Notes to Consolidated Financial Statements  Year ended December 31, 2011  5. Investments (continued):  I – Preferred LP Units  (a) Investment in LifeMark Health Limited Partnership (“LifeMark Health”):  (b) Investment in Lower Mainland Steel Limited Partnership (“LMS”):  At the beginning of 2011, the Corporation held 900,000 class A preferred partnership units  ("LifeMark A Units") and 5,850,000 class B preferred partnership units ("LifeMark B Units") in  LifeMark Health (the "LifeMark Investment"). On June 9, 2011, the Corporation entered into a  plan of arrangement that resulted in a return of capital, the elimination of the Class A and B  units, and a reduction of the annual distributions to $6.75 million for the twelve months  following the close of the transaction. Going forward, Alaris holds 6,750,000 Preferred Units and  will receive an annual preferred distribution, in priority to distributions on LifeMark Health’s  other partnership units, from LifeMark Health of $6.75 million in the twelve months following  close. This represents approximately 50% of the pre-Transaction expected 2011 distribution to  Alaris from the LifeMark Group. The post-Transaction annual Distribution has a guaranteed  increase of 4% per year thereafter and distributions are receivable monthly. Prior to the return  of capital, the fair value of the LifeMark Investment was $120 million. The current period gain of  $23.8 million is the difference between the $55 million in proceeds and 46% of the book value of  the original investment.  The LifeMark Group became a subsidiary of Centric Health Corporation (“Centric”), who  acquired all of the issued and outstanding residual units of LifeMark Health and all of the  intellectual property of Life Mark Health and MEDIchair, pursuant to the Transaction. The  Transaction was completed by way of a plan of arrangement under the  Business Corporations  Act  (Alberta). Alaris and Centric are the only limited partners in LifeMark Health.  Centric has the option at any time after June 9, 2013 to repurchase all (but not less than all) of  the LifeMark Preferred Units for $65.5 million. Starting on June 9, 2013 the repurchase price will  increase 4% per year.  The Corporation holds 510,000 Preferred partnership units ("LMS Units") in Lower Mainland  Steel (the "LMS Investment"). 150,000 of the LMS Units were acquired on February 2, 2007 for  an aggregate acquisition cost of $15 million. Alaris acquired another 360,000 LMS Units on  December 21, 2007 for an aggregate acquisition cost of $36 million.  Pursuant to the LMS partnership agreement (the "LMS Partnership Agreement") dated April 2,  2007 and as amended December 21, 2007, the LMS Units entitle the Corporation to receive an  annual preferred distribution (the “Preferred Distribution") in priority to distributions on LMS’  other partnership units. The base is in two distinct portions and is adjusted at two points  (January 1$^{st}$ and April 1$^{st}$) in each subsequent twelve month period to the Preferred Distribution  for the prior twelve month period multiplied by the percentage increase or decrease in LMS’  Gross Profit (as defined in the LMS Partnership Agreement) for the most recently completed  fiscal year. Distributions on the LMS Units are receivable monthly.  LMS has the option at any time after April 1, 2010 to repurchase all (but not less than all) of the  LMS Units at a pre-negotiated premium to the original purchase price.  Alaris Royalty Corp. 2011 Annual Report  37 