Policy Statement

The AVEM Bylaws state that the Association will provide for the evaluation, analysis and communication on matters of common interest to companies that produce vacuum equipment. The specialized service of obtaining and presenting market information on vacuum equipment sales on a quarterly basis is provided to members, as one benefit of membership. This service is performed in a manner consistent with advice of counsel to avoid antitrust and other violations. Specifically, it is understood that future or current price information will not be requested or exchanged with or between members of AVEM . All statistical information will be prepared on an aggregate basis in such a way that the statistics cannot be attributed to individual members. 

General overall statistics may be made available to interested parties to further AVEM International interests; examples could include AVEM marketing activities, new member solicitation, or liaison with other trade associations. If appropriate, fair market value will be charged. Specific information may be made available to non-members under these circumstances, but will only be communicated at the written direction of the Board of Directors.

Sales information is collected from the AVEM membership in a confidential manner. Industry statistics are provided in order to improve the Association membership's understanding of the vacuum equipment manufacturing industry. Special procedures are followed so that no person associated with the vacuum industry will be aware of the source of specific data from individual companies.

Procedures

Under the Management Agreement between AVEM and Management Plus, Inc. (MPI), it is agreed that MPI will provide overall management services to AVEM . However, since the officers of MPI are involved in the vacuum industry, MPI subcontracts the collection and compilation of the specific confidential statistical sales data to a data analyst. The officers of MPI are therefore not privy to specific data from individual companies. MPI is responsible for improving the data collection process through the design of forms, final presentation of data in a tabular or graphical form, and organization of data through equipment and service categories. The Statistical Report is compiled on a quarterly basis and issued to all participating, paid-up members. Reports are only mailed to paid-up members who contribute data to the report.

Disclaimer

AVEM and MPI will make every effort to utilize the Statistical Procedural Guide to provide accurate statistics, without compromising the confidentiality of data from any company. However, in no way can AVEM and MPI be held responsible for the accuracy of the data provided by members, or for the inadvertent release of information regarding any members sales data. 

Method of Data Collection

1. 1. At the end of each quarter data collection forms are sent to the AVEM representative, or other person designated by the representative as the statistics contact, in each AVEM member company. If the blank forms are sent to a statistics contact different from the AVEM International representative, a notification letter is sent to the AVEM representative for the company stating that this action has been taken. The accompanying instructions direct the member to submit the data to an independent data analyst who compiles the data into a report format.
   2. The data collection process is designed to ensure total confidentiality. Each member company is assigned a three digit key number; each blank data form sent to a company to complete includes this confidential key number for the company. The data forms are processed by the company key number. The data analyst is the only person that consolidates the data into the report format.

Methodology

The quarterly report presents data for the latest quarter and the three previous quarters. If less than three companies report data for a single sub category, or if one company out of a minimum of three, has greater than 50% of the total dollar value in that sub category, then the total dollar value is recorded in the "Other " sub category selection for that main category. This process serves to provide confidentiality to these companies. The names of companies who submit data reports is noted in the report.

Statistics are reported in a format that provides comparable quarter-to-quarter data within a calendar year. To accomplish this objective, and to protect confidentiality of data, the following methods are implemented:

• New members begin participation in statistics only in the first quarter of the calendar year.
• Members can be added

1. In groups of three or more as long as the conditions of (c) (below) are met; or 
2. One or two at a time, if their incremental data as a percent of the total in the sub category is less than the maximum variation in their applicable subcategories over the last four quarters. If their incremental data as a percent of the total in the sub category is greater than the maximum variation in their applicable subcategories over the last four quarters, then the data will be added as described in (c). 
3. If any one company in the group of companies to be added represents morthan 50% of the total volume of this group, and that volume is greater than the statistical variation over the prior four quarters, then the data of the large company will be added incrementally on a quarterly basis until all of the data is added.

The data will be added in non-equal increments according to the following schedule:

1. 50% but <60% over 2 quarters
2. 60% but <80% over 3 quarters
3. 80% over 4 quarters

The actual increments chosen will be known only to the data analyst.

NOTE: The 50% rule still applies. If one company out of a minimum of three has greater than 50% of the TOTAL dollar volume in that sub category, then the total dollar volume is recorded under the "Other" subcategory section for that main category and CR (insufficient number of companies reporting) is printed in the subcategory itself.

3. Under no circumstances is additional specific information provided to any AVEM International representative, which is not available to all AVEM International representatives.

4. If a company fails to report for one quarter, the most recent quarterly average of the past two quarter's figures submitted by that company is used in the compilation of the reports. The consolidated report states the number of averages used in this case. 

5. If a new company fails to report any data in the first quarter, they are ineligible to participate in the statistical process for that calendar year. They are not counted as a member company in the statistical report; they are not included on the printed membership list that is sent with the quarterly report; and, they are not entitled to receive a refund of their membership dues. However they will be included in the AVEM International Directory and Index of Products and Services for the Vacuum Industry, if they have paid their membership dues.

6. If a company resigns, averages based on that company's previous performance are incorporated into the report through the fourth quarter of the year in which they resign. 

Revised December, 2005