and that the market for safety equipment may be getting saturated by the number of such grant programs the NAR has run in the past several years. The Board agreed that the purpose of the grants in 2012 could be expanded beyond just safety equipment, and tasked new Section Activities Committee Chair Randy Boadway to develop a broader purpose for these grants based on feedback from the sections, for Board approval at the NARAM meeting, and to take over administration of this broader program. Steve provided the Board with a series of proposed changes to the NAR Model Rocket and High Power Rocket Safety Codes, to exactly reflect the changes to the National Fire Protection Association Codes on rocketry that are currently in the final stages of approval for implementation this summer. The Board made adjustments to these proposals to ensure that they exactly and comprehensively reflected all the changes to these NFPA documents, and nothing more. The final versions are attached. Motion by Ted Cochran, seconded by John Lyngdal: The proposed changes to the NAR Model Rocket and High Power Safety Codes shall be approved, with an effective date of 1 August 2012 for these changes. Passed unanimously. Special Committee on FAI Activities. The Board reviewed the report from Committee Chair John Langford. John reported that participation in the NAR-supported FAI international spacemodeling competition program was strong and growing, with more participants (51) trying out for the 2012 US Team for the World Spacemodeling Championships than for any previous team. John also reported that the team s finances were strong as a result of the NAR s annual allocation of $7000 and matching funds from John s company, Aurora Flight Sciences. John submitted a Request for Commensurate Compliance request to the NAR Board for approval to allow US Team members to use at the team s formal practice in June near Chicago a batch of European-made FAI competition motors obtained by the US team and tested by FAI at the last World Spacemodeling Championships. By virtue of the Board approval for this one-time use, these motors would be considered to be certified for that day and their flights would be covered by NAR insurance. Motion by John Hochheimer, Seconded by Jennifer Ash-Poole: the application for Commensurate Compliance for FAI-certified motors for the US Team practice shall be approved. Passed with 6 yea votes, Lyngdal abstaining. The Board reviewed without comment the reports of the following committees that had no issues requiring NAR Board action: Standards & Testing Committee National Events Committee High Power Services Committee NAR Technical Services Committee NFPA Representative Contest & Records Committee NARTREK Committee The Board adjourned at 3 PM for a tour of the Kansas Cosmosphere space museum, dinner, and the NARCON welcoming session, and reconvened at 8 PM for a discussion of organizational priorities. NAR Board of Trustees Minutes 6 April 2012

Organizational Priorities. The Board returned to the subject of the 2012 budget, prioritizing among all the decisions for enhanced program funding made or considered during the course of the Board s deliberations. The net effect of these decisions was a budget for 2012 that projected expenses $16K greater than projected income, rather than the $15K surplus originally projected. The Board agreed that this projected deficit was a conscious and appropriate action on the part of the Board to spend down a prudent fraction of the $50K by which current fund balances exceeded the reasonable minimum for the NAR to keep on hand as a non-profit association. Motion by Ted Cochran, Seconded by John Hochheimer: the NAR 2012 budget shall be approved. Passed unanimously. The Board then turned to a discussion of potential organizational priorities and goals for the next year. A list of potential priorities was brainstormed, and then discussed and voted. The top 4 organizational priorities that were agreed to by the Board were (in order): Increase the number of available NAR section flying sites Ensure that there is a NAR section in or near every major US population center Increase the fraction of NAR Senior members who are under age 40 Increase the NAR s website traffic levels and overall web presence Finally, the Board discussed what the measurable goals should be that the NAR should set our effort toward achieving by NARAM-56 (2014), since the goals previously established (in 2009) have now all been achieved. The new goals agreed to were: Number of NAR members: 5800 Number of NAR sections: 140 Number of HPR certified members: 2900 (50% of membership) Number of NAR members in sections: 3500 Motion by Vince Huegele seconded by Tom Ha. The minutes of the July 2011 Board of Trustees meeting shall be approved. Passed unanimously. Motion by Tom Ha - seconded by Vince Huegele. Passed unanimously. The NAR Board shall adjourn, to reconvene on Saturday, July 28 at NARAM-54. The meeting adjourned at 10:30 PM. NAR Board of Trustees Minutes 7 April 2012

NAR Model Rocket Safety Code Effective August 2012 1. Materials. I will use only lightweight, non-metal parts for the nose, body, and fins of my rocket. 2. Motors. I will use only certified, commercially made model rocket motors, and will not tamper with these motors or use them for any purposes except those recommended by the manufacturer. 3. Ignition System. I will launch my rockets with an electrical launch system and electrical motor igniters. My launch system will have a safety interlock in series with the launch switch, and will use a launch switch that returns to the "off" position when released. 4. Misfires. If my rocket does not launch when I press the button of my electrical launch system, I will remove the launcher's safety interlock or disconnect its battery, and will wait 60 seconds after the last launch attempt before allowing anyone to approach the rocket. 5. Launch Safety. I will use a countdown before launch, and will ensure that everyone is paying attention and is a safe distance of at least 15 feet away when I launch rockets with D motors or smaller, and 30 feet when I launch larger rockets. If I am uncertain about the safety or stability of an untested rocket, I will check the stability before flight and will fly it only after warning spectators and clearing them away to a safe distance. When conducting a simultaneous launch of more than ten rockets I will observe a safe distance of 1.5 times the maximum expected altitude of any launched rocket. 6. Launcher. I will launch my rocket from a launch rod, tower, or rail that is pointed to within 30 degrees of the vertical to ensure that the rocket flies nearly straight up, and I will use a blast deflector to prevent the motor's exhaust from hitting the ground. To prevent accidental eye injury, I will place launchers so that the end of the launch rod is above eye level or will cap the end of the rod when it is not in use. 7. Size. My model rocket will not weigh more than 1,500 grams (53 ounces) at liftoff and will not contain more than 125 grams (4.4 ounces) of propellant or 320 N-sec (71.9 pound-seconds) of total impulse. 8. Flight Safety. I will not launch my rocket at targets, into clouds, or near airplanes, and will not put any flammable or explosive payload in my rocket. 9. Launch Site. I will launch my rocket outdoors, in an open area at least as large as shown in the accompanying table, and in safe weather conditions with wind speeds no greater than 20 miles per hour. I will ensure that there is no dry grass close to the launch pad, and that the launch site does not present risk of grass fires.

10. Recovery System. I will use a recovery system such as a streamer or parachute in my rocket so that it returns safely and undamaged and can be flown again, and I will use only flame-resistant or fireproof recovery system wadding in my rocket. 11. Recovery Safety. I will not attempt to recover my rocket from power lines, tall trees, or other dangerous places. LAUNCH SITE DIMENSIONS Installed Total Impulse (N-sec) Equivalent Motor Type Minimum Site Dimensions (ft.) 0.00--1.25 1/4A, 1/2A 50 1.26--2.50 A 100 2.51--5.00 B 200 5.01--10.00 C 400 10.01--20.00 D 500 20.01--40.00 E 1,000 40.01--80.00 F 1,000 80.01--160.00 G 1,000 160.01--320.00 Two Gs 1,500

NAR High Power Rocket Safety Code Effective August 2012 1. Certification. I will only fly high power rockets or possess high power rocket motors that are within the scope of my user certification and required licensing. 2. Materials. I will use only lightweight materials such as paper, wood, rubber, plastic, fiberglass, or when necessary ductile metal, for the construction of my rocket. 3. Motors. I will use only certified, commercially made rocket motors, and will not tamper with these motors or use them for any purposes except those recommended by the manufacturer. I will keep smoking, open flames, and heat sources at least 25 feet away from these motors. 4. Ignition System. I will launch my rockets with an electrical launch system, and with electrical motor igniters that are installed in the motor only after my rocket is at the launching or prepping area. My launch system will have a safety interlock that is in series with the launch switch that is not installed until my rocket is ready for launch, and will use a launch switch that returns to the "off" position when released. If my rocket has onboard ignition systems for motors or recovery devices, these will have safety interlocks that interrupt the current path until the rocket is at the launch pad. The function of onboard energetics and firing circuits will be inhibited except when my rocket is in the launching position. 5. Misfires. If my rocket does not launch when I press the button of my electrical launch system, I will remove the launcher's safety interlock or disconnect its battery, and will wait 60 seconds after the last launch attempt before allowing anyone to approach the rocket. 6. Launch Safety. I will use a 5-second countdown before launch. I will ensure that a means is available to warn participants and spectators in the event of a problem. I will ensure that no person is closer to the launch pad than allowed by the accompanying Minimum Distance Table. When arming onboard energetics and firing circuits I will ensure that no person is at the pad except safety personnel and those required for arming and disarming operations. I will check the stability of my rocket before flight and will not fly it if it cannot be determined to be stable. When conducting a simultaneous launch of more than one high power rocket I will observe the additional requirements of NFPA 1127. 7. Launcher. I will launch my rocket from a stable device that provides rigid guidance until the rocket has attained a speed that ensures a stable flight, and that is pointed to within 20 degrees of the vertical. If the wind speed exceeds 5 miles per hour I will use a launcher length that permits the rocket to attain a safe velocity before separation from the launcher. I will use a blast deflector to prevent the motor's exhaust from hitting the ground. I will ensure that there is no dry grass within a clear distance of each launch pad determined by the accompanying Minimum Distance table, and will increase this distance by a factor of 1.5 and clear that area of all combustible material if the rocket motor being launched uses titanium sponge in the propellant.

8. Size. My rocket will not contain any combination of motors that total more than 40,960 N-sec (9208 pound-seconds) of total impulse. My rocket will not weigh more at liftoff than one-third of the certified average thrust of the high power rocket motor(s) intended to be ignited at launch. 9. Flight Safety. I will not launch my rocket at targets, into clouds, near airplanes, or on trajectories that take it directly over the heads of spectators or beyond the boundaries of the launch site, and will not put any flammable or explosive payload in my rocket. I will not launch my rockets if wind speeds exceed 20 miles per hour. I will comply with Federal Aviation Administration airspace regulations when flying, and will ensure that my rocket will not exceed any applicable altitude limit in effect at that launch site. 10. Launch Site. I will launch my rocket outdoors, in an open area where trees, power lines, occupied buildings, and persons not involved in the launch do not present a hazard, and that is at least as large on its smallest dimension as one-half of the maximum altitude to which rockets are allowed to be flown at that site or 1500 feet, whichever is greater, or 1000 feet for rockets with a combined total impulse of less than 160 N-sec, a total liftoff weight of less than 1500 grams, and a maximum expected altitude of less than 610 meters (2000 feet). 11. Launcher Location. My launcher will be at least one half the minimum launch site dimension, or 1500 feet (whichever is greater) from any inhabited occupied building, or from any public highway on which traffic flow exceeds 10 vehicles per hour, not including traffic flow related to the launch. It will also be no closer than the appropriate Minimum Personnel Distance from the accompanying table from any boundary of the launch site. 12. Recovery System. I will use a recovery system such as a parachute in my rocket so that all parts of my rocket return safely and undamaged and can be flown again, and I will use only flame-resistant or fireproof recovery system wadding in my rocket. 13. Recovery Safety. I will not attempt to recover my rocket from power lines, tall trees, or other dangerous places, fly it under conditions where it may recover in spectator areas or outside the launch site, or attempt to catch it as it approaches the ground. Installed Total Impulse (N-sec) Equivalent Motor Type MINIMUM DISTANCE TABLE Minimum Clear Distance (ft.) Minimum Personnel Distance (ft.) Minimum Personnel Distance (Complex Rocket) (ft.) 0-320.00 H or smaller 50 100 200 320.01-640.00 I 50 100 200 640.01-1280.00 J 50 100 200 1280.01-2560.00 K 75 200 300 2560.01-5120.00 L 100 300 500 5120.01-10,240.00 M 125 500 1000 10,240.01-20,480.00 N 125 1000 1500 20,480.01-40,960.00 O 125 1500 2000 Note: A complex rocket is one that is multi-staged or that is propelled by two or more rocket motors

NAR Financial Report 123111 MASTER Post NARCON Bd Mtg National Association of Rocketry Statement of Fund Balances For the Year Ended December 31, 2011 Reconciled General Sport NARTS Newsletter Standards/ Reserve National Inter. Section Education Capital Total Fund (HQ) Rocketry Testing Events Events Activities Fund All Funds Balance, 12/31/10 124,410.06 9,514.85 23,596.85 (1,679.13) 2,845.34 52,658.62 36,915.69 26,679.10 14,436.23 27,475.10 2,147.59-319,000.30 Income 277,439.64 151,860.42 19,706.19 7,344.00 116.00 6,479.37 23,670.96 7,000.97 2,951.03 33,052.09 52.90-529,673.57 Expenses 249,302.60 152,925.04 17,475.56 6,067.59 25.00-26,605.18-12,023.05 30,413.80 430.65-495,268.47 Net Change in Balance 28,137.04 (1,064.62) 2,230.63 1,276.41 91.00 6,479.37 (2,934.22) 7,000.97 (9,072.02) 2,638.29 (377.75) - 34,405.10 Adjustment to Balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - Balance, 12/31/11 152,547.10 8,450.23 25,827.48 (402.72) 2,936.34 59,137.99 33,981.47 33,680.07 5,364.21 30,113.39 1,769.84-353,405.40 Note 1 Statement of Restricted, Unrestricted and Designated Funds For the Year Ended December 31, 2011 General Sport NARTS Newsletter Standards/ Reserve National Inter. Section Education Capital Total Notes Fund (HQ) Rocketry Testing Events Events Activities Fund All Funds Unrestricted Funds 152,547.10 - - - - - - - - (509.74) - 152,037.36 Designated Funds Note 1-8,450.23 25,827.48 (402.72) 2,936.34 59,137.99 16,581.47 33,680.07 5,364.21-1,769.84 153,344.91 Restricted Funds: Note 2 - - - - - - - - - International Events Note 3 - - NARAM R/D Fund Note 4 15,800.00 15,800.00 NARAM Travel Awards Note 5 1,600.00 1,600.00 NASA SLI Support Note 6 - Cannon Fund Note 7 30,623.13 30,623.13 Balance, 12/31/11 152,547.10 8,450.23 25,827.48 (402.72) 2,936.34 59,137.99 33,981.47 33,680.07 5,364.21 30,113.39 1,769.84 353,405.40 Note 1: Designated Funds are those for the use of a specific activity or project - but can be used by the board if necessary for other purposes. In the case of the general fund, this amount represents monies set aside for potential insurance claims and for paying another year of member insurance. Note 2: Restricted Funds are those which can only be used for a specific activity or pupose and may "normally" not be transferred to other funds. Note 3: The International Events amount represents "team deposits" made for the next world spacemodeling championships. Note 4: Remaining balance of the Alway R/D fund used for NARAM B Divisioners. Note 5: Balance of the A Division Travel Awards to NARAM. Note 6: Started 2010 - December Grant of $7,460 is deferred income until 2011. Note 7: Balance in the education fund that represents monies used for teacher grants. Page 2

Statement of Activity National Association of Rocketry Statement of Activity For the year end December 31, 2011 General Sport Standards/ National Inter. Section Total Fund (HQ) Rocketry NARTS Newsletter Testing Events Events Activities Educat. Reserve Capital Revenues: Membership Dues 272,848 272,848 Regular Allotment 139,140 107,148 7,344 2,600 7,000 15,048 Service Fees/Sales 35,892 19,699 115 12,803 2,945 330 Advertising Sales 44,712 44,712 Other Income 4,197 4,197 0 Grants 14,921 14,921 Team America 4,513 4,513 Donations 12,888 299 3,750 2,752 6,087 Interest Income 563 96 7 1 5 1 6 2 393 53 Total Revenue: 529,674 277,440 151,860 19,706 7,344 116 23,671 7,001 2,951 33,052 6,479 53 Expenses: Allotments 139,140 139,140 HQ Services 23,600 23,600 Phone and Internet 6,913 6,913 Database Service 1,800 1,800 Postage/Shipping 9,287 4,570 723 2,996 25 217 667 90 Printing 156,496 6,667 139,285 6,068 502 3,975 Insurance 49,041 49,041 Insurance Claims 0 0 Office and Administrative 3,738 788 2,751 198 Credit Card Fees / Bank Charges 11,413 10,821 22 570 Marketing / Public Relations 1,367 1,258 109 Travel / Trustee Expense 4,841 2,938 1,903 Other 2,198 216 1,983 Ad Commisiions/Royalties 14,315 12,270 2,045 Rents/Storage 0 Franchise Fees (Note 1) 2,866 2,866 Range Equipment 0 Motel/Banquet 5,260 5,260 Avards / Grants /Trophies 27,196 1,550 4,831 6,735 14,080 Supplies 1,353 813 448 92 Team America 10,027 10,027 Bad Debts 625 625 Inventory Purchases 9,113 9,113 Legal Expense - SLI program 14,249 14,249 Capital Expenses 431 431 Total Expenses: 495,268 249,303 152,925 17,476 6,068 25 26,605 0 12,023 30,414-431 Other Income (Expense) 0 Net Increase (Decrease) 34,405 28,137 (1,065) 2,231 1,276 91 (2,934) 7,001 (9,072) 2,638 6,479 (378) Page 1 of 1

National Association of Rocketry - 2012 Budget General Annual Budget - 2012 Total Fund (HQ) Sport Rocketry NARTS Newsletter S&T Reserve Expected Fund Balance, Dec 31, 2012 Page 8 337,190 143,062 9,450 25,137 (403) 2,946 65,388 35,461 33,690 (4,686) 28,123 (980) National Events Inter. Events Section Activities Educat. Capital January - December 2012 Membership Dues 285,600 285,600 Regular Allotment 146,230 116,980 5,760-2,600 7,000 13,890 Service Fees/Sales 51,750 50 5,500 18,000 28,000-200 Advertising Sales 38,400 38,400 Grants 17,000 17,000 Interest Income 690 30 10 250 80 10 50 10 250 Other Income 6,045 5,045 1,000 - TARC 14,000 14,000 Donations 12,200 6,000 3,700-2,500 Total Revenue: 571,915 290,695 161,880 18,030 5,760 10 6,250 48,380 7,010 50 33,600 250 Expenses and Capital Items: Regular Allotments 146,230 146,230 HQ Services 24,000 24,000 Phone/Internet 8,960 8,000 960 Database 6,300 6,300 Postage/Shipping 30,740 9,350 14,600 2,900 2,000 200 100 1,590 Printing 163,980 27,000 133,680 2,800 500 - Insurance 45,100 45,100 Insurance Claims - Office Supplies 3,950 1,200-2,750 Credit Card Fees/Bank Charges 9,500 9,500 Marketing/Public Relations 5,000 5,000 - Travel/Trustee Expense 5,500 3,500-2,000 New member promotion 2,500 2,500 Other 21,370 500 3,000 570-17,300 Ad Commisiions/Royalties 9,600 9,600 Membership Cards 11,000 11,000 Franchise Fees 2,800 2,800 Range Equipment - Motel/Banquet 5,300 5,300 Awards/Trophies 22,800 1,000 6,800 15,000 Supplies - TARC/SLI 31,000 14,000 17,000 Bad Debts - Inventory Purchases 12,000 12,000 Legal Expenses - - Grant Expenditures 10,000 10,000 Royalties 500 500 - Capital Expenses 3,000 3,000 Internats Participation 7,000 7,000 Deposit Reserves - Total Expenses: 588,130 300,180 160,880 18,720 5,760 - - 46,900 7,000 10,100 35,590 3,000 Other Income(Expense) - - - - - - - - - - - - Income (Expense) for Year (16,215) (9,485) 1,000 (690) 0 10 6,250 1,480 10 (10,050) (1,990) (2,750) Fund Balance, Dec 31, 2011 353,405 152,547 8,450 25,827 (403) 2,936 59,138 33,981 33,680 5,364 30,113 1,770