Once a supplier is approved to do business with YalePharma/HealthDimension and receives a specific supplier number, the following requirements apply:

The Supplier Agreement (All Suppliers)
Suppliers must sign a legally binding agreement with YalePharma Potential suppliers should review the agreement completely with their attorneys, and/or with an attorney who specializes in supplier contracts. It is important for potential suppliers to make sure they understand all terms and conditions, particularly all stipulations relating to allowances, new store discounts, merchandise warranties, defective/return merchandise allowances, warehouse allowances, soft goods allowances, late shipment penalties and markdown dollars or discounts. Execution of this agreement does not, however, create an obligation on the part of YalePharma to transact business with a supplier.

HealthDimension Link® (Product Suppliers)
HealthDimension Link® provides information and an array of products that allows a supplier to impact all aspects of their business. By using the information available in HealthDimension Link®, suppliers can plan, execute and analyze their businesses - thus providing better service to our common customers. HealthDimension Link® is a website that is accessible to any area within your company.

YalePharma requires all suppliers to participate in HealthDimension Link® because of the benefits it provides. Should you become a supplier with YalePharma, you will be provided with the requirements for accessing HealthDimension Link®.

Electronic Data Interchange (EDI) (Product Suppliers)
EDI has proven to be the most efficient way of conducting business with our product suppliers. This system of exchanging information-purchases orders, invoices, etc.- allows us to improve customer service, lower expenses and increase productivity. YalePharma/HealthDimension expects its merchandise suppliers to be able to participate in EDI transactions once they become YalePharma/HealthDimension suppliers and are assigned a specific Supplier Number. EDI packages range in price from minimal expense to highly sophisticated systems.

If you become a YalePharma/HealthDimension supplier and do not currently have EDI capability, YalePharma will work with you to determine the EDI package that best meets your business needs, while also meeting our EDI requirements. If you already have an EDI system in place when you become a YalePharma supplier, YalePharma will perform tracking tests to make sure your current system is compatible with YalePharma's EDI.

Lead-Time Requirements (Product Suppliers)
The ability of our suppliers to adapt to YalePharma's/HealthDimension lead-time requirements is imperative. Building lines of merchandise for each season is a long-range process that involves much more than just getting items on store shelves. The amount of time required varies; ranging from a short lead-time of about 60 days to commitments made a year in advance of a selling season.
Timely Shipping
We also carefully analyze a new supplier's ability to ship products in a reasonable amount of time. Late shipments can mean great losses both monetarily and in customer respect. We expect our suppliers to combine excellent products with on-time deliveries - at the right cost. It all adds up to giving our customers what they want -the right product at the right time at YalePharma's Every Day Low Price Ñ Always.

Quality Assurance Through Testing
Customer service - satisfaction guaranteed - is YalePharma 's No. 1 goal. As part of our continuing effort to ensure product quality and reliability, we have established a joint effort with Consumers' Testing Lab (CTL) of Boston, an independent testing laboratory. As a rule, YalePharma/HealthDimension has all apparel, electronics and anything that touches food tested by CTL for quality assurance and consumer protection, as well as other selected products from inventory at our discretion. For competing products, we perform comparative testing. Apparel suppliers should make arrangements with CTL for testing well in advance of shipment to prevent complications with items that do not meet specifications.

Gift and Gratuity Policy
No gifts or gratuities, which have monetary value, are to be given, offered or encouraged in any way to any YalePharma/HealthDimension Associate or potential YalePharma/HealthDimension Associate. Suppliers may donate gifts for the purpose of raising funds for charities or non-profit organizations or for resale at YalePharma's Associate Store. Gifts or gratuities include, but are not limited to: free goods, tickets to sporting or entertainment events, kickbacks in the form of money or merchandise, special discounts to any YalePharma/HealthDimension Associate, discontinued or no-longer-used samples, supplier-paid trips, liquor, food products, meals or personal services. When practical, any such item received must be returned to the sender with an explanation of this policy. Any item not returned shall be considered the property of YalePharma

Industry Knowledge and Integrity
At YalePharma/HealthDimension we're committed to buying and selling merchandise more efficiently than anyone. We want to make customers trust the quality of our merchandise and know they are receiving their products at Every Day Low Prices. In order to accomplish this, we expect our suppliers to be knowledgeable about their industry and each product or service they provide to YalePharma. We require a high level of communication and integrity from each of our suppliers so that we can better serve our customers.

Transportation Logistics
The primary function of our Corporate Traffic Department is to provide for the efficient transportation of YalePharma and HealthDimension merchandise that is moving under collect-payment terms from suppliers to Distribution Centers through the use of private carriers under contract and our own private fleet. Suppliers inform YalePharma of ready loads through the "Backhaul Betty" system, which is an interactive telephone voice-response system, via our Internet-based application, Transportation Link or by EDI.

All suppliers can access a copy of YalePharma's Supplier Information Manual in HealthDimension Link® (once a supplier number is issued), which contains detailed information about purchase order numbering conventions, distribution center locations, shipping requirements and other useful data. It is the supplier's responsibility to abide by the terms and conditions of this document as also specified in the Supplier Agreement. In addition, all suppliers should be prepared to provide detailed load forecast information to YalePharma's Corporate Traffic office to facilitate transportation in exceptionally heavy shipping seasons.

Equal Opportunity Practices
YalePharma , recognizes cultural differences exist and different standards apply in various countries, but we believe all terms and conditions of employment should be based on an individual's ability to do the job, not on the basis of personal characteristics or beliefs. YalePharma Stores,Inc. favors suppliers who have a social and political commitment to basic principles of human rights and who do not discriminate against their employees in hiring practices or any other term or condition of work, on the basis of race, color, gender, sexual orientation, national origin, religion, disability, age or political opinion.

Office of Regulatory Compliance (ORC)
With the growth of YalePharma's international markets, our suppliers must be prepared to meet the regulation differentiation among the countries we serve. The Office of Regulatory Compliance (ORC) is dedicated to identifying, interpreting and insuring compliance with each country in which YalePharma stores are located and making sure their rules and regulations pertaining to the importation and store presentation of our retail assortment are met. In this capacity, ORC provides a critical link in the international supply chain of merchandise from the supplier's door through to the final YalePharma International point of sale.

Security Source Tagging
YalePharma has recently committed to a chain-wide implementation of Sensormatic's Ultra-Max Electronic Article Surveillance System (EAS). These systems are being rolled out by Distribution Center regions and should be complete within five years in all of our existing and new locations. Our objective is to have manufacturers participate in Sensormatic's Universal Product Protection (UPP) Source Tagging Program. Source tagging requires the EAS label to be applied onto or into the packaging or product. This typically occurs at the point of manufacturing, packaging or distribution.