content_image/21308.jpg content_image/21307.jpg content_image/21306.jpg
## 16. Stock Compensation (continued) 

## CONSOLIDATED WATER CO. LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(Expressed in United States dollars) 

In calculating the fair value for these options under FAS 123 the Black-Scholes model was used with the following weighted average assumptions: 

Options granted with an exercise price below market price on the date of grant: 

<img src='content_image/21308.jpg'>

Options granted with an exercise price above market price on the date of grant: 

<img src='content_image/21307.jpg'>

Weighted average fair value per share under FAS 123 for shares issued during the year below market price on the date of grant: 

<img src='content_image/21306.jpg'>

## 17. Taxation 

Under current laws of the Cayman Islands, there are no income, estate, corporation, capital gains or other taxes payable by the Company. The Company has received a tax exemption with respect to their Belize operations. The exemption expires in 2006 and is renewable in accordance with the provisions of the license (Note 3). 

