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## 10. Share based payments (continued): 

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). 

<img src='content_image/241644.jpg'>

The following table summarizes the options outstanding and exercisable as at December 31, 2013: 

<img src='content_image/241645.jpg'>

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

<img src='content_image/241646.jpg'>

## 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: 

<img src='content_image/241647.jpg'>

