Contractual Obligations  Total  Less than 1 year  1 – 3 years  4 – 5 years  After 5 years  Long term debt  44,500,000 0 44,500,000 0 0 Office lease  513,030 175,896 337,134 0 0 Total Contractual Obligations  50,513,030 175,896 44,837,134 0 0 2013  2012  Base salaries and benefits  717,750 678,414 Bonus  1,140,000 660,000 Share-based payments (non-cash)  2,515,630 1,112,955 $4,373,380 $2,451,369 22  Annual Report  2013  Management Discussion & Analysis The Corporation has sufficient cash on hand to settle all current accounts payable, accrued liabilities, dividends payable and all  scheduled repayments on the senior debt. In the event the senior debt is not renewed and principal payments become due, the debt  would be refinanced, or alternatively, management expects that there would be sufficient cash flow from operations to meet all required  repayments. An evaluation was performed under the supervision and with the participation of the Corporation’s management (including the CEO  and CFO) of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures, as defined in  National Instrument 52-109. Based on that evaluation, the Corporation’s management (including the CEO and CFO) concluded that  the Corporation’s disclosure controls and procedures were designed to provide a reasonable level of assurance over disclosures of  material information and are effective as of December 31, 2013.  The Corporation’s management, (including the CEO and CFO) have assessed and evaluated the design and effectiveness of the  Corporation’s internal controls over financial reporting as defined in National Instrument 52-109 as of December 31, 2013. The  Corporation’s assessment included documentation, evaluation and testing of its internal controls over financial reporting. Based on  that evaluation, the Corporation’s management concluded that the Corporation’s internal controls over financial reporting are effective  and provide reasonable assurance regarding the reliability of the Corporation’s financial reporting and its preparation of financial  statements for external purposes in accordance with International Financial Reporting Standards and are effective as of December  31, 2013.  Internal controls over financial reporting, no matter how well designed, have inherent limitations and can only provide reasonable  assurance with respect to financial statement presentation and may not prevent or detect all misstatements.  Other than the senior credit facility described under “Liquidity and Capital Resources”, the only material contractual obligation of the  Corporation is its lease for office space. The Corporation agreed to a seven-year lease at a new location that commenced in 2009.  Annual leasing costs are approximately $175,000.  In 2011, the Corporation formed a wholly-owned subsidiary, Alaris Cooperatief, U.A., a cooperative in The Netherlands. The  Corporation also formed a wholly-owned subsidiary of the Corporation, Alaris USA Inc, a Delaware Corporation. All intercompany  loans, interest and dividends have been eliminated upon consolidation. All transactions with related parties are recorded at exchange  amount. Related party transactions are measured at fair value.  In addition to their salaries, the Corporation also provides long-term compensation in the form of options and RSUs. Key management  personnel compensation comprised the following:  Management is required to make estimates when preparing the financial statements. Significant estimates include the amount of  liabilities for services provided but not yet invoiced, stock-based compensation expenses, future income tax amounts, and the valuation  of intangible assets and preferred limited partnership units.  INTERNAL CONTROLS OVER FINANCIAL REPORTING  A. Disclosure Controls and Procedures  B. Management Report on Internal Controls over Financial Reporting  SUMMARY OF CONTRACTUAL OBLIGATIONS  TRANSACTIONS WITH RELATED PARTIES  CRITICAL ACCOUNTING ESTIMATES AND POLICIES 