The Innovatix group purchasing program utilizes an open and dynamic contracting process for each of its portfolios that are open to all qualified vendors at all times. More detailed descriptions of the processes are set forth below.

The Innovatix pharmaceutical portfolio is open to all qualified vendors at all times, and vendors are always welcome to submit proposals for new contracts or to add additional products to existing contracts. Additionally, every three (3) years Innovatix invites all vendors to participate in a bid process in which it accepts bids from all vendors for specified product line items. The next bid process will begin in September of 2011 for contracts that will commence on July 1, 2012. For this bid process, and whenever contracting for a new product line or existing product line is initiated by Innovatix, Innovatix will post notice on its Current Negotiations & Requests for Proposal Page to vendors of its intent to receive proposals for products and the relevant procedures specifying when, where, and how interested vendors should submit proposals.

Innovatix generally offers Premier's medical supply and food portfolios, and therefore the contracting process for such products is subject to Premier's contracting rules (see Premier's website, www.premierinc.com, and Premier's response to the HGPII survey), which are publicly available. In the event Innovatix is to enter into a direct contract for medical supplies, food or other services, Innovatix will publish and post a notice on this Website announcing Innovatix's intent to receive proposals for the relevant products or services.