1. SYSTEM SAFETY SOCIETY Professionals Dedicated to the Safety of Systems, Products & Services Organized 1962 Incorporated 1973   Executive Council Meeting Potential Conflict of Interest Larry Jones Society President August 21, 2005 The Westin Horton Plaza San Diego, CA

2. SYSTEM SAFETY SOCIETY Professionals Dedicated to the Safety of Systems, Products & Services Organized 1962 Incorporated 1973   August 20062 Conflict of Interest System Safety Society Constitution –Article IV, Section 4.13 “No Officer or Director shall have financial interest in any contract relating to operation of the Society, nor any contract for furnishing supplies thereto, unless authorized by a two-thirds vote of the entire Executive Council by mail ballot.”

3. SYSTEM SAFETY SOCIETY Professionals Dedicated to the Safety of Systems, Products & Services Organized 1962 Incorporated 1973   August 20063 1 st Conflict of interest –New elected Director of Publicity and Media is owner of A. S. Waterman and publisher of the Journal of System Safety (JSS) –Society Directors are members of the Executive Council and as such vote on the budget which includes expenses for the JSS Conflict of Interest

4. SYSTEM SAFETY SOCIETY Professionals Dedicated to the Safety of Systems, Products & Services Organized 1962 Incorporated 1973   August 20064 2 nd Conflict of interest –Newly elected President of the Winners Circle Chapter is employed by A. S. Waterman and serves as the JSS Technical Editor –Chapter Presidents are members of the Executive Council and as such vote on the budget which includes expenses for the JSS Conflict of Interest

5. SYSTEM SAFETY SOCIETY Professionals Dedicated to the Safety of Systems, Products & Services Organized 1962 Incorporated 1973   August 20065 Conflict of Interest Historical Background –Similar issue noted during Paige Ripani’s tenure as Society President (1999-2001) and exception approved. –Clif Ericson, Society President (2001-2003), mistakenly assumed that officers and directors knew of the previous approval – after some discussion - exception approved. –Conflict of interest identified at last year’s EC meeting by Paul Kryska, Society President (2003-2005) and exception approved.

6. SYSTEM SAFETY SOCIETY Professionals Dedicated to the Safety of Systems, Products & Services Organized 1962 Incorporated 1973   August 20066 Conflict of Interest For the record –When Ann volunteered to run for Director of Publicity and Media, she volunteered to have her company divest itself of the JSS work. Options –A.S. Waterman divest itself of JSS work and new publisher found –Approve exception to Article IV, Section 4.13 –Approve exception to Article IV, Section 4.13 with limitations

7. SYSTEM SAFETY SOCIETY Professionals Dedicated to the Safety of Systems, Products & Services Organized 1962 Incorporated 1973   August 20067 Conflict of Interest Possible limitations –Do not permit voting on the budget Possibly broaden restriction to include anything to do with JSS only –Do encourage contribution to the drafting and commenting on the budget