14. Water Purchase Agreement The Company is party to a water purchase agreement (the "Water Purchase Agreement") with Ocean Conversion (Cayman) Limited ("OCL"), which expires on December 31, 2004. The Water Purchase Agreement effectively transferred the possession of a reverse osmosis ("RO") plant to the Company in 2000, although the operation and maintenance of the plant will be the responsibility of OCL until the termination of the agreement on December 31, 2004. On January 1, 2005 responsibility for the operation and maintenance of the plant will be assumed by the Company. Under the terms of the agreement, the Company must purchase a fixed minimum amount of water annually with a portion of the monthly payments to be applied toward the purchase of the plant. Implicit in the agreement are financing charges relating to the purchase of the plant, based on the Company's cost of capital at the inception of the agreement.  As at December 31, 2000 minimum future payments are as follows: The RO plant acquired under the Water Purchase Agreement is included in plant and equipment in Note 5 at a gross amount of $3,550,897 and at December 31, 2000 had a net book value of $1,059,239 (1999: $1,253,718).  Amortization of this plant is included in the depreciation charge for each of the three years ended December 31, 2000.  During the year ended December 31, 2000 the Company fulfilled the equipment purchase obligation as calculated under the Water Purchase Agreement. Accounts payable includes $204,076 (1999: $223,213) outstanding under the Water Purchase Agreement. During 1993 the Company entered into a five year agreement to supply non-potable water to Safe Haven Limited, the developers of a golf course in the Cayman Islands. On November 1, 1997 this agreement was renegotiated and renewed for a further five year period. Under the terms of the renewed supply agreement, the Company must supply a minimum of 4 million US Gallons per month (48 million US Gallons per year). The price of the water supplied is adjusted annually based on Government Price Indices. Water sales for the year ended December 31, 2000 resulting from the supply agreement amounted to $571,969 (1999: $444,098; 1998: $422,641). At December 31, 2000 the Company holds a security deposit of $52,763 (1999: $52,763) under the terms of the supply agreement. From 15 October, 1995 the Company entered into a ten year agreement to supply a minimum of 30,000 US Gallons per day (10.95 million US Gallons per year) of potable water to Galleon Beach Resort Limited, the operator of the Westin Hotel in the Cayman Islands which initially opened in December 1995. The price of the water supplied is adjusted annually based on Government Price Indices, and water supplied in excess of the monthly maximum of 60,000 US Gallons per day is invoiced at the Company's standard tariff rate. Water sales for the year ended December 31, 2000 resulting from this agreement amounted to $299,333 (1999: $314,884; 1998: $343,800). From the acquisition of Belize Water Co, Ltd. in 2000, the Company is under contract to supply a minimum of 135,000 US Gallons per day (49.27 million US Gallons per year) to the Water and Sewerage Authority of Belize. The price of water supplied is adjusted annually based on Government indices. Post acquisition water sales for the period ended  December 31, 2000 resulting from this agreement amounted to $464,928 (Note 11). 15. Customer supply agreements (Expressed in United States dollars) 2001 1,350,704 2002 1,350,704 2003 1,350,704 2004 1,350,704 Total minimum payments $ 5,402,816 CONSOLIDATED WATER CO. LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS