10.  Share based payments (continued):  11. RELATED PARTIES:  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, Alaris USA Inc, a Delaware Corporation. All intercompany loans, interest and  dividends have been eliminated upon consolidation.  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:  The fair value of the options was calculated using a Black-Scholes model with the following assumptions:  The following table summarizes the options outstanding and exercisable as at December 31, 2013:  For the year ended December 31, 2013, the Corporation incurred stock-based compensation expenses of $3,808,518 (2012 -  $1,901,683) which includes: $1,717,600 (non-cash expense) for the RSU Plan expense that is to be amortized over the thirty-six month  vesting period of the plan (2012 - $663,185); $nil (non-cash expense) for shares issued in the year in lieu of dividends under the RSU  Plan (2012 - $84,250); and $2,090,918 (non-cash expense) for the amortization of the fair value of outstanding stock options (2012 -  $1,154,248). The Corporation has reserved 2,197,733 and issued 1,748,998 options that vest over a four-year period and expire in  five years. The options outstanding at December 31, 2013, have an exercise price in the range of $7.27 to $33.87 and a weighted average  contractual life of 3.5 years (2012 – 3.5 years). Notes to Financial Statements  Annual Report  2013  Weighted Avg  Exercise Price  2013  Number of  Options  2013  Weighted Avg  Exercise Price  2012  Number of  Options  2012  Outstanding at January 1  $16.92  1,406,161  $12.96  929,775  Exercised during the year  10.96  (262,550)  12.00  (50,625)  Granted during the year  33.87  605,387  23.53  527,011  Outstanding at December 31  23.67  1,748,998  16.92  1,406,161  Exercisable at December 31  $15.75  523,303  $11.88  461,775  Exercise price  Number  outstanding  Weighted  average  remaining life  (years)  Number  exercisable  $7.27  34,000  0.93  34,000  $11.56  265,000  1.98  198,750  $15.48  120,500  2.59  60,250  $16.87  197,100  2.95  98,550  $23.53  527,011  3.68  131,753  $33.87  605,387  4.57  -  1,748,998  3.52  523,303  Oct 2008  Dec 2009  Dec 2010  Aug 2011  Dec 2011  Sept 2012  July 2013  Dividend yield  12.00%  10.50%  8.72%  6.68%  6.79%  5.12%  4.25%  Expected volatility  38.00%  56.00%  51.79%  46.49%  45.08%  37.73%  31.68%  Risk free rate of return  2.66%  2.21%  2.23%  1.61%  1.16%  1.27 %  1.58%  Expected life  4.325  4.325  4.325  4.325  4.325  4.325  4.325  Weighted average value  $ 1.2840  $ 1.5639  $ 2.5887  $ 3.5070   $ 3.5666   $ 4.7096  $6.1073  2013  2012  Base salaries and benefits  $717,750  $678,414  Bonus  1,140,000  660,000  Non cash stock-based compensation  2,515,630  1,112,955  $4,373,380  $2,451,369  63 