ENBRIDGE 2000 ANNU AL REPORT 41 The 5,000,000 5.5% Cumulative Redeemable Preferred Shares, Series A are entitled to fixed, cumulative, preferential dividends of $1.375 per share per year, payable quarterly. On or after December 31, 2003, the Company may, at its option, redeem all or a portion of the outstanding preferred shares for $26.00 per share if redeemed on or prior to December 1, 2004; $25.75 if redeemed on or prior to December 1, 2005; $25.50 if redeemed on or prior to December 1, 2006;  $25.25 if redeemed on or prior to December 1, 2007; and at $25.00 per share if redeemed thereafter, in each case with  all accrued and unpaid dividends to the redemption date. Earnings per common share is calculated by dividing net income applicable to common shares by the weighted average number of common shares outstanding. The weighted average number of shares is 154,469,000, 150,995,000 and 145,448,000 in 2000, 1999 and 1998, respectively. The weighted average number of shares outstanding has been reduced by the Company’s pro-rata interest in its own common shares resulting from the investment in Noverco. The Company has a Dividend Reinvestment and Share Purchase Plan. Under the plan, registered shareholders may reinvest dividends in common shares of the Company or make optional cash payments to purchase additional common shares, in either case free of brokerage or other charges. The Company has a Shareholder Rights Plan designed to encourage the fair treatment of shareholders in connection with any takeover offer for the Company. Rights issued under the plan become exercisable when a person, and any related parties, acquires or announces its intention to acquire 20% or more of the Company’s outstanding common shares without complying with certain provisions set out in the plan or without approval of the Board of Directors of the Company. Should such an acquisition or announcement occur, each rights holder, other than the acquiring person and related parties, will have the right to purchase common shares of the Company at a 50% discount to the market price at that time. The Company’s Incentive Stock Option Plan (1999) includes fixed stock options and performance-based stock options. A maximum of 12 million common shares are reserved for issuance under the various alternatives covered by the plan. Full time, key employees are granted options to purchase common shares, exercisable at the market price of common shares at the date the options are granted. Generally, options vest in equal annual instalments over a four-year period and expire after ten years from the original issue date. Outstanding stock options will expire over a period ending no later than July 1, 2010. Fixed Stock Options 8. Stock Option Plan Shareholder Rights Plan Dividend Reinvestment and Share Purchase Plan Earnings Per Common Share Preferred Shares