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10. Share-based payments (continued): 

value of outstanding stock options (2010 - $158,507). The Corporation has reserved 1,216,476 and issued 929,975 options that vest over a four-year period and expire in five years. 

The options outstanding at December 31, 2011, have an exercise price in the range of $7.27 to $16.87 and a weighted average contractual life of 3.7 years (2010 – 4.0 years). 

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The fair value of the options was calculated using a Black-Scholes model with the following assumptions: 

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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 2010, the Corporation had a $6.5 million demand loan owing to a company controlled by the Corporation’s largest shareholder. The loan was repaid before the end of 2010. For the year ended December 31, 2010, the Corporation paid interest of $410,515 to this company. 

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: 

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