KMH – In October 2011, the Corporation announced the purchase of additional preferred partnership units in KMH Limited Partnership for an aggregate acquisition cost of $22.4 million, on top of the $5 million in preferred partnership interests purchased in April 2010. KMH is a private healthcare company operating eight diagnostic clinics (nuclear medicine, cardiology and MRI) in Ontario and now four clinics in the United States. Distributions on the KMH preferred units were set at $875,000 for the first twelve months on the original $5 million transaction and are scheduled at $4.2 million for 2012 after the recent purchase of additional units. Based on unaudited internal financial statements provided by KMH’s management for the year ended November 30, 2011, total revenues are modestly ahead of prior year results and EBITDA is modestly behind prior year results due to rising input costs in the business but the distributions to Alaris remain less than half of KMH’s EBITDA. Same clinic sales is the top-line performance metric on which the annual distributions to the Corporation are reset and were flat leaving the second year of distributions at the same level. To have achieved flat same clinic sales in what was an extremely challenging year for the well-documented shortage of nuclear isotopes in Canada was viewed as an excellent performance indicator by the Corporation’s management. 

Solowave – In December 2010, the Corporation purchased preferred partnership units in Solowave Design Limited Partnership for an aggregate acquisition cost of $32.5 million. Solowave is a Canadian-based privately held designer and manufacturer of residential, ready-to-assemble wooden play centers. Solowave sells its products under the brands "Big Backyard" and "Cedar Summit Play Systems". Solowave’s year end is October 31$^{st}$ and based on audited financial statements for the year ended October 31, 2011, revenues were 4% ahead and EBITDA was 4% behind prior year results. Annual growth in Solowave’s distributions to Alaris is capped at 6%. There is also a maximum decline in the annual distributions of 6%. The annual distributions go up and down with Same Customer Net Sales and Solowave’s auditor prepared a schedule for the Corporation showing a same customer net sales decline of 0.8% for the 2011 period. The small decline a direct result of poor spring weather across North America in 2011 that impacted the level of spring re-orders. 

Killick – In July 2011, the Corporation announced the purchase of preferred partnership units in Killick Aerospace Partnership for an aggregate acquisition cost of $27.2 million. Killick is a Canadian-owned, Dallas-based privately help participant in the global aircraft maintenance, repair and overhaul industry. Killick’s year end is December 31$^{st}$ and based on unaudited internal financial statements for the year ended December 31, 2011, revenues and EBITDA are marginally ahead of the prior year results. Annual growth in Killick’s distributions to Alaris is capped at 4% and is based on the change in gross revenues. There is also a maximum decline in the annual distributions of 4%. 

Quetico – In November 2011, the Corporation announced the purchase of preferred LLC units in Quetico, LLC for an aggregate acquisition cost of $26.9 million USD. Quetico is a California based inventory management company which provides value added services to “big box” retailers, designers, manufacturers and outlet retailers in the soft goods category. Primarily offering value added inventory management and fulfillment solutions in apparel and accessories, the company has created a highly specialized niche within the industry. Quetico’s year end is December 31$^{st}$ and based on unaudited internal financial statements for the year ended December 31, 2011, revenues and EBITDA are well ahead of the prior year results. Annual growth in Quetico’s distributions to Alaris is capped at 10% and is based on the change in gross revenues. There is also a maximum decline in the annual distributions of 20%. 

## LIQUIDITY AND CAPITAL RESOURCES 

The Corporation has a $30.1 million senior credit facility ($6.5 million drawn at December 31, 2011) provided by two Canadian chartered banks. The senior facility was renewed on December 31, 2011 at an 

