Notes to Consolidated Financial Statements  Year ended December 31, 2011  5. Investments Available for Sale Financial Assets:  Assumptions used in fair value calculations:  35  2011 Annual Report  Alaris Royalty Corp. From this analysis, management of the Corporation determined the fair value of the Preferred LP  Units for each individual Partner. Below is a summary of the fair value adjustments in 2011 and  2010.  The Corporation estimated the fair value of the available for sale financial assets (Preferred LP Units)  by evaluating a number of different methods:  (a) A going concern value was calculated by calculating the discounted cash flow of the future  expected distributions. Key assumptions used include the discount rate used in the calculation.  For each individual Partner, the Corporation considered a number of different discount rate  factors including what industry they operated in, the size of the company, the health of the  balance sheet and the ability of the historical earnings to cover the future distributions. This was  supported by the historical yield of the original investment, current investing yields, and the  current yield of Alaris’ publicly traded shares and of other similar public companies.  (b) A redemption or retraction value was calculated using the formula specified in each of the  Partnership agreements alongside an assessment of the likelihood of a redemption of the  Preferred Units.  (c) A liquidation value was calculated using the formula specified in each of the Partnership  agreements while considering an estimate of the current value of the private company to  determine if there would be sufficient value to cover the liquidation amount.  December 31, 2011 Acquisition Cost Capitalized Cost  Net Cost  Fair Value  LifeMark Health  $  36,450,000  $  499,894 $  36,949,894 $  65,500,000  Lower Mainland Steel  51,000,000  333,280 51,333,280 25,300,000 Solowave 32,500,000 511,253 33,011,253 33,050,000 KMH 27,400,000 427,995 27,827,995 27,900,000 Killick 27,250,000 257,544 27,507,544 27,500,000 Quetico 27,357,300 800,990 28,158,290 28,158,290 $ 201,957,300 $ 2,830,956 $ 204,788,256 $ 207,408,290 December 31, 2010  LifeMark Health  $  67,500,000  $  291,362 $  67,791,362 $ 120,000,000  Lower Mainland Steel  51,000,000  333,280 51,333,280 24,667,000 Solowave 32,500,000 494,787 32,994,787 32,995,000 KMH 5,000,000 244,534 5,244,534 5,245,000 $ 156,000,000 $ 1,363,963 $ 157,363,963 $ 182,907,000 January 1, 2010  LifeMark Health  $  59,500,000  $  291,362 $  59,791,362 $  99,828,000  Lower Mainland Steel  51,000,000  333,280 51,333,280 22,458,000 $  110,500,000 $  624,642 $ 111,124,642 $ 122,286,000 