CONSOLIDATED WATER CO. LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in United States dollars) 8. Share capital and additional paid in capital (continued) The redeemable preferred stock are issued under the Company's employee share plan (Note 16) and carry the same voting and dividend rights as ordinary shares. The redeemable preferred stock are only redeemable with the Company's agreement. In consideration for redeemed vested preferred stock, ordinary share capital is issued on a share for share basis. Upon liquidation of the Company, the redeemable preferred stock rank in preference to the common stock to the extent of the par value of the redeemable preferred stock and any related additional paid in capital. Outstanding non-vested preferred stock currently redeemable are as follows: No. of shares Redemption  Redemption redeemable price value Up to the year ended December 31, 2001 19,439 - - 1,120 $4.0680 4,556 872 $5.3175 4,637 1,081 $5.7120 6,175 1,136 $5.4720 6,216 23,648 $21,584 Up to the year ended December 31, 2002 15,201 - - 872 $5.3175 4,637 1,081 $5.7120 6,175 1,136 $5.4720 6,216 18,290 $17,028 Up to the year ended December 31, 2003 9,769 - - 1,081 $5.7120 6,175 1,136 $5.4720 6,216 11,986 $12,391 Up to the year ended December 31, 2004 2,279 - - 1,136 $5.4720 6,216 3,415 $ 6,216 In April 1996 the Company filed a Form F-1 registration statement with the SEC in connection with the issue of 575,000 ordinary shares of common stock at $5.25 per share. Under the terms of the related underwriting agreement, the underwriter was issued a warrant to purchase 50,000 ordinary shares of common stock at $6.30 per share. Consideration of $500 was paid for the warrant which management considered to approximate fair value. The warrants are exercisable during the four year period commencing April 3, 1997. As at December 31, 2000, no warrants have been exercised under this agreement and the underwriter is no longer in business. In conjunction with the private placement of ordinary shares of common stock that took place in August 1995, the Company issued warrants to purchase 100,000 ordinary shares of common stock at a price of $4.00 per share. The warrants were exercised in January and February 2000.