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The survey data is filtered for high-technology companies (where such data is not available, the surveys are
filtered for durable manufacturing companies or general industry), and is adjusted to screen for companies with
revenue levels we believe are comparable to ours. In reviewing this market data, the Compensation Committee
does not focus on any particular company used in the survey (other than the peer companies noted above). For
individuals who are executive officers at the time of the annual review, the survey data and the peer group data
are averaged (with the survey and peer group data weighted equally) to create what we refer to in this section as
"composite market data." (For officers who are not executive officers at the time of the annual review, generally
only survey data is reviewed.) The composite market data, along with our target pay position strategy outlined
below, then provides the Compensation Committee a reference point, which is then one of several factors (as
described above) that it uses to make subjective compensation decisions during its annual review.
Consideration of Say-on-Pay Advisory Vote
At our 2011 Annual Meeting of Stockholders, more than 95% of the votes cast on the advisory Say-on-Pay
proposal indicated approval of the fiscal 2011 compensation of our named executive officers. The Compensation
Committee believes that the vote outcome is an indication that stockholders generally approve of the structure of
our executive compensation program and, therefore, the Compensation Committee structured executive
compensation for fiscal 2012 in a way that is generally consistent with fiscal 2011. Stockholders will have an
opportunity annually to cast an advisory vote in connection with named executive officer compensation.
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