National Automatic Merchandising Association

“Business relationships between directors are in the normal course of business. Director butch winkler is an employee of holiday house distributing and is an owner of brew tech. Director steve hyde is employed by brew tech and has an equity interest in the company. Director dennis hogan is employed by compass group vending service division. Director rodney nester is employed by smith vending, a franchise of canteen of southern nevada. Director vic pemberton is employed by the pepi companies, a franchise of canteen.”

“The association has voting members and non-voting members. Non-voting members include international and student members. Voting members consist of industry-related operators, manufacturers, suppliers, distributors, brokers and other sustaining members. Each member, other than a student member, shall appoint an official representative who shall represent and act for the members in all affairs of the association, and in the case of voting members, shall vote for the member. Voting members annually elect on-third of the board of directors who each hold three-year terms. Voting members are also entitled to vote on questions put to a vote at the association's annual meeting or at special meetings, as provided under the by-laws. On dissolution of the association, any funds remaining shall be distributed to one or more regularly organized and qualified charitable, educational, scientific, or philanthropic organizations to be selected by the board of directors.”

“SEE LINE 6 EXPLANATION”

“Form 990 is not presented to the governing body prior to filing. No such review was or will be conducted. However, the chief financial officer performs a review of the form 990 prior to signing the return.”

“Each grade has a pay range, consisting of a minimum salary, a midpoint, and a maximum salary. Annual job performance evaluation rating, coupled with current salary position within a grade level (compa-ratio) determines the approximate amount of merit increase. Promotion and/or position change can also affect the grade level. Each year, the executive committee recieves from the ceo a narrative of accomplishments versus goals (association-wide and personal), a report on the financial performance and status of the association and an update on current compensation. The committee also compares the ceo's compensation to other executive association compensation surveys. While the executive committee has been delegated authority to determine and implement ceo compensation changes, nonetheless, their findings and recommendation are presented to the full nama board for review, feedback and final approval. The results of this process are then shared with the ceo and compensation changes are implemented.”

“The organization does not make these documents available to the public.”

“Pension related changes 916,826.”

“The audit oversight process has remained unchanged from the prior year.”