2024-05-01T14:44:53-05:00 2023-06-30 910189318 MOSS ADAMS LLP 3121 WEST MARCH LANE SUITE 100 STOCKTON CA 95219 990 2022-07-01 952544340 SPECIALTY EQUIPMENT MARKET ASSOCIATION & PERFORMANCE RACING INC SPEC 9099786709 1575 SOUTH VALLEY VISTA DR DIAMOND BAR CA 91765 GEORGE AFREMOW VP & CFO 9099786709 2024-05-15 1 GEORGE AFREMOW XXX-XX-XXXX 1 TRACY PAGLIA P00366884 2099556100 2024-04-29 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z X MIKE SPAGNOLA 1575 SOUTH VALLEY VISTA DR DIAMOND BAR CA 91765 81043117 0 X WWW.SEMA.ORG X 1963 CA TO PROVIDE MEMBERS WITH A FORUM TO BUY, SELL, AND MARKET PRODUCTS AND SERVICES WHICH DRIVES THE SPECIALTY AUTOMOTIVE AFTERMARKET INDUSTRY. 12 12 156 16 140874 115519 0 0 34682576 44015417 16754092 -1931569 225895 296280 51662563 42380128 2086435 1971230 0 0 19137975 18493041 0 0 0 27766256 32484981 48990666 52949252 2671897 -10569124 143261382 137473335 34725809 32109658 108535573 105363677 X SEMA'S MISSION IS TO HELP OUR MEMBERS' BUSINESSES SUCCEED AND PROSPER. OUR MEMBERS ARE THE PRODUCERS AND MARKETERS OF SPECIALTY EQUIPMENT PRODUCTS AND SERVICES FOR THE AUTOMOTIVE AFTERMARKET. WE WILL DO THIS BY: A. PROACTIVE LEADERSHIP IN OUR INDUSTRY TO HELP IT EXPAND DOMESTICALLY AND WORLDWIDE. B. DELIVERING PROGRAMS, ACTIVITIES AND INFORMATION IN RESPONSE TO THE ONGOING AND EMERGING NEEDS OF OUR MEMBERS. C. EMPHASIZING EDUCATION TO HELP MEMBERS FOCUS ON AND ACHIEVE ACCEPTABLE WORLD-CLASS QUALITY STANDARDS. D. LEGISLATIVE AND REGULATORY ADVOCACY. E. PRODUCING THE INDUSTRY'S LEADING TRADE SHOW. 0 0 SEE SCHEDULE O 0 0 1 1 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 306 0 1 156 1 1 1 0 0 0 0 0 0 0 X 12 12 0 0 1 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 CA X GEORGE T AFREMOW 9099786709 1575 SOUTH VALLEY VISTA DR DIAMOND BAR CA 91765 BUNYAN LES RUDD TREASURER BOARD MEMBER (THRU 7/30/22) 3.00 7.00 X X 0 0 0 TIM MARTIN IMMEDIATE PAST CHAIR & SECRETARY 3.00 7.00 X X 0 0 0 JAMES LAWRENCE CHAIRMAN 3.00 7.00 X X 0 0 0 KYLE FICKLER CHAIR ELECT 3.00 7.00 X X 0 0 0 LARRY MONTANTE BOARD MEMBER 3.00 0.00 X 0 0 0 BRIAN REESE BOARD MEMBER 3.00 0.00 X 0 0 0 CHRIS DOUGLAS BOARD MEMBER (THRU 7/30/22) 3.00 0.00 X 0 0 0 KATHRYN REINHARDT BOARD MEMBER 3.00 0.00 X 0 0 0 MELANIE WHITE BOARD MEMBER 3.00 0.00 X 0 0 0 KIM PENDERGAST BOARD MEMBER 3.00 0.00 X 0 0 0 STEVE WHIPPLE BOARD MEMBER 3.00 0.00 X 0 0 0 TED WENTZ BOARD MEMBER 3.00 0.00 X 0 0 0 RICH BUTLER BOARD MEMBER (AS OF 7/30/22) 3.00 0.00 X 0 0 0 NORRIS MARSHALL BOARD MEMBER (AS OF 7/30/22) 3.00 0.00 X 0 0 0 MIKE SPAGNOLA PRESIDENT AND CEO 40.00 3.00 X 557235 0 54391 GEORGE AFREMOW VP AND CFO 40.00 3.00 X 358282 0 40581 WILLIAM MILLER SENIOR VP, OPERATIONS 40.00 0.00 X 564195 0 62092 TOM GATTUSO VICE PRESIDENT, EVENTS 40.00 0.00 X 288899 0 46692 JAMIE MEYER PRESIDENT, PRI (THRU 12/14/22) 40.00 0.00 X 272050 0 32638 JIM LIAW GENERAL MANAGER, PRI 40.00 0.00 X 222172 0 46519 DANIEL INGBER VP GOV'T LEGAL AFFAIRS (THRU 2/13/23) 40.00 0.00 X 283702 0 40592 NATHAN RIDNOUER VP COUNCILS & MEMBERSHIP (THRU 9/9/2022) 40.00 0.00 X 267985 0 44714 RJ DE VERA VICE PRESIDENT, MARKETING 40.00 0.00 X 264237 0 14606 WARREN KOSIKOV VICE PRESIDENT, SALES 40.00 0.00 X 262803 0 27000 DARIN D MRAZ SR. DIRECTOR IT 40.00 0.00 X 210562 0 21250 CHRISTOPHER J KERSTING FORMER CEO & PRESIDENT 0.00 0.00 X 604870 0 6738 4156992 0 437813 34 1 1 0 SIWEK CONSTRUCTION COMPANY 5020 PILGRIM ROAD FLINT MI 48507 BUILDING RENOVATION 2017363 DRIVELINE STUDIOS LLC 511 OLDE TOWNE ROAD 81633 ROCHESTER MI 48308 PROMOTION, MARKETING SERVICES 616688 WEBSTER CHAMBERLAIN & BEAN LLP 1747 PENNSYLVANIA NW SUITE 1000 WASHINGTON DC 20006 LEGAL SERVICES 522999 BRENTWOOD COMMUNICATIONS INT'L 16135 ROSCOE BLVD NORTH HILLS CA 91343 TV & FILM STUDIO SERVICES 400451 LUCID MEDIA INC 6347 SHADOW RIDGE COURT BRENTWOOD TN 37027 VIDEO PRODUCTIONS 321670 64 CONVENTION & TRADE SHOW 441100 37985087 37985087 MEMBERSHIP DUES 561439 3314521 3314521 MEMBERSHIP PROGRAMS 561439 1530243 1526967 3276 CONFERENCE REVENUE 561439 597537 597537 COUNCIL ACTIVITIES 561439 347928 347928 240101 240101 44015417 2176663 137598 2039065 360500 357109 3391 3391 3391 34197648 38305880 -4108232 -4108232 -4108232 MISC REVENUE 900099 292889 292889 292889 42380128 6027054 140874 36212200 X 1971230 2658696 14755867 60066 1018412 568421 81676 462293 586103 7857331 3243561 1724004 1565726 1241612 1254352 10470041 1270312 2159549 52949252 1550734 4626587 394506 13593456 5474074 422785 2373724 2169715 34091528 11172941 22586769 22918587 74566882 56584525 27606353 28434780 1000 1000 6464800 6374274 2242540 2347626 143261382 137473335 8324949 7194838 26370360 24884320 30500 30500 34725809 32109658 X 108535573 105363677 108535573 105363677 143261382 137473335 X -10569124 7591113 -193885 X 0 1 X 1 0 50000 0 50000 50000 1 SEMA CA POLITICAL ACTION COMMITTEE 1575 S VALLEY VISTA DR DIAMOND BAR CA 91765 952544340 50000 100 SEMA FED POLITICAL ACTION COMMITTEE 1575 S VALLEY VISTA DR DIAMOND BAR CA 91765 952544340 180230 PRI PAC 1575 S VALLEY VISTA DR DIAMOND BAR CA 91765 952544340 54033 0 0 0 3314521 1204023 178391 1382414 762340 620074 PART I-A, LINE 1: SPECIALTY EQUIPMENT MARKET ASSOCIATION FEDERAL POLITICAL ACTION COMMITTEE: THE DC OFFICE LOBBIES IN ALL 50 STATES, US CONGRESS AND WITH ADMINISTRATIVE REGULATORY AGENCIES. LOBBYING ACTIVITY INCLUDES WRITING LETTERS, ENGAGING GRASS-ROOTS PARTICIPATING COALITIONS, AND FACE-TO-FACE MEETINGS WITH LEGISLATORS AND REGULATORS. THE DC OFFICE MONITORS LEGISLATION AT BOTH FEDERAL AND STATE LEVELS. THE COMMITTEE MAY CONTRIBUTE TO CAMPAIGN FUNDS TO SUPPORT INDIVIDUAL CANDIDATES WHO ARE SUPPORTIVE OF THE SPECIALTY AUTOMOTIVE AFTERMARKET INDUSTRY. SEMA ALSO CONTRIBUTES TO SEMA CA POLITICAL ACTION COMMITTEE FOR POLITICAL CAMPAIGN ACTIVITIES. 7409062 7409062 10623233 6264373 4358860 6639298 856932 5782366 2213719 2175785 37934 7206216 1875851 5330365 22918587 PRIVATE REAL ESTATE 2016610 F PRIVATE EQUITY 26251796 F HEDGE FUND 166374 F 28434780 SECURITY DEPOSIT 30500 30500 X PART X, LINE 2: THE ASSOCIATION AND SEWA HAVE BEEN RECOGNIZED AS ORGANIZATIONS EXEMPT FROM FEDERAL AND CALIFORNIA INCOME TAXES UNDER SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE AND THE CORRESPONDING CALIFORNIA PROVISION. THE SCHOLARSHIP FUND HAS BEEN RECOGNIZED AS AN ORGANIZATION EXEMPT FROM FEDERAL AND CALIFORNIA INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND THE CORRESPONDING CALIFORNIA PROVISION. THE ASSOCIATION IS SUBJECT TO INCOME TAXES FOR UNRELATED BUSINESS INCOME, IF ANY, REALIZED IN CONNECTION WITH UNRELATED BUSINESS ACTIVITIES. NO PROVISION FOR FEDERAL AND STATE INCOME TAXES HAS BEEN RECORDED FOR PAPI AS IT HAS NET OPERATING LOSS CARRYFORWARDS AVAILABLE TO OFFSET CURRENT AND FUTURE TAXABLE INCOME FOR FEDERAL INCOME TAX PURPOSES OF APPROXIMATELY $6,611,000 AND $5,302,000 AS OF JUNE 30, 2023 AND 2022, RESPECTIVELY, AND OPERATING LOSS CARRYFORWARDS AVAILABLE TO OFFSET CURRENT AND FUTURE TAXABLE INCOME FOR CALIFORNIA INCOME TAX PURPOSES OF APPROXIMATELY $4,982,000 AND $2,890,000, RESPECTIVELY. SUCH CARRYFORWARDS BEGAN TO EXPIRE IN FISCAL YEAR ENDED JUNE 30, 2023, FOR FEDERAL INCOME TAX AND JUNE 30, 2030, FOR CALIFORNIA TAX PURPOSES. PAPI HAS PROVIDED A VALUATION ALLOWANCE TO OFFSET ALL DEFERRED TAX ASSETS DUE TO THE UNCERTAINTY OF REALIZATION. SEMA HAD NO UNRECOGNIZED TAX BENEFITS AT JUNE 30, 2023 AND 2022. THE ASSOCIATION, THE SCHOLARSHIP FUND, AND SEWA FILE EXEMPT ORGANIZATION INCOME TAX RETURNS. THE ASSOCIATION FILES AN UNRELATED BUSINESS INCOME TAX RETURN IN THE U.S. FEDERAL JURISDICTION AND WITH CALIFORNIA. PAPI FILES A CORPORATE INCOME TAX RETURN IN THE U.S. FEDERAL JURISDICTION AND WITH CALIFORNIA. THE ASSOCIATION HAD NO UNCERTAIN TAX POSITIONS FOR THE YEARS ENDED JUNE 30, 2023 AND 2022. NORTH AMERICA (CANADA AND MEXICO) 0 0 PROGRAM SERVICES TRADE SHOW AND CONFERENCE PARTICIPATION 9738 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 INVESTMENTS 3664700 CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 22165452 0 0 0 0 0 0 25839890 0 25839890 1 0 1 1 1 0 PART III ACCOUNTING METHOD: 1 SPECIALTY EQUIPMENT WARRANTY ALLIANCE 1575 S VALLEY VISTA DRIVE DIAMOND BAR CA 91765 205938240 501(C)(6) 1479900 0 GENERAL SUPPORT. HOT RODDERS OF TOMORROW FOUNDATION 207 NORTH SCOTT STREET JOLIET IL 60432 462553138 501(C)(3) 190000 0 CONTRIBUTION TO PROVIDE FINANCIAL SUPPORT FOR THE ENGINE CHALLENGE COMPETITIONS THAT PROMOTE YOUTH ENGAGEMENT THROUGHT THE YEAR AND HOST THE SERIES OF DUAL CHAMPIONSHIP EVENTS DURING THE SEMA SHOW IN LAS VEGAS, NEVADA AND THE PRI SHOW IN INDIANAPOLIS, INDIANA. SEMA MEMORIAL SCHOLARSHIP FUND 1575 S VALLEY VISTA DRIVE DIAMOND BAR CA 91765 954131888 501(C)(3) 138745 0 SEMA MEMORIAL SCHOLARSHIP FUND SEMA CAL PAC 1575 S VALLEY VISTA DRIVE DIAMOND BAR CA 91765 954131888 50000 0 GENERAL SUPPORT AUTOMOVITE AFTERMARKET CHARITABLE FOUNDATION PO BOX 864520 ORLANDO FL 328864520 236392256 501(C)(3) 33100 0 PROVIDES RESOURCES FOR INDIVIDUALS AND THEIR FAMILIES WHO HAVE WORKED IN THE AFTERMARKET AND HAVE COME ON DIFFICULT TIMES FINANCIALLY. OFF-ROAD BUSINESS ASSOCIATION 1701 WESTWIND DRIVE STE 108 BAKERSFIELD CA 93301 330957947 501(C)(6) 30000 0 ADVOCACY ASSOCIATION FORMED TO PROTECT AND PRESERVE ACCESS TO PUBLIC LANDS FOR OFF-ROAD RECREATION. NHRA MOTORSPORTS MUSEUM BLDG 3A 1101 W MCKINLEY AVE POMONA CA 91768 951686172 501(C)(3) 22000 0 GENERAL SUPPORT AUTOMOTIVE HALL OF FAME INC 21400 OAKWOOD BLVD DEARBORN MI 48124 383320345 501(C)(3) 15200 0 GENERAL SUPPORT 5 3 PART I, LINE 2: SEMA MADE GRANTS TO OTHER ORGANIZATIONS WHICH ARE WELL KNOWN FOR THEIR CONTRIBUTION TO THE INDUSTRY AND THEREFORE SEMA DOES NOT FORMALLY MONITOR THE USE OF GRANTS FUNDS. GRANTS ARE APPROVED ANNUALLY BY THE BOARD. X 1 1 X X X X X 1 0 0 WILLIAM MILLER SENIOR VP, OPERATIONS 440348 0 96611 0 27236 0 26000 0 36092 0 626287 0 0 0 MIKE SPAGNOLA PRESIDENT AND CEO 428935 0 116250 0 12050 0 27000 0 27391 0 611626 0 0 0 CHRISTOPHER J KERSTING FORMER CEO & PRESIDENT 131638 0 0 0 473232 0 4000 0 2738 0 611608 0 0 0 GEORGE AFREMOW VP AND CFO 293031 0 36881 0 28370 0 26000 0 14581 0 398863 0 0 0 TOM GATTUSO VICE PRESIDENT, EVENTS 248442 0 32712 0 7745 0 27000 0 19692 0 335591 0 0 0 DANIEL INGBER VP GOV'T LEGAL AFFAIRS (THRU 2/13/23) 234646 0 29059 0 19997 0 0 0 40592 0 324294 0 0 0 NATHAN RIDNOUER VP COUNCILS & MEMBERSHIP (THRU 9/9/2022) 243277 0 19340 0 5368 0 25250 0 19464 0 312699 0 0 0 JAMIE MEYER PRESIDENT, PRI (THRU 12/14/22) 245558 0 19298 0 7194 0 7454 0 25184 0 304688 0 0 0 WARREN KOSIKOV VICE PRESIDENT, SALES 225877 0 29297 0 7629 0 27000 0 0 0 289803 0 0 0 RJ DE VERA VICE PRESIDENT, MARKETING 223538 0 35413 0 5286 0 14606 0 0 0 278843 0 0 0 JIM LIAW GENERAL MANAGER, PRI 206477 0 15417 0 278 0 12277 0 34242 0 268691 0 0 0 DARIN D MRAZ SR. DIRECTOR IT 194185 0 15510 0 867 0 20500 0 750 0 231812 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - WHEN ACCOMPANIED BY HIS SPOUSE THE PRESIDENT/CEO WILL BE REIMBURSED FOR REASONABLE AND NECESSARY BUSINESS EXPENSES INCURRED. PART I, LINE 4A: CHRISTOPHER KERSTING RETIRED AND RECEIVED THE SECOND INSTALLMENT OF THE SEPARATION SETTLEMENT DURING THE YEAR. DETAILS OF THE SETTLEMENT ARE CONFIDENTIAL, BUT ARE AVAILABLE UPON REQUEST. FORM 990, PART III, LINE 4A, DESCRIPTION OF PROGRAM SERVICE ANNUAL MARKET STUDY EACH YEAR SEMA'S RESEARCH TEAM SPENDS SIGNIFICANT TIME, EFFORT AND FINANCIAL RESOURCES TO PRODUCE AN ANNUAL MARKET REPORT THAT HELPS MEMBERS UNDERSTAND THE CURRENT STATE OF THE AUTOMOTIVE SPECIALTY EQUIPMENT MARKET. THE REPORT, WHICH IS FREE TO ALL MEMBER COMPANIES, PROVIDES AN OVERVIEW OF THE INDUSTRY'S SIZE, SALES WITHIN DEFINED MARKET NICHES AND PRODUCT SEGMENTS, INDUSTRY AND ECONOMIC TRENDS,VEHICLE SALES TRENDS AND CONSUMER PURCHASE PATTERNS. SEMA MARKET RESEARCH ALSO PROVIDES BUSINESSES WITH ACTIONABLE INSIGHTS THROUGH REGULAR AND ADHOC REPORTS ON DOCUMENTING CHANGES AFFECTING THE INDUSTRY, CONSUMER PURCHASE AND SHOPPING BEHAVIOR, AND SPECIFIC MARKET SECTION NEEDS. ADDITIONALLY, THE MAJORITY OF SEMA FUNCTIONS FEATURE SEMINARS AND PRESENTATIONS DESIGNED TO HELP OUR MEMBERS SELL MORE PRODUCT. SINCE ALMOST EVERY SIGNIFICANT MEMBER OF THE AUTOMOTIVE AFTERMARKET CONVERSE EACH FALL IN LAS VEGAS FOR THE SEMA SHOW, THE EDUCATION DAY PORTION OF THE SHOW WEEK IS DESIGNED TO HELP EDUCATE AND INSTRUCT ALL SEGMENTS OF THE AFTERMARKET ON SUCH TOPICS AS: INDUSTRY TECHNOLOGY AND TRENDS, EFFECTIVE BUSINESS STRATEGIES, ADVERTISING TECHNIQUES, PROFIT OPPORTUNITIES IN SELECT MARKET SEGMENTS, MANAGEMENT TECHNIQUES, AND ALL PRODUCT INSTALLATION SEMINARS ARE AVAILABLE MONDAY THROUGH FRIDAY DURING SHOW WEEK. SEMA'S WIDE RANGE OF VOLUNTEER OPPORTUNITIES COVER VITAL TOPICS THAT IMPACT THE WELLBEING OF THE INDUSTRY TODAY AND THE DIRECTION AND HEALTH FOR THE FUTURE. EVERY SEMA MEMBER IS ELIGIBLE FOR COUNCIL AND NETWORK MEMBERSHIP. IF YOU WERE TO SURVEY THE NATION'S TOP EXECUTIVES AND ASK THEM WHAT IS THE SINGLE MOST VALUABLE COMMODITY IN THE BUSINESS WORLD TODAY, NINE OUT OF THE TEN WOULD ANSWER "TIMELY, ACCURATE AND RELEVANT INFORMATION". SEMA PROVIDES ITS MEMBERS WITH EDUCATIONAL OPPORTUNITIES THROUGHOUT THE YEAR WITH SEMINARS, WEBINARS AND ONLINE LEARNING TOOLS. SEMA CURRENTLY DEDICATES MAJOR ASSOCIATION PUBLICATIONS, ANNUAL INDUSTRY FUNCTIONS, AND ACTIVE COMMITTEES TO ACHIEVE THIS IMPORTANT GOAL. SEMA NEWS THE NEWS TO STAY ON TOP IS ALL HERE ON THE PAGES OF OUR MONTHLY ASSOCIATION NEWSLETTER. IT CONCENTRATES ON BEST PRACTICES TO KEEP AHEAD AND IT'S FREE TO SEMA MEMBERS. INDUSTRY AND LEGISLATIVE ALERTS ARE SENT OUT WHENEVER NEEDED. THESE VALUABLE ALERTS KEEP MEMBERS APPRISED OF CRITICAL ISSUES, AS THEY ARE HAPPENING, TO GIVE DECISION MAKERS THE INFORMATION THEY NEED TO CREATE A QUICK AND EFFECTIVE RESPONSE. SEMA ALSO STRIVES TO ASSIST MEMBER COMPANIES IN PUBLISHING THEIR OWN NEWSWORTHY ITEMS EACH MONTH. MEMBERS SUBMIT NEWS REGARDING PERSONNEL CHANGES, NEW PRODUCT RELEASES, CHANGE OF ADDRESS, INNOVATIVE NEW PROGRAMS AND SERVICES, AND JUST ABOUT ANYTHING OUR MEMBERS DEEM IMPORTANT. THE INFORMATION THEN APPEARS IN THE APPROPRIATE SECTION OF THE ABOVE PUBLICATIONS. DURING SHOW TIME, MEMBERS ARE ENCOURAGED TO FORWARD PRESS RELEASES TO THE MEDIA CENTER, DRAMATICALLY IMPROVING THE CHANCES FOR PRESS COVERAGE. FORM 990, PART III, LINE 4A, DESCRIPTION OF PROGRAM SERVICE FOR OVER 50 YEARS, THE SPECIALTY EQUIPMENT MARKET ASSOCIATION & PERFORMANCE RACING, INC. HAS SERVED AS THE SOLE GUIDING FORCE BEHIND THE EXTRAORDINARY GROWTH AND SUCCESS OF THE SPECIALTY AUTOMOTIVE AFTERMARKET INDUSTRY - A UNIQUE INDUSTRY DEDICATED TO THE ENHANCED PERFORMANCE, APPEARANCE AND HANDLING OF THE 20TH CENTURY'S GREATEST INNOVATION OF THE AUTOMOBILE. DURING THOSE YEARS, SEMA HAS MATURED FROM AN UPSTART COALITION OF INNOVATIVE ENTREPRENEURS TO AN ESTABLISHED BUSINESS FORCE WHOSE IMPACT IS FELT BY EVERY SEGMENT OF THE MARKETPLACE, AS WELL AS THE LEGISLATIVE BODIES WHICH GOVERN IT. WHETHER IT HAS BEEN THROUGH PROVIDING OUR MEMBERS WITH AN UNRIVALED FORUM TO BUY, SELL AND MARKET PRODUCTS AND SERVICES WHICH HAVE DRIVEN THIS INDUSTRY (THE SEMA SHOW), LEGAL PROTECTION TO ENSURE THAT MEMBERS' DOORS REMAIN OPEN TO DO WHAT THEY DO BEST (BUSINESS), OR OUR VALUABLE MENU OF BENEFITS WHICH HELP MEMBERS IMPROVE THEIR DAY-TO-DAY BUSINESS AND MARKETING ACTIVITIES, SEMA HAS BEEN THERE SINCE THE BEGINNING AS THE ONLY ASSOCIATION DEDICATED EXCLUSIVELY TO SERVING COMPANIES IN THE SPECIALTY AUTOMOTIVE AFTERMARKET INDUSTRY. LITTLE MORE THAN A GENERATION AGO, SEMA'S FOUNDING MEMBERS CREATED A NEW INDUSTRY AND NEW OPPORTUNITIES FOR THEMSELVES BY PROVIDING ACCESS TO IMPROVED PERFORMANCE IN A CULTURE WHERE BIGGER WAS BETTER, AND FASTER WAS THE ONLY WAY TO GO, SEMA MEMBERS MADE THE PARTS THAT PUT MUSCLE AND POWER UNDER THE HOOD. BEFORE LONG, THESE INDUSTRY PIONEERS FOUND THEMSELVES IN NEED OF A UNIFIED VOICE TO PROTECT THEIR BUSINESS. IN 1963, SEMA WAS BORN TO ADDRESS THAT NEED. SINCE THAT TIME, THE KEY TO OUR INDUSTRY'S SPECTACULAR SUCCESS HAS BEEN ITS REMARKABLE ABILITY TO ADAPT TO CHANGE AND SHIFTING CONSUMER TASTES. OUR MANUFACTURING MEMBERS ARE JUST AS LIKELY TO INTRODUCE DRAMATIC RESTYLING ACCESSORIES AND HANDLING COMPONENTS AS THEY ARE "UNDERHOOD" PERFORMANCE PRODUCTS. SEMA'S DISTRIBUTOR AND RETAIL MEMBERS NOW CARRY EXTENSIVE LINES FOR MULTIPLE AUTOMOTIVE MANUFACTURERS, AND OUR SUCCESSORIENTED MANUFACTURERS ARE NOW INCREASINGLY PROVIDING NOT ONLY U.S. ENTHUSIASTS BUT MOTORISTS AROUND THE WORLD, FROM ABU DHABI TO ZURICH, WITH FIRSTRATE INNOVATIVE PRODUCTS THAT ALLOW GLOBAL GEARHEADS TO PERSONALIZE THEIR VEHICLES. AS FAR AS TECHNICAL ASSISTANCE, SEMA MAINTAINS AN EFFECTIVE PROGRAM OF TECHNICAL ASSISTANCE TO HELP THE INDUSTRY DEVELOP RESPONSIBLE PRODUCTS THAT CONFORM TO APPROVED REGULATORY GUIDELINES. IN ADDITION TO CUSTOMIZED EDUCATION SERVICES, SEMA HAS DEVELOPED A RESOURCE GUIDE DESIGNED TO HELP COMPANIES NAVIGATE THE INTRICATE ARENA OF EMISSIONS CERTIFICATION. THE SEMA SHOW IN LAS VEGAS IS THE MOST IMPORTANT EVENT OF THE YEAR FOR ANY BUSINESS INVOLVED IN THE AUTOMOTIVE AFTERMARKET INDUSTRY. THIS WORLD-RENOWNED EXPOSITION TYPICALLY ATTRACTS AROUND 2,400 EXHIBITING COMPANIES, 70,000 QUALIFIED BUYERS, AND 160,000 TOTAL ATTENDEES. THE FOLLOWING SEMA EXCLUSIVE SERVICES ARE AVAILABLE TO MEMBERS. -MEMBERSHIP INDEX: PUBLISHED ANNUALLY, THE SEMA MEMBERSHIP INDEX HAS BECOME THE "WHO'S WHO" OF THE INDUSTRY. THERE ARE MORE THAN 6,500 MEMBER COMPANIES LISTED. -EXPORTING ASSISTANCE: SEMA HAS DEVELOPED A NUMBER OF RESOURCES AND PROGRAMS TO ASSIST MEMBERS IN GROWING THEIR OVERSEAS SALES. THESE EFFORTS INCLUDE PROVIDING MEMBERS WITH NETWORKING OPPORTUNITIES WITH KEY BUYERS THROUGH SPONSORING OVERSEAS TRADE MISSIONS TO MATCH U.S. COMPANIES WITH OVERSEAS BUYERS AND AT EVENTS IN THE U.S., WITH THE LARGEST BEING THE SEMA SHOW. -THE ASSOCIATION ALSO PROVIDES, RELEVANT MARKET DATA, ACCESS TO VEHICLES SALES DATA, INFORMATION ABOUT OVERSEAS LEGISLATIVE AND REGULATORY DEVELOPMENTS AFFECTING THE U.S. OVERSEAS SALES, AS WELL AS, MEASURING SESSIONS PROVIDING HANDSON OPPORTUNITIES TO MEASURE HARD-TO-OBTAIN VEHICLES ONLY SOLD ABROAD IN ORDER TO CREATE EXPORT-READY PRODUCT. -MANUFACTURERS' REPRESENTATIVE DIRECTORY SERVICE: SEMA PUBLISHES, AS PART OF THE SHOW DIRECTORY, AN ANNUAL MANUFACTURERS' REP DIRECTORY THAT IS DISTRIBUTED TO ATTENDEES AND EXHIBITORS AT THE SEMA SHOW. IT HAS BECOME A MAJOR RESOURCE FOR COMPANIES DEVELOPING OR REVISING THEIR REP PROGRAMS. SEMA ALSO OFFERS A MANUFACTURERS' REP MATCHING SERVICE FOR MANUFACTURERS INTERESTED IN OBTAINING REP SERVICES. -OEM (ORIGINAL EQUIPMENT MANUFACTURER) RELATIONS: SEMA HAS LAUNCHED AN AMBITIOUS CAMPAIGN TO IMPROVE COMMUNICATIONS BETWEEN AFTERMARKET COMPANIES AND ORIGINAL EQUIPMENT MANUFACTURERS. MANY OEMS PARTICIPATE IN THE ANNUAL SEMA SHOW AND WORK WITH THE AFTERMARKET IN DEVELOPMENT OF SHOW VEHICLES. THE TECHNOLOGY TRANSFER EXCHANGE PROGRAM ALLOWS SEMA MEMBER COMPANIES ACCESS TO TECHNICAL INFORMATION AND DRAWINGS RELATIVE TO VARIOUS CARS, TRUCKS AND SPORT UTILITY VEHICLES. THIS INFORMATION IS CURRENTLY BEING PROVIDED BY FORD, GM, AND FCA. SEMA STRIVES TO PROVIDE ITS MEMBERS WITH TOOLS THEY WILL NEED TO REMAIN COMPETITIVE AND EXCEL IN TODAY'S MARKETPLACE. -MEASURING SESSIONS PROVIDE HANDSON ACCESS TO NEW VEHICLES AND TO SPEAK DIRECTLY TO THE LEADING OEM'S ENGINEERS AND TECHNICAL STAFF. OPEN ONLY TO SEMA MANUFACTURER MEMBERS, THIS PROGRAM GIVES MEMBERS THE OPPORTUNITY TO GET DETAILED INFORMATION ON CURRENT VEHICLES PRIOR TO LAUNCH. FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION FILED AMENDED ARTICLES OF INCORPORATION TO CHANGE THE NAME OF THE ORGANIZATION FROM SPECIALTY EQUIPMENT MARKET ASSOCIATION TO SPECIALTY EQUIPMENT MARKET ASSOCIATION & PERFORMANCE RACING, INC. FORM 990, PART VI, SECTION A, LINE 6 THE MEMBERSHIP OF SEMA CONSISTS OF ENTITIES ENGAGED IN THE MANUFACTURE AND/ OR SALE OF SPECIALTY EQUIPMENT, OR VEHICLES CONSISTING OF SPECIALTY EQUIPMENT, AS WELL AS PERSONS RENDERING ESSENTIAL SERVICES TO OR FOR THE PERFORMANCE AND SPECIALTY PARTS INDUSTRY. INDIVIDUAL REPRESENTATIVE OF THE MEMBER COMPANIES CAN BE NOMINATED TO THE BOARD OF DIRECTORS. NO INDIVIDUAL MEMBER COMPANY HAS A RIGHT TO RECEIVE DISTRIBUTIONS OF INCOME FROM THE ASSOCIATION, OR ASSETS OF THE ORGANIZATION. SHOULD THE ORGANIZATION DISSOLVE, THEN ANY REMAINING ASSETS WOULD GO TO ANOTHER 501(C)(6) CORPORATION. FORM 990, PART VI, SECTION A, LINE 7A EXCEPT FOR SUPPORTING MEMBERS AND HONORARY MEMBERS, ALL MEMBERS ARE ELIGIBLE TO VOTE AT ANNUAL AND SPECIAL MEETINGS OF THE MEMBERS AND IN THE ANNUAL ELECTION OF DIRECTORS IF THEIR DUES ARE CURRENT. FORM 990, PART VI, SECTION A, LINE 7B ACTIVE MEMBERS VOTE TO ELECT DIRECTORS ON THE SEMA BOARD OF DIRECTORS AND THE CHAIR-ELECT. REMOVAL OF THE CHAIRMAN OF THE BOARD OR CHAIR-ELECT REQUIRES A VOTE OF TWO-THIRDS OF THE ACTIVE MEMBERS AT A MEETING CALLED FOR THE PURPOSE OF VOTING ON THE REMOVAL OF THAT RESPECTIVE OFFICER. A VOTE OF THE MAJORITY OF ACTIVE MEMBERS PRESENT AND VOTING IN PERSON OR BY PROXY AND ENTITLED TO VOTE AT ANY MEETING SHALL BE NECESSARY FOR THE ADOPTION OF ANY MATTER VOTED UPON BY THE MEMBERS. THE BOARD OF DIRECTORS MAY OFFER ANY PROPOSALS TO MEMBERS FOR CONSIDERATION AND VOTING BY MAIL, FAX, EMAIL, PERSONAL DELIVERY AND WRITTEN COMMUNICATION WHEN IT APPEARS INADVISABLE OR IMPRACTICAL TO CALL A SPECIAL MEETING FOR SUCH PURPOSE. THE QUESTION THUS STATED AND SUBMITTED BY THE BOARD SHALL BE DETERMINED ACCORDING TO A MAJORITY OF THE VOTES RECEIVED FROM THE ACTIVE MEMBERS BY MAIL WITHIN ONE HUNDRED AND TWENTY (120) DAYS AFTER THE MAILING THEREOF TO THE MEMBERS, PROVIDED THAT IN EACH CASE THE VOTES OF AT LEAST ONE-THIRD OF THE ACTIVE MEMBERS SHALL BE RECEIVED. ANY AND ALL ACTION TAKEN IN PURSUANCE OF ANY SUCH MAIL VOTE SHALL BE BINDING UPON THE ASSOCIATION. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY AN ACCOUNTING FIRM. MANAGEMENT REVIEWS THE RETURN AND THE CFO SIGNS THE FORM 990. THE SEMA BOARD OF DIRECTORS HAS AUTHORIZED THE AUDIT REVIEW COMMITTEE IN CONJUNCTION WITH MANAGEMENT TO REVIEW AND APPROVE THE FORM 990. BEFORE FILING WITH THE IRS, THE RETURN IS REVIEWED IN DETAIL WITH THE AUDIT REVIEW COMMITTEE. FORM 990, PART VI, SECTION B, LINE 12C THE DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO CONFIRM RECEIPT AND REVIEW OF SEMA'S CONFLICT OF INTEREST POLICY UPON COMMENCEMENT AND ANY POLICY UPDATES. THE DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE REQUESTED TO REPORT ANY NEW POTENTIAL CONFLICTS AT THE QUARTERLY BOARD OF DIRECTORS MEETINGS. IN THE EVENT A MEMBER OR KEY STAFF BELIEVES THAT THERE IS A POTENTIAL CONFLICT OF INTEREST, OR THE APPEARANCE OF A CONFLICT OF INTEREST, HE/SHE SHALL BRING THE RELEVANT FACTS TO THE ATTENTION OF THE APPROPRIATE BOARD OF DIRECTORS. UPON NOTICE OF SUCH CIRCUMSTANCES, THE BOARD OF DIRECTORS SHALL DETERMINE WHETHER A CONFLICT OF INTEREST IS IN EVIDENCE AND IF THERE IS SUCH A CONFLICT OF INTEREST, HOW IT IS TO BE ADDRESSED. IT IS UNDERSTOOD THAT CERTAIN INSTANCES OF CONFLICT OF INTEREST MAY BE RESOLVED BY DISCLOSURE AND OTHERS REQUIRE RECUSAL. IN THE EVENT IT IS LATER DETERMINED THAT A BOARD MEMBER HAD A CONFLICT OF INTEREST, SUCH CONFLICT SHALL NOT AFFECT THE VALIDITY OF ANY VOTE OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION FOR THE PRESIDENT/CEO IS DETERMINED BY THE SPECIALTY EQUIPMENT MARKET ASSOCIATION & PERFORMANCE RACING, INC. COMPENSATION COMMITTEE. THE REVIEW IS BASED ON DATA OBTAINED THROUGH OUTSIDE RESEARCH RESPONSE TO REQUESTS. THE FIRM THAT WAS HIRED TO PERFORM THIS SERVICE WAS QUATT & ASSOCIATES. THE POSITIONS INCLUDED IN THE COMPARISON WERE THE PRESIDENT & CEO, AND FOUR OF THE VICE PRESIDENTS. THE COMPENSATION REVIEW COMMITTEE, A SEMA STANDING COMMITTEE, MEETS PERIODICALLY AS NEEDED TO UNDERTAKE COMPENSATION REVIEW. THEY USE OUTSIDE BENCHMARKING EXPERTISE IN FORMULATING COMPENSATION CHANGES. THE COMMITTEE REVIEWS THE BENCHMARKING REPORT TO MAKE CHANGES ACCORDINGLY. FORM 990, PART VI, SECTION C, LINE 19 ALL DOCUMENTS ARE MADE AVAILABLE WITHIN THIRTY (30) DAYS OF A WRITTEN REQUEST. FORM 990, PART IX, LINE 11G CONSULTANCY SERVICES 3,203,392. PROJECT EXPENSES 1,353,755. EVENT PRODUCTION COSTS 2,059,133. CREDIT CARD FEES 877,879. REGISTRATION FEES 237,072. DISBURSEMENTS TO PAC 126,100. FORM 990, PART XI, LINE 9: UNRELATED BUSINESS INCOME FROM PARTNERSHIPS -137,598. INTERCOMPANY TRANSACTION - APIC TO PAPI -56,287. 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