Management Discussion & Analysis  price of the Common Shares could be subject to significant fluctuations in response to variations in  quarterly and annual operating results, the results of any public announcements we make, general  economic conditions, and other factors. We may issue an unlimited number of Common Shares, or other securities for such consideration and on  such terms and conditions as shall be established by us without the approval of Shareholders. Any further  issuance of Common Shares will dilute the interests of existing Shareholders. The Shareholders will have  no pre-emptive rights in connection with such future issuances.  In the normal course of business, we may be subject to lawsuits, claims and litigation for amounts not  covered by our liability insurance. Some of these proceedings could result in significant costs. Although  the outcome of such proceedings is not predictable with assurance, Alaris has no reason to believe that the  disposition of such matters could have a significant impact on our financial position, operating results or  ability to carry on our business activities. As of the date of this MD&A, no material claims or litigation  have been brought against Alaris.  We rely on various intellectual property protections, including trademark laws, to preserve our intellectual  property rights, particularly those in End of the Roll. To protect our intellectual property, we may become  involved in litigation, which could result in substantial expenses, divert the attention of Management, cause  significant delays, materially disrupt the conduct of our business or adversely affect our revenues, financial  position and results of operations.  Our material Private Company Partners, being LifeMark Health, LMS, Solowave, KMH, Killick and  Quetico, face a number of business, operational and other risks which if realized, could have a material  impact on our operating results and conditions. These risks are outlined in more detail below.  Alaris Royalty Corp. 2011 Annual Report   71  Risks Relating Specifically to LifeMark Health R RisksRelatingtoOurPrivateCompanyPartners  RisksrelatingtoourMaterialPrivateCompanyPartners  Our capacity to protect our intellectual property may be limited  We are subject to a risk of legal proceedings  We may issue additional Common Shares diluting existing Shareholders' interests Government  Regulation  Healthcare service providers in Canada are subject to various governmental regulation  and licensing requirements. Unlike certain other healthcare industry segments,  specifically pharmaceuticals, laboratory services and hospital management companies,  LifeMark Health operates in markets that are not regulated. LifeMark Health does not  require a special license or permit from any governmental body to operate, aside from  the license required for the medical imaging business and those normally required for  all businesses. All of LifeMark Health's medical personnel, both physicians and  registered nurses, are required to maintain the requisite professional licenses from  their respective governing professional bodies. Notwithstanding that LifeMark Health  operates in markets that are not currently regulated, any change in governmental  regulation and licensing requirements or interpretation and application of same  relating to healthcare services could have an adverse impact on the scope of LifeMark  Health's activities. 