(Expressed in United States dollars) 15. Customer supply agreements (continued) 16. Stock Compensation Non-Executive Directors’ Share Plan: During the year ended December 31, 2000 the Company entered into a Water Supply Agreement with South Bimini International Ltd., a company incorporated in the Commonwealth of Bahamas. Under the agreement South Bimini International Ltd. is committed to pay for a minimum of 3,000 US Gallons of water per residential unit per month (36,000 US Gallons residential unit per year) on a take or pay basis in relation to the Bimini Sands Resort property in South Bimini Island, Bahamas. The price of water supplied is adjusted annually based on Government indices. The agreement is subject to approval by certain regulatory bodies, which is expected by May 2001. No water sales resulted from this agreement for the year ended December 31, 2000. There are no other individually significant supply agreements. The Company operates various stock compensation plans (described below) that form part of employee’s remuneration. Stock compensation expenses of $124,772 are recorded in accordance with APB 25 and included within employee costs (1999: $245,117; 1998: $244,171). The Company awards redeemable preferred stock (restricted stock) for nil consideration under the Employee Share Plan as part of compensation for eligible employee services (excluding Directors) that require future services as a condition to the delivery of the underlying shares of common stock. In addition options are granted to purchase preferred stock at a fixed price, determined annually, which will typically represent a discount to the market value of the underlying shares of common stock. In consideration for redeemed vested preferred stock, the Company issues common stock on a share for share basis. Under the plan the conversion is conditional on the grantee’s satisfying requirements outlined in the award agreements. The redeemable preferred stock is only redeemable with the Company’s agreement. See Note 8 for the vesting schedule of outstanding preferred stock currently redeemable. The details of preferred stock and stock options granted and exercised under the Employee Share Plan is as follows: Each employee's option to purchase preference shares must be exercised within 40 days of the annual general meeting of the Company following the date of grant. In 1999, the Company introduced a share grant plan which forms part of Directors’ remuneration. Under the plan Directors receive a combination of cash and common stock in consideration of remuneration for their participation in Board meetings. All Directors are eligible except Executive Officers (who are covered by individual employment contracts) and the Government elected board member. Common stock granted is calculated with reference to a strike price that is set by the Board of Directors on October 1 of the year preceding the grant. Stock granted on September 30, 2000 totaled 6,890 (1999: 2,400). The strike price set on October 1, 2000 was $7.25 (October 1, 1999 $6.75). Employee Share Plan: CONSOLIDATED WATER CO. LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year of Grant  Granted Strike Price Options Exercised Options Expired Preferred stock granted 1998 7,590 $nil N/A N/A 1999 9,768 $nil N/A N/A 2000 2,279 $nil N/A N/A Preferred stock options granted 1998 7,590 $5.32 2,437 5,153 1999 9,768 $5.71 2,220 7,548 2000 2,279 $5.47 1,136 1,143