CONSOLIDATED WATER CO. LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in United States dollars) 16. Stock Compensation (continued) Weighted average number and exercise price of options (all schemes): The Company determines stock compensation costs according to the methodology outlined in APB Opinion No. 25.  The table below summarizes the proforma effect if FASB Statement No. 123, the alternative applicable standard, was adopted: 2000 1999 1998 Number of Weighted average exercise price per share Number of Weighted average exercise price per share Number of Weighted average exercise price per share Options US$ options US$ options US$ Outstanding at beginning of year 127,786 $4.58 159,010  $3.51 92,440  $2.50 Granted 117,538 $6.98 67,554 $4.96 74,160 $2.78 Exercised  (1,136) $5.47 (91,230) $5.32 (2,437) $1.58 Forfeited (1,143) $5.47 (7,548) $5.32 (5,153) $4.07 Outstanding and exercisable at end of year 243,045 $5.73 127,786 $4.58 159,010 $3.51  For the year ended December 31, 2000 1999 1998 Net income $2,111,755 $1,498,105 $1,451,975 Basic earnings per ordinary share $0.59 $0.48 $0.48 Diluted earnings per ordinary share $0.58 $0.47 $0.45 Weighted average fair value per share under FAS 123 for options granted during the year: Options granted with an exercise price below market price on the date of grant: Chairman and CEO - $4.07 $4.48 President and COO - $4.07 $4.48 Non-executive directors $2.69 $3.69 - Senior Management - $1.84 $2.07 Other employees $2.66 Overall weighted average $2.69 $3.80 $4.33 Options granted with an exercise price above market price on the date of grant: Chairman and CEO $2.57 - - President and COO $2.57 - - Non-executive directors - - - Senior Management $2.57 - - Other employees - - - Overall weighted average $2.57 - -