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This excerpt taken from the SMG DEF 14A filed Dec 20, 2006. Base
Salary
The base salaries of the Companys executive officers are
determined considering: (1) the strategic importance of the
executive officers job function to the Company;
(2) the individuals performance in his or her
position; (3) the individuals potential to make a
significant contribution to the Company in the future; and
(4) a comparison of industry compensation practices.
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