Stratum is an Illinois corporation with 1 million shares of common stock outstanding. This stock is held by the Shareholders indicated on the attached diagram. The Shareholders are either physician professional corporations (clinics) or hospitals who have related physician organizations. Each Shareholder enters into a Service Agreement with Stratum to buy services. These services are provided via Stratum’s distinct product lines:

• Group Purchasing
• Insurance Products
• Recruitment and Professional Services
• Administartive Service Organization
• Shared Services

The Board has adopted a strategic plan which calls for Stratum to migrate from its current decentralized structure to a Shared Services Organization model, whereby information technology, materials management, business office, human resources and other services will be provided through Stratum. These services will not necessarily be centralized in a single location, but by leveraging technology the organization and direction of the services will come from Stratum.