ASSEC Executive Committee

For the past few years the U.S. Space and Rocket Center has been limping along financially.  While their financial woes aren’t completely gone, the Alabama Space Science Exhibit Commission Business and Executive committees have worked a 6th amendment to their long standing credit line with First Commercial Bank.  In this latest amendment the center and bank have agreed to a drop in the revolving credit line from $4.5 million to $3.5 million in April of 2013.  In April of 2014 the line will drop again to $3 million.  In addition the revised balance stepdown, the center has renegotiated the rate for the the credit line from Libor+4.759% to Libor+2.590%.   In previous agreements the center had a much more aggressive quarterly stepdown schedule.  Between the reduction in rate and less aggressive stepdown schedule the center should have additional wiggle room to tackle improvements to the facility and staffing in the winter months.

Resolution for Credit Line Amendment ASSEC_CreditLine 27MAR2013 Resolution

**Update – Another emergency joint session of the Alabama Space Science Exhibit Commission Business and Executive Committees has been scheduled to take place on 02/06/2013 @ 3:00 PM.  More than likely the details of the settlement with AXE Body Spray will be discussed.

Last week members of the Alabama Space Science Exhibit Commission’s Business and Executive committees met in a rare emergency session.  The subject revolved around AXE Body Spray’s upcoming Super Bowl promotion that involves an international sweepstakes.  The prize is a trip to Florida to train like an astronaut at the AXE’s Apollo Space Academy where one lucky winner will take a trip to space.  So what is the problem?  AXE used the terms Space Academy and their promotion smells a lot of like the experiences that someone would undertake at Space Camp/Space Academy.  The center contacted AXE about ten days ago with a cease and desist letter. AXE later contacted the center and admitted they infringed on the trademark and indicated that they want to make things right with the U.S. Space and Rocket Center.

At the meeting Dr. Deborah Barnhart explained what the center had requested which included a payment of $500,000, a disclaimer in related advertising that basically says that Space Camp isn’t involved with the promotion and for AXE to send two teachers to Educator Space Camp from each of the 60 countries that AXE is advertising the contest in.  As the center’s attorney started to discuss the AXE counteroffer he was quickly stopped by one board member who basically said the center had lowballed the value of the brand.  Other board members chimed in that if AXE could afford a Super Bowl ad, AXE could afford to pay more for infringing on the center’s brand.  As the attorney started to list through their possible options a motion was made (seconded and approved) to enter into an executive session.  The Huntsville Times reporter Lee Roop (@LeeRoop) and I were asked to leave the boardroom. 30 minutes later we were called back into the room and a quick update was given.  The committees had decided that at this current time no legal action was needed.  In what appeared as a scripted action, another board member made a motion that stated the current AXE offer was “unacceptable” and the CEO and Chairman should continue to work the best possible deal for the center.  That motion was seconded and approved.

Because of the use of the executive session privilege we never actually heard the complete counteroffer information other than the $350,000.

You can read my live blog of the meeting HERE

Read Lee Roop’s article from after the meeting HERE