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<SEC-DOCUMENT>0001145549-08-000432.txt : 20080303
<SEC-HEADER>0001145549-08-000432.hdr.sgml : 20080303
<ACCEPTANCE-DATETIME>20080303151934
ACCESSION NUMBER:		0001145549-08-000432
CONFORMED SUBMISSION TYPE:	F-3
PUBLIC DOCUMENT COUNT:		10
FILED AS OF DATE:		20080303
DATE AS OF CHANGE:		20080303

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Canadian Solar Inc.
		CENTRAL INDEX KEY:			0001375877
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			F4
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		F-3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-149497
		FILM NUMBER:		08659372

	BUSINESS ADDRESS:	
		STREET 1:		XIN ZHUANG INDUSTRY PARK, CHANGSHU
		STREET 2:		SUZHOU,
		CITY:			JIANGSU
		STATE:			F4
		ZIP:			215562
		BUSINESS PHONE:		(85-512) 6269-6010

	MAIL ADDRESS:	
		STREET 1:		XIN ZHUANG INDUSTRY PARK, CHANGSHU
		STREET 2:		SUZHOU,
		CITY:			JIANGSU
		STATE:			F4
		ZIP:			215562
</SEC-HEADER>
<DOCUMENT>
<TYPE>F-3
<SEQUENCE>1
<FILENAME>h01912fv3.htm
<DESCRIPTION>CANADIAN SOLAR INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>CANADIAN SOLAR INC.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">As filed with the Securities and
    Exchange Commission on March&#160;3, 2008</FONT></B>
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Registration
    No.&#160;333-&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Washington,&#160;D.C.
    20549</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 17%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=96 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">Form F-3</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 11pt">REGISTRATION
    STATEMENT</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 11pt">UNDER</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 11pt">THE SECURITIES ACT OF
    1933</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">CANADIAN SOLAR INC.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">(Exact name of registrant as
    specified in its charter)</FONT></B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="49%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Canada</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Not Applicable</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(State or other jurisdiction
    of<BR>
    incorporation or organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(I.R.S. Employer Identification
    Number)</FONT></I><FONT style="font-size: 8pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>No.&#160;199 Lushan Road</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Suzhou New District</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Suzhou, Jiangsu 215129</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>People&#146;s Republic of China</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="white-space: nowrap">(86-512)</FONT>
    6690 8088</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Address and telephone number of
    Registrant&#146;s principal executive offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 17%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=96 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">CT Corporation System</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">111 Eighth Avenue</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">New York, New York
    10011</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt"><FONT style="white-space: nowrap">(212)&#160;664-1666</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name, address and telephone
    number of agent for service)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 17%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=96 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">Copy to:</FONT></I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">David T. Zhang, Esq.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">Latham&#160;&#038; Watkins
    LLP</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">41<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>
    Floor, One Exchange Square</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">8 Connaught Place
    Central</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt">Hong Kong</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 8pt"><FONT style="white-space: nowrap">(852)&#160;2522-7886</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of commencement of proposed sale to the
    public: </B>From time to time after this registration statement
    becomes effective.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 17%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=96 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the only securities being registered on this Form are being
    offered pursuant to dividend or interest reinvestment plans,
    please check the following
    box.&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule&#160;415 under the Securities Act of 1933, check the
    following
    box.&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act,
    please check the following box and list the Securities Act
    registration statement number of the earlier effective
    registration statement for the same
    offering.&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If delivery of the prospectus is expected to be made pursuant to
    Rule&#160;434, please check the following
    box.&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 17%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=96 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CALCULATION
    OF REGISTRATION FEE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Amount of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of Each Class of<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registration<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Securities to be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>to be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Price Per Unit(1)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Offering Price(1)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Fee</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    6.0%&#160;Convertible Senior Notes due 2017
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $75,000,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    100%
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $75,000,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $2,947.50
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common shares, no par value
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    4,250,797(2)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    (2)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    (2)
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    (3)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Estimated solely for the purpose of
    calculating the registration fee in accordance with
    Rule&#160;457 under the Securities Act.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Represents the number of common
    shares issuable upon conversion of the 6.0%&#160;Convertible
    Senior Notes due 2017 at an initial conversion rate of 50.6073
    common shares per US$1,000 principal amount of the notes and the
    number of shares issuable upon an increase in the conversion
    rate upon occurrence of a fundamental change. Pursuant to
    Rule&#160;416 under the Securities Act, the number of common
    shares registered hereby include an indeterminate number of
    common shares that may be issued upon conversion of the notes,
    as this amount may be adjusted as a result of anti-dilution
    provisions thereof.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Pursuant to Rule&#160;457(i), there
    is no additional filing fee with respect to the common shares
    issuable upon conversion of the notes because no additional
    consideration will be received by the registrant in connection
    with the conversion of the notes.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The registrant hereby amends this registration statement on
    such date or dates as may be necessary to delay its effective
    date until the registrant shall file a further amendment which
    specifically states that the Registration Statement shall
    thereafter become effective in accordance with Section&#160;8(a)
    of the Securities Act or until the registration statement shall
    become effective on such date as the Commission acting pursuant
    to said Section&#160;8(a) shall determine.</B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD style=text-align:justify>
<FONT style="font-size: 8pt; color: #E8112D">The information in
this preliminary prospectus is not complete and may be changed.
These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell nor does it
seek an offer to buy these securities in any jurisdiction where
the offer or sale is not permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><U>PROSPECTUS</U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>SUBJECT TO COMPLETION, DATED MARCH 3, 2008</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">CANADIAN SOLAR INC.</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">US$75,000,000</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">6.0%&#160;Convertible Senior
    Notes due 2017</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">and the</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">Common Shares Issuable upon
    Conversion of the Notes</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=96 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We issued and sold US$75,000,000 aggregate principal amount of
    our 6.0%&#160;Convertible Senior Notes due 2017 in a private
    transaction on December&#160;10, 2007. Selling securityholders
    may use this prospectus to resell from time to time their notes
    and the common shares issuable upon conversion of the notes.
    Additional selling security holders may be named by prospectus
    supplement. We will not sell any securities under this
    prospectus or receive any proceeds from resales by selling
    securityholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes mature on December&#160;15, 2017. The notes bear
    interest at the rate of 6.0% per annum, payable semi-annually in
    arrears on June 15 and December 15 of each year, starting on
    June&#160;15, 2008, to holders of record at the close of
    business on the preceding June 1 and December&#160;1,
    respectively. The notes will be convertible into our common
    shares based on an initial conversion rate, subject to
    adjustment, of 50.6073 common shares per US$1,000 principal
    amount of notes (which represents an initial conversion price of
    approximately US$19.76 per common share).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes are our senior unsecured obligations and rank equally
    with our other unsecured and unsubordinated indebtedness. The
    notes are effectively subordinated in right of payment to all of
    our existing and future secured indebtedness and other
    liabilities of our subsidiaries. For a more detailed description
    of the notes, see the section entitled &#147;Description of
    Notes&#148; beginning on page&#160;47 of this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The securityholders may require us to repurchase the notes on
    December&#160;24, 2012 and December&#160;15, 2014. We are also
    required to make an offer to purchase notes from the
    securityholders upon a fundamental change.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common shares are listed on the Nasdaq Global Market under
    the symbol &#147;CSIQ.&#148; The closing price of the common
    shares on February&#160;29, 2008 was $18.95 per share.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=96 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>This investment involves risks. See the section entitled
    &#147;Risk Factors&#148; beginning on page&#160;16.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=96 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus is truthful or
    complete. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=96 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The date of this prospectus
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2008.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>About This Prospectus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Prospectus Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Forward-Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Incorporation of Documents by Reference</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>The Offering</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Summary Consolidated Financial Data</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Summary of Recent Financial Developments</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Reasons for the Offer and Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Ratio of Earnings to Fixed Charges</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Price Range of Common Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Dividend Policy</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Capitalization and Indebtedness</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'>Exchange Rate Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>Description of Notes</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>Description of Share Capital</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>Enforceability of Civil Liabilities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    77
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'>Taxation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'>Selling Securityholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'>Plan of Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#123'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
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    92
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h01912exv4w2.txt">EX--4.2 INDENTURE RELATED TO THE SENIOR CONVERTIBLE NOTES</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h01912exv4w4.txt">EX-4.4 REGISTRATION RIGHTS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h01912exv5w1.txt">EX-5.1 OPINION OF WEIRFOULDS LLP REGARDING THE VALIDITY OF COMMON SHARES BEING REGISTERED</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h01912exv5w2.txt">EX-5.2 OPINION OF LATHAM & WATKINS LLP REGARDING THE VALIDITY OF THE CONVERTIBLE SENIOR NOTES</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h01912exv8w1.txt">EX-8.1 OPINION OF LATHAM & WATKINS LLP REGARDING CERTAIN U.S. TAX MATTERS</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h01912exv12w1.txt">EX-12.1 STATEMENT OF COMPUTATION</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h01912exv23w1.txt">EX-23.1 CONSENT OF DELOITTE TOUCHE TOHMATSU</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h01912exv23w3.txt">EX-23.3 CONSENT OF CHEN & CO. LAW FIRM</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h01912exv25w1.txt">EX-25.1 STATEMENT OF ELIGIBILITY OF THE BANK OF NEW YORK AS A TRUSTEE</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    i
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is part of a &#147;shelf&#148; registration
    statement that we are filing with the Securities and Exchange
    Commission, or the SEC. By using a shelf registration statement,
    the selling securityholders may sell any combination of the
    securities described in this prospectus from time to time and in
    one or more offerings. This prospectus provides you with a
    general description of the securities the selling
    securityholders may offer. Each time any selling securityholders
    sell securities, we will provide a prospectus supplement that
    will contain specific information about the terms of that
    offering. The prospectus supplement may also add, update or
    change information contained in this prospectus. If there is any
    inconsistency between the information in this prospectus and any
    applicable prospectus supplement, you should rely on the
    information in the applicable prospectus supplement. Before
    purchasing any securities, you should carefully read this
    prospectus, any applicable prospectus supplement and the
    documents incorporated by reference herein and therein, together
    with additional information described under the heading
    &#147;Where You Can Find More Information.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information contained or
    incorporated by reference in this prospectus, a prospectus
    supplement or any amendment. We have not authorized any other
    person to provide you with different information. If anyone
    provides you with different or inconsistent information, you
    should not rely on it. This prospectus may be used only where it
    is legal to sell these securities. The selling securityholders
    are offering to sell, and seeking offers to buy, only the notes
    and the shares of common stock covered by this prospectus, and
    only under the circumstances and in the jurisdictions where it
    is lawful to do so. The information contained in this prospectus
    is current only as of its date, regardless of the time of
    delivery of this prospectus or of any sale of the notes or the
    shares of common stock. Our business, financial condition,
    results of operations and prospects may have changed since those
    dates.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    References to &#147;notes&#148; in this prospectus are to the
    US$75,000,000 aggregate principal amount of
    6.0%&#160;Convertible Senior Notes due 2017.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>You should read the following summary together with the
    entire prospectus, including the information incorporated by
    reference and the more detailed information regarding us, our
    financial statements and related notes appearing elsewhere in
    this prospectus and in the documents incorporated herein by
    reference, before making an investment decision. Unless the
    context otherwise requires, in this prospectus, &#147;we,&#148;
    &#147;us,&#148; &#147;our company,&#148; &#147;our,&#148; and
    &#147;CSI&#148; refer to Canadian Solar Inc. and its
    consolidated subsidiaries; &#147;China&#148; or &#147;PRC&#148;
    refers to the People&#146;s Republic of China, excluding Taiwan,
    Hong Kong and Macau; &#147;RMB&#148; or &#147;Renminbi&#148;
    refers to the legal currency of China; &#147;$&#148; or
    &#147;U.S.&#160;dollars&#148; refers to the legal currency of
    the United States; &#147;C$&#148; refers to the legal currency
    of Canada; and &#147;Euro&#148; or &#148;&#128;&#148; refers to
    the legal currency of the European Union.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Canadian
    Solar Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We design, manufacture and sell solar cell and module products
    that convert sunlight into electricity for a variety of uses. We
    are incorporated in Canada and conduct all of our manufacturing
    operations in China. Our products include a range of standard
    solar modules built to general specifications for use in a wide
    range of residential, commercial and industrial solar power
    generation systems. We also design and produce specialty solar
    modules and products based on our customers&#146; requirements.
    Specialty solar modules and products consist of customized
    modules that our customers incorporate into their own products,
    such as solar-powered bus stop lighting, and complete specialty
    products, such as solar-powered car battery chargers. Our
    products are sold primarily under our own brand name and also
    produced on an OEM basis for our customers. We also implement
    solar power development projects, primarily in conjunction with
    government organizations to provide solar power generation in
    rural areas of China.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently sell our products to customers located in various
    markets worldwide, including Germany, Spain, Canada, Korea and
    China. We currently sell our standard solar modules to
    distributors and system integrators. We sell our specialty solar
    modules and products directly to various manufacturers who
    integrate the specialty solar modules into their own products
    and sell and market the specialty solar products as part of
    their product portfolio.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have historically manufactured our module products from solar
    cells purchased from third-party manufacturers. In 2007, we
    began to pursue a new business model that combines internal
    manufacturing capacity supplemented by direct material purchases
    and outsourced toll manufacturing relationships which we believe
    provides the company with several competitive benefits. We
    believe that this approach allows us to benefit from the
    increased margin available to vertically integrated solar
    manufacturers while reducing the capital expenditures required
    relative to a fully vertically integrated business model. We
    also believe that this business model provides us with greater
    flexibility to respond to short-term demand patterns and
    longer-term to take advantage of the availability of low-cost
    outsourced manufacturing capacity. Additionally, these steps
    towards increased vertical integration of our supply chain have
    enabled us to improve production yields, control our inventory
    more efficiently and improve cash management, resulting in
    increased confidence in our forecasts for revenue growth and
    margin improvement in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we have contractually secured 90% of our silicon
    and solar cell requirements to support solar module production
    of 200 to 220MW in 2008. For silicon material supplies, we have
    entered into a five-year supply agreement with Luoyang Zhong Gui
    High Tech Co. Ltd in China from 2006 to 2010 for high purity
    silicon. For silicon wafers, we have entered into a three-year
    fixed price and volume agreement with LDK Solar Co., Ltd., or
    LDK, from 2008 to 2010 for specified quantities of solar wafers,
    including 50MW for delivery in 2008. We also have standby toll
    manufacturing arrangements with LDK and other ingot and wafer
    manufacturers to convert our virgin polysilicon and reclaimed
    silicon feedstock into wafers. In January 2007, we entered into
    a supply agreement with Deutsche Solar, a subsidiary of
    SolarWorld AG of Germany, for a supply of multi-crystalline
    silicon wafers through 2018. In November 2007, we entered into
    various agreements with China Sunergy Co., Ltd. for a supply of
    25MW of solar cells for delivery in 2008, and an agreement with
    Gintech Energy Corporation of Taiwan for a supply of 17 to 22MW
    of solar cells for delivery in 2008. We have other silicon wafer
    and solar cell supply agreements in place. We continue to
    evaluate new technologies, including the use of upgraded
    metallurgical grade silicon material. If the results of our
    evaluation are positive, we intend to use upgraded metallurgical
    grade silicon material in the
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    production of solar ingots, wafers, cells and modules. We
    believe that the use of upgraded metallurgical grade silicon
    material could increase our total solar module shipments by 30
    to 40MW in 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have aggressively expanded our manufacturing capacity for
    both solar cells and solar modules. We have continued to expand
    our own in-house solar cell manufacturing abilities, completing
    our first solar cell production line with an annual capacity of
    25MW in the first quarter of 2007 and our second 25MW production
    line in the third quarter of 2007. We have recently installed
    our third and fourth solar cell production lines and our annual
    solar cell production capacity was 100MW as of December of 2007.
    Currently, we intend to use all of our solar cells in the
    manufacturing of our own solar module products. At
    September&#160;30, 2007, we had 180MW of annual module
    manufacturing capacity between our Suzhou, Changshu and Luoyang
    facilities. Another new Changshu solar module plant was opened
    in February 2008, which we anticipate will increase our total
    annual solar module production capacity to 400MW by the first
    quarter of 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we have commenced work on two new projects:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Expansion of our internal solar cell manufacturing capacity from
    100 to 250MW. We expect to complete this project by the summer
    of 2008.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Construction of a solar ingot and wafer plant in the City of
    Luoyang, China. We expect to complete the initial phase of this
    project by the summer of 2008, which will give us an annual
    solar wafer capacity of 40 to 60MW.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the substantial industry and international
    experience of our management team has helped us foster strategic
    relationships with suppliers throughout the solar power industry
    value chain. We also take advantage of our flexible and low cost
    manufacturing capability in China to lower our manufacturing and
    operating costs. We believe we have a proven track record of low
    cost and rapid expansion of solar cell and solar module
    manufacturing capacity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have grown rapidly since March 2002, when we sold our first
    solar module products. Our net revenues increased from
    $9.7&#160;million in 2004 to $68.2&#160;million in 2006, and
    from $43.8&#160;million for the nine months period ended
    September&#160;30, 2006 to $175.3&#160;million for the nine
    months ended September&#160;30, 2007. We sold 2.2MW, 4.1MW and
    14.9MW of our solar module products in 2004, 2005 and 2006,
    respectively, and 10.9MW and 45.6MW for the nine months ended
    September&#160;30, 2006 and 2007, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Industry
    Background</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Solar power has recently emerged as one of the most rapidly
    growing renewable energy sources. Solar cells are fabricated
    from silicon wafers and convert sunlight into electricity
    through a process known as the photovoltaic effect. Solar
    modules, which are an array of interconnected solar cells
    encased in a weatherproof frame, are mounted in areas with
    direct exposure to the sun to generate electricity from
    sunlight. Solar power systems, which are comprised of solar
    modules, related power electronics and other components, are
    used in residential, commercial and industrial applications and
    for customers who have no access to an electric utility grid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    According to Solarbuzz, an independent solar energy research
    firm, the global solar power market, as measured by annual solar
    system installations, increased from 345MW in 2001 to 1,744MW in
    2006, representing a CAGR of 38.3%. During the same period,
    solar power industry revenues grew from approximately
    $2.4&#160;billion in 2001 to approximately $10.6&#160;billion in
    2006, representing a CAGR of 34.6%. Solarbuzz projects that
    solar power industry revenues and solar system installations
    will reach $18.6&#160;billion and 4,177MW, respectively, by
    2011. According to Solarbuzz, worldwide installations of solar
    power systems are expected to grow at a CAGR of 19.1% from 2006
    to 2011, led by shipments for on-grid applications, where solar
    power is used to supplement a customer&#146;s electricity
    purchased from the utility network. We believe growth in the
    near term will be constrained by the limited availability of
    high-purity silicon.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe the following factors have driven and will continue
    to drive growth in the solar power industry:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    government incentives for solar power and other renewable energy
    sources;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    fossil fuel supply constraints and desire for energy security;
</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    growing awareness of the advantages of solar power, including
    its peak energy generation advantage, fuel risk advantage,
    scalability, reliability and environmentally friendly nature;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    advances in technologies making solar power more
    cost-efficient;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    large market among underserved populations in rural areas of
    developing countries with little or no access to electricity.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Competitive Strengths</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the following competitive strengths enable us to
    compete effectively and to capitalize on the rapid growth in the
    global solar power market:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our ability to manage our supply chain via long term supply
    contracts and toll manufacturing arrangements, allowing us to
    secure a cost-effective supply of solar wafers and solar cells;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our ability to quickly and cost-effectively increase our
    internal manufacturing capacity for solar cells and modules;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the strength of our customer relationships in the rapidly
    expanding global solar market;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our continued focus on maintaining a reputation for high quality
    and reliable solar modules and excellent customer
    support;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our established senior management team with significant industry
    and international expertise.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Strategies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our objective is to be a global leader in the development and
    manufacture of solar module products. We have developed the
    following strategies, based on our experience, to anticipate
    changes in the industry:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    pursue a balanced and diversified solar cell supply strategy by
    entering into long-term solar cell and solar wafer supply
    contracts, toll manufacturing arrangements and developing our
    in-house solar cell and solar wafer manufacturing capabilities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    continue to proactively manage silicon raw material supply by
    securing long term silicon raw materials contracts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    continue to diversify silicon supply sources including the
    development of products utilizing upgraded metallurgical grade
    silicon;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    further diversify our geographic presence, customer base and
    product mix;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    enhance innovation and efficiency through R&#038;D;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    build a leading global brand.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Structure</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were incorporated pursuant to the laws of the Province of
    Ontario in October 2001. We changed our jurisdiction by
    continuing under the Canadian federal corporate statute, the
    Canada Business Corporations Act, or CBCA, effective
    June&#160;1, 2006. As a result, we are governed by the CBCA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November 2001, we established CSI Solartronics (Changshu)
    Co., Ltd., or CSI Solartronics, which is our wholly owned
    subsidiary located in Changshu, China. Through CSI Solartronics,
    we focus primarily on the production of specialty solar modules
    and products. In addition to CSI Solartronics, we also currently
    have six other wholly owned subsidiaries: (i)&#160;CSI Solar
    Manufacture Inc., or CSI Solar Manufacturing, located in Suzhou,
    China, which we incorporated in January 2005, through which we
    focus primarily on the production of standard solar modules;
    (ii)&#160;CSI Solar Technologies Inc., or CSI Solar
    Technologies, also located in Suzhou, China, which we
    incorporated in August 2003, through which we focus on solar
    module product development; (iii)&#160;CSI Central Solar Power
    Co., Ltd., or CSI Luoyang, in Luoyang, China, which we
    incorporated in February 2006, through which we currently
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    manufacture solar modules and intend to manufacture solar ingots
    and solar wafers; (iv)&#160;CSI Cells Co., Ltd., or CSI Cells,
    formerly known as CSI Solarchip International Co., Ltd., which
    we incorporated in June 2006 and completed the first cell
    production line in the first quarter of 2007, through which we
    manufacture solar cells; (v)&#160;Changshu CSI Advanced Solar
    Inc., or CSI Advanced, which was incorporated in August 2006 and
    through which we intend to manufacture solar modules; and
    (vi)&#160;CSI Solar Inc., which was incorporated in Delaware in
    June 2007. CSI Advanced is not yet operational and is currently
    in the construction and preparatory phase. In May 2007, we set
    up a representative office in Phoenix, Arizona, to enhance our
    sales and marketing efforts in the U.S.&#160;market. This office
    became affiliated with CSI Solar Inc. after its incorporation in
    June 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our principal executive offices are located at No.&#160;199
    Lushan Road, Suzhou New District, Suzhou, Jiangsu 215129,
    People&#146;s Republic of China. Our telephone number at this
    address is
    <FONT style="white-space: nowrap">(86-512)</FONT>
    <FONT style="white-space: nowrap">6690-8088</FONT>
    and our fax number is
    <FONT style="white-space: nowrap">(86-512)</FONT>
    <FONT style="white-space: nowrap">6690-8087.</FONT>
    Our mailing address in Canada is located at 675 Cochrane Drive,
    East Tower, 6th&#160;Floor, Markham, Ontario L3R 0B8. Our
    telephone number at this address is (1-905)
    <FONT style="white-space: nowrap">530-2334</FONT> and
    our fax number is
    <FONT style="white-space: nowrap">(1-905)&#160;530-2001.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should direct all inquiries to us at the address and
    telephone number of our principal executive offices set forth
    above. Our website is www.csisolar.com. The information
    contained on our website does not form part of this prospectus.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FORWARD-LOOKING
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information in this prospectus, any prospectus supplement
    and the documents incorporated herein by reference contains
    forward-looking statements that relate to future events,
    including our future operating results and conditions, our
    prospects and our future financial performance and condition,
    results of operations, business strategy and financial needs,
    all of which are largely based on our current expectations and
    projections. These statements are made under the &#147;safe
    harbor&#148; provisions of the U.S.&#160;Private Securities
    Litigation Reform Act of 1995. You can identify these
    forward-looking statements by terminology such as
    &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148;
    &#147;anticipate,&#148; &#147;future,&#148; &#147;intend,&#148;
    &#147;plan,&#148; &#147;believe,&#148; &#147;estimate,&#148;
    &#147;is/are likely to&#148; or other and similar expressions.
    Forward-looking statements involve inherent risks and
    uncertainties. These forward-looking statements include, among
    other things, statements relating to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our expectations regarding the worldwide demand for electricity
    and the market for solar power;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our beliefs regarding lack of infrastructure reliability and
    long-term fossil fuel supply constraints;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our beliefs regarding the inability of traditional fossil
    fuel-based generation technologies to meet the demand for
    electricity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our beliefs regarding the importance of environmentally friendly
    power generation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our expectations regarding governmental support for the
    deployment of solar power;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our beliefs regarding the future shortage or availability of the
    supply of high-purity silicon;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our beliefs regarding the acceleration of adoption of solar
    power technologies and the continued growth in the solar power
    industry;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our beliefs regarding the competitiveness of our solar module
    products;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our expectations with respect to increased revenue growth and
    improved profitability;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our expectations regarding the benefits to be derived from our
    supply chain management and vertical integration manufacturing
    strategy;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our ability to continue developing our in-house solar components
    production capabilities and our expectations regarding the
    timing and production capacity of our internal manufacturing
    programs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our beliefs regarding our securing adequate silicon and solar
    cell requirements to support our solar module production;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our beliefs regarding the effects of environmental regulation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our beliefs regarding the changing competitive arena in the
    solar power industry;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our future business development, results of operations and
    financial condition;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    competition from other manufacturers of solar power products and
    conventional energy suppliers.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Known and unknown risks, uncertainties and other factors, may
    cause our actual results, performance or achievements to be
    materially different from any future results, performances or
    achievements expressed or implied by the forward-looking
    statements. See the section entitled &#147;Risk Factors&#148;
    for a discussion of some risk factors that may affect our
    business and results of operations. These risks are not
    exhaustive. Other sections of this prospectus and the documents
    incorporated herein by reference may include additional factors
    that could adversely impact our business and financial
    performance. Moreover, because we operate in an emerging and
    evolving industry, new risk factors may emerge from time to
    time. It is not possible for our management to predict all risk
    factors, nor can we assess the impact of these factors on our
    business or the extent to which any factor, or combination of
    factors, may cause actual result to differ materially from those
    expressed or implied in any forward-looking statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus, including the documents incorporated herein by
    reference, also contains data related to the solar power market
    in several countries. These market data, including market data
    from Solarbuzz, include projections
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    that are based on a number of assumptions. The solar power
    market may not grow at the rates projected by the market data,
    or at all. The failure of the market to grow at the projected
    rates may materially and adversely affect our business and the
    market price of our common shares and the notes. In addition,
    the rapidly changing nature of the solar power market subjects
    any projections or estimates relating to the growth prospects or
    future condition of our market to significant uncertainties. If
    any one or more of the assumptions underlying the market data
    proves to be incorrect, actual results may differ from the
    projections based on these assumptions. You should not place
    undue reliance on these forward-looking statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The forward-looking statements made in this prospectus and in
    the documents incorporated herein by reference relate only to
    events or information as of the date on which the statements are
    made in this prospectus or, in the case of statements made in
    documents incorporated by reference, as of the respective dates
    of those documents. Except as required by law, we undertake no
    obligation to update or revise publicly any forward-looking
    statements, whether as a result of new information, future
    events or otherwise, after the date on which the statements are
    made or to reflect the occurrence of unanticipated events.
</DIV>
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to the information and reporting requirements of
    the Exchange Act, under which we file periodic reports, proxy
    and information statements and other information with the SEC.
    Copies of the reports, proxy statements and other information
    may be examined without charge at the SEC&#146;s Public
    Reference Room, 100&#160;F&#160;Street, N.E.,
    Washington,&#160;D.C. 20549 or on the Internet at
    <FONT style="white-space: nowrap">http://www.sec.gov.</FONT>
    Copies of all or a portion of such materials can be obtained
    from the Public Reference Section of the SEC upon payment of
    prescribed fees. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information about the Public Reference Room.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a foreign private issuer, we are exempt from the rules under
    the Exchange Act that prescribe the furnishing and content of
    proxy statements, and our officers, directors and principal
    shareholders are exempt from the reporting and short-swing
    profit recovery provisions contained in Section&#160;16 of the
    Exchange Act. We are not currently required under the Exchange
    Act to publish financial statements as frequently or as promptly
    as are United States companies subject to the Exchange Act. We
    will, however, continue to furnish our shareholders with annual
    reports containing audited financial statements and will issue
    quarterly press releases containing unaudited statements of
    operations data as well as such other reports as may from time
    to time be authorized by our board of directors or as may be
    otherwise required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have filed with the SEC a registration statement on
    <FONT style="white-space: nowrap">Form&#160;F-3,</FONT>
    including all amendments to the registration statement under the
    Securities Act with respect to the notes and the common issuable
    upon conversion of the notes covered by this prospectus. This
    prospectus, which constitutes a part of the registration
    statement, does not contain all of the information set forth in
    the registration statement, certain parts of which are omitted
    in accordance with the rules and regulations of the SEC. For
    further information regarding us and the securities offered
    under this prospectus, please see the registration statement and
    the exhibits and schedules filed with the registration
    statement. Statements contained in this prospectus regarding the
    contents of any agreement or other document filed as an exhibit
    to the registration statement or our other filings with the SEC
    are not necessarily complete, and in each instance please see
    the copy of the full agreement filed as an exhibit to the
    applicable filing. We qualify each of these statements in all
    respects by the reference to the full agreement.
</DIV>
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INCORPORATION
    OF DOCUMENTS BY REFERENCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC allows us to &#147;incorporate by reference&#148; the
    information we file with them, which means that we can disclose
    important information to you by referring you to those
    documents. The information incorporated by reference is
    considered to be part of this prospectus, and information that
    we file later with the SEC will automatically update and
    supersede this information. We incorporate by reference the
    documents listed below and any future filings we will make with
    the SEC under Sections&#160;13(a), 13(c), 14 or 15(d) of the
    Exchange Act, including all subsequent annual reports on
    <FONT style="white-space: nowrap">Form&#160;20-F,</FONT>
    prior to termination of this offering. In addition we may
    incorporate by reference any
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    subsequently submitted by us by identifying in such
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    that it is being incorporated by reference into this prospectus.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Our annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the fiscal year ended December&#160;31, 2006, filed with the
    SEC on May&#160;29, 2007;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our reports of foreign private issuer on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    filed with the SEC on March&#160;15, 2007, April&#160;23, 2007,
    May&#160;14, 2007, June&#160;11, 2007, August&#160;15, 2007,
    October&#160;2, 2007, October&#160;29, 2007, November&#160;15,
    2007, November&#160;30, 2007, December&#160;4, 2007 and
    December&#160;5, 2007.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will provide without charge to each person to whom a copy of
    this prospectus is delivered, including any beneficial owner,
    upon the written or oral request of such person, a copy of any
    or all of the documents incorporated by reference (other than
    exhibits to such documents, unless such exhibits are
    specifically incorporated by reference into the information that
    this prospectus incorporates). Requests should be directed to:
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Canadian Solar Inc.
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No.&#160;199 Lushan Road
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Suzhou New District
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Suzhou, Jiangsu 215129
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    People&#146;s Republic of China
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attention: Investor Relations
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Telephone:
    <FONT style="white-space: nowrap">(86-512)</FONT>
    6690 8088
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You should rely only on the information that we incorporate by
    reference or provide in this prospectus. We have not authorized
    anyone to provide you with different information. We are not
    making any offer of these securities in any jurisdiction where
    the offer is not permitted. You should not assume that the
    information in this prospectus is accurate as of any date other
    than the date on the front of those documents.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    OFFERING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The summary below highlights information contained elsewhere in
    this prospectus. This summary is not complete and does not
    contain all the information that you should consider before
    investing in the notes. The &#147;Description of Notes&#148;
    section of this prospectus contains a more detailed description
    of the terms and conditions of the notes and shares of our
    common shares issuable upon conversion of the notes. As used in
    this section, references to &#147;Canadian Solar,&#148; the
    &#147;company,&#148; &#147;we,&#148; &#147;us&#148; and
    &#147;our&#148; refer only to Canadian Solar Inc. and do not
    include its direct or indirect subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Issuer of notes and common<BR>
    shares</TD>
    <TD></TD>
    <TD valign="bottom">
    Canadian Solar Inc.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Notes issued</TD>
    <TD></TD>
    <TD valign="bottom">
    US$75,000,000 principal amount of 6.0% convertible senior notes
    due 2017.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Maturity</TD>
    <TD></TD>
    <TD valign="bottom">
    December&#160;15, 2017.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Ranking</TD>
    <TD></TD>
    <TD valign="bottom">
    The notes are our senior, unsecured obligations and rank equal
    in right of payment to all of our other unsecured and
    unsubordinated indebtedness. The notes are effectively
    subordinated in right of payment to all of our existing and
    future secured debt to the extent of such security and
    structurally subordinated to the indebtedness and other
    liabilities of our subsidiaries. As of September&#160;30, 2007,
    we had no secured debt outstanding and our direct and indirect
    subsidiaries had approximately US$61.7&#160;million of total
    debt outstanding on a consolidated basis.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Interest</TD>
    <TD></TD>
    <TD valign="bottom">
    The notes bear interest at a rate of 6.0% per annum. Interest is
    payable semi-annually in arrears on each June 15 and December 15
    beginning on June&#160;15, 2008.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Conversion rights</TD>
    <TD></TD>
    <TD valign="bottom">
    You may convert your notes prior to the close of business on the
    trading day before the stated maturity date. The initial
    conversion rate is 50.6073 common shares per US$1,000 principal
    amount of notes, subject to adjustment. This is equivalent to an
    initial conversion price of approximately US$19.76 per common
    share.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Upon conversion you will receive our common shares for your
    notes. If we have obtained consent from holders, we may elect to
    deliver cash or a combination of cash and common shares in
    satisfaction of our conversion obligation. In no event will the
    total number of common shares to be issued upon conversion of
    any note exceed 56.6773&#160;shares per $1,000 principal amount
    of notes, subject to adjustment. See the section entitled
    &#147;Description of Notes&#160;&#151; Conversion Rights&#148;
    for more information.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Conversion rate increase<BR>
    upon fundamental change</TD>
    <TD></TD>
    <TD valign="bottom">
    If you elect to convert your notes in connection with a
    fundamental change that occurs on or before December&#160;24,
    2012 as described below under the section entitled
    &#147;Description of Notes&#160;&#151; Adjustment to Conversion
    Rate upon Occurrence of a Fundamental Change,&#148; we will, to
    the extent described in this prospectus, increase the conversion
    rate applicable to the notes.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    The amount of the increase in the applicable conversion rate, if
    any, will be based on our common share price and the effective
    date of the fundamental change. A description of how the
    increase in the applicable conversion rate will be determined
    and a table showing the increase that would apply at various
    common share prices and </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    fundamental change effective dates are set forth under the
    section entitled &#147;Description of Notes&#160;&#151;
    Adjustment to Conversion Rate upon Occurrence of a Fundamental
    Change.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Optional redemption by us</TD>
    <TD></TD>
    <TD valign="bottom">
    We may redeem the notes on or after December&#160;24, 2012 at a
    redemption price equal to 100% of the principal amount of the
    notes, plus accrued and unpaid interest to, but excluding, the
    redemption date (i)&#160;in whole or in part, if the closing
    price for our common shares exceeds 130% of the conversion price
    for at least 20 trading days within a period of 30 consecutive
    trading days ending within five trading days of the notice of
    redemption, or (ii)&#160;in whole only, if at least 95% of the
    initial aggregate principal amount of the notes originally
    issued have been redeemed, converted or repurchased and, in each
    case, cancelled.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Purchase of notes at your option on specified dates</TD>
    <TD></TD>
    <TD valign="bottom">
    You may require us to repurchase the notes for cash on
    December&#160;24, 2012 and December&#160;15, 2014 at a
    repurchase price equal to 100% of the principal amount, plus
    accrued and unpaid interest to, but excluding, the repurchase
    date.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Offer to purchase the notes on a fundamental change</TD>
    <TD></TD>
    <TD valign="bottom">
    We are required to make an offer to purchase your notes for cash
    upon a fundamental change at 100% of the principal amount of the
    notes, plus accrued and unpaid interest to, but excluding, the
    purchase date.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Additional amounts</TD>
    <TD></TD>
    <TD valign="bottom">
    All payments made by us or any successor to us under or with
    respect to the notes will be made without withholding or
    deduction for taxes unless we are legally required to do so, in
    which case, subject to certain exceptions and limitations, we
    will pay such additional amounts as may be necessary so that the
    net amount received by holders of the notes after such
    withholding or deduction shall equal the amount that would have
    been received in the absence of such withholding or deduction.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Tax redemption</TD>
    <TD></TD>
    <TD valign="bottom">
    In the event of certain changes to the laws governing a relevant
    taxing jurisdiction, we will have the option to redeem, in whole
    but not in part, the notes for a purchase price equal to 100% of
    the principal amount of the notes to be purchased plus any
    accrued and unpaid interest, including any additional amounts,
    up to, but excluding, the repurchase date. Upon our giving a
    notice of redemption, a holder may elect not to have its notes
    redeemed, in which case such holder would not be entitled to
    receive the additional amounts referred to in
    &#147;&#151;&#160;Additional Amounts&#148; above after the
    redemption date.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Resale registration rights</TD>
    <TD></TD>
    <TD valign="bottom">
    We prepared this prospectus in connection with our obligations
    under a registration rights agreement with respect to the resale
    of the notes and the common shares issuable upon conversion of
    the notes.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We will use our reasonable best efforts to keep such shelf
    registration statement effective, subject to certain permitted
    exceptions, until the earliest of (i)&#160;December&#160;10,
    2009; (ii)&#160;the date when all registrable securities shall
    have been registered under the Securities Act and disposed of;
    (iii)&#160;the date on which all registrable securities held by
    non-affiliates are eligible to be sold to the public pursuant to </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Rule&#160;144(k) under the Securities Act; and (iv)&#160;the
    date on which the registrable securities cease to be outstanding.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We will be required to pay additional interest, subject to some
    limitations, to the holders of the notes if we fail to comply
    with our obligations to register the notes and the common shares
    issuable upon conversion of the notes or the registration
    statement does not become effective within the specified time
    periods. See the section entitled &#147;Description of
    Notes&#160;&#151; Resale Registration Rights&#148; for more
    information.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    We will not receive any proceeds from the selling
    securityholders&#146; sale of the notes or the common shares
    issuable upon conversion of the notes.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Trustee, paying agent and<BR>
    conversion agent</TD>
    <TD></TD>
    <TD valign="bottom">
    The Bank of New York.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Book-entry form</TD>
    <TD></TD>
    <TD valign="bottom">
    The notes have been issued in book-entry form and are
    represented by global certificates deposited with, or on behalf
    of, DTC and registered in the name of a nominee of DTC.
    Beneficial interests in any of the notes will be shown on, and
    transfers will be effected only through, records maintained by
    DTC or its nominee and any such interest may not be exchanged
    for certificated securities except in limited circumstances.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Trading</TD>
    <TD></TD>
    <TD valign="bottom">
    Prior to this offering, the notes have been eligible for trading
    in the PORTAL
    Market<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant: SMALL-CAPS">sm</FONT></SUP>.
    Notes sold by means of this prospectus will not remain eligible
    for trading in the PORTAL
    Market<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant: SMALL-CAPS">sm</FONT></SUP>.
    We do not intend to list the notes for trading on any national
    securities exchange or on the Nasdaq National Market. Our common
    shares are traded on the Nasdaq Global Market under the symbol
    &#147;CSIQ.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Taxation</TD>
    <TD></TD>
    <TD valign="bottom">
    For certain United States and Canadian federal income tax
    consequences of the holding, disposition and conversion of the
    notes, and the holding and disposition of our common shares, see
    the section entitled &#147;Taxation.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Risk factors</TD>
    <TD></TD>
    <TD valign="bottom">
    You should carefully consider the information set forth in the
    section of this prospectus entitled &#147;Risk Factors&#148; as
    well as the other information included in or incorporated by
    reference in this prospectus before deciding whether to invest
    in the notes and our common shares into which the notes may be
    converted.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Ratio of Earnings to Fixed Charges</TD>
    <TD></TD>
    <TD valign="bottom">
    Our ratio of earnings to fixed charges for the years ended
    December&#160;31, 2002, 2003, 2004, 2005, 2006 and the nine
    months ended September&#160;30, 2007 have been set forth in the
    section of this prospectus entitled &#147;Ratio of Earnings to
    Fixed Charges.&#148;</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    CONSOLIDATED FINANCIAL DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary consolidated statement of operations data
    for the years ended December&#160;31, 2003, 2004, 2005 and 2006
    and summary consolidated balance sheet data as of
    December&#160;31, 2003, 2004, 2005 and 2006 are derived from our
    audited consolidated financial statements, which have been
    audited by an independent registered public accounting firm. The
    auditor report on our consolidated statements of operations for
    the years ended December&#160;31, 2004, 2005 and 2006 and our
    consolidated balance sheets as of December&#160;31, 2005 and
    2006 is incorporated by reference into this prospectus from our
    annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2006. You should read the
    summary consolidated financial data in conjunction with those
    financial statements and the related notes. Our summary
    consolidated statement of operations data for the year ended
    December&#160;31, 2003 and our consolidated balance sheet data
    as of December&#160;31, 2003 and 2004 have been derived from our
    audited consolidated financial statements which are not included
    in our annual report. Our summary consolidated statement of
    operations data for the year ended December&#160;31, 2002 and
    our consolidated balance sheet data as of December&#160;31, 2002
    have been derived from our unaudited consolidated financial
    statements, which are not included in our annual report, but
    which have been prepared on the same basis as our audited
    consolidated financial statements. The summary consolidated
    statement of operations data for the nine months ended
    September&#160;30, 2006 and 2007 and summary balance sheet data
    as of September&#160;30, 2007 are derived from our unaudited
    condensed consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The audited financial statements are prepared and presented in
    accordance with U.S.&#160;GAAP. Our unaudited financial
    statements have been prepared on the same basis as our audited
    financial statements and, in the opinion of management, all
    adjustments, consisting only of normal recurring adjustments,
    considered necessary for a fair presentation have been included.
    Our historical results do not necessarily indicate results
    expected for any future periods.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>For the Nine Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>(in thousands of US$, except share and per share data,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>and operating data and percentages)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Statement of operations data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,685
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,324
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    43,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    175,339
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Cost of
    revenues<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,628
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,372
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,211
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,872
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,601
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Gross profit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,414
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,741
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Operating
    expenses<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    &#151;&#160;Selling expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    269
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,909
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    &#151;&#160;General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    405
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,039
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,069
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    &#151;&#160;Research and development
    expenses<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    677
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    493
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,882
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,230
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,615
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Income/(loss) from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    921
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,110
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,966
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,448
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Interest expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (239
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,194
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,980
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (943
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    396
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Loss on change in fair value of derivatives related to
    convertible Notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (316
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,997
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,997
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Loss on financial instruments related to convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (263
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,190
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,190
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other&#160;&#151; net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (32
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (90
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Income tax expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (81
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (34
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (363
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (605
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (432
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (202
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Minority interests
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (215
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Income/(loss) before extraordinary gain
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    411
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,457
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,430
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,325
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,202
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Extraordinary gain
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net income/(loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    761
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,457
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,430
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,325
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,202
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Earnings per share, basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    &#151;&#160;Extraordinary gain
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    &#151;&#160;Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.50
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.25
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.23
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>For the Nine Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>(in thousands of US$, except share and per share data,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>and operating data and percentages)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Shares used in computation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 26pt">
    Basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,427,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,427,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,427,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,427,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,986,498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,275,330
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,279,021
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Other financial data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Gross margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Operating margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4.2
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13.8
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9.9
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-size: 8pt">(1)</FONT></SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Share-based compensation expenses
    are included in our cost of revenues and operating costs and
    expenses.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-size: 8pt">(2)</FONT></SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">We also conduct research and
    development activities in connection with our implementation of
    solar power development projects. These expenditures are
    included in our cost of revenues.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-size: 8pt">(3)</FONT></SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Less than one thousand.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of September&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="22" align="center" valign="bottom">
    <B>(in thousands of US$)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Balance Sheet Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,879
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,911
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,402
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    825
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,357
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Inventories
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    312
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    313
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,397
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,162
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,918
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accounts receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    257
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    636
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,344
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,061
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Advances to suppliers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    370
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Value added tax recoverable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    815
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,281
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    257
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,473
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,176
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,661
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,943
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    174,868
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Property, plant and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    291
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    244
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    453
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,910
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Prepaid-rental
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,103
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,178
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Deferred tax assets (non-current)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,639
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,053
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    129,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    211,662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Short-term borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    488
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    426
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    824
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,306
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,874
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,919
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    302
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    993
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,189
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Advances from suppliers and customers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,496
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Income tax payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    119
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    914
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Amounts due to related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    189
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    431
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Embedded derivatives related to convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,679
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    147
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    761
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,022
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,191
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,330
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    831
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,201
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,855
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,296
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accrued warranty costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,552
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Long term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,003
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,387
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Financial instruments related to convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other non-current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,541
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,184
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,463
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,730
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,851
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Total shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,345
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,512
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,961
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,967
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115,811
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Total liabilities and shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,476
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,053
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    129,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    211,662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Number of shares outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,427,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,427,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,427,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,427,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,270,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,290,298
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-size: 8pt">(4)</FONT></SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Excluding 566,190 restricted
    shares, which were subject to restrictions on voting and
    dividend rights and transferability, as of September&#160;30,
    2007.
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF RECENT FINANCIAL DEVELOPMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Third
    Quarter 2007 Financial Results</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net revenues for the third quarter 2007 were $97.4&#160;million,
    including $3.8&#160;million of silicon material sales, compared
    to net revenues of $17.8&#160;million for the third quarter of
    2006 and $60.4&#160;million for the second quarter of 2007. Net
    revenues for the second quarter of 2007 included
    $2.7&#160;million of silicon material sales. Net income for the
    quarter was $0.5&#160;million, or $0.02 per diluted share,
    compared to net income of $0.24&#160;million, or $0.01 per
    diluted share, for the third quarter of 2006 and net loss of
    $2.9&#160;million, or $0.11 per diluted share, for the second
    quarter of 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our return to profitability was achieved through continued sales
    momentum, improved production yields, better inventory controls,
    improved cash management and stable pricing. As a result, we
    were able to increase our product shipments and improve our
    profit margins as forecast despite modest price increases in
    materials from some suppliers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Results
    of Operations for the Nine Months Ended September&#160;30, 2006
    and 2007</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Net Revenues.</I></B>&#160;Our total net revenues
    increased 300.2% from $43.8&#160;million for the nine months
    ended September&#160;30, 2006 to $175.3&#160;million for the
    nine months ended September&#160;30, 2007. The increase was due
    primarily to a significant increase in net revenues generated
    from the sale of our solar module products from
    $43.8&#160;million for the nine months ended September&#160;30,
    2006 to $166.0&#160;million for the nine months ended
    September&#160;30, 2007. However, as a percentage of total
    revenues, solar module product sales decreased from 99.8% to
    94.7% due to an increase in silicon material sales to third
    party customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There was a significant decrease in other net revenues generated
    from our implementation of solar power development projects from
    $68,000 for the nine months ended September&#160;30, 2006 to nil
    for the nine months ended September&#160;30, 2007, primarily due
    to our substantial completion of the remaining milestones in the
    &#147;Solar Electrification for Western China&#148; project in
    2005, for which a portion of revenue had been recognized in 2006
    after final customer acceptance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The volume of our solar module products sold increased from
    10.9MW for the nine months ended September&#160;30, 2006 to
    45.6MW for the nine months ended September&#160;30, 2007. The
    significant increase in the volume of our solar module products
    sold was driven by several factors, including favorable
    incentive programs that stimulated demand for our products in
    our main target markets of Germany, Spain and Italy,
    establishment of customer relationships with several large solar
    integrators in our target markets and an increase in module
    production capacity to fulfill this demand.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Cost of Revenues.</I></B>&#160;Our cost of revenues
    increased 425.9% from $31.6&#160;million for the nine months
    ended September&#160;30, 2006 to $166.2&#160;million for the
    nine months ended September&#160;30, 2007. The increase in our
    cost of revenues was due primarily to a significant increase in
    the quantity of solar cells needed to produce an increased
    output of our standard solar modules and the rising prices of
    silicon feedstock and solar cells arising from the industry-wide
    shortage of high-purity silicon. As a percentage of our total
    net revenues, cost of revenues increased from 72.1% for the nine
    months ended September&#160;30, 2006 to 94.8% for the nine
    months ended September&#160;30, 2007, with the increase
    primarily due to rising prices of silicon feedstock and solar
    cells arising from an industry-wide shortage of high-purity
    silicon.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Gross Profit.</I></B>&#160;As a result of the foregoing,
    our gross profit decreased from $12.2&#160;million for the nine
    months ended September&#160;30, 2006 to $9.2&#160;million for
    the nine months ended September&#160;30, 2007. Our gross margin
    decreased from 27.9% for the nine months ended
    September&#160;30, 2006 to 5.2% for the nine months ended
    September&#160;30, 2007. The decrease in gross margin was due
    primarily to the rising prices of silicon feedstock and solar
    cells arising from the industry-wide shortage of high-purity
    silicon and a decrease in average selling prices for our solar
    module products. We have increased our quarterly gross margin in
    each quarter since the fourth quarter of 2006, from 0.4% in the
    quarter ended December&#160;31, 2006 to 6.5% in the quarter
    ended September&#160;30, 2007. Although we have improved our
    gross margin through continued sales growth and effective cost
    controls, we cannot assure you that we will continue to do so in
    future periods.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Operating Expenses.</I></B>&#160;Our operating expenses
    increased by 164.8% from $6.3&#160;million for the nine months
    ended September&#160;30, 2006 to $16.6&#160;million for the nine
    months ended September&#160;30, 2007. The increase in our
    operating expenses was due primarily to an increase in our
    general and administrative expenses and selling expenses.
    Operating expenses as a percentage of our total net revenue
    decreased from 14.3% for the nine months ended
    September&#160;30, 2006 to 9.5% for the nine months ended
    September&#160;30, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selling Expenses.</I>&#160;Our selling expenses increased
    from $1.7&#160;million for the nine months ended
    September&#160;30, 2006 to $4.6&#160;million for the nine months
    ended September&#160;30, 2007. Selling expenses as a percentage
    of our total net revenues decreased from 3.8% for the nine
    months ended September&#160;30, 2006 to 2.6% for the nine months
    ended September&#160;30, 2007. The increase in our selling
    expenses was due primarily to (i)&#160;the increase in
    share-based compensation expenses that we incurred in connection
    with our grant of share options and restricted shares to sales
    and marketing personnel, (ii)&#160;the increase in freight
    charges and export processing fees caused by our increasing use
    of cost, insurance and freight sales terms in the nine months
    ended September&#160;30, 2007 comparing to mostly
    <FONT style="white-space: nowrap">free-on-board</FONT>
    or ex-work sales terms in the nine months ended
    September&#160;30, 2006 and (iii)&#160;an increase in salaries
    and benefits as we hired additional sales personnel to handle
    our increased sales volume.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General and Administrative Expenses.</I>&#160;Our general and
    administrative expenses increased by 153.8% from
    $4.5&#160;million for the nine months ended September&#160;30,
    2006 to $11.4&#160;million for the nine months ended
    September&#160;30, 2007, primarily due to (i)&#160;the increase
    in share-based compensation expenses that we incurred in
    connection with our grant of share options and restricted shares
    to general and administrative employees and (ii)&#160;increases
    in salaries and benefits for our administrative and finance
    personnel as we hired additional personnel in connection with
    the growth of our business. As a percentage of our total net
    revenues, general and administrative expenses decreased from
    10.2% for the nine months ended September&#160;30, 2006 to 6.5%
    for the nine months ended September&#160;30, 2007, primarily as
    a result of the greater economies of scale that we achieved in
    the nine months ended September&#160;30, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Research and Development Expenses.</I>&#160;Our research and
    development expenses increased significantly from $115,000 for
    the nine months ended September&#160;30, 2006 to $676,672 for
    the nine months ended September&#160;30, 2007, due to increased
    efforts in development of new products and technology
    improvement. We expect our expenditures for research and
    development efforts to increase significantly in 2008 as we
    undertake technology development related to future product
    offerings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Share-Based Compensation Expenses.</I>&#160;Our share-based
    compensation expenses in the nine months ended
    September&#160;30, 2006 was $3.5&#160;million as compared to
    $7.0&#160;million in the nine months ended September&#160;30,
    2007. This increase was due to the implementation of our
    share-based compensation program in May 2006, thus share-based
    compensation expenses allocated in 2006 occurred over a shorter
    time period as compared to the nine months ended
    September&#160;30, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Interest Expenses.</I></B>&#160;We incurred interest
    expenses of approximately $2.0&#160;million for the nine months
    ended September&#160;30, 2006 compared to $943,625 for the nine
    months ended September&#160;30, 2007. The interest expenses for
    the nine months ended September&#160;30, 2006 were in connection
    with (i)&#160;the convertible notes that we sold to HSBC and
    JAFCO in November 2005 and March 2006 and which were outstanding
    before July&#160;1, 2006, (ii)&#160;non-cash amortization of
    discount on debts in relation to the convertible notes issued to
    HSBC and JAFCO and (iii)&#160;interest payable for our various
    short-term borrowings before our initial public offering in
    November 2006. These convertible notes were converted on
    July&#160;1, 2006. As a result of relatively low debt levels in
    the nine months ended September&#160;30, 2007, our interest
    expenses were comparatively lower for the nine months ended
    September&#160;20, 2007, compared to the same period in 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Loss on Change in Fair Value of Derivatives Related to
    Convertible Notes.</I></B>&#160;We recorded nil for the loss on
    change in fair value of derivatives related to convertible notes
    for the nine months ended September&#160;30, 2007 compared to
    $7.0&#160;million for the nine months ended September&#160;30,
    2006. After amending the terms of our convertible notes in March
    2006, we no longer incurred this charge.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Loss on Financial Instruments Related to Convertible
    Notes.</I></B>&#160;We recorded nil for a non-cash charge for
    the nine months ended September&#160;30, 2007 compared to
    $1.2&#160;million for the nine months ended September&#160;30,
    2006. After
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    issuing the second tranche convertible notes together with
    convertible notes issued pursuant to the investors&#146; option
    in March 2006, we no longer incurred this charge.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Income Tax Income (Expense).</I></B>&#160;Our income tax
    expense was $202,430 for the nine months ended
    September&#160;30, 2006, as compared to a gain of $76,786 for
    the nine months ended September&#160;30, 2007, in part due to
    the tax benefit from the amortization of an increase in deferred
    tax assets associated with expenses related to our initial
    public offering and based on Canadian tax regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Net Loss.</I></B>&#160;As a result of the cumulative
    effect of the above factors, we recorded net loss of
    $6.2&#160;million for the nine months ended September&#160;30,
    2007, as compared to a $4.3&#160;million net loss for the nine
    months ended September&#160;30, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidity
    and Capital Resources</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To date, we have financed our operations primarily through cash
    flows from operations, short-term borrowings, convertible note
    issuances, as well as equity contributions by our shareholders.
    We have significant working capital commitments because of the
    rapid growth of our standard solar module business.
    Additionally, some of our suppliers of silicon raw materials,
    including polysilicon, solar wafers and solar cells require us
    to make prepayments in advance of their shipment. In a long-term
    supply contract, customary with the current industry practice,
    we have agreed to make large amounts of prepayments in cash to
    our supplier in advance of the planned delivery with the
    prepayments being proportionally off-set at deliveries from the
    supplier during the contract term. Due to the industry-wide
    shortage of high-purity silicon, working capital and access to
    financings to allow for the purchase of silicon raw materials
    are critical to growing our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that our current cash and cash equivalents,
    anticipated cash flow from operations and planned commercial
    bank borrowings will be sufficient to meet our anticipated cash
    needs, including our cash needs for working capital, capital
    expenditures and potential acquisitions for at least the next
    12&#160;months. We may, however, require additional cash due to
    changing business conditions or other future developments. If
    our cash is insufficient to meet our requirements, we may seek
    to sell additional equity securities or debt securities or
    borrow from lending institutions. We cannot assure you that
    financing will be available in the amounts we need or on terms
    acceptable to us, if at all.
</DIV>

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    <BR>
    15
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Your investment in the notes involves a high degree of risk.
    You should carefully consider the risks described below as well
    as other information and data included in this prospectus,
    including in our most recent annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    and the documents incorporated by reference in this prospectus,
    as the same may be updated from time to time by our future
    filings under the Securities Exchange Act of 1934, or the
    Exchange Act, before making an investment decision. Additional
    risks and uncertainties not presently known to us or that we
    currently believe are immaterial may also adversely impact our
    business operations. If any of the events described in the risk
    factors below, or other events described in the risk factors
    incorporated by references occur, our business, financial
    condition, operating results and prospects could be materially
    affected and you could lose all or part of your investment.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Company and Our Industry</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Evaluating
    our business and prospects may be difficult because of our
    limited operating history.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is limited historical information available about our
    company upon which you can base your evaluation of our business
    and prospects. We began business operations in October 2001 and
    shipped our first solar module products in March 2002. With the
    rapid growth of the solar power industry, we have experienced a
    high growth rate since our inception and, in particular, since
    2004 after we began to sell standard solar modules. As such our
    historical operating results may not provide a meaningful basis
    for evaluating our business, financial performance and
    prospects. We may not be able to achieve growth rates in future
    periods similar to those we have experienced in recent periods,
    and our business model at higher volumes is unproven.
    Accordingly, you should not rely on our results of operations
    for any prior periods as an indication of our future
    performance. You should consider our business and prospects in
    light of the risks, expenses and challenges that we will face as
    an early-stage company seeking to develop and manufacture new
    products in a rapidly growing market.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    quarterly operating results may fluctuate from period to period
    in the future.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our quarterly operating results may fluctuate from period to
    period based on a number of factors, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the average selling prices of our solar modules and products;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the availability and pricing of raw materials, particularly
    high-purity silicon and reclaimable silicon;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the availability, pricing and timeliness of delivery of solar
    cells and wafers from our suppliers and toll manufacturers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the rate and cost at which we are able to expand our internal
    manufacturing capacity to meet customer demand and the
    timeliness and success of these expansion efforts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the impact of seasonal variations in demand linked to
    construction cycles and weather conditions, with purchases of
    solar products tending to decrease during the winter months in
    our key markets, such as Germany, due to adverse weather
    conditions that can complicate the installation of solar power
    systems;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    timing, availability and changes in government incentive
    programs and regulations, particularly in our target markets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    unpredictable volume and timing of customer orders, some of
    which are not fixed by contract but vary on a purchase order
    basis;
</TD>
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    the loss of one or more key customers or the significant
    reduction or postponement of orders from these customers;
</TD>
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    availability of financing for on-grid and off-grid solar power
    applications;
</TD>
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    unplanned additional expenses such as manufacturing failures,
    defects or downtime;
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    acquisition and investment related costs;
</TD>
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    <TD>&nbsp;</TD>
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    geopolitical turmoil within any of the countries in which we
    operate or sell products;
</TD>
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    foreign currency fluctuations, particularly in the Euro,
    U.S.&#160;Dollar and RMB;
</TD>
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    our ability to establish and expand customer relationships;
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    changes in our manufacturing costs;
</TD>
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    changes in the relative sales mix of our products;
</TD>
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    our ability to successfully develop, introduce and sell new or
    enhanced solar modules and products in a timely manner, and the
    amount and timing of related research and development costs;
</TD>
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    <TD>    &#149;&#160;&#160;
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    the timing of new product or technology announcements or
    introductions by our competitors and other developments in the
    competitive environment;&#160;and
</TD>
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    increases or decreases in electric rates due to changes in
    fossil fuel prices or other factors.
</TD>
</TR>

</TABLE>

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    We base our planned operating expenses in part on our
    expectations of future revenue, and a significant portion of our
    expenses will be fixed in the short-term. If revenue for a
    particular quarter is lower than we expect, we likely will be
    unable to proportionately reduce our operating expenses for that
    quarter, which would harm our operating results for that
    quarter. This may cause us to miss analysts&#146; guidance or
    any guidance announced by us. If we fail to meet or exceed
    analyst or investor expectations or our own future guidance,
    even by a small amount, our share price could decline, perhaps
    substantially.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    current industry-wide shortage of high-purity silicon may
    constrain our revenue growth and decrease our margins and
    profitability.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We produce solar modules, which are an array of interconnected
    solar cells encased in a weatherproof package, and products that
    use solar modules. High-purity silicon is an essential raw
    material in the production of solar cells and is also used in
    the semiconductor industry generally. While we do have in-house
    solar cell manufacturing capabilities, we continue to depend on
    solar cell supplies from a few producers. There is currently an
    industry-wide shortage of high-purity silicon because of
    increased demand as a result of recent expansions of, and
    increased demand in, the solar power and semiconductor
    industries. The shortage of high-purity silicon has driven the
    overall increase in silicon feedstock prices. For example,
    according to a March 2007 report by Solarbuzz, the average
    long-term silicon feedstock contracted price increased from
    approximately $28-32 per kilogram in 2004 to $60-65 per kilogram
    in 2007. In addition, according to Solarbuzz, prices of silicon
    feedstock obtained through spot purchases or short-term
    contracts went as high as $300 per kilogram in 2006, peaking in
    the third quarter of 2006 before decreasing by 10% from this
    peak by the first quarter of 2007. The shortage of high-purity
    silicon has also resulted in a shortage of, and significant
    price increases for, solar cells. According to Solarbuzz, the
    average selling price of solar cells increased from the fourth
    quarter of 2004 to the fourth quarter of 2005 by approximately
    20% to 25%, depending on the size of the solar cells and the
    type of technology; mainstream multicrystalline silicon cell
    prices increased from the first quarter of 2006 to the first
    quarter of 2007 by an average of 8%, while monocrystalline
    silicon PV cell prices increased by a similar proportion.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The average price of silicon feedstock and solar cells remained
    high in 2007. Any further increase in the demand from the
    semiconductor industry will compound the shortage and price
    increases. The shortage of high-purity silicon has constrained
    our revenue growth in the past and may continue to do so.
    Increases in the prices of silicon feedstock and solar cells
    have in the past increased our production costs and may impact
    our cost of revenues and net income in the future. The
    production of high-purity silicon is capital intensive and
    adding additional capacity requires significant lead time. While
    we are aware that several new facilities for the manufacture of
    high-purity silicon are under construction, we do not believe
    that the supply shortage will be remedied in the very near term.
    We expect that demand for high-purity silicon will continue to
    outstrip supply for the near future. Furthermore, if we cannot
    fulfill our solar cell needs through internal production and
    obtain solar wafers and solar cells externally at commercially
    viable prices, this could adversely affect our margins and
    operating results. This would have a material negative impact on
    our business and operating results.
</DIV>

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    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    are unable to secure an adequate and cost effective supply of
    solar wafers, cells or reclaimable silicon, our revenue, margins
    and profits could be adversely affected.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Solar cells are the most important component of solar module
    products. We engage in vertical integration of our supply chain
    to secure a sufficient and cost-effective supply of solar cells
    through a combination of internal solar cell component
    manufacturing and also our sourcing of silicon feedstock, toll
    manufacturing arrangements with suppliers of ingots, wafers and
    cells and direct purchases from solar cell suppliers. While we
    have been able to secure silicon to meet our production needs in
    the past, due to ongoing industry shortages of silicon
    feedstock, solar wafers and solar cells, we cannot assure you
    that we will be able to continue to successfully manage our
    supply chain and secure an adequate and cost-effective supply of
    solar cells. For example, we have entered into several long-term
    contracts with silicon raw material suppliers, but we cannot
    assure you that we will be able to obtain adequate supplies from
    them under these contracts or from other suppliers in sufficient
    quantities and at commercially viable prices in the future.
    Moreover, toll manufacturing arrangements may not be available
    to us in the future or at higher volumes, in particular as
    high-purity silicon becomes more readily available in the
    future, which could have an adverse effect on our margins and
    profitability. While we produce solar cells internally to meet a
    portion of our solar cell needs, we cannot guarantee you that we
    will be able to successfully produce enough solar cells to
    supplement our solar cell needs. If we are unable to procure an
    adequate supply of solar cells, either via contractual
    arrangements providing solar cells to us at commercially viable
    prices or through in-house production, we may be unable to meet
    demand for our products and could lose our customers and market
    share, and our margins and revenues could decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, while we have been able to generate cost savings in
    the past through our recycling of reclaimable silicon, we cannot
    assure you that we will be able to secure sufficient reclaimable
    silicon at higher volumes and reasonable prices in the future as
    we believe there is a limited supply of reclaimable silicon
    available in the market and intensified competition for these
    materials as a result of new competitors entering the market.
    Recently, there has been increased scrutiny by the Chinese
    Customs authorities on the import of scrap silicon over a
    concern that the recycling process for certain types of scrap
    silicon may cause environmental damage if not performed in a
    fully licensed factory. This has created certain disruptions to
    our silicon reclamation business. Since December 2006, 1.2 tons
    of our scrap silicon has been under detention by the Chinese
    Customs authorities. In August 2007, following testing by
    Chinese Customs authorities, one-fourth of this amount was
    identified by them as prohibited solid waste. Although the case
    is still pending, if the investigation deems any portion of this
    scrap silicon to be prohibited solid waste, such portion of the
    scrap silicon will have to be returned to its point of origin
    and we may be assessed a fine with a penalty ranging from
    RMB100,000 (US$12,813.80) to RMB1&#160;million (US$128,137.70).
    We are actively working with local industry groups, the Chinese
    Customs authorities and the Chinese Environment Protection
    Administration to define new procedures and regulations
    governing scrap silicon. These new regulations may increase the
    cost of reclamation and limit our ability to sustain or expand
    our silicon reclamation program. If we are unable to secure a
    sufficient supply of reclaimable silicon at reasonable prices
    and reclaim this silicon on a cost-efficient basis, we cannot
    assure you that we will be able to save cost through our
    reclamation program and maintain our profit margin as a result
    of further negative changes in the government policy.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Because
    the markets in which we compete are highly competitive and many
    of our competitors have greater resources than us, we may not be
    able to compete successfully and we may lose or be unable to
    gain market share.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We compete with a large number of competitors in the solar
    module market. These include international competitors such as
    BP Solar International Inc., or BP Solar, Sharp Solar
    Corporation, or Sharp Solar, SolarWorld AG, or SolarWorld, and
    competitors located in China such as Suntech Power Holdings Co.,
    Ltd., Yingli Green Energy Holding Company Limited, Solarfun
    Power Holdings Co., Ltd. and Trina Solar Limited. We expect to
    face increasing competition in the future. Further, many of our
    competitors are developing and are currently producing products
    based on new solar power technologies that may ultimately have
    costs similar to, or lower than, our projected costs. For
    example, some of our competitors are developing or currently
    producing products based on alternative solar technologies, such
    as thin film photovoltaic materials, which they believe will
    ultimately cost the same as or less than crystalline silicon
    technologies, which we use. Solar modules produced using thin
    film materials, such as amorphous silicon and cadmium telluride,
    require significantly less silicon to produce than crystalline
    silicon solar modules, such as our products, and are less
    susceptible to increases in silicon costs. We may
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    also face competition from semiconductor manufacturers, several
    of which have either announced plans to start or have already
    commenced production of solar modules. In addition, from a
    technological and capital investment point of view, the entry
    barriers are relatively low in the solar module manufacturing
    business given the low capital requirements and relatively
    little technological complexity involved. Due to the scarcity of
    high-purity silicon, supply chain management, access to
    financing and establishment of name brand recognition and a
    strong customer base are key entry barriers at present. However,
    if high-purity silicon supplies increase, some of these barriers
    may disappear or lessen and many new competitors may enter into
    the industry resulting in rapid industry fragmentation and loss
    of our market share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Many of our current and potential competitors have longer
    operating histories, greater name recognition, access to larger
    customer bases and resources and significantly greater economies
    of scale. In addition, our competitors may have stronger
    relationships or may enter into exclusive relationships with
    some of the key distributors or system integrators to whom we
    sell our products. As a result, they may be able to respond more
    quickly to changing customer demand or to devote greater
    resources to the development, promotion and sales of their
    products than we can. The sale of our solar module products
    generated 97.7% and 87.6% of our net revenues in 2005 and 2006,
    respectively, and 94.7% for the nine months ended
    September&#160;30, 2007. Our competitors with more diversified
    product offerings may be better positioned to withstand a
    decline in the demand for solar power products. Some of our
    competitors have also become vertically integrated, from
    upstream silicon wafer manufacturing to solar power system
    integration. It is possible that new competitors or alliances
    among existing competitors could emerge and rapidly acquire
    significant market share, which would harm our business. If we
    fail to compete successfully, our business would suffer and we
    may lose or be unable to gain market share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the immediate future, we believe that in order to remain
    competitive, we will need to continue focusing on securing
    silicon feedstock and solar wafers for our in-house solar cell
    manufacturing needs and expanding our internal production
    capacity, developing our in-house solar wafer manufacturing
    capacity, maintaining strategic relationships with a few select
    suppliers to fulfill our remaining solar cell and solar wafer
    needs and increasing our sales and marketing efforts to secure
    customer orders. Many of our competitors have greater access to
    silicon raw materials and cell supply, including stronger
    strategic relationships with leading global and domestic silicon
    feedstock suppliers, or have more significant silicon wafer and
    cell manufacturing capabilities. We believe that as the supply
    of high-purity silicon stabilizes and customers become more
    knowledgeable and selective, the key to competing successfully
    in the industry will shift to more traditional sales and
    marketing activities. We have conducted very limited advertising
    to date, focusing primarily on medium to larger sized solar
    power distributors and integrators in the European market in the
    past, and cannot assure you that we will be able to make that
    transition successfully. The greater name recognition of some of
    our competitors may make it difficult for us to compete as a
    result of this industry transition. In addition, the solar power
    market in general competes with other sources of renewable
    energy and conventional solar power generation. If prices for
    conventional and other renewable energy resources decline, or if
    these resources enjoy greater policy support than solar power,
    the solar power market could suffer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    reduction or elimination of government subsidies and economic
    incentives for solar power could cause demand for our products,
    our revenues, profits and margins to decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the near-term growth of the market, particularly
    for on-grid applications, depends in large part on the
    availability and size of government subsidies and economic
    incentives. Because a substantial portion of our sales is made
    in the on-grid market, the reduction or elimination of
    government subsidies and economic incentives may adversely
    hinder the growth of this market or result in increased price
    competition, which could cause our revenues to decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Today, the cost of solar power substantially exceeds the cost of
    power provided by the electric utility grid in many locations.
    Governments around the world have used different policy
    initiatives to accelerate the development and adoption of solar
    power and other renewable energy sources. Renewable energy
    policies are in place in the European Union, most notably
    Germany and Spain, certain countries in Asia, and many of the
    states in Australia and the United States. Examples of
    customer-focused financial incentives include capital cost
    rebates, feed-in tariffs, tax credits and net metering and other
    incentives to end users, distributors, system integrators and
    manufacturers of solar power products to promote the use of
    solar power in both on-grid and off-grid applications and to
    reduce dependency on other forms of energy. These government
    economic incentives could be reduced or
</DIV>

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    eliminated altogether, or governmental entities could
    reprioritize solar initiatives that they have launched. For
    example, according to Solarbuzz, plans by the Shanghai municipal
    government to install solar energy heating systems on 100,000
    rooftops have stalled. Reductions in, or eliminations of,
    government subsidies and economic incentives before the solar
    power industry reaches a scale of economy sufficient to be
    cost-effective in a non-subsidized market place could result in
    decreased demand for our products and decrease our revenues,
    profits and margins.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Existing
    regulations and policies and changes to these regulations and
    policies may present technical, regulatory and economic barriers
    to the purchase and use of solar power products, which may
    significantly reduce demand for our products.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market for electricity generation products is heavily
    influenced by government regulations and policies concerning the
    electric utility industry, as well as policies promulgated by
    electric utilities. These regulations and policies often relate
    to electricity pricing and technical interconnection of
    customer-owned electricity generation. In a number of countries,
    these regulations and policies have been modified and may
    continue to be modified. Customer purchases of, or further
    investment in the research and development of, alternative
    energy sources, including solar power technology, could be
    deterred by these regulations and policies, which could result
    in a significant reduction in the potential demand for our
    products. For example, without a regulatory mandated exception
    for solar power systems, utility customers are often charged
    interconnection or standby fees for putting distributed power
    generation on the electric utility grid. These fees could
    increase the cost to our customers of using our solar module
    products and make them less desirable, thereby harming our
    business, prospects, results of operations and financial
    condition. In addition, pricing regulations and policies may
    place limits on our ability to increase the price of our solar
    module products in response to increases in our solar raw
    material costs, including solar cells. We anticipate that our
    products and their installation will be subject to oversight and
    regulation in accordance with national and local regulations
    relating to building codes, safety, environmental protection,
    utility interconnection and metering and related matters. It is
    difficult to track the requirements of individual jurisdictions
    and design products to comply with the varying standards. For
    example, the European Union&#146;s Restriction of Hazardous
    Substances Directive, which took effect in July 2006, is a
    general directive. Each European Union member state will adopt
    its own enforcement and implementation policies using the
    directive as a guide. Therefore, there could be many different
    versions of this law that we will have to comply with to
    maintain or expand our sales in Europe. Any new government
    regulations or utility policies pertaining to our solar module
    products may result in significant additional expenses to us
    and, as a result, could cause a significant reduction in demand
    for our solar module products. In particular, any changes to
    existing regulations and policies or new regulations and
    policies in Germany could have a material adverse effect on our
    business and operating results. Sales to customers located in
    Germany accounted for 75.3% and 56.9% of our net revenues in
    2005 and 2006, respectively, and 72.8% for the nine months ended
    September&#160;30, 2007, in part because of the availability and
    amounts of government subsidies and economic incentives in
    Germany.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If
    solar power technology is not suitable for widespread adoption,
    or sufficient demand for solar power products does not develop
    or takes longer to develop than we anticipate, our revenues may
    not continue to increase or may even decline, and we may be
    unable to sustain our profitability.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The solar power market is at a relatively early stage of
    development, and the extent of acceptance of solar power
    products is uncertain. Market data on the solar power industry
    is not as readily available as for other more established
    industries where trends can be assessed more reliably from data
    gathered over a longer period of time. In addition, demand for
    solar power products in our targeted markets, including Germany,
    Spain, Korea, Italy and Greece, may not develop or may develop
    to a lesser extent than we anticipate. Many factors may affect
    the viability of widespread adoption of solar power technology
    and demand for solar power products, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    cost-effectiveness, performance and reliability of solar power
    products compared to conventional and other renewable energy
    sources and products;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    availability of government subsidies and incentives to support
    the development of the solar power industry;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    success of other alternative energy generation technologies,
    such as wind power, hydroelectric power and biomass;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    fluctuations in economic and market conditions that affect the
    viability of conventional and other renewable energy sources,
    such as increases or decreases in the prices of oil and other
    fossil fuels;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    capital expenditures by end users of solar power products, which
    tend to decrease when the economy slows down;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    deregulation of the electric power industry and broader energy
    industry;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    changes in seasonal demands for our products, as illustrated by
    the slowdown of our sales to Germany in the fourth quarter of
    2006.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If solar power technology is not suitable for widespread
    adoption or sufficient demand for solar power products does not
    develop or takes longer to develop than we anticipate, our
    revenues may suffer and we may be unable to sustain our
    profitability.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    lack or unavailability of financing for on-grid and off-grid
    solar power applications could cause our sales to
    decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our solar module products are used in both on-grid applications
    and off-grid applications. Off-grid applications are used where
    access to utility networks is not economical or physically
    feasible. In some developing countries, government agencies and
    the private sector have, from time to time, provided financing
    on preferential terms for rural electrification programs. We
    believe that the availability of financing programs could have a
    significant effect on the level of sales of solar modules for
    both on-grid and off-grid applications. If existing financing
    programs for on-grid and off-grid applications are eliminated or
    if financing programs are inaccessible or inadequate, the growth
    of the market for on-grid and off-grid applications may be
    materially and adversely affected, which could cause our sales
    to decline. In addition, a rise in interest rates could render
    existing financings more expensive and present an obstacle for
    potential financings that would otherwise spur the growth of the
    solar power industry, which could materially and adversely
    affect our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    dependence on a limited number of solar wafer, solar cell and
    silicon raw material suppliers could prevent us from timely
    delivering our products to our customers in the required
    quantities, which could result in order cancellations and
    decreased revenues.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We purchase silicon raw materials, which include polysilicon,
    solar wafers and solar cells, from a limited number of
    third-party suppliers. Our major suppliers of silicon raw
    materials include Luoyang Zhong Gui High Tech Co. Ltd., or
    Luoyang Poly, of China, which provides us with specified minimum
    levels of polysilicon, LDK of China, and Deutsche Solar AG, or
    Deutsche Solar, of Germany, which provide us specified minimum
    levels of solar wafers; and China Sunergy Co., Ltd., or China
    Sunergy, and Gintech Energy Corporation of Taiwan, or Gintech,
    which provides us specified minimum levels of solar cells. We
    have also entered into annual supply agreements with a few other
    overseas and domestic Chinese solar wafer and solar cell
    suppliers. These suppliers may not be able to meet the specified
    minimum levels set forth in the contracts. If we fail to develop
    or maintain our relationships with these or our other suppliers,
    we may not be able to internally produce or secure a supply of
    solar cells at cost-effective prices, or at all. If that were to
    occur, we may be unable to manufacture our products in a timely
    manner or our products may be manufactured only at a higher
    cost, and we could be prevented from delivering our products to
    our customers in the required quantities and at prices that are
    profitable. Problems of this kind could cause us to experience
    order cancellations and loss of market share and harm our
    reputation. The failure of a supplier to supply solar wafers,
    solar cells or silicon raw materials that meet our quality,
    quantity and cost requirements in a timely manner could impair
    our ability to manufacture our products or increase our costs,
    particularly if we are unable to obtain these solar wafers,
    solar cells or silicon raw materials from alternative sources on
    a timely basis or on commercially reasonable terms. For example,
    in late 2006, one of our major suppliers of solar wafers
    incurred serious fire damage with its silicon cast ingot
    furnaces. This resulted in a chain reaction and caused the
    shortage and price increase of multi-crystalline solar wafers,
    which is a key material for our products.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    dependence on a limited number of customers and our lack of
    long-term contracts may cause significant fluctuations or
    declines in our revenues.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently sell a substantial portion of our solar module
    products to a limited number of customers, including
    distributors and system integrators, and various manufacturers
    who either integrate our products into their own products or
    sell them as part of their product portfolio. Our top five
    customers collectively accounted for approximately 53.4% and
    84.0% of our net revenues in 2006 and for the nine months ended
    September&#160;30, 2007, respectively. Each of Iliotec and
    Bihler contributed over 10% of our net revenues in 2006. Each of
    Sch&#252;co, City Solar AG and pro solar Solarstrom contributed
    over 10% of our net revenues for the nine months period ended
    September&#160;30, 2007. Sales to our customers are typically
    made through one-year frame work sales agreements with quarterly
    firm orders stipulating prices and product amounts as adjusted
    or negotiated with customers. We anticipate that our dependence
    on a limited number of customers will continue for the
    foreseeable future. Consequently, any one of the following
    events may cause material fluctuations or declines in our
    revenues:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    reduction, delay or cancellation of orders from one or more of
    our significant customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    loss of one or more of our significant customers and our failure
    to identify additional or replacement customers;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    failure of any of our significant customers to make timely
    payment for our products.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Even though our top five customers have contributed to a
    significant portion of our revenues, we have experienced changes
    in our top customers. As we continue to grow our business and
    operations, we expect our top customers may continue to change.
    We cannot assure you that we will be able to develop a
    consistent customer base.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cancellation
    of customer product orders may make us unable to recoup
    prepayments made to suppliers.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Suppliers of solar wafers, cells and silicon raw materials
    typically require us to make prepayments well in advance of
    shipment. While we also sometimes require our customers to make
    partial prepayments, there is typically a lag between the time
    of our prepayment for solar wafers, cells and silicon raw
    materials and the time that our customers make prepayments to
    us. As a result, the purchase of solar wafers, cells and silicon
    feedstock, and other silicon raw materials through toll
    manufacturing arrangements, has required, and will continue to
    require, us to make significant working capital commitments
    beyond that generated from our cash flows from operations to
    support our estimated production output. In the event our
    customers cancel their orders, we may not be able to recoup
    prepayments made to suppliers in connection with our
    customers&#146; orders, which could have an adverse impact on
    our financial condition and results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    not be able to manage our expansion of operations
    effectively.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We commenced business operations in October 2001 and have since
    grown rapidly. We expect to continue to significantly expand our
    business to meet the growth in demand for our products, as well
    as to capture new market opportunities. To manage the potential
    growth of our operations, we will be required to improve our
    operational and financial systems and procedures and controls.
    Our rapid growth has strained our resources and made it
    difficult to maintain and update our internal procedures and
    controls as necessary to meet the expansion of our overall
    business. We must also increase production output, expand, train
    and manage our growing employee base, and successfully establish
    new subsidiaries to operate new or expanded facilities.
    Additionally, access to additional funds to support the
    expansion of our business may not always be available to us.
    Furthermore, our management will be required to maintain and
    expand our relationships with our customers, suppliers and other
    third parties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We cannot assure you that our current and planned operations,
    personnel, systems and internal procedures and controls will be
    adequate to support our future growth. If we are unable to
    manage our growth effectively, we may not be able to take
    advantage of market opportunities, execute our business
    strategies or respond to competitive pressures.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Technological
    changes in the solar power industry could render our products
    uncompetitive or obsolete, which could reduce our market share
    and cause our revenues and profit to decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The solar power market is characterized by evolving technology
    standards that require improved features, such as more efficient
    and higher power output, improved aesthetics and smaller size.
    This requires us to develop new solar module products and
    enhancements for existing solar module products to keep pace
    with evolving industry standards and changing customer
    requirements. Technologies developed by others may prove more
    advantageous than ours for the commercialization of solar module
    products and may render our technology obsolete. Our failure to
    further refine our technology and develop and introduce new
    solar module products could cause our products to become
    uncompetitive or obsolete, which could reduce our market share
    and cause our revenues to decline. We will need to invest
    significant financial resources in research and development to
    maintain our market position, keep pace with technological
    advances in the solar power industry and effectively compete in
    the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If our future innovations fail to enable us to maintain or
    improve our competitive position, we may lose market share. If
    we are unable to successfully design, develop and introduce or
    bring to market competitive new solar module products, or
    enhance our existing solar module products, we may not be able
    to compete successfully. Competing solar power technologies may
    result in lower manufacturing costs or higher product
    performance than those expected from our solar module products.
    In addition, if we are unable to manage product transitions, our
    business and results of operations would be negatively affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    future success substantially depends on our ability to
    significantly expand our internal solar components manufacturing
    capacity, which exposes us to a number of risks and
    uncertainties.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our future success depends on our ability to significantly
    increase our internal solar components manufacturing capacity.
    If we are unable to do so, we may be unable to expand our
    business, decrease our costs per watt, maintain our competitive
    position and improve our profitability. Our ability to establish
    additional manufacturing capacity is subject to significant
    risks and uncertainties, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the need to raise significant additional funds to purchase raw
    materials and to build additional manufacturing facilities,
    which we may be unable to obtain on commercially viable terms or
    at all;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    delays and cost overruns as a result of a number of factors,
    many of which are beyond our control, including delays in
    equipment delivery by vendors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    delays or denial of required approvals by relevant government
    authorities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    diversion of significant management attention and other
    resources;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    failure to execute our expansion plan effectively.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are unable to establish or successfully operate our
    internal solar components manufacturing capabilities, or if we
    encounter any of the risks described above, we may be unable to
    expand our business as planned. Moreover, even if we do expand
    our manufacturing capacity we might not be able to generate
    sufficient customer demand for our solar power products to
    support our increased production levels.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business depends substantially on the continuing efforts of our
    executive officers, and our business may be severely disrupted
    if we lose their services.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our future success depends substantially on the continued
    services of our executive officers, especially Dr.&#160;Shawn
    Qu, our chairman, president and chief executive officer, Bing
    Zhu, our chief financial officer, Bencheng Li, our vice
    president, domestic corporate development, Gregory Spanoudakis,
    our vice president of international sales and marketing and
    Robert Patterson, our vice president of corporate and product
    development and general manager of Canadian operations. If one
    or more of our executive officers are unable or unwilling to
    continue in their present positions, we may not be able to
    replace them readily, if at all. Therefore, our business may be
    severely disrupted, and we may incur additional expenses to
    recruit and retain new officers, in particular those with a
    significant mix of both international and China-based solar
    power industry experience as many of our current officers have.
    In addition, if any of our executives joins a competitor or
    forms a competing company, whether in violation of their
    agreements with us or otherwise, we may lose some of our
    customers.
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    face risks associated with the marketing, distribution and sale
    of our solar module products internationally. If we are unable
    to effectively manage these risks, they could impair our ability
    to expand our business abroad.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2005 and 2006 and for the nine months ended
    September&#160;30, 2007, we sold approximately 97.2%, 79.3% and
    97.8%, respectively, of our products to customers located
    outside of China. The marketing, distribution and sale of our
    solar module products in the international markets expose us to
    a number of risks, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
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    <TD align="left">
    fluctuations in the currency exchange rates of the Euro,
    U.S.&#160;dollar and RMB;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    difficulty in engaging and retaining distributors and system
    integrators who are knowledgeable about and, can function
    effectively in, overseas markets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
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    <TD align="left">
    increased costs associated with maintaining marketing efforts in
    various countries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    difficulty and cost relating to compliance with the different
    commercial and legal requirements of the overseas markets in
    which we offer our products;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    cultural, language and logistical barriers to working with
    customers in different countries;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    trade barriers such as export requirements, tariffs, taxes and
    other restrictions and expenses, which could increase the prices
    of our products and make us less competitive in some countries.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Problems
    with product quality or product performance, including defects,
    in our products could damage our reputation, or result in a
    decrease in customers and revenue, unexpected expenses and loss
    of market share.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our products may contain defects that are not detected until
    after they are shipped or are installed because we cannot test
    for all possible scenarios. These defects could cause us to
    incur significant costs, divert the attention of our personnel
    from product development efforts and significantly affect our
    customer relations and business reputation. If we deliver solar
    module products with errors or defects, or if there is a
    perception that our products contain errors or defects, our
    credibility and the market acceptance and sales of our solar
    module products could be harmed. In one instance in 2005 and
    another in 2006, customers raised concerns about the stated
    versus actual performance output of some of our solar modules.
    We determined that these concerns resulted from differences in
    calibration methodologies and we resolved the issue with these
    customers. However, the corrective actions and procedures that
    we took may turn out to be inadequate to prevent further
    incidents of the same problem or to protect against future
    errors or defects. As we continue to develop our internal solar
    cell manufacturing capabilities and expand into in-house solar
    ingot and solar wafer production, we may have problems
    standardizing product quality in these new areas of business. In
    addition, some of our ingot, wafer and cell suppliers with whom
    we have toll manufacturing arrangements previously raised
    concerns about the quality and consistency of the silicon
    feedstock, in particular the reclaimable silicon that we recycle
    through our silicon reclamation program for re-use in the solar
    power industry, that we have provided to them for their ultimate
    conversion into solar cells. The use of reclaimed silicon in the
    solar power supply chain has an inherent risk as it is difficult
    to maintain the consistency and quality of reclaimed silicon at
    the same level as high-purity silicon. The successful use of
    reclaimed silicon requires extensive experience, know-how and
    additional quality control measures from both the provider of
    reclaimed silicon and the toll manufacturers. If we cannot
    successfully maintain the consistency and quality of the
    reclaimed silicon from our silicon reclamation program at an
    acceptable level, this may result in less efficient solar cells
    for our solar modules or in a lower conversion ratio of solar
    cells per ton of silicon feedstock that we provide, and may
    potentially delay and reduce our supply of solar cells. This may
    reduce or eliminate the cost advantages of recycling silicon
    through our silicon reclamation program. This could also cause
    problems with product quality or product performance, including
    defects in our products, and increase the cost of producing our
    products.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We obtain some of the solar wafers and solar cells that we use
    in our products from third parties, either directly or through
    toll manufacturing arrangements, and we have limited control
    over the quality of that portion of the solar wafers and solar
    cells we incorporate into our solar modules. Unlike solar
    modules, which are subject to certain uniform international
    standards, solar wafers and solar cells generally do not have
    uniform international standards, and it is often difficult to
    determine whether solar module product defects are a result of
    the solar cells or other components or reasons. We also rely on
    third party suppliers for other components that we use in our
    products, such as glass, frame and backing for our solar
    modules, and electronic components for our specialty solar
    modules and
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    products. Furthermore, the solar cells and other components that
    we purchase from third party suppliers are typically sold to us
    without any, or with only limited, warranty. The possibility of
    future product failures could cause us to incur substantial
    expense to repair or replace defective products. Furthermore,
    widespread product failures may damage our market reputation,
    reduce our market share and cause our revenues to decline.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Since
    we cannot test our products for the duration of our standard
    warranty periods, we may be subject to unexpected warranty
    expense.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our standard solar modules are typically sold with a two-year
    guarantee for defects in materials and workmanship and a
    <FONT style="white-space: nowrap">10-year</FONT> and
    <FONT style="white-space: nowrap">25-year</FONT>
    warranty against declines of more than 10.0% and 20.0%,
    respectively, of the initial minimum power generation capacity
    at the time of delivery. Our specialty solar modules and
    products are typically sold with a one-year guarantee against
    defects in materials and workmanship and may, depending on the
    characteristics of the product, contain a limited warranty of up
    to ten years, against declines of the minimum power generation
    capacity specified at the time of delivery. We believe our
    warranty periods are consistent with industry practice. Due to
    the long warranty period, we bear the risk of extensive warranty
    claims long after we have shipped our products and recognized
    revenue. We began selling specialty solar modules and products
    in 2002 and only began selling standard solar modules in 2004.
    Any increase in the defect rate of our products would cause us
    to increase the amount of warranty reserves and have a
    corresponding negative impact on our operating results. Although
    we conduct quality testing and inspection of our solar module
    products, our solar module products have not been and cannot be
    tested in an environment simulating the up to
    <FONT style="white-space: nowrap">25-year</FONT>
    warranty periods. As a result, we may be subject to unexpected
    warranty expense and associated harm to our financial results as
    long as 25&#160;years after the sale of our products.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    future growth depends in part on our ability to make strategic
    acquisitions and investments and to establish and maintain
    strategic relationships, and our failure to do so could have a
    material adverse effect on our market penetration and revenue
    growth.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The solar power industry has only recently emerged as a high
    growth market and is currently experiencing shortages of its key
    component, high-purity silicon, due to rapid industry growth and
    demand. We believe it is critical that we continue to manage
    upstream silicon supply sources by, among other strategies,
    continuing to pursue strategic acquisitions and investments in
    solar cell and silicon raw materials suppliers to secure a
    guaranteed supply and better control the specifications and
    quality of the materials delivered and fostering strategic
    relationships, particularly with silicon feedstock suppliers, as
    we continue to develop our in-house solar component
    manufacturing abilities, and partnerships with solar wafer and
    solar cell suppliers. We cannot assure you, however, that we
    will be able to successfully make such strategic acquisitions
    and investments or establish strategic relationships with third
    parties that will prove to be effective for our business. Our
    inability in this regard could have a material adverse effect on
    our market penetration, our revenue growth and our profitability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Strategic acquisitions, investments and relationships with third
    parties could subject us to a number of risks, including risks
    associated with sharing proprietary information and loss of
    control of operations that are material to our business.
    Moreover, strategic acquisitions, investments and relationships
    may be expensive to implement and subject us to the risk of
    non-performance by a counterparty, which may in turn lead to
    monetary losses that materially and adversely affect our
    business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    not succeed in developing and maintaining a cost-effective solar
    cell manufacturing capability.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We plan to continue expanding our in-house solar cell
    manufacturing capabilities to support our core solar module
    manufacturing business. We completed installation of our first
    four solar cell production lines in 2007, and expect the annual
    solar cell production capacity from these production lines to
    reach 100MW by the end of 2007. However, we only have limited
    and recent operating experience in this area and we will face
    significant challenges in the solar cell business. Manufacturing
    solar cells is a highly complex process and we may not be able
    to produce solar cells of sufficient quality to meet our solar
    module manufacturing standards. Minor deviations in the
    manufacturing process can cause substantial decreases in yield
    and in some cases cause production to be suspended or yield no
    output. We will need to make capital expenditures to purchase
    manufacturing equipment for solar cell production and will also
    need to make significant investments in research and development
    to keep pace with technological advances in solar
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    power technology. The technologies, designs and customer
    preferences for solar cells change more rapidly, and solar cell
    product life cycles are shorter than those for solar modules. We
    may not be able to successfully address these new challenges. We
    will also face increased costs to comply with environmental laws
    and regulations. Any failure to successfully develop and
    maintain cost-effective solar cell manufacturing capability may
    have a material adverse effect on our business and prospects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, although we intend to continue direct purchasing of
    solar cells and our toll manufacturing arrangements through a
    limited number of strategic partners, if we engage in the large
    scale production of solar cells it may disrupt our existing
    relationships with solar cell suppliers. One of our suppliers
    has raised concerns with us over our decision to implement
    internal solar cell product capabilities. If solar cell
    suppliers discontinue or reduce the supply of solar cells to us,
    either through direct sales or through toll manufacturing
    arrangements, and we are not able to compensate for the loss or
    reduction with our own manufacturing of solar cells, our
    business and results of operations may be materially and
    adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    experience difficulty in developing our internal production
    capabilities for ingots and wafers and, if developed, in
    achieving acceptable yields and product performance as a result
    of manufacturing problems.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are in the process of developing our internal production
    capabilities for the manufacture of silicon ingots and wafers.
    We do not have prior operational experience in ingot and wafer
    production and will face significant challenges in developing
    this line of business, and may not be successful in doing so.
    The technology is complex, and will require costly equipment and
    the hiring of highly skilled personnel to implement. In
    addition, we may experience delays in developing these
    capabilities and in obtaining governmental permits required to
    carry on these operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are able to successfully develop these production
    capabilities, we will need to continuously enhance and modify
    these capabilities in an effort to improve yields and product
    performance. Microscopic impurities such as dust and other
    contaminants, difficulties in the manufacturing process,
    disruptions in the supply of utilities or defects in the key
    materials and tools used to manufacture wafers can cause a
    percentage of the wafers to be rejected, which in each case,
    negatively affects our yields. We may experience production
    difficulties that cause manufacturing delays and lower than
    expected yields.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Problems in our facilities may limit our ability to manufacture
    products, including but not limited to, production failures,
    construction delays, human errors, equipment malfunction or
    process contamination, which could seriously harm our
    operations. We may also experience floods, droughts, power
    losses and similar events beyond our control that would affect
    our facilities. A disruption to any step of the manufacturing
    process will require us to repeat each step and recycle the
    silicon debris, thus adversely affecting our yields.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    fail to successfully bring to market our new specialty solar
    modules and products, which may prevent us from achieving
    increased sales, margins and market share.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to continue to derive part of our revenues from sales
    of our new specialty solar modules and products and will
    increase our research and development expenses in connection
    with developing these products. If we fail to successfully
    develop our new specialty solar modules and products, we will
    likely be unable to recover the expenses that we will incur to
    develop these products and may be unable to increase our sales
    and market share and to increase our margins. Many of our new
    specialty solar modules and products have yet to receive market
    acceptance, and it is difficult to predict whether we will be
    successful in completing their development or whether they will
    be commercially successful. We may also need to develop new
    manufacturing processes that have yet to be tested and which may
    result in lower production output.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    failure to protect our intellectual property rights in
    connection with new specialty solar modules and products may
    undermine our competitive position.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As we develop and bring to market new specialty solar modules
    and products, we may need to increase our expenses to protect
    our intellectual property and our failure to protect our
    intellectual property rights may undermine our competitive
    position. We currently use contractual arrangements with
    employees and trade secret protections to protect our
    intellectual property. Nevertheless, these afford only limited
    protection and the actions we take to
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    protect our intellectual property rights as we develop new
    specialty solar modules and products may not be adequate. We
    currently have only three patents and five patent applications
    pending in China for products that make up a relatively small
    percentage of our net revenues and two trademark applications
    pending in China. Policing unauthorized use of proprietary
    technology can be difficult and expensive. Also, litigation,
    which can be costly and divert management attention, may be
    necessary to enforce our intellectual property rights, protect
    our trade secrets or determine the validity and scope of the
    proprietary rights of others.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    be exposed to infringement, misappropriation or other claims by
    third parties, which, if determined adversely to us, could cause
    us to pay significant damage awards.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our success depends on our ability to use and develop our
    technology and know-how and sell our solar module products
    without infringing the intellectual property or other rights of
    third parties. We do not have, and have not applied for, any
    patents for our proprietary technologies outside China, although
    we have sold, and expect to continue to sell, a substantial
    portion of our products outside China. The validity and scope of
    claims relating to solar power technology patents involve
    complex scientific, legal and factual questions and analysis
    and, therefore, may be highly uncertain. We may be subject to
    litigation involving claims of patent infringement or violation
    of intellectual property rights of third parties. In addition,
    we have not yet registered our trade name, &#147;CSI,&#148;
    outside of China, and our trademark application in China is
    still pending. As a result, we could be subject to trademark
    disputes and may not be able to police the unauthorized use of
    our trade name. The defense and prosecution of intellectual
    property suits, patent opposition proceedings and related legal
    and administrative proceedings can be both costly and time
    consuming and may significantly divert the efforts and resources
    of our technical and management personnel. Additionally, we use
    imported equipment in our production lines, without supplier
    guarantees that our use does not infringe on third party
    intellectual property rights in China. This creates a potential
    source of litigation or infringement claims arising from such
    use. An adverse determination in any such litigation or
    proceedings to which we may become a party could subject us to
    significant liability to third parties, require us to seek
    licenses from third parties, to pay ongoing royalties, or to
    redesign our products or subject us to injunctions prohibiting
    the manufacture and sale of our products or the use of our
    technologies. Protracted litigation could also result in our
    customers or potential customers deferring or limiting their
    purchase or use of our products until resolution of such
    litigation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, our competitors and other third parties may
    initiate legal proceedings against us or our employees that may
    strain our resources, divert our management attention and damage
    our reputation. For example, in March 2002, ICP Global
    Technologies Inc., or ICP Global, a manufacturer of solar power
    products, filed an action in the Superior Court of the Province
    of Quebec, Canada (Action
    <FONT style="white-space: nowrap">No.&#160;500-05</FONT>
    <FONT style="white-space: nowrap">071241-028)</FONT>
    against our vice president of international sales and marketing,
    Gregory Spanoudakis, and ATS Automation Tooling Systems Inc., or
    ATS. ICP Global subsequently amended the complaint to include
    us, our subsidiary, CSI Solartronics, and our chairman and chief
    executive officer, Dr.&#160;Shawn Qu, as defendants. The amended
    complaint contends that all of the defendants jointly engaged in
    unlawful conduct and unfair competition in directing a business
    opportunity away from ICP Global to us. Although there have been
    no meaningful discovery, court filings or communications from
    the plaintiff on this matter since early 2004, we cannot assure
    you that ICP Global will not move forward with this case or that
    the litigation will not be determined adversely to us. We also
    cannot assure you that similar proceedings will not occur in the
    future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    rely on dividends paid by our subsidiaries for our cash
    needs.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conduct significantly all of our operations through our
    subsidiaries, CSI Solartronics (Changshu) Co., Ltd., CSI Solar
    Manufacture Inc., CSI Solar Technologies Inc., CSI Central Solar
    Power Co., Ltd., CSI Cells Co., Ltd. and Changshu CSI Advanced
    Solar Inc., which are companies established in China. We rely on
    dividends paid by these subsidiaries for our cash needs,
    including the funds necessary to pay dividends and other cash
    distributions to our shareholders, to service any debt we may
    incur and to pay our operating expenses. The payment of
    dividends by entities organized in China is subject to
    limitations. Regulations in the PRC currently permit payment of
    dividends only out of accumulated profits as determined in
    accordance with accounting standards and regulations in China.
    These subsidiaries are also required to set aside at least 10.0%
    of their after-tax profit based on PRC accounting standards each
    year to its general reserves until the accumulative amount of
    such reserves reach 50.0% of its
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    registered capital. These reserves are not distributable as cash
    dividends. In addition, if any of these subsidiaries incurs debt
    on its own behalf in the future, the instruments governing the
    debt may restrict its ability to pay dividends or make other
    distributions to us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    are unable to attract, train and retain technical personnel, our
    business may be materially and adversely affected.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our future success depends, to a significant extent, on our
    ability to attract, train and retain technical personnel.
    Recruiting and retaining capable personnel, particularly those
    with expertise in the solar power industry, are vital to our
    success. There is substantial competition for qualified
    technical personnel, and there can be no assurance that we will
    be able to attract or retain our technical personnel. If we are
    unable to attract and retain qualified employees, our business
    may be materially and adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fluctuations
    in exchange rates could adversely affect our
    business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, a major portion of our sales were denominated in
    Euros, with the remainder in Renminbi and U.S.&#160;dollars. A
    major portion of our costs and expenses is denominated in
    U.S.&#160;dollars and Renminbi. Our Renminbi costs and expenses
    primarily related to domestic sourcing of solar cells, wafers,
    silicon and other raw materials, toll manufacturing fees, labor
    costs and local overhead expenses. From time to time, we also
    have loan arrangements with Chinese commercial banks that are
    denominated in U.S.&#160;dollars and Renminbi. Therefore,
    fluctuations in currency exchange rates could have a material
    adverse effect on our financial condition and results of
    operations. Fluctuations in exchange rates, particularly among
    the U.S.&#160;dollar, Renminbi and Euro, affect our gross and
    net profit margins and could result in fluctuations in foreign
    exchange and operating gains and losses. We cannot predict the
    impact of future exchange rate fluctuations on our results of
    operations and we may incur net foreign currency losses in the
    future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Product
    liability claims against us could result in adverse publicity
    and potentially significant monetary damages.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As with other solar module product manufacturers, we are exposed
    to risks associated with product liability claims if the use of
    our solar module products results in injury. Since our products
    generate electricity, it is possible that users could be injured
    or killed by our products as a result of product malfunctions,
    defects, improper installation or other causes. We only shipped
    our first products in March 2002 and, because of our limited
    operating history, we cannot predict whether product liability
    claims will be brought against us in the future or the effect of
    any resulting negative publicity on our business. Although we
    carry limited product liability insurance, we may not have
    adequate resources to satisfy a judgment if a successful claim
    is brought against us. The successful assertion of product
    liability claims against us could result in potentially
    significant monetary damages and require us to make significant
    payments. Even if the product liability claims against us are
    determined in our favor, we may suffer significant damage to our
    reputation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    founder, Dr.&#160;Shawn Qu, has substantial influence over our
    company and his interests may not be aligned with the interests
    of our other shareholders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of February&#160;14, 2008, Dr.&#160;Shawn Qu, our founder,
    chairman and chief executive officer, beneficially owned 50.0%
    of our outstanding share capital comprised of 27,320,389 common
    shares, excluding restricted shares granted but yet to be vested
    and subject to restrictions on voting and dividend rights and
    transferability. As such, Dr.&#160;Qu has substantial influence
    over our business, including decisions regarding mergers,
    consolidations and the sale of all or substantially all of our
    assets, election of directors and other significant corporate
    actions. This concentration of ownership may discourage, delay
    or prevent a change in control of our company, which could
    deprive our shareholders of an opportunity to receive a premium
    for their shares as part of a sale of our company and might
    reduce the price of our common shares. These actions may be
    taken even if they are opposed by our other shareholders.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compliance
    with environmental regulations can be expensive, and
    noncompliance with these regulations may result in adverse
    publicity and potentially significant monetary damages, fines
    and suspensions of our business operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are required to comply with all national and local
    regulations regarding protection of the environment. As we
    expand our silicon reclamation program and research and
    development activities and move into solar ingot, solar wafer
    and solar cell manufacturing, we have begun to generate material
    levels of noise, waste water, gaseous wastes and other
    industrial wastes in the course of our business operations.
    Additionally, as we expand our internal solar components
    production capacity, our risk of facility incidents with a
    potential environmental impact also increases.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except for a failure to obtain certain approvals prior to
    starting production as disclosed in &#147;&#151;&#160;Risks
    Related to Doing Business in China&#160;&#151; We may face a
    potential risk for failing to comply with certain PRC legal
    requirements,&#148; we believe that we are in compliance with
    present environmental protection requirements and have all
    necessary environmental permits to conduct our business as it is
    presently conducted. However, if more stringent regulations are
    adopted in the future, the costs of compliance with these new
    regulations could be substantial. For example, we increased our
    expenditures to comply with the European Union&#146;s
    Restriction of Hazardous Substances Directive, which took effect
    in July 2006, by reducing the amount of lead and other
    restricted substances used in our solar module products.
    Furthermore, we may need to comply with the European
    Union&#146;s Waste Electrical and Electronic Equipment Directive
    if we begin to sell specialty solar modules and products to
    customers located in Europe or if our customers located in other
    markets demand that our products be compliant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we fail to comply with present or future environmental
    regulations, we may be required to pay substantial fines,
    suspend production or cease operations. For instance, the
    Chinese Customs have recently increased their scrutiny on the
    import of scrap silicon over a concern that the recycling
    process for certain types of scrap silicon may cause
    environmental damage if not performed in a fully licensed
    factory and have subjected certain importations of recyclable
    silicon by some China-based companies, including us. See the
    section entitled &#147;&#151;&#160;If we are unable to secure an
    adequate and cost effective supply of solar wafers, cells or
    reclaimable silicon, our revenue, margins and profits could be
    adversely affected.&#148; Any failure by us to control the use
    of, or to restrict adequately the discharge of, hazardous
    substances could subject us to potentially significant monetary
    damages and fines or suspensions of our business operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    not be successful in establishing our brand names among all
    consumers in important markets and the products we sell under
    our brand name may compete with the products we manufacture on
    an OEM basis for our customers.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We sell our products primarily under our own brand name and also
    on an OEM basis for our customers. In certain markets our brand
    may not be as prominent as other more established solar power
    vendors, and there can be no assurance that the &#147;CSI&#148;
    brand name or any of our potential future brand names, will gain
    acceptance among customers. Moreover, because the range of
    products we sell under our own brands and those we manufacture
    for our customers may be substantially similar, there can be no
    assurance that, currently or in the future, there will not be
    direct or indirect competition between products sold under the
    CSI brand, or any of our other potential future brands, and
    products that we manufacture on an OEM basis. This could
    negatively affect our relationship with these customers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    grant employee share options, restricted shares or other
    share-based compensation in the future, our net income could be
    adversely affected.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We adopted a share incentive plan in 2006. As of
    November&#160;26, 2007, we had issued 1,725,321&#160;share
    options and 566,190 restricted shares under our share incentive
    plan. In December 2004, the Financial Accounting Standards
    Board, or FASB, issued Statement of Financial Accounting
    Standards, or SFAS, No.&#160;123R, &#147;Share-Based
    Payment.&#148; This statement, which became effective in our
    first quarter of 2006, will prescribe how we account for
    share-based compensation, and may have an adverse or negative
    impact on our results of operations or the price of our common
    shares. SFAS&#160;No.&#160;123R requires us to recognize
    share-based compensation as compensation expense in the
    statement of operations based on the fair value of equity awards
    on the date of the grant, with the compensation expense
    recognized over the period in which the recipient is required to
    provide service in exchange
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    for the equity award. This statement also requires us to adopt a
    fair value-based method for measuring the compensation expense
    related to share-based compensation. The additional expenses
    associated with share-based compensation may reduce the
    attractiveness of issuing share options or restricted shares
    under our share incentive plan. However, if we do not grant
    share options or restricted shares, or reduce the number of
    share options or restricted shares that we grant, we may not be
    able to attract and retain key personnel. If we grant more share
    options or restricted shares to attract and retain key
    personnel, the expenses associated with share-based compensation
    may adversely affect our net income.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    have been historical deficiencies with our internal controls and
    there remain areas of our internal and disclosure controls that
    require improvement. If we fail to maintain an effective system
    of internal controls, we may be unable to accurately report our
    financial results or prevent fraud, and investor confidence and
    the market price of our common shares may be adversely
    impacted.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are subject to reporting obligations under the
    U.S.&#160;securities laws. The SEC, as required by
    Section&#160;404 of the Sarbanes-Oxley Act of 2002, or the
    Sarbanes-Oxley Act, adopted rules requiring every public company
    to include a management report on such company&#146;s internal
    controls over financial reporting in the company&#146;s annual
    report, which contains management&#146;s assessment of the
    effectiveness of the company&#146;s internal controls over
    financial reporting. In addition, an independent registered
    public accounting firm must attest to and report on
    management&#146;s assessment of the effectiveness of the
    company&#146;s internal controls over financial reporting. These
    requirements will first apply to our annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the fiscal year ending on December&#160;31, 2007. Our
    management may conclude that our internal controls over our
    financial reporting are not effective. Moreover, even if our
    management concludes that our internal controls over financial
    reporting is effective, our independent registered public
    accounting firm may still decline to attest to our
    management&#146;s assessment or may issue a report that is
    qualified if it is not satisfied with our internal controls or
    the level at which our controls are documented, designed,
    operated or reviewed, or if it interprets the relevant
    requirements differently from us. Our reporting obligations as a
    public company will place a significant strain on our
    management, operational and financial resources and systems in
    the foreseeable future.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to our initial public offering, we were a private company
    of limited operating history with limited accounting and other
    resources with which to adequately address our internal controls
    and procedures. As a result, in our past audits, our auditors
    had identified material weaknesses and deficiencies with our
    internal controls. In our audit for the fiscal year ended
    December&#160;31, 2006, our auditors observed a number of
    weaknesses and deficiencies with respect to our internal
    controls under the standards established by the Public Company
    Accounting Oversight Board. The material weaknesses identified
    by our independent registered public accounting firm include
    (i)&#160;insufficient accounting resources to properly identify
    adjustments, analyze transactions and prepare financial
    statements in accordance with U.S.&#160;GAAP, and (ii)&#160;a
    lack of formal accounting policies and procedures for
    U.S.&#160;GAAP to ensure that our accounting policies and
    procedures are appropriately or consistently applied. Following
    the identification of these material weaknesses and other
    deficiencies, we have undertaken remedial steps and plan to
    continue to take additional remedial steps to address these
    material weaknesses and deficiencies and to further improve our
    internal and disclosure controls, including hiring additional
    staff, training our new and existing staff and installing new
    enterprise resource planning, or ERP systems, in order to build
    up a unified and integrated database of our company. In
    addition, since the beginning of 2007, we have engaged an
    advisory firm to advise us about complying with requirements of
    the Sarbanes-Oxley Act, and have hired an individual experienced
    in handling compliance with the requirements of Sarbanes-Oxley
    Act. However, if we are unable to remedy the existing material
    weaknesses and deficiencies in our internal and disclosure
    controls and procedures, or if we fail to maintain an effective
    system of internal and disclosure controls in the future, we may
    be unable to accurately report our financial results or prevent
    fraud and as a result, investor confidence and the market price
    of our common shares may be adversely impacted. Furthermore, we
    anticipate that we will incur considerable costs and devote
    significant management time and efforts and other resources to
    comply with Section&#160;404 of the Sarbanes Oxley Act.
</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Doing Business in China</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Uncertainties
    with respect to the Chinese legal system could have a material
    adverse effect on us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conduct substantially all of our manufacturing operations
    through our subsidiaries in China. These subsidiaries are
    generally subject to laws and regulations applicable to foreign
    investment in China and, in particular, laws applicable to
    wholly foreign-owned enterprises. The PRC legal system is based
    on written statutes. Prior court decisions may be cited for
    reference but have limited precedential value. Since 1979, PRC
    legislation and regulations have significantly enhanced the
    protections afforded to various forms of foreign investments in
    China. However, since these laws and regulations are relatively
    new and the PRC legal system continues to rapidly evolve, the
    interpretations of many laws, regulations and rules are not
    always uniform and enforcement of these laws, regulations and
    rules involve uncertainties, which may limit legal protections
    available to us. In addition, any litigation in China may be
    protracted and result in substantial costs and diversion of
    resources and management attention.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fluctuation
    in the value of the Renminbi may have a material adverse effect
    on your investment.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The change in value of the Renminbi against the
    U.S.&#160;dollar, Euro and other currencies is affected by,
    among other things, changes in China&#146;s political and
    economic conditions. On July&#160;21, 2005, the PRC government
    changed its decade-old policy of pegging the value of the
    Renminbi to the U.S.&#160;dollar. Under the new policy, the
    Renminbi is permitted to fluctuate within a narrow and managed
    band against a basket of certain foreign currencies. This change
    in policy has resulted in an approximately 5.7% appreciation of
    Renminbi against the U.S.&#160;dollar between July&#160;21, 2005
    and December&#160;31, 2006. While the international reaction to
    the Renminbi revaluation has generally been positive, there
    remains significant international pressure on the PRC government
    to adopt an even more flexible currency policy, which could
    result in a further and more significant appreciation of the
    Renminbi against the U.S.&#160;dollar. As a portion of our costs
    and expenses is denominated in Renminbi, the revaluation in July
    2005 and potential future revaluation has and could further
    increase our costs in U.S.&#160;dollar terms. In addition, as we
    rely entirely on dividends paid to us by our operating
    subsidiaries in China, any significant revaluation of the
    Renminbi may have a material adverse effect on our revenues and
    financial condition, and the value of, and any dividends payable
    on, our common shares. For example, to the extent that we need
    to convert U.S.&#160;dollars into Renminbi for our operations,
    appreciation of the Renminbi against the U.S.&#160;dollar would
    have an adverse effect on the Renminbi amount we receive from
    the conversion. Conversely, if we decide to convert our Renminbi
    into U.S.&#160;dollars for the purpose of making payments for
    dividends on our common shares or for other business purposes,
    appreciation of the U.S.&#160;dollar against the Renminbi would
    have a negative effect on the U.S.&#160;dollar amount available
    to us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Restrictions
    on currency exchange may limit our ability to receive and use
    our revenues effectively.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain portions of our revenue and expenses are denominated in
    Renminbi. If our revenues denominated in Renminbi increase or
    expenses denominated in Renminbi decrease in the future, we may
    need to convert a portion of our revenues into other currencies
    to meet our foreign currency obligations, including, among
    others, payment of dividends declared, if any, in respect of our
    common shares. Under China&#146;s existing foreign exchange
    regulations, our PRC subsidiaries are able to pay dividends in
    foreign currencies, without prior approval from the State
    Administration of Foreign Exchange, or SAFE, by complying with
    certain procedural requirements. However, we cannot assure you
    that the PRC government will not take further measures in the
    future to restrict access to foreign currencies for current
    account transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Foreign exchange transactions by our PRC subsidiaries under most
    capital accounts continue to be subject to significant foreign
    exchange controls and require the approval of PRC governmental
    authorities. In particular, if we finance our PRC subsidiaries
    by means of additional capital contributions, these capital
    contributions must be approved by certain government authorities
    including the Ministry of Commerce or its local counterparts.
    These limitations could affect the ability of our PRC
    subsidiaries to obtain foreign exchange through equity financing.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    face a potential risk for failing to comply with certain PRC
    legal requirements.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are required to comply with the PRC Environmental Protection
    Law. For example, some of our subsidiaries, such as CSI Luoyang
    and CSI Cells, are required to have their manufacturing
    facilities examined and approved by
</DIV>

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    <BR>
    31
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the PRC Environmental Protection Agency prior to the start of
    production. However, due to discrepancies between interpretation
    of the written law and its application to date, both CSI Luoyang
    and CSI Cells began production earlier this year without
    obtaining such approvals. As a result, there is a risk that we
    may be ordered by the relevant environmental protection
    administration to cease manufacturing at these operations and
    face fines. We are currently negotiating with the relevant
    authorities to complete the examination and obtain the requisite
    approvals. We will need to undergo similar reviews and obtain
    approvals prior to launching our solar wafer manufacturing
    operations. There can be no assurance that we will obtain the
    necessary approvals for our manufacturing operations in a timely
    manner, if at all.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Also, some registration certificates of the PRC subsidiaries
    have expired or have not been updated with current subsidiary
    registration information, which may result in administrative
    fines. We are currently conducting efforts to renew and update
    these certificates with the relevant governmental authorities
    and are hopeful of obtaining the renewed and updated
    certificates in a timely manner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we adopted a share incentive plan in 2006 that
    grants employees, including some of our PRC employees, share
    options and restricted shares. However, we have not yet filed
    our share incentive plan with SAFE as required by the
    Implementation Rule of the Individual Foreign Exchange
    Administrative Measures (&#147;SAFE Rules&#148;). Since the SAFE
    Rules were only adopted in February 2007, there is some
    uncertainty as to how they will be interpreted and implemented.
    If SAFE subsequently determines that we were required to obtain
    its approval before allowing our PRC employees to participate in
    our share incentive plan, this could have an adverse effect on
    our ability to grant our PRC employees share options and
    restricted shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    business benefits from certain PRC government incentives.
    Expiration of, or changes to, these incentives could have a
    material adverse effect on our operating results.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under current PRC laws and regulations, a foreign invested
    enterprise, or FIE, in China is typically subject to enterprise
    income tax, or EIT, at the rate of 30% on taxable income, and
    local income tax at the rate of 3% on taxable income. The PRC
    government has provided various incentives to FIEs, including
    each of our PRC subsidiaries, to encourage the development of
    foreign investments. Such incentives include reduced tax rates
    and other measures. FIEs that are determined by PRC tax
    authorities to be manufacturing companies with authorized terms
    of operation more than ten years, are eligible for: (i)&#160;a
    two-year exemption from EIT from their first profitable year;
    and (ii)&#160;a 50% reduction in its applicable EIT rate in the
    succeeding three years. CSI Solartronics is entitled to a
    preferential EIT rate of 24%, as it is a manufacturing
    enterprise located in a coastal economic development zone in
    Changshu. CSI Solartronics&#146; first profitable year was 2002
    and its initial EIT preferential period ended in 2006. However,
    CSI Solartronics has been granted a three year extension for the
    50% reduction in its EIT rate by Changshu tax authority. Thus,
    CSI Solartronics is currently subject to an EIT rate of 12%. CSI
    Solar Manufacturing is entitled to a preferential EIT rate of
    15%. CSI Solar Manufacturing&#146;s first profitable year was
    2005 and it was exempt from EIT until 2006. It is now subject to
    an EIT rate of 7.5% until 2009. CSI Luoyang and CSI Cells became
    profitable in 2007. As such, both CSI Luoyang and CSI Cells are
    exempted from EIT until 2008 and will enjoy a 50% reduction in
    their applicable EIT rates from 2009 to 2011. CSI Solar
    Technologies and CSI Advanced are not currently profitable and
    have therefore not applied for preferential tax treatment. If
    these subsidiaries turn profitable, they will apply for
    preferential tax rates and tax holidays. However, with the new
    PRC EIT law becoming effective on January&#160;1, 2008, a
    foreign-invested enterprise which has yet to enjoy preferential
    treatment due to lack of profitability, commencement of the
    preferential five-year tax holiday will coincide with the year
    the new EIT law comes into effect, i.e. January&#160;1, 2008. As
    these tax benefits expire, the effective tax rate of our PRC
    subsidiaries may increase significantly, and any increase of
    their EIT rates in the future could have a material adverse
    effect on our financial condition and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the National People&#146;s Congress, the Chinese
    legislature, passed a new enterprise income tax law, which is
    scheduled to take effect on January&#160;1, 2008. The new law
    applies a uniform 25% enterprise income tax rate to both foreign
    invested enterprises and domestic enterprises. An enterprise
    registered under the laws of a jurisdiction outside China may be
    deemed a Chinese tax resident if its place of effective
    management is in China and it will consequently be subject to
    the EIT upon its worldwide income. Existing companies are
    required to transition to the new EIT rate over a five year
    period starting January&#160;1, 2008. The PRC State Council has
    recently promulgated detailed implementation rules for the new
    Enterprise Income Tax Law. Because the tax law and related
</DIV>

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    <BR>
    32
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    implementation rules are newly executed, there is uncertainty as
    to how they will be interpreted and implemented. Although we are
    carefully monitoring these legal developments and will timely
    adjust our effective income tax rate when necessary, we cannot
    assure you that the new Enterprise Income Tax Law will not cause
    increases in the EIT rates applicable to our PRC subsidiaries,
    which could have a material adverse effect on our financial
    condition and results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the interpretation of the new enterprise income tax
    law and its implementation rules, if we are deemed to be a
    non-PRC tax resident following the implementation of the new
    Enterprise Income Tax Law, we may be subject to an EIT rate of
    10% on the dividends paid to us by our subsidiaries. However, as
    the PRC has not promulgated further guidance on the
    applicability of the new law or its related implementation
    rules, there is uncertainty as to how it will be applied and
    affect us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    may be some uncertainty surrounding a recently adopted PRC
    regulation that requires certain offshore listings to be
    approved by the China Securities Regulatory
    Commission.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;8, 2006, six PRC regulatory agencies, including
    the China Securities Regulatory Commission, or CSRC, promulgated
    a regulation that took effect on September&#160;8, 2006. This
    regulation, among other things, requires offshore special
    purpose vehicles, or SPVs, formed for listing purposes through
    acquisitions of PRC domestic companies and controlled by Chinese
    domestic companies or PRC individuals to obtain the approval of
    the CSRC prior to publicly listing their securities on an
    overseas stock exchange. On September&#160;21, 2006, the CSRC
    published on its official website a notice specifying the
    documents and materials that are required to be submitted for
    obtaining CSRC approval. We believe, based on the advice of our
    PRC counsel, that this regulation does not apply to us and that
    CSRC approval is not required because we are not an SPV covered
    by the new regulation as we are owned and controlled by non-PRC
    individuals and entities, and all our PRC subsidiaries are
    foreign-funded and have been incorporated through our direct
    investment instead of acquisition. However, since the regulation
    has been adopted only for a few months, there may be some
    uncertainty as to how this regulation will be interpreted or
    implemented. If the CSRC or other PRC regulatory body
    subsequently determines that we needed to obtain the CSRC&#146;s
    approval for our initial public offering in November 2006, we
    may face sanctions by the CSRC or other PRC regulatory agencies.
    In such event, these regulatory agencies may impose fines and
    penalties on our operations in the PRC, limit our operating
    privileges in the PRC, or take other actions that could have a
    material adverse effect on our business, financial condition,
    results of operations, reputation and prospects, as well as the
    trading price of our common shares. In the future, we may grow
    our business in part by directly acquiring complementary
    businesses. Complying with the requirements of the new
    regulations and any other PRC laws to complete such transactions
    could be time consuming, and any required approval processes,
    including obtaining approval from the PRC regulatory agencies,
    may delay or inhibit our ability to complete such transactions,
    which could affect our ability to expand our business or
    maintain our market share.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    face risks related to health epidemics and other
    outbreaks.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business could be adversely affected by the effects of avian
    flu or another epidemic or outbreak. From 2005 to 2007, there
    have been reports on the occurrences of avian flu in various
    parts of China, including a few confirmed human cases and
    deaths. Any prolonged recurrence of avian flu or other adverse
    public health developments in China may have a material adverse
    effect on our business operations. These could include our
    ability to travel or ship our products outside of China, as well
    as temporary closure of our manufacturing facilities. Such
    closures or travel or shipment restrictions would severely
    disrupt our business operations and adversely affect our results
    of operations. We have not adopted any written preventive
    measures or contingency plans to combat any future outbreak of
    avian flu or any other epidemic.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Common Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    market price for our common shares may be
    volatile.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price for our common shares has been and may continue
    to be highly volatile and subject to wide fluctuations during
    the period from November&#160;9, 2006, the first day on which
    our common shares were listed on the Nasdaq Global Market, until
    February&#160;29, 2008, the trading prices of our common shares
    ranged from $6.50 to
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    $31.44&#160;per share and the closing sale price on
    February&#160;29, 2008 was $18.95&#160;per share. The market
    price for our common shares may continue to be volatile and
    subject to wide fluctuations in response to factors including
    the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    announcements of technological or competitive developments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    regulatory developments in our target markets affecting us, our
    customers or our competitors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    actual or anticipated fluctuations in our quarterly operating
    results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    changes in financial estimates by securities research analysts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    changes in the economic performance or market valuations of
    other solar power companies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    addition or departure of our executive officers and key research
    personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    announcements regarding patent litigation or the issuance of
    patents to us or our competitors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    fluctuations in the exchange rates between the U.S.&#160;dollar,
    the Euro and RMB;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    release or expiry of
    <FONT style="white-space: nowrap">lock-up</FONT> or
    other transfer restrictions on our outstanding common
    shares;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    sales or perceived sales of additional common shares.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the securities market has from time to time
    experienced significant price and volume fluctuations that are
    not related to the operating performance of particular
    companies. These market fluctuations may also have a material
    adverse effect on the market price of our common shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Substantial
    future sales or perceived sales of our common shares in the
    public market could cause the price of our common shares to
    decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sales of our common shares in the public market, or the
    perception that these sales could occur, could cause the market
    price of our common shares to decline. As of February&#160;14,
    2008, we had 27,320,389 common shares outstanding, excluding
    restricted shares granted but yet to be vested and subject to
    restrictions on voting and dividend rights and transferability.
    In addition, the common shares outstanding will increase and be
    available for sale when certain option holders receive our
    common shares if they exercise their share options upon vesting,
    subject to volume, holding period and other restrictions as
    applicable under Rule&#160;144 and Rule&#160;701 under the
    Securities Act. To the extent these shares are sold into the
    market, the market price of our common shares could decline.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Your
    right to participate in any future rights offerings may be
    limited, which may cause dilution to your
    holdings.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may from time to time distribute rights to our shareholders,
    including rights to acquire our securities. However, we cannot
    make rights available to you in the United States unless we
    register the rights and the securities to which the rights
    relate under the Securities Act or an exemption from the
    registration requirements is available. We are under no
    obligation to file a registration statement with respect to any
    such rights or securities or to endeavor to cause such a
    registration statement to be declared effective. Moreover, we
    may not be able to establish an exemption from registration
    under the Securities Act. Accordingly, you may be unable to
    participate in our rights offerings and may experience dilution
    in your holdings.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    articles of continuance contain anti-takeover provisions that
    could adversely affect the rights of holders of our common
    shares.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We adopted an amendment to our articles of continuance that
    became effective immediately upon the closing of our initial
    public offering. We have included certain provisions in our
    amended articles of continuance that would limit the ability of
    others to acquire control of our company, and deprive our
    shareholders of the opportunity to sell their shares at a
    premium over the prevailing market price by discouraging third
    parties from seeking to obtain control of our company in a
    tender offer or similar transactions.
</DIV>

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    <BR>
    34
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have included the following provisions in our amended
    articles of continuance that may have the effect of delaying or
    preventing a change of control of our company:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Our board of directors has the authority, without approval by
    the shareholders, to issue an unlimited number of preferred
    shares in one or more series. Our board of directors may
    establish the number of shares to be included in each such
    series and may fix the designations, preferences, powers and
    other rights of the shares of a series of preferred shares.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Our board of directors shall fix and may change the number of
    directors within the minimum and maximum number of directors
    provided for in our articles. Our board of directors may appoint
    one or more additional directors, who shall hold office for a
    term expiring no later than the close of the next annual meeting
    of shareholders, subject to the limitation that the total number
    of directors so appointed may not exceed one-third of the number
    of directors elected at the previous annual meeting of
    shareholders.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">You
    may have difficulty enforcing judgments obtained against
    us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a corporation organized under the laws of Canada and
    substantially all of our assets are located outside of the
    United States. Substantially all of our current operations are
    conducted in the PRC. In addition, most of our directors and
    officers, are nationals and residents of countries other than
    the United States. A substantial portion of the assets of these
    persons are located outside the United States. As a result, it
    may be difficult for you to effect service of process within the
    United States upon these persons. It may also be difficult for
    you to enforce in U.S.&#160;courts, judgments obtained in
    U.S.&#160;courts based on the civil liability provisions of the
    U.S.&#160;federal securities laws against us and our officers
    and directors, most of whom are not residents in the United
    States and the substantial majority of whose assets are located
    outside of the United States. In addition, we have been advised
    by our Canadian counsel that a monetary judgment of a
    U.S.&#160;court predicated solely upon the civil liability
    provisions of U.S.&#160;federal securities laws would likely be
    enforceable in Canada if the U.S.&#160;court in which the
    judgment was obtained had a basis for jurisdiction in the matter
    that was recognized by a Canadian court for such purposes. We
    cannot assure you that this will be the case. It is unlikely
    that an action could be brought in Canada in the first instance
    for civil liability under U.S.&#160;federal securities laws.
    There is uncertainty as to whether the courts of the PRC would
    recognize or enforce judgments of U.S.&#160;courts against us or
    such persons predicated upon the civil liability provisions of
    the securities laws of the United States or any state. In
    addition, it is uncertain whether such PRC courts would be
    competent to hear original actions brought in the PRC against us
    or such persons predicated upon the securities laws of the
    United States or any state.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    be classified as a passive foreign investment company, which
    could result in adverse U.S. federal income tax consequences to
    U.S. holders of our notes or common shares.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on the market price of our common shares and the
    composition of our income and assets and our operations, we
    believe we were not a &#147;passive foreign investment
    company,&#148; or PFIC, for U.S.&#160;federal income tax
    purposes for our taxable year ended December&#160;31, 2007.
    However, we must make a separate determination each year as to
    whether we are a PFIC (after the close of each taxable year).
    Accordingly, we cannot assure you that we will not be a PFIC for
    our current taxable year or any future taxable year. A
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    will be considered a PFIC for any taxable year if either
    (1)&#160;at least 75% of its gross income is passive income or
    (2)&#160;at least 50% of the value of its assets is attributable
    to assets that produce or are held for the production of passive
    income. The market value of our assets is generally determined
    by reference to the market price of our common shares, which may
    fluctuate considerably. If we were treated as a PFIC for any
    taxable year during which a U.S.&#160;person held a note or
    common share, certain adverse U.S.&#160;federal income tax
    consequences could apply to such U.S.&#160;person. See the
    section entitled &#147;Taxation&#160;&#151; Certain U.S. Federal
    Income Tax Considerations&#160;&#151; Passive Foreign Investment
    Company.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    incur increased costs as a result of being a public
    company.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a public company, we incur a significantly higher level of
    legal, accounting and other expenses than we did as a private
    company. In addition, the Sarbanes-Oxley Act of 2002, as well as
    new rules subsequently implemented by SEC, and the Nasdaq Global
    Market, have required changes in corporate governance practices
    of public companies.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect these new rules and regulations to increase our legal
    and financial compliance costs and to make some activities more
    time-consuming and costly. We are currently evaluating and
    monitoring developments with respect to these new rules, and we
    cannot predict or estimate the amount of additional costs we may
    incur or the timing of such costs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to the Notes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    notes are unsecured, are effectively subordinated to all of our
    existing and future secured indebtedness and are structurally
    subordinated to all liabilities of our subsidiaries, including
    trade payables.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes are unsecured, are effectively subordinated to all of
    our existing and future secured indebtedness, to the extent of
    the assets securing such indebtedness, and are structurally
    subordinated to all liabilities of our subsidiaries, including
    trade payables. The notes rank equally with all our existing and
    future unsecured, unsubordinated debt, and senior to all our
    future subordinated debt. The notes rank junior to all our
    existing and future secured debt to the extent of the collateral
    securing such debt and are effectively subordinated to all
    existing and future indebtedness and other liabilities of our
    subsidiaries. As of September&#160;30, 2007, we had:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    $15.3&#160;million of unsecured, unsubordinated indebtedness
    outstanding equal in right of payment to the notes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    no secured indebtedness outstanding effectively senior in right
    of payment to the notes to the extent of the collateral securing
    such indebtedness;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    no subordinated indebtedness.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September&#160;30, 2007, our subsidiaries had liabilities
    (including trade and other payables but excluding intercompany
    indebtedness) outstanding in an amount of $80.6&#160;million,
    which is structurally senior to the notes. The indenture for the
    notes does not restrict us or our subsidiaries from incurring
    additional debt or other liabilities. Our subsidiaries will not
    guarantee any of our obligations under the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect from time to time to incur additional indebtedness and
    other liabilities and to refinance our existing indebtedness.
    The indenture pursuant to which the notes are issued does not
    limit the amount of indebtedness that we or any of our
    subsidiaries may incur. In the event of our insolvency,
    bankruptcy, liquidation, reorganization, dissolution or winding
    up, we may not have sufficient assets to pay amounts due on any
    or all of the notes then outstanding. See the section entitled
    &#147;Description of Notes&#160;&#151; General.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    holding company structure makes us dependent on cash flow from
    our subsidiaries to meet our obligations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Most of our operations are conducted through, and most of our
    assets are held by, our subsidiaries; therefore, we are
    dependent on the cash flow of our subsidiaries to meet our debt
    obligations, including our obligations under the notes. Our
    subsidiaries are separate legal entities that have no obligation
    to pay any amounts due under the notes or the guarantee or to
    make any funds available for that purpose, whether by dividends,
    loans or other payments. The ability of our subsidiaries to pay
    dividends or otherwise transfer assets to us is subject to
    various restrictions, including restrictions under applicable
    law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of our subsidiaries has guaranteed or otherwise become
    obligated with respect to the notes. Our right to receive assets
    from and of our subsidiaries upon its liquidation or
    reorganization, and the right of holders of the notes to
    participate in those assets, is structurally subordinated to
    claims of that subsidiary&#146;s creditors, including trade
    creditors. Even if we were a creditor of any of our
    subsidiaries, our rights as a creditor would be subordinate to
    any security interest in the assets of that subsidiary and any
    indebtedness of that subsidiary senior to that held by us.
    Furthermore, none of our subsidiaries is under any obligation to
    make payments to us, and any payments to us would depend on the
    earnings or financial condition of our subsidiaries and various
    business considerations. Statutory, contractual or other
    restrictions may also limit our subsidiaries&#146; ability to
    pay dividends or make distributions, loans or advances to us.
    For these reasons, we may not have access to any assets or cash
    flows of our subsidiaries to make payments on the notes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    are no restrictive covenants in the indenture for the notes
    relating to our ability to incur future indebtedness or complete
    other transactions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture governing the notes does not contain any financial
    or operating covenants or restrictions on the payment of
    dividends, the incurrence of indebtedness, transactions with
    affiliates, incurrence of liens or the issuance or repurchase of
    securities by us or any of our subsidiaries. We therefore may
    incur additional debt, including secured indebtedness that would
    be effectively senior to the notes to the extent of the value of
    the assets securing such debt, or indebtedness at the subsidiary
    level to which the notes would be structurally subordinated. We
    cannot assure you that we will be able to generate sufficient
    cash flow to pay the interest on our debt, including the notes
    offered hereby, or that future working capital, borrowings or
    equity financing will be available to pay or refinance any such
    debt.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    make whole premium that may be payable upon conversion in
    connection with certain fundamental changes may not adequately
    compensate you for the lost option time value of your notes as a
    result of such fundamental change.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you convert notes in connection with certain fundamental
    changes that occur prior to December&#160;24, 2012, we may be
    required to increase the conversion rate for notes so
    surrendered for conversion, as described under the section
    entitled &#147;Description of Notes&#160;&#151; Adjustment to
    Conversion Rate upon Occurrence of a Fundamental Change.&#148;
    While these increases in the applicable conversion rate are
    designed to compensate you for the lost option time value of
    your notes as a result of such change, such increases are only
    an approximation of such lost value and may not adequately
    compensate you for such loss. In addition, even if a fundamental
    change occurs, in some cases described below under the section
    entitled &#147;Description of Notes&#160;&#151; Adjustment to
    Conversion Rate upon Occurrence of a Fundamental Change&#148;
    there will be no such conversion rate increase.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    conversion rate for the notes may not be adjusted for all
    dilutive events that may occur.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion rate for the notes is subject to adjustment for
    certain events including, but not limited to, the issuance of
    share dividends on common shares, the issuance of certain rights
    or warrants, subdivisions or combinations of our common shares,
    certain distributions of assets, debt securities, share capital
    or cash to holders of our common shares and certain issuer
    tender or exchange offers as described under the section
    entitled &#147;Description of Notes&#160;&#151; Conversion Rate
    Adjustments.&#148; Such conversion rates will not be adjusted
    for other events, such as share issuances for cash or
    third-party tender offers, that may adversely affect the trading
    price of the notes or any common shares. See the section
    entitled &#147;Description of Notes&#160;&#151; Conversion Rate
    Adjustments.&#148; We are not restricted from issuing additional
    common shares during the life of the notes and have no
    obligation to consider the interests of holders of the notes in
    deciding whether to issue common shares. There can be no
    assurance that an event that adversely affects the value of the
    notes, but does not result in an adjustment to the conversion
    rate, will not occur.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Because
    your right to require repurchase of the notes is limited, the
    market price of the notes may decline if we enter into a
    transaction that is not a designated event under the
    indenture.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The term &#147;fundamental change&#148; is limited and may not
    include every event that might cause the market price of the
    notes to decline or result in a downgrade of the credit rating
    of the notes. The term &#147;fundamental change&#148; does not
    apply to transactions in which 90% of the consideration
    (excluding cash payments fractional shares and cash payments
    made in respect of dissenters&#146; appraisal rights and cash
    payment of the required cash payment, if any) paid for our
    common shares in a merger or similar transaction is publicly
    traded common shares. Our obligation to repurchase the notes
    upon a designated event may not preserve the value of the notes
    in the event of a highly leveraged transaction, reorganization,
    merger or similar transaction. See the section entitled
    &#147;Description of Notes&#160;&#151; Fundamental Change
    Requires Us to Make an Offer to Purchase Notes.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    have elected to pay cash or a combination of cash and common
    shares upon conversion of the notes, you may receive less
    proceeds than expected because the value of our common shares
    may decline after you exercise your conversion
    right.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the notes, if we have received shareholder approval and
    have elected to pay cash or a combination of cash and common
    shares upon conversion of the notes, a converting holder will be
    exposed to fluctuations in the value of our common shares during
    the period from the date such holder surrenders notes for
    conversion until the date we settle our conversion obligation.
    Under the notes, if we elect to settle all or any portion of our
    conversion obligation in cash (other than solely cash in lieu of
    any fractional shares), the amount of consideration that you
    will receive upon conversion of your notes is in part determined
    by reference to the volume weighted average prices of our common
    shares for each trading day in a ten-trading day period. In
    addition, if we elect to settle a portion, but less than all, of
    our conversion obligation in cash (other than solely cash in
    lieu of any fractional shares), and the market price of our
    common shares at the end of such ten-trading day period is below
    the average of the volume weighted average price of our common
    shares during such period, the value of any common shares that
    you will receive in satisfaction of our conversion obligation
    will be less than the value used to determine the number of
    shares you will receive.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If you
    hold notes, you are not entitled to any rights with respect to
    our common shares, but you are subject to all changes made with
    respect to our common shares.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you hold notes, you are not entitled to any rights with
    respect to our common shares (including, without limitation,
    voting rights and rights to receive any dividends or other
    distributions on common shares), but you are subject to all
    changes affecting the common shares. You will only be entitled
    to rights on the common shares if and when we deliver common
    shares to you in exchange for your notes. For example, in the
    event that an amendment is proposed to our certificate of
    incorporation or by-laws requiring shareholder approval and the
    record date for determining the shareholders of record entitled
    to vote on the amendment occurs prior to delivery of the common
    shares, you will not be entitled to vote on the amendment,
    although you will nevertheless be subject to any changes in the
    powers, preferences or special rights of our common shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    not be able to raise the funds necessary to repay the notes when
    due, finance a fundamental change, purchase the notes on
    specified dates or make the payments due upon conversion, if
    any.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At maturity, the entire outstanding principal amount of the
    notes will become due and payable. In addition, upon the
    occurrence of a fundamental change and upon each of
    December&#160;24, 2012 and December&#160;15, 2014, holders of
    notes may require us to purchase their notes. Furthermore, if we
    have received shareholder approval and have elected to pay cash
    or a combination of cash and common shares upon conversion of
    the notes, we will be required to make cash payments to holders
    on conversion thereof. However, it is possible that we would not
    have sufficient funds to repay the notes at maturity, make the
    required purchase of the notes or make cash payments on
    conversion. In addition, certain important corporate events,
    such as leveraged recapitalizations that would increase the
    level of our indebtedness, would not constitute a fundamental
    change under the indenture. See the section entitled
    &#147;Description of Notes&#160;&#151; Fundamental Change
    Requires Us to Make an Offer to Purchase Notes.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    fundamental change purchase feature of the notes may delay or
    prevent an otherwise beneficial attempt to take over our
    company.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of the notes require us to make an offer to purchase
    the notes for cash in the event of a fundamental change. A
    takeover of our company would trigger an option of the holder of
    the notes to require us to purchase the notes. This may have the
    effect of delaying or preventing a takeover of our company that
    would otherwise be beneficial to investors in the notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">An
    active trading market for the notes may not
    develop.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you are able to sell your notes, we cannot assure you as to
    the price at which any sales will be made. There is currently no
    established public market for the notes, and no active trading
    market might ever develop. Furthermore, trading prices of the
    notes will depend on many factors, including prevailing interest
    rates, the market for similar securities, the price, and
    volatility in the price, of our common shares, our performance
    and other factors. In
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    addition, we do not know whether an active trading market will
    develop for the notes. To the extent that an active trading
    market does not develop, the liquidity and trading prices for
    the notes may be harmed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have no plans to list the notes on a securities exchange. At
    the time of the original issuance of the notes, the initial
    purchaser of the notes informed us that it intended to make a
    market in the notes. However, that purchaser is not obligated to
    do so. Any market-making activity, if initiated, may be
    discontinued at any time, for any reason or for no reason,
    without notice. If the initial purchaser ceases to act as the
    market maker for the notes, we cannot assure you another firm or
    person will make a market in the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The liquidity of any market for the notes will depend upon the
    number of holders of the notes, our results of operations and
    financial condition, the market for similar securities, the
    interest of securities dealers in making a market in the notes
    and other factors. An active or liquid trading market for the
    notes may not develop.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    price of our common shares may be volatile, which may affect the
    trading price of the notes.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the past, the price of our common shares has experienced
    volatility due to a number of factors, some of which are beyond
    our control. The price of our notes and the common shares into
    which the notes are convertible may continue to experience
    volatility in the future from time to time. Among the factors
    that could affect the price of our notes and the common shares
    into which the notes are convertible are:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our operating and financial performance and prospects;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    quarterly variations in key financial performance measurer, such
    as earnings per share, net income and revenue;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    changes in revenue or earnings estimates or publication of
    research reports by financial analysts;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    announcements of technological innovations or new products by us
    or our competitors;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    speculation in the press or investment community;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    strategic actions by us or our competitors, such as acquisitions
    or restructurings;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    sales of our common shares or other actions by investors with
    significant shareholdings;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    general market conditions;&#160;and
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    domestic and international economic, legal, political and
    regulatory factors unrelated to our performance.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The stock markets in general have experienced substantial
    volatility that has often been unrelated to the operating of
    particular companies. These broad market fluctuations may
    adversely affect the trading price of our notes and the
    underlying common shares. Any adverse effect upon the trading
    price of our common shares would, in turn, adversely affect the
    trading price of the notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    of the notes will dilute the ownership interest of existing
    shareholders, including holders who had previously converted
    their notes, or may otherwise depress the price of our common
    shares.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion of some or all of the notes will dilute the
    ownership interests of existing shareholders. Any sales in the
    public market of the common shares issuable upon such conversion
    could adversely affect prevailing market prices of our common
    shares. In addition, the existence of the notes may encourage
    short selling by market participants because the conversion of
    the notes could be used to satisfy short positions, or
    anticipated conversion of the notes into our common shares could
    depress the price of our common shares.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    39
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REASONS
    FOR THE OFFER AND USE OF PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All sales of the notes or common shares issuable upon conversion
    of the notes will be by or for the account of the selling
    securityholders listed in this and any subsequent prospectus
    supplement. We will not receive any proceeds from the sale by
    any selling shareholder of the notes or the common shares
    issuable upon conversion of the notes.
</DIV>
<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RATIO OF
    EARNINGS TO FIXED CHARGES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our ratio of earnings to fixed
    changes on a historical basis for the period indicated. The
    ratios are calculated by dividing earnings by fixed charges. For
    this purpose, earnings consist of pre-tax income from continuing
    operations before adjustment for minority interests, plus fixed
    charges. Fixed charges represent interest, amortization of debt
    discount and expense, and the estimated interest portion of
    rental charges.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;30,</B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ratio of earnings to fixed charges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142
</TD>
<TD nowrap align="left" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166
</TD>
<TD nowrap align="left" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD nowrap align="left" valign="bottom">
    X
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;<SUP style="font-size: 85%; vertical-align: text-top">(1</SUP>
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;<SUP style="font-size: 85%; vertical-align: text-top">(2</SUP>
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">)</SUP>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>&#160;&#160;
</TD>
    <TD align="left">    Earnings for the year ended December&#160;31, 2006 were
    insufficient to cover fixed charges by approximately
    $9.0&#160;million as our operating results were negatively
    impacted by downward market performance mainly in the last
    quarter of this year.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>&#160;&#160;
</TD>
    <TD align="left">    Earnings for the nine months ended September&#160;30, 2007 were
    insufficient to cover fixed charges by approximately
    $6.3&#160;million as our operating results were negatively
    impacted by a rapid increase in the cost of goods sold due to
    the price pressure resulting from an industry-wide raw materials
    shortage and the downward market performance in the first
    quarter of this year.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purpose of computing the consolidated ratio of earnings
    to fixed charges, earnings consist of income from continuing
    operations before income taxes, fixed charges, amortization of
    capitalized interest, distributed income of equity investees and
    losses before tax of equity investees for which charges arising
    from guarantees are included in fixed charges, minus capitalized
    interest and minority interest in pre-tax income of subsidiaries
    that have not incurred fixed charges. Fixed charges consist of
    interest expense, including capitalized interest, amortized
    premiums, discounts and capitalized expenses related to
    indebtedness and estimated interest included in rental expense.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    40
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRICE
    RANGE OF COMMON SHARES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common shares are traded on the Nasdaq Global Market under
    the symbol &#147;CSIQ.&#148; The following table sets forth the
    high and low intraday sales prices of our common shares for each
    period indicated as reported on the Nasdaq Global Market. Our
    common shares commenced trading on the Nasdaq Global Market on
    November&#160;9, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Sales Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Period</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>US$</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>US$</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I>2006</I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth Quarter (from November 10)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I>2007</I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Quarter:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    January
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    February
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    March
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Quarter:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    April
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    May
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    June
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third Quarter:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    July
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    August
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    September
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth Quarter:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    October
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    November
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    December
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I>2008</I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Quarter:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    January
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    February
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The closing price of our common shares on February&#160;29, 2008
    as reported by the Nasdaq Global Market was US$18.95.
</DIV>
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDEND
    POLICY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have never declared or paid any dividends, nor do we have any
    present plan to pay any cash dividends on our common shares in
    the foreseeable future. We currently intend to retain most, if
    not all, of our available funds and any future earnings to
    operate and expand our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has complete discretion on whether to pay
    dividends, subject to restrictions under the Canada Business
    Corporations Act (the &#147;CBCA&#148;). See the section
    entitled &#147;Description of Share Capital&#160;&#151; Common
    Shares&#160;&#151; Dividends.&#148; Even if our board of
    directors decides to pay dividends, the form, frequency and
    amount will depend upon our future operations and earnings,
    capital requirements and surplus, general financial condition,
    contractual restrictions and other factors that the board of
    directors may deem relevant. Cash dividends on our common
    shares, if any, will be paid in U.S.&#160;dollars.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    41
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAPITALIZATION
    AND INDEBTEDNESS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth our capitalization (unaudited, in
    thousands, except per share data) as of January&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This table should be read in conjunction with &#147;Summary
    Consolidated Financial Data&#148; included in this prospectus
    and our consolidated financial statements and notes thereto
    incorporated by reference in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="84%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>As of January&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,572
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    6.0%&#160;Convertible Senior Notes due 2017
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,080
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93,080
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common shares, unlimited authorized shares;
    27,320,389&#160;shares issued and
    outstanding<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    99,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (146
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accumulated other comprehensive income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,754
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133,888
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total capitalization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    226,968
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-size: 8pt">(1)</FONT></SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Excludes 1,725,321 common shares
    issuable upon the exercise of options outstanding as of the date
    of this prospectus and 768,367 common shares reserved for future
    issuance under our 2006 equity incentive plan.
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    42
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXCHANGE
    RATE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is primarily conducted in China, our functional
    currency is Renminbi and a portion of our revenues are
    denominated in Renminbi. We record transactions denominated in
    other currencies at the rates of exchange prevailing when the
    transaction occur. We translate monetary assets and liabilities
    denominated in other currencies into Renminbi at rates of
    exchange in effect at the balance sheet dates and record
    exchange gains and losses in our statements of operations. We
    have chosen the U.S.&#160;dollar as our reporting currency.
    Accordingly we translate assets and liabilities using exchange
    rates in effect at each period end and we use average exchange
    rates for the statement of operations. We make no representation
    that any Renminbi or U.S.&#160;dollar amounts could have been,
    or could be, converted into U.S.&#160;dollars or Renminbi, as
    the case may be, at any particular rate, the rates stated below,
    or at all. The PRC government imposes control over its foreign
    currency reserves in part through direct regulation of the
    conversion of Renminbi into foreign exchange and through
    restrictions on foreign trade. On February&#160;29, 2008, the
    noon buying rate was RMB7.1115 to US$1.00.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information concerning exchange
    rates between the RMB and the U.S.&#160;dollar for the periods
    indicated based on the noon buying rate in The City of New York
    for cable transfers of Renminbi as certified for customs
    purposes by the Federal Reserve Bank of New York.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Noon Buying Rate</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Period</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>End</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Average<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>(RMB Per US$1.00)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2002
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2770
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2003
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2772
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2004
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2768
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2764
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2005
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.0702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.1826
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.2765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.0702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.8041
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.9597
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.0702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.8041
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.8127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    January
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2405
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    February
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1973
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-size: 8pt">(1)</FONT></SUP></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Annual averages are calculated from
    month-end rates. Monthly averages are calculated using the
    average of the daily rates during the relevant period.
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    43
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF NOTES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We issued the notes under an indenture dated as of
    December&#160;10, 2007 between us and The Bank of New York, as
    trustee. The terms of the notes include those expressly set
    forth in the indenture and those made part of the indenture by
    reference to the Trust&#160;Indenture Act of 1939, as amended,
    or the Trust&#160;Indenture Act. The notes and any common shares
    issuable upon conversion of the notes are covered by a resale
    registration rights agreement which we have entered into as of
    December&#160;10, 2007 pursuant to which we have agreed to, for
    the benefit of the holders of notes, file this shelf
    registration statement with the SEC covering resale of notes, as
    well as our common shares issuable upon conversion of notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description is a summary of the material
    provisions of the notes, the indenture and the resale
    registration rights agreement. It does not purport to be
    complete. This summary is subject to and is qualified by
    reference to all the provisions of the notes, the indenture and
    the resale registration rights agreement, including the
    definitions of certain terms used therein. We urge you to read
    these documents because they, and not this description, define
    your rights as a holder of the notes. You may request copies of
    these documents from us upon written request at our address,
    which is listed in this prospectus under the section entitled
    &#147;Where You Can Find More Information.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this description, references to &#147;the
    Company,&#148; &#147;we,&#148; &#147;our&#148; and
    &#147;us&#148; refer only to Canadian Solar, Inc. and not to its
    subsidiaries and references to &#147;holders&#148; refer to the
    holders of notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    are our general unsecured unsubordinated obligations, and rank
    equally with our other unsecured unsubordinated indebtedness,
    but are effectively subordinated to the indebtedness and other
    liabilities of our subsidiaries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    are limited to an aggregate principal amount of US$75,000,000,
    except as set forth below;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    will mature on December&#160;15, 2017, unless earlier converted,
    repurchased or redeemed;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    bear interest at a rate of 6.0% per annum on the principal
    amount, payable semi-annually, in arrears, on each June 15 and
    December&#160;15, beginning on June&#160;15, 2008 to holders of
    record at the close of business on the preceding June 1 and
    December&#160;1, respectively;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    will bear additional interest if we fail to comply with certain
    obligations set forth under the section entitled
    &#147;&#151;&#160;Resale Registration Rights;&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    include a requirement that we make an offer to purchase, in
    whole or in part, for cash upon occurrence of a
    &#147;fundamental change&#148; (as defined under the section
    entitled &#147;&#151;&#160;Fundamental Change Requires Us to
    Make an Offer to Purchase Notes&#148;) at a price equal to 100%
    of the principal amount of any notes being purchased, plus
    accrued and unpaid interest (including additional interest), if
    any, to, but excluding, the repurchase date as described under
    the section entitled &#147;&#151;&#160;Fundamental Requires Us
    to Make an Offer to Purchase Notes;&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    are redeemable by us at any time on or after December&#160;24,
    2012, for cash at a price equal to 100% of the principal amount
    of the notes being redeemed plus accrued and unpaid interest to,
    but excluding, the redemption date (i)&#160;in whole or in part,
    if the last reported sale price (as defined below under the
    section entitled &#147;&#151;&#160;Conversion Rights&#160;&#151;
    General&#148;) of our common shares for at least 20 trading days
    in a period of 30 consecutive trading days, the last of which
    occurs no more than five trading days prior to the date upon
    which notice of such redemption is published, is at least 130%
    of the applicable conversion price per common share in effect on
    such trading date, or (ii)&#160;in whole only, if at least 95%
    of the initial aggregate principal amount of the notes
    originally issued have been redeemed, converted or repurchased
    and, in each case, cancelled;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    will be redeemable, in whole but not in part, if as a result of
    a change in or amendment to the laws of a Relevant Jurisdiction
    (as defined under the section entitled
    &#147;&#151;&#160;Additional Amounts&#148;) we are required
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    44
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    to pay Additional Amounts at a redemption price equal to 100% of
    their principal amount, together with accrued and unpaid
    interest and Additional Amounts, if any, subject to a
    holder&#146;s election not to be subject to such redemption;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    are subject to purchase by us at the option of the holder on
    December&#160;24, 2012 and December&#160;15, 2014, subject to
    certain conditions, at a purchase price in cash equal to 100% of
    the principal amount of the notes being redeemed plus accrued
    and unpaid interest to, but excluding, the date of repurchase as
    described under &#147;&#151;&#160;Purchase of Notes at Your
    Option on Specified Dates;&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    were issued in denominations of US$1,000 and integral multiples
    of US$1,000;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    are represented by one or more registered notes in global form,
    but in certain limited circumstances may be represented by notes
    in definitive form.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At any time prior to the close of business on the business day
    before the stated maturity date, the notes may be converted into
    common shares at an initial conversion rate of 50.6073 common
    shares per US$1,000 principal amount of notes (equivalent to a
    conversion price of approximately US$19.76 per common share),
    subject to prior repurchase or redemption. The conversion rate
    is subject to adjustment if certain events occur. See the
    section entitled &#147;&#151;&#160;Conversion Rate
    Adjustments&#148; and &#147;&#151;&#160;Adjustment to Conversion
    Rate upon Occurrence of a Fundamental Change.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We use the term &#147;note&#148; in this prospectus to refer to
    each US$1,000 principal amount of notes. The registered holder
    of a note will be treated as the owner of it for all purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may, without the consent of the holders, reopen the notes and
    issue additional notes under the indenture with the same terms
    and with the same CUSIP numbers as the notes offered hereby in
    an unlimited aggregate principal amount, provided that no such
    additional notes may be issued unless fungible with the notes
    offered hereby for U.S.&#160;federal income tax purposes. We may
    also from time to time repurchase the notes in open market
    purchases or negotiated transactions without prior notice to the
    holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture does not limit the amount of debt which may be
    issued by us or our subsidiaries under the indenture or
    otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders may not sell or otherwise transfer the notes or any
    common shares issuable upon conversion of the notes except in
    compliance with the provisions set under
    &#147;&#151;&#160;Resale Registration Rights.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other than restrictions described under
    &#147;&#151;&#160;Fundamental Change Requires Us to Make an
    Offer to Purchase Notes&#148; and
    &#147;&#151;&#160;Consolidation, Merger and Sale of Assets&#148;
    below, and except for the provisions set forth under
    &#147;&#151;&#160;Conversion Rights&#160;&#151; Adjustment to
    Conversion Rate upon Conversion upon Fundamental Change,&#148;
    the indenture does not contain any covenants or other provisions
    designed to afford holders of the notes protection in the event
    of a highly leveraged transaction involving us or in the event
    of a decline in our credit rating as the result of a takeover,
    recapitalization, highly leveraged transaction or similar
    restructuring involving us that could adversely affect the
    holders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Payments
    on the Notes; Paying Agent and Registrar</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will make all payments on the notes exclusively in such coin
    or currency of the United States as at the time of payment will
    be legal tender for the payment of public and private debts. The
    trustee will initially act as the registrar and the paying agent
    for notes. We may, however, change the paying agent or registrar
    without prior notice to the holders of the notes, and we may act
    as paying agent or registrar.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay principal of, and interest on, notes in global form
    registered in the name of or held by The Depository
    Trust&#160;Company, or DTC, or its nominee in immediately
    available funds to DTC or its nominee, as the case may be, as
    the registered holder of such global notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay the principal of and interest on certificated notes
    (i)&#160;to registered holders having an aggregate principal
    amount of US$5,000,000 or less, by check mailed to the
    registered holders of these notes and (ii)&#160;to registered
    holders having an aggregate principal amount of more than
    US$5,000,000, either by check mailed to each holder or, upon
    application by a holder to the registrar not later than the
    relevant record date, by wire transfer in immediately
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    45
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    available funds to that holder&#146;s account within the United
    States, which application shall remain in effect until the
    holder notifies, in writing, the registrar to the contrary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any payment date with respect to the notes falls on a day
    that is not a business day, we will make the payment on the next
    business day. &#147;Business day&#148; means any day, except a
    Saturday or Sunday or any other day on which the Federal Reserve
    Bank of New York is closed. The payment made on the next
    business day will be treated as though it had been made on the
    original payment date, and no interest will accrue on the
    payment for the additional period of time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    and Exchange</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the provisions described under
    &#147;&#151;&#160;Resale Registration Rights,&#148; a holder of
    notes may transfer or exchange notes at the office of the
    registrar in accordance with the indenture. The registrar and
    the trustee may require a holder, among other things, to furnish
    appropriate endorsements and transfer documents. No service
    charge will be imposed by us, the trustee or the registrar for
    any registration of transfer or exchange of notes, but we may
    require a holder to pay a sum sufficient to cover any transfer
    tax or other similar governmental charge required by law or
    permitted by the indenture. We are not required to transfer or
    exchange any note selected for redemption or surrendered for
    conversion or repurchase, except, in each case, for that portion
    of the notes not being redeemed, converted or repurchased.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Ranking</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes are our senior, unsecured obligations and rank equal
    in right of payment to all of our other unsecured and
    unsubordinated indebtedness. The notes are effectively
    subordinated in right of payment to all of our existing and
    future secured debt to the extent of such security and
    structurally subordinated to the indebtedness and other
    liabilities of our subsidiaries. As of September&#160;30, 2007,
    we had approximately no secured debt outstanding and our direct
    and indirect subsidiaries had approximately US$61.7&#160;million
    of total debt outstanding on a consolidated basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes are our exclusive obligation. Our cash flow and our
    ability to service our indebtedness, including the notes, is
    dependent upon the earnings of our subsidiaries. In addition, we
    are dependent on the distribution of earnings, loans or other
    payments by our subsidiaries to us. Our subsidiaries are
    separate and distinct legal entities. Our subsidiaries have not
    guaranteed the notes or have any obligation to pay any amounts
    due on the notes or to provide us with funds for our payment
    obligations, whether by dividends, distributions, loans or other
    payments. In addition, any payment of dividends, distributions,
    loans or advances by our subsidiaries to us could be subject to
    statutory or contractual restrictions. Payments to us by our
    subsidiaries will also be contingent upon our subsidiaries&#146;
    earnings and business considerations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our right to receive any assets of any subsidiary upon its
    liquidation or reorganization, and, therefore, our right to
    participate in those assets, will be structurally subordinated
    to the claims of that subsidiary&#146;s creditors, including
    trade creditors. In addition, even if we were a creditor of any
    of our subsidiaries, our right as a creditor would be
    subordinate to any security interest in the assets of our
    subsidiaries and any indebtedness of our subsidiaries senior to
    that held by us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Interest</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes bear interest at a rate of 6.0% per annum from
    December&#160;10, 2007, or from the most recent date to which
    interest has been paid or duly provided for. Interest is payable
    semiannually in arrears on June 15 and December 15 of each year,
    beginning June&#160;15, 2008. Interest on the notes will be
    computed on the basis of a
    <FONT style="white-space: nowrap">360-day</FONT> year
    composed of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Interest will be paid to the person in whose name a note is
    registered at the close of business on June 1 or
    December&#160;1, as the case may be, immediately preceding the
    relevant interest payment date, except in the situations
    described in &#147;&#151;&#160;Conversion Rights&#160;&#151;
    General.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    46
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Additional
    Amounts</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All payments made by us or any successor to us under or with
    respect to the notes, including payments of cash or delivery of
    common shares upon conversion, will be made without withholding
    or deduction for, or on account of, any present or future taxes,
    duties, assessments or governmental charges of whatever nature
    imposed or levied by or within any jurisdiction in which we or
    any successor are organized or resident for tax purposes or
    through which payment is made (or any political subdivision or
    taxing authority thereof or therein) (each, as applicable, a
    &#147;Relevant Taxing Jurisdiction&#148;), unless such
    withholding or deduction is required by law or by regulation or
    governmental policy having the force of law. In the event that
    any such withholding or deduction is so required, we will pay to
    the holder of each note such additional amounts
    (&#147;Additional Amounts&#148;) as may be necessary to ensure
    that the net amount received by the holder after such
    withholding or deduction (including any taxes on the Additional
    Amounts) shall equal the amounts which would have been received
    by such holder had no such withholding or deduction been
    required, except that no Additional Amount shall be payable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;&#160;for or on account of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="13%"></TD>
    <TD width="4%"></TD>
    <TD width="83%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;&#160;
</TD>
    <TD align="left">
    any tax, duty, assessment or other governmental charge that
    would not have been imposed but for:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="13%"></TD>
    <TD width="4%"></TD>
    <TD width="83%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (i)&#160;&#160;
</TD>
    <TD align="left">
    the existence of any present or former connection between the
    holder or beneficial owner of such note and the Relevant Taxing
    Jurisdiction other than merely holding such note or the receipt
    of payments thereunder, including, without limitation, such
    holder or beneficial owner being or having been a national,
    domiciliary or resident of such Relevant Taxing Jurisdiction or
    treated as a resident thereof or being or having been physically
    present, carried on business or engaged in a trade or business
    therein or having or having had a permanent establishment
    therein;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="13%"></TD>
    <TD width="5%"></TD>
    <TD width="82%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (ii)&#160;&#160;
</TD>
    <TD align="left">
    the presentation of such note (in cases in which presentation is
    required) more than 30&#160;days after the later of the date on
    which the payment of the principal of, premium, if any, and
    interest on, such note became due and payable pursuant to the
    terms thereof or was made or duly provided for;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="13%"></TD>
    <TD width="5%"></TD>
    <TD width="82%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (iii)&#160;&#160;
</TD>
    <TD align="left">
    the failure of the holder or beneficial owner to comply with a
    timely request from us or any successor to provide
    certification, information, documents or other evidence
    concerning such holder&#146;s or beneficial owner&#146;s
    nationality, residence, identity or connection with the Relevant
    Taxing Jurisdiction, or to make any declaration or satisfy any
    other reporting requirement relating to such matters, if and to
    the extent that due and timely compliance with such request is
    required by statute, regulation or administrative practice of
    the Relevant Taxing Jurisdiction to reduce or eliminate any
    withholding or deduction as to which Additional Amounts would
    have otherwise been payable to such holder or beneficial owner;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="13%"></TD>
    <TD width="5%"></TD>
    <TD width="82%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;&#160;
</TD>
    <TD align="left">
    any estate, inheritance, gift, sale, transfer, capital gains,
    excise, personal property or similar tax, assessment or other
    governmental charge;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="13%"></TD>
    <TD width="4%"></TD>
    <TD width="83%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (c)&#160;&#160;
</TD>
    <TD align="left">
    any tax, duty, assessment or other governmental charge that is
    payable otherwise than by withholding from payments under or
    with respect to the notes;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="13%"></TD>
    <TD width="5%"></TD>
    <TD width="82%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (d)&#160;&#160;
</TD>
    <TD align="left">
    any combination of taxes, duties, assessments or other
    governmental charges referred to in the preceding clauses (a),
    (b)&#160;or (c);&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="5%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;&#160;
</TD>
    <TD align="left">
    with respect to any payment of the principal of, or premium, if
    any, or interest on, such note to a holder, if the holder is a
    fiduciary, partnership or person other than the sole beneficial
    owner of that payment to the extent that such payment would be
    required to be included in the income under the laws of the
    Relevant Taxing Jurisdiction, for tax purposes, of a beneficiary
    or settlor with respect to the fiduciary, a member of that
    partnership or a beneficial owner who would not have been
    entitled to such Additional Amounts had that beneficiary,
    settlor, partner or beneficial owner been the holder thereof.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    47
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Whenever there is mentioned in any context the payment of
    principal of, and any premium or interest on, any note or any
    amount payable with respect to such note, such mention shall be
    deemed to include payment of Additional Amounts provided for in
    the indenture to the extent that, in such context, Additional
    Amounts are, were or would be payable in respect thereof.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conversion
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At any time prior to the close of business on the business day
    immediately preceding the stated maturity date and subject to
    prior repurchase or redemption, holders may convert each of
    their notes into the common shares at an initial conversion rate
    of 50.6073 common shares per US$1,000 principal amount of notes
    (equivalent to an initial conversion price of approximately
    US$19.76 per common share).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In certain circumstances, common shares issued upon conversion
    of notes will be issued and delivered in the form of restricted
    common shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion rate and the equivalent conversion price in
    effect at any given time are referred to as the &#147;applicable
    conversion rate&#148; and the &#147;applicable conversion
    price,&#148; respectively, and will be subject to adjustment as
    described below. The applicable conversion price at any given
    time will be computed by dividing US$1,000 by the applicable
    conversion rate at such time. A holder may convert fewer than
    all of such holder&#146;s notes so long as the notes converted
    are an integral multiple of US$1,000 principal amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon conversion, you will not receive any separate cash payment
    for accrued and unpaid interest, unless such conversion occurs
    between a record date and the related interest payment date. Our
    settlement of conversions as described below under
    &#147;&#151;&#160;Settlement upon Conversion&#148; will be
    deemed to satisfy our obligation to pay:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the principal amount of the note;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    accrued and unpaid interest to, but not including, the
    conversion date.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result, accrued and unpaid interest to, but not including,
    the conversion date will be deemed to be paid in full rather
    than cancelled, extinguished or forfeited.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the preceding paragraph, if notes are converted
    after the close of business on a record date but prior to the
    opening of business on the related interest payment date,
    holders of such notes at the close of business on the record
    date will receive the interest payable on such notes on the
    corresponding interest payment date notwithstanding the
    conversion. Notes surrendered for conversion during the period
    from the close of business on any record date to the opening of
    business on the related interest payment date must be
    accompanied by funds in cash equal to the amount of interest
    payable on such interest payment date on the notes so
    surrendered; provided that no such payment need be made:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if we have specified a redemption date that is after such record
    date but on or prior to the related interest payment date;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if we have specified a fundamental change purchase date that is
    after such record date but on or prior to the related interest
    payment date;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in respect of any overdue interest accrued on the notes, if any
    overdue interest exists at the time of conversion with respect
    to such notes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay any documentary, stamp or similar issue or transfer
    tax due on the issuance and delivery of any common shares upon
    conversion, unless the tax is due because a holder requests any
    common shares to be issued in a name other than the
    holder&#146;s name, in which case the holder will pay that tax.
    In addition, we will pay any other costs or expenses incurred in
    connection with the issuance and delivery of any common shares
    upon conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notes in respect of which a holder has delivered a purchase
    notice or a notice of acceptance of our offer to purchase its
    notes upon the occurrence of a fundamental change (defined
    below) may not be surrendered for conversion until the holder
    has withdrawn the notice in accordance with the indenture.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    48
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;last reported sale price&#148; of our common shares on
    any date means the closing sale price per common share (or if no
    closing sale price is reported, the average of the bid and ask
    prices or, if more than one, the average of the average bid and
    the average ask prices) on that date as reported on the Nasdaq
    Global Market or other principal U.S.&#160;securities exchange
    on which our common shares are traded. If our common shares are
    not listed for trading on a United States national or regional
    securities exchange on the relevant date, the &#147;last
    reported sale price&#148; of our common shares will be the last
    quoted bid price for our common shares in the over-the-counter
    market on the relevant date as reported by the National
    Quotation Bureau or similar organization. If our common shares
    are not so quoted, the &#147;last reported sale price&#148; of
    the common shares will be the average of the mid-point of the
    last bid and ask prices for our common shares on the relevant
    date from each of at least three U.S.&#160;nationally recognized
    independent investment banking firms selected by us for this
    purpose. The &#147;last reported sale price&#148; of our common
    shares will be determined without reference to extended or after
    hours trading.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The term &#147;trading day&#148; means a day during which
    (i)&#160;there is no market disruption event (as defined below)
    and (ii)&#160;the Nasdaq Global Market, or if our common shares
    are not listed on the Nasdaq Global Market, the principal
    U.S.&#160;securities exchange on which our common shares are
    listed, is open for trading or if our common shares are not
    admitted for trading or quotation on or by any exchange, bureau
    or other organization referred to in the preceding paragraph
    (excluding the third sentence of that paragraph), &#147;trading
    day&#148; will mean any business day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The term &#147;market disruption event&#148; means the
    occurrence or existence for more than one-half hour period in
    the aggregate on any trading day for our common shares of any
    suspension or limitation imposed on trading (by reason of
    movements in price exceeding limits permitted by the stock
    exchange or otherwise) in our common shares or in any options,
    contracts or future contracts relating solely to our common
    shares, and such suspension or limitation occurs or exists at
    any time before 1:00&#160;p.m. (New York City time) on such day.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    upon Notice of Redemption</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A holder of notes that we call for redemption may surrender
    those notes for conversion at any time prior to the close of
    business on the business day preceding the redemption date.
    Notes in respect of which a holder has delivered a purchase
    notice or a notice of acceptance of our offer to purchase its
    notes upon the occurrence of a fundamental change (defined
    below) may not be surrendered for conversion until the holder
    has withdrawn the notice in accordance with the indenture.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    upon Specified Corporate Transactions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders who convert notes in connection with any fundamental
    change occurring on or prior to December&#160;24, 2012 will also
    be entitled to an increase in the conversion rate to the extent
    described below under &#147;&#151;&#160;Adjustment to Conversion
    Rate upon Occurrence of a Fundamental Change.&#148; Upon the
    occurrence of a fundamental change, we are required to make an
    offer to purchase their notes as set forth below under
    &#147;&#151;&#160;Fundamental Change Requires Us to Make an
    Offer to Purchase Notes.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    Procedures</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You will not be required to pay transfer taxes or duties
    relating to the issuance or delivery of our common shares if you
    exercise your conversion rights, but you will be required to pay
    any transfer tax or duties that may be payable relating to any
    transfer involved in the issuance or delivery of the common
    shares in a name other than your own. Certificates representing
    common shares will be issued or delivered after all applicable
    transfer taxes and duties, if any, payable by you have been paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you hold a beneficial interest in a global note, to convert
    you must comply with DTC&#146;s procedures for converting a
    beneficial interest in a global note and, if required, pay funds
    equal to interest payable on the next interest payment date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you hold a certificated note, to convert you must:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    complete and manually sign the conversion notice on the back of
    the note, or a facsimile of the conversion notice;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    deliver the conversion notice, which is irrevocable, and the
    note to the conversion agent;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    49
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if required, furnish appropriate endorsements and transfer
    documents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if required, pay funds equal to interest payable on the next
    interest payment date;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    pay all required transfer taxes or duties.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The date you comply with these requirements is the
    &#147;conversion date&#148; under the indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a holder has already delivered a purchase notice as described
    under &#147;&#151;&#160;Fundamental Change Requires Us to Make
    an Offer to Purchase Notes&#148; or &#147;&#151;&#160;Purchase
    of Notes at Your Option on Specified Dates&#148; with respect to
    a note, the holder may not surrender that note for conversion
    until the holder has withdrawn the notice in accordance with the
    indenture.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Settlement
    Elections</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With the consent of at least 25% of holders, as specified in
    &#147;Modification and Amendment,&#148; we and the trustee may
    amend the indenture to permit settlement upon conversion in cash
    or any combination of cash and common shares in lieu of delivery
    of common shares in satisfaction of our obligation upon
    conversion of notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we make such amendment to the indenture, we will inform the
    holders through the trustee of the method we choose to satisfy
    our obligation upon conversion (and the specified cash amount
    (as defined below), if applicable), as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in respect of notes to be converted during the period beginning
    12 scheduled trading days immediately preceding a redemption
    date, purchase date, fundamental change purchase date or the
    maturity date for such notes, no later than the date we deliver
    our notice of redemption, repurchase, fundamental change or the
    13th&#160;scheduled trading day preceding the maturity date, as
    applicable;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in all other cases, no later than two trading days following the
    applicable conversion date.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we do not give any notice within the time periods described
    as to how we intend to settle, we will satisfy our conversion
    obligation only in common shares (except for any cash in lieu of
    fractional common shares).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    Settlement Notices</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With the consent of at least 25% of holders, as specified in
    &#147;Modification and Amendment,&#148; we and the trustee may
    amend the indenture to permit settlement upon conversion in cash
    or any combination of cash and common shares. If we make such
    amendment to the indenture and choose to satisfy any portion of
    our conversion obligation in cash, other than solely cash in
    lieu of any fractional common shares, we will notify holders as
    described above of the amount to be satisfied in cash as a fixed
    dollar amount per $1,000 principal amount of notes (the
    &#147;specified cash amount&#148;) or we will specify that we
    will satisfy the entire conversion obligation in cash.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will treat all holders with the same cash settlement
    averaging period (as defined below) in the same manner. We will
    not, however, have any obligation to settle our conversion
    obligations arising with respect to different cash settlement
    averaging periods in the same manner. That is, we may choose
    with respect to one cash settlement averaging period to settle
    in common shares only and choose with respect to another cash
    settlement averaging period to settle in cash or a combination
    of cash and common shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Settlement
    Upon Conversion</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we elect to settle a conversion of notes only in common
    shares, such settlement will occur as soon as practicable after
    we notify holders that we have chosen this method of settlement,
    but in any event within three business days of the relevant
    conversion date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Settlements made entirely or partially in cash (other than cash
    in lieu of fractional common shares), subsequent to obtaining
    consent from holders, will occur on the third business day
    following the final trading day of the cash settlement averaging
    period.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    50
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount of cash
    <FONT style="white-space: nowrap">and/or</FONT>
    number of common shares, as the case may be, due upon conversion
    will be determined as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="6%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    If we elect to satisfy the entire conversion obligation in
    common shares, we will deliver to the holder a number of common
    shares equal to (i) (A)&#160;the aggregate principal amount of
    notes to be converted, <I>divided by </I>(B)&#160;1,000,
    <I>multiplied by </I>(ii)&#160;the conversion rate in effect on
    the relevant conversion date (<I>provided </I>that we will
    deliver cash in lieu of fractional common shares as described
    below).
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    If we have obtained consent from holders as specified in
    &#147;Modification&#160;&#038; Amendment&#148; and we elect to
    satisfy the entire conversion obligation in cash, we will
    deliver to the holder, for each $1,000 principal amount of
    notes, cash in an amount equal to the conversion value, as
    defined below.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    If we have obtained consent from holders as specified in
    &#147;Modification&#160;&#038; Amendment&#148; and we elect to
    satisfy the conversion obligation in a combination of cash and
    common shares, we will deliver to the holder, for each $1,000
    principal amount of notes:
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    cash in an amount equal to the lesser of (A)&#160;the specified
    cash amount and (B)&#160;the conversion value (as defined
    below);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if the conversion value is greater than the specified cash
    amount, a number of common shares equal to the sum of the daily
    common share amounts (as defined below) for each of the ten
    trading days in the cash settlement averaging period (as defined
    below), plus cash in lieu of any fractional common shares as
    described below.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;conversion value&#148; means the product of
    (1)&#160;the conversion rate, <I>multiplied by </I>(2)&#160;the
    average of the volume weighted average price (as defined below)
    per common share on each of the trading days during the cash
    settlement averaging period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;volume weighted average price&#148; per common share
    on any trading day means such price as displayed on Bloomberg
    (or any successor service) page&#160;CSIQ &#060;equity&#062; VAP
    in respect of the period from 9:30&#160;a.m. to 4:00&#160;p.m.,
    New York City time, on such trading day; or, if such price is
    not available, the volume weighted average price means the
    market value per common share on such day as determined by a
    nationally recognized independent investment banking firm
    retained for this purpose by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;cash settlement averaging period&#148; means:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="6%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    with respect to any conversion date occurring on or after the
    12th&#160;scheduled trading day immediately preceding a
    redemption date, repurchase date, fundamental change purchase
    date or the maturity date, the 10 consecutive trading day period
    beginning on, and including, the 12th&#160;scheduled trading day
    immediately prior to such redemption date or the maturity date,
    subject to any extension due to a market disruption event;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in all other cases, the 10 consecutive trading day period
    beginning on, and including, the third trading day immediately
    following the relevant conversion date.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;daily common share amount&#148; means, for each
    trading day of the cash settlement averaging period and each
    $1,000 principal amount of notes surrendered for conversion, a
    number of common shares (but in no event less than zero)
    determined pursuant to the following formula:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="7%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="35%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=07 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="right" valign="middle">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    volume weighted average<BR>
    price <BR>
    per common share on such<BR>
    trading day
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="middle">
    <FONT style="font-size: 6pt">&#215;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    conversion rate<BR>
    in effect on the<BR>
    conversion date
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="middle">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="middle">
    -
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="middle">
    specified<BR>
    cash<BR>
    amount
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom">
<TD colspan="13" align="right" valign="middle">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="13" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="9" align="center" valign="middle">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    volume weighted average price per common share on<BR>
    such trading day
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="middle">
    <FONT style="font-size: 6pt">&#215;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="middle">
    10
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    51
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In calculating the daily common share amount, the conversion
    rate on any day shall be appropriately adjusted to take into
    account the occurrence on or before such trading day of any
    event which would require an adjustment to the conversion rate
    as set forth above under &#147;&#151;&#160;Conversion Rate
    Adjustments.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A &#147;scheduled trading day&#148; means a day that is
    scheduled to be a trading day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is expected that any newly issued common shares will be
    accepted into the book-entry system maintained by DTC, and no
    person receiving common shares shall receive or be entitled to
    receive physical delivery of common shares, except in the
    limited circumstances set forth in the indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will agree to take all such actions and obtain all such
    approvals and registrations, including, without limitation, the
    specific registrations with the relevant authority, with respect
    to the conversion of the notes into our common shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will deliver cash in lieu of any fractional common shares
    issuable in connection with payment of the amounts above (based
    on the last reported sale price of the common shares on the last
    day of the applicable observation period).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    Rate Adjustments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion rate will be adjusted as described below, except
    that we will not make any adjustments to the conversion rate if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    holders of the notes participate, as a result of holding the
    notes, in the relevant transaction described below without
    having to convert their notes as if they held the full number of
    common shares underlying their notes;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    holders of common shares are not eligible to participate in the
    relevant transaction described below.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Adjustment
    Events.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    If we issue our common shares as a dividend or distribution on
    common shares (including a common share bonus or as a result of
    the capitalization of profits or reserves), or if we effect a
    common share split or common share combination, the conversion
    rate will be adjusted based on the following formula:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 20%; margin-right: 80%">
<TABLE border="0" width="0%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="15%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="27%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="middle">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#180;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    &#160;&#160;OS&#180;&#160;&#160;<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=36 length=0 -->&#160;&#160;OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;&#160;
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;the
    conversion rate in effect immediately prior to the ex-dividend
    date for such dividend or distribution, or the effective date of
    such common share split or common share combination, as the case
    may be;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR&#180;&#160;=&#160;the conversion rate in effect immediately
    after the opening of business on the ex-dividend date for such
    dividend or distribution, or the effective date of such common
    share split or common share combination, as the case may be;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;
    the number of common shares outstanding immediately prior to the
    ex-dividend date for such dividend or distribution, or the
    effective date of such common share split or common share
    combination, as the case may be;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS&#180;&#160;= the number of common shares outstanding
    immediately after the opening of business on the ex-dividend
    date for such dividend or distribution, or the effective date of
    such common share split or common share combination, as the case
    may be.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    If we distribute to all or substantially all holders of our
    common shares any rights (including subscription bonuses) or
    warrants entitling them for a period of not more than 45
    calendar days from the record date for such distribution to
    subscribe for or purchase common shares, at a price per common
    share less than the last reported sale price of our common
    shares on the trading day
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    52
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    immediately preceding the date of announcement of such
    distribution, the conversion rate will be adjusted based on the
    following formula (provided that the conversion rate will be
    readjusted to the extent that such rights or warrants are not
    exercised prior to their expiration):
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 20%; margin-right: 80%">
<TABLE border="0" width="0%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="14%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="33%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="middle">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#180;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    &#160;&#160;OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>+X&#160;&#160;<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=49 length=0 -->&#160;&#160;OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>+Y&#160;&#160;
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;
    the conversion rate in effect immediately prior to the
    ex-dividend date for such distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR&#180;&#160;= the conversion rate in effect immediately after
    the opening of business on the ex-dividend date for such
    distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;
    the number of common shares outstanding immediately prior to the
    ex-dividend date for such distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    X&#160;= the total number of common shares issuable pursuant to
    such rights or warrants;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Y&#160;= the number of common shares equal to the aggregate
    price payable to exercise such rights or warrants divided by the
    average of the last reported sale prices of our common shares
    over the ten consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period ending on the trading day immediately preceding the
    ex-dividend date for such distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    If we distribute our share capital, evidences of our
    indebtedness or other assets or property, or rights to acquire
    our share capital or other securities, to all or substantially
    all holders of our common shares, excluding:
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    dividends or distributions and rights or warrants described in
    clause&#160;(1) or (2)&#160;above;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    dividends or distributions paid exclusively in cash;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    spin-offs to which the provisions set forth below in this
    paragraph (3)&#160;shall apply;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    then the conversion rate will be adjusted based on the following
    formula:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 20%; margin-right: 80%">
<TABLE border="0" width="0%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="14%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="middle">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#180;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#160;&#160;SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;&#160;<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=59 length=0 -->&#160;&#160;SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>-FMV&#160;&#160;
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;
    the conversion rate in effect immediately prior to the
    ex-dividend date for such distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR&#180;&#160;= the conversion rate in effect immediately after
    the opening of business on the ex-dividend date for such
    distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=
    the average of the last reported sale prices of our common
    shares over the ten consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period ending on the trading day immediately preceding the
    ex-dividend date for such distribution;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FMV = the fair market value (as determined by our board of
    directors) of our share capital, evidences of indebtedness,
    assets, property or rights distributed with respect to each
    outstanding common share on the ex-dividend date for such
    distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to an adjustment pursuant to this clause&#160;(3)
    where there has been a payment of a dividend or other
    distribution on our share capital of any class or series, or
    similar equity interest, of or relating to a subsidiary or other
    business unit (a &#147;spin-off&#148;), the conversion rate will
    be adjusted based on the following formula:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 20%; margin-right: 80%">
<TABLE border="0" width="0%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="16%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="10%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="41%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="middle">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#180;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#160;&#160;FMV<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>+MP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;&#160;<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=69 length=0 -->MP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;
    the conversion rate in effect immediately prior to the end of
    the valuation period (as defined below);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR&#180;&#160;= the conversion rate in effect immediately after
    the end of the valuation period;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    53
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FMV<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;
    the average of the last reported sale prices of the share
    capital or similar equity interest distributed to holders of our
    common shares applicable to one common share over the first ten
    consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period beginning on and including the fifth trading day after
    the effective date of the spin-off (the &#147;valuation
    period&#148;);&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    MP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;
    the average of the last reported sale prices of our common
    shares over the valuation period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The adjustment to the conversion rate under the preceding
    paragraph will occur on the fifteenth trading day from, and
    including, the effective date of the spin-off. As a result, any
    conversion within the fifteen trading days following the
    effective date of any spin-off will be deemed not to have
    occurred until the end of such fifteen
    <FONT style="white-space: nowrap">trading-day</FONT>
    period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (4)&#160;
</TD>
    <TD align="left">
    If we pay any cash dividend or distribution (other than the cash
    portion of any distributions for which the conversion rate is
    adjusted pursuant to paragraph (3)&#160;above) to all or
    substantially all holders of our common shares (including as a
    result of capital reductions and common share redemptions or
    amortizations), the conversion rate will be adjusted based on
    the following formula:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 20%; margin-right: 80%">
<TABLE border="0" width="0%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="15%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="35%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="middle">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#180;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>&#160;&#160;&#160;&#160;&#160;<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=54 length=0 -->SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>-C
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;
    the conversion rate in effect immediately prior to the
    ex-dividend date for such dividend or distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR&#180;&#160;= the conversion rate in effect immediately after
    the opening of business on the ex-dividend date for such
    dividend or distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SP<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;
    the average of the last reported sale prices of our common
    shares over the ten consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period ending on the trading day immediately preceding the
    ex-dividend date for such dividend or distribution;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C = the full amount of such dividend or distribution per common
    share we distribute to holders of our common shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (5)&#160;
</TD>
    <TD align="left">
    If we or any of our subsidiaries makes a payment in respect of a
    tender offer or exchange offer for our common shares, if
    (a)&#160;the cash and value of any other consideration included
    in the payment per common share exceeds (b)&#160;the last
    reported sale price of our common shares on the trading day
    immediately following the last date on which tenders or
    exchanges may be made pursuant to such tender or exchange offer,
    the conversion rate will be adjusted based on the following
    formula:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-left: 30%; margin-right: 30%">
<TABLE border="0" width="40%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="14%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="left" valign="middle">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CR&#180;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    =
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="middle">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    &#160;&#160;AC+(SP&#180;-OS&#180;)&#160;&#160;<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=79 length=0 -->OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>
    x SP&#180;
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    where,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;the
    conversion rate in effect on the day immediately prior to the
    effective date of the adjustment;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CR&#180;&#160;=&#160;the conversion rate in effect immediately
    following the effective date of the adjustment;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    AC&#160;=&#160;the aggregate value of all cash and any other
    consideration (as determined by our board of directors) paid or
    payable for common shares purchased in such tender or exchange
    offer;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS<SUB style="font-size: 85%; vertical-align: text-bottom">0</SUB>=&#160;the
    number of common shares outstanding immediately prior to the
    date such tender or exchange offer expires;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OS&#180;&#160;=&#160;the number of common shares outstanding
    immediately after the date such tender or exchange offer
    expires;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SP&#180;&#160;=&#160;the average of the last reported sale
    prices of our common shares over the ten consecutive
    <FONT style="white-space: nowrap">trading-day</FONT>
    period commencing on the trading day immediately following the
    date such tender or exchange offer expires.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    54
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The adjustment to the conversion rate under the preceding
    paragraph will occur at the close of business on the tenth
    trading day from and including the trading day immediately
    following the date such tender or exchange offer expires. As a
    result, any conversion within such ten
    <FONT style="white-space: nowrap">trading-day</FONT>
    period will be deemed not to have occurred until the end of such
    ten
    <FONT style="white-space: nowrap">trading-day</FONT>
    period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, however, the application of the foregoing formulae (other
    than in connection with a common share combination) would result
    in a decrease in the conversion rate, no adjustment to the
    conversion rate will be made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used in this section, &#147;ex-dividend date&#148; means the
    first date on which a sale of the common shares does not
    automatically transfer the right to receive the relevant
    issuance, dividend or distribution in question from the seller
    of the common share to its buyer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as stated herein and under &#147;&#151;&#160;Adjustment
    to Conversion Rate upon Occurrence of a Fundamental
    Change,&#148; we will not adjust the conversion rate for the
    issuance of our common shares or any securities convertible into
    or exchangeable for our common shares or the right to purchase
    our common shares or such convertible or exchangeable securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Events that Will Not Result in
    Adjustments.</I></B>&#160;The applicable conversion rate will
    not be adjusted, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    upon the issuance of any common shares pursuant to any present
    or future plan providing for the reinvestment of dividends or
    interest payable on our securities and the investment of
    additional optional amounts in common shares under any such plan;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    upon the issuance of any common share, or any option, warrant,
    right or exercisable, exchangeable or convertible security to
    purchase our common shares, pursuant to any future agreements
    entered into with suppliers of raw materials or machinery or
    consideration or inducement to enter into such supply agreement,
    except if such distribution is to all or substantially all
    holders of our common shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    upon the issuance of any common shares or options or rights to
    purchase those common shares pursuant to any present or future
    employee, director or consultant benefit plan or program of or
    assumed by us or any of our subsidiaries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    upon the issuance of any common shares pursuant to any option,
    warrant, right or exercisable, exchangeable or convertible
    security not described in the proceeding bullet and outstanding
    as of the date the notes were first issued;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    for a change in the par value of our common shares;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    for accrued and unpaid interest, if any.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjustments to the applicable conversion rate will be calculated
    to the nearest 1/10,000th&#160;of a common share. We will not be
    required to make an adjustment in the conversion rate unless the
    adjustment would require a change of at least 1% in the
    conversion rate. However, we will carry forward any adjustments
    that are less than 1% of the conversion rate and make such
    carried forward adjustments, regardless of whether the aggregate
    adjustment is less than 1%, within one year of the first such
    adjustment carried forward, upon a fundamental change, with
    respect to an offer to purchase by us to the holders, upon any
    call of the notes for redemption or upon maturity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Treatment of Reference Property.</I></B>&#160;In the event
    of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any reclassification of our common shares;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a consolidation, merger or combination involving us;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a sale or conveyance to another person of all or substantially
    all of our property and assets,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in which holders of our outstanding common shares would be
    entitled to receive cash, securities or other property for their
    common shares, you will be entitled thereafter to convert your
    notes into:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    cash up to the aggregate principal amount thereof;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in lieu of common shares otherwise deliverable, the same type
    (in the same proportions) of consideration received by holders
    of our common shares in the relevant event (the &#147;reference
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    55
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    property&#148;), subject to our right to deliver cash in lieu of
    all or a portion of the reference property in accordance with
    the applicable procedures set forth under
    &#147;&#151;&#160;Settlement upon Conversion.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount of cash and any reference property you receive will
    be based on the daily conversion values of the reference
    property and the applicable conversion rate, as described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of the foregoing, the type and amount of
    consideration that a holder of our common shares would have been
    entitled to in the case of reclassifications, consolidations,
    mergers, combination, sales or conveyances of assets or other
    transactions that cause our common shares to be converted into
    the right to receive more than a single type of consideration
    (determined based in part upon any form of shareholder election)
    will be deemed to be the weighted average of the types and
    amounts of consideration received by the holders of our common
    shares that affirmatively make such an election.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If holders of notes would otherwise be entitled to receive, upon
    conversion of the notes, any property (including cash) or
    securities that would not constitute &#147;prescribed
    securities&#148; for the purposes of
    clause&#160;212(1)(b)(vii)(E) of the Income Tax Act (Canada)
    (referred to herein as &#147;ineligible consideration&#148;),
    such holders shall not be entitled to receive such ineligible
    consideration but we or the successor or acquirer, as the case
    may be, shall have the right (at the sole option of us or the
    successor or acquirer, as the case may be) to deliver either
    such ineligible consideration or &#147;prescribed
    securities&#148; for the purposes of
    clause&#160;212(1)(b)(vii)(E) of the Income Tax Act (Canada)
    with a market value equal to the market value of such ineligible
    consideration. In general, prescribed securities would include
    our common shares and other shares which are not redeemable by
    the holder within five years of the date of issuance of the
    notes. Because of this, certain transactions may result in the
    notes being convertible into prescribed securities that are
    highly illiquid. This could have a material adverse effect on
    the value of the notes. We agree to give notice to the holders
    of notes at least 30&#160;days prior to the effective date of
    such transaction in writing and by release to a business
    newswire stating the consideration into which the notes will be
    convertible after the effective date of such transaction. After
    such notice, we or the successor or acquirer, as the case may
    be, may not change the consideration to be delivered upon
    conversion of the note except in accordance with any other
    provision of the indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Treatment of Rights.</I></B>&#160;To the extent that we
    have a rights plan in effect upon conversion of the notes into
    common shares, you will receive, in addition to the common
    shares, the rights under the rights plan, unless prior to any
    conversion, the rights have separated from the common shares, in
    which case the conversion rate will be adjusted at the time of
    separation as if we distributed to all holders of our common
    shares, share capital, evidences of indebtedness assets
    property, rights or warrants as described in clause&#160;(3)
    under &#147;&#151;&#160;Adjustment Events&#148; above, subject
    to readjustment in the event of the expiration, termination or
    redemption of such rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Voluntary Increases of Conversion Rate.</I></B>&#160;We
    are permitted, to the extent permitted by law and subject to the
    applicable rules of the Nasdaq Global Market, to increase the
    conversion rate of the notes by any amount for a period of at
    least 20&#160;days if our board of directors determines that
    such increase would be in our best interest. We may also (but
    are not required to) increase the conversion rate to avoid or
    diminish income tax to holders of our common shares or rights to
    purchase our common shares in connection with a dividend or
    distribution of common shares (or rights to acquire common
    shares) or similar event.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Tax Effect.</I></B>&#160;A holder may, in some
    circumstances, including the distribution of cash dividends to
    holders of our common shares, be deemed to have received a
    distribution or dividend subject to U.S.&#160;federal income tax
    as a result of an adjustment or the nonoccurrence of an
    adjustment to the conversion rate. For a discussion of the
    U.S.&#160;federal income tax treatment of an adjustment to the
    conversion rate, see the section entitled
    &#147;Taxation&#160;&#151; Certain U.S.&#160;Federal Income Tax
    Considerations&#160;&#151; Constructive Distributions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Adjustment
    to Conversion Rate upon Occurrence of a Fundamental
    Change</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a fundamental change (as defined below under
    &#147;&#151;&#160;Fundamental Change Requires Us to Make an
    Offer to Purchase Notes&#148;), occurs prior to
    December&#160;24, 2012, and a holder elects to convert its notes
    in connection with such transaction, we will, under certain
    circumstances, increase the conversion rate for the notes so
    surrendered for conversion as described below. A conversion of
    notes will be deemed for these purposes to be &#147;in
    connection with&#148; such fundamental change if the notice of
    conversion of the notes is received by the conversion agent
    from, and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    56
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    including, the effective date of the fundamental change up to,
    and including, the business day immediately prior to the
    fundamental change purchase date. Upon surrender of notes for
    conversion in connection with a fundamental change we will
    deliver common shares unless we have previously obtained consent
    from holders as specified in &#147;Modifications and
    Amendments&#148; in which case we will have the right to
    deliver, in lieu of common shares, including the additional
    common shares, cash or a combination of cash and common shares
    as described under &#147;&#151;&#160;Conversion
    Rights&#160;&#151; Settlement Upon Conversion.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, the holders will not be entitled
    to an adjustment to the conversion rate upon the occurrence of a
    fundamental change if at least 90% of the consideration for our
    common shares (excluding cash payments for fractional shares and
    cash payments made in respect of dissenters&#146; appraisal
    rights and cash payment of the required cash payment, if any) in
    the transaction or transactions constituting the fundamental
    change consists of securities traded on a United States national
    securities exchange, or which will be so traded when issued or
    exchanged in connection with the fundamental change, and as a
    result of such transaction or transactions the notes become
    convertible solely into such securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with an applicable fundamental change, we will
    increase the conversion rate by the number of additional common
    shares (the &#147;additional common shares&#148;) as determined
    by reference to the table below, based on the date on which the
    fundamental change occurs or becomes effective (the
    &#147;effective date&#148;), and the price paid per common
    share, translated, if necessary, into U.S.&#160;dollars at the
    exchange rate in effect on such, in the fundamental change (the
    &#147;common share price&#148;). If holders of our common shares
    receive only cash in the fundamental change, the common share
    price shall be the cash amount paid per common share,
    translated, if necessary, into U.S.&#160;dollars at the exchange
    rate in effect on the effective date of the fundamental change.
    Otherwise, the common share price shall be the average of the
    last reported sale prices of our common shares over the five
    <FONT style="white-space: nowrap">trading-day</FONT>
    period ending on the trading day preceding the effective date of
    the fundamental change.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The common share prices set forth in the first row of the table
    below (i.e., column headers) will be adjusted as of any date on
    which the conversion rate of the notes is otherwise adjusted.
    The adjusted common share prices will equal the common share
    prices applicable immediately prior to such adjustment,
    multiplied by a fraction, the numerator of which is the
    conversion rate immediately prior to the adjustment giving rise
    to the common share price adjustment and the denominator of
    which is the conversion rate as so adjusted. The number of
    additional common shares will be adjusted in the same manner as
    the conversion rate as set forth under
    &#147;&#151;&#160;Conversion Rate Adjustments.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the hypothetical common share
    price and the number of additional common shares to be received
    per US$1,000 principal amount of notes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=11 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=11 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=11 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=11 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=12 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=12 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=12 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=12 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=13 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=13 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=13 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=13 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=14 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=14 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=14 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=14 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=15 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=15 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=15 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=15 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="54" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Share Price (US$)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Effective Date</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$17.64</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$19.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$20.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$21.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$22.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$23.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$24.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$25.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$26.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$27.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$28.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$30.00</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$32.50</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>$35.00</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    December&#160;10, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    December&#160;15, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    December&#160;15, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.71
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    December&#160;15, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    December&#160;15, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.51
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    December&#160;24, 2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exact common share prices and effective dates may not be set
    forth in the table above, in which case:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    If the common share price is between two common share price
    amounts in the table or the effective date is between two
    effective dates in the table, the number of additional common
    shares will be determined by a straight-line interpolation
    between the number of additional common shares set forth for the
    higher and lower common share price amounts and the two dates,
    as applicable, based on a
    <FONT style="white-space: nowrap">365-day</FONT> year.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    If the common share price is greater than US$35.00 (subject to
    adjustment), the conversion rate will not be adjusted.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    If the common share price is less than US$17.64 (subject to
    adjustment), the conversion rate will not be adjusted.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    57
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, in no event will the total number
    of common shares issuable upon conversion exceed 56.6773 per
    US$1,000 principal amount of notes, subject to adjustment in the
    same manner as the conversion rate as set forth under
    &#147;&#151;&#160;Conversion Rate Adjustments.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our obligation to increase the conversion rate as described
    above could be considered a penalty, in which case the
    enforceability thereof would be subject to general principles of
    economic remedies.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Optional
    Redemption by Us</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may not redeem the notes prior to December&#160;24, 2012,
    except as described under &#147;&#151;&#160;Tax
    Redemption.&#148; At any time on or after December&#160;24,
    2012, we may redeem for cash all of the notes in integral
    multiples of US$1,000, at a price equal to 100% of the principal
    amount of the notes being redeemed plus accrued and unpaid
    interest to, but excluding, the redemption date (i)&#160;in
    whole or in part, if the &#147;last reported sale price&#148;
    (as defined above under &#147;&#151;&#160;Conversion
    Rights&#160;&#151; General&#148;) of our common shares for at
    least 20 trading days in a period of 30 consecutive trading
    days, the last of which occurs no more than five trading days
    prior to the date upon which notice of such redemption is
    published, is at least 130% of the applicable conversion price
    per common share in effect on such trading date or (ii)&#160;in
    whole only, if at least 95% of the initial aggregate principal
    amount of the notes originally issued have been redeemed,
    converted or repurchased and, in each case, cancelled. However,
    if the redemption date occurs after a record date and on or
    prior to the corresponding interest payment date, we will pay
    the full amount of accrued and unpaid interest due on such
    payment date to the record holder on the record date
    corresponding to such interest payment date, and the redemption
    price payable to the holder who presents the note for redemption
    will be 100% of the principal amount of such note. We will give
    at least 20&#160;days and no more than 60&#160;days notice of
    such redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may convert notes or portions of notes called for redemption
    until the close of business on the business day prior to the
    redemption date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we decide to redeem fewer than all of the notes, the trustee
    will select the notes to be redeemed by lot, or in its
    discretion, on a pro rata basis. If any note is to be redeemed
    in part only, a new note in principal amount equal to the
    unredeemed principal portion will be issued. If a portion of
    your notes is selected for partial redemption and you convert a
    portion of your notes, the converted portion will be deemed to
    be part of the portion selected for redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No sinking fund is provided for the notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purchase
    of Notes at Your Option on Specified Dates</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;24, 2012 and December&#160;15, 2014, you may
    require us to purchase all or a portion of your notes in
    integral multiples of US$1,000 at a purchase price in cash equal
    to 100% of the principal amount of the notes being purchased
    plus accrued and unpaid interest to, but excluding, the purchase
    date, subject to certain additional conditions. However, we
    will, on the purchase date, pay the accrued and unpaid interest
    to, but excluding, such date to the holder of record at the
    close of business on the immediately preceding record date.
    Accordingly, the holder submitting a note for purchase will not
    receive this accrued and unpaid interest unless that holder was
    also the holder of record at the close of business on the
    immediately preceding record date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the purchase date, we will purchase each outstanding note for
    which you have properly delivered and not withdrawn a written
    purchase notice. You may submit your written purchase notice and
    notes for purchase to the paying agent at any time from the
    opening of business on the date that is 25 business days prior
    to the purchase date until the close of business on the fifth
    business day prior to the purchase date.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Required
    Notices and Procedure</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On a date not less than 25 business days prior to each purchase
    date, we will be required to give notice to all holders at their
    addresses shown in the register of the registrar, and to
    beneficial owners as required by applicable law, stating, among
    other things, the procedures that holders must follow to require
    us to purchase their notes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    58
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase notice given by you electing to require us to
    purchase notes must be given so as to be received by the paying
    agent no later than the close of business on the fifth business
    day prior to the purchase date and must state:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if certificated, the certificate numbers of your notes to be
    delivered for purchase;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the principal amount of notes to be purchased, which must be
    US$1,000 or an integral multiple thereof;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    that the notes are to be purchased by us pursuant to the
    applicable provisions of the notes and the indenture.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may withdraw any purchase notice (in whole or in part) by a
    written notice of withdrawal delivered to the paying agent prior
    to the close of business on the business day prior to the
    purchase date. The notice of withdrawal shall state:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if certificated notes have been issued, the certificate number
    of the withdrawn notes, or if not certificated, your notice must
    comply with appropriate DTC procedures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the principal amount of the withdrawn notes;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the principal amount, if any, of the notes which remains subject
    to the purchase notice.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with any purchase offer, we will:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    comply with the provisions of
    <FONT style="white-space: nowrap">Rule&#160;13e-4,</FONT>
    <FONT style="white-space: nowrap">Rule&#160;14e-1</FONT>
    and any other tender offer rules under the Exchange Act;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    file a Schedule&#160;TO, Form&#160;CB,
    <FONT style="white-space: nowrap">Form&#160;F-X</FONT>
    or any successor or similar schedule or form, if required, under
    the Exchange Act;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    otherwise comply with all federal and state securities laws in
    connection with any offer by us to purchase the notes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our obligation to pay the purchase price for a note as to which
    a purchase notice has been delivered and not validly withdrawn
    is conditioned upon the holder delivering the note, together
    with necessary endorsements, to the paying agent at any time
    after delivery of the purchase notice. We will cause the
    purchase price for the note to be paid promptly following the
    later of the purchase date or the time of delivery of the note.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the paying agent holds money or securities sufficient to pay
    the purchase price of the notes on the business day following
    the purchase date, then:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the notes will cease to be outstanding and interest will cease
    to accrue (whether or not book-entry transfer of the notes is
    made or whether or not the notes are delivered to the paying
    agent);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    all other rights of the holder will terminate (other than the
    right to receive the purchase price upon delivery or transfer of
    the notes).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may not have enough funds to pay the purchase price at the
    specified purchase dates. See the section entitled &#147;Risk
    Factors&#160;&#151; Risks Related to the Notes&#160;&#151; We
    may not be able to raise the funds necessary to repay the notes
    when due, finance a fundamental change, purchase the notes on
    specified dates or make the payments due upon conversion, if
    any.&#148; Any future debt agreements or instruments relating to
    our or our subsidiaries&#146; indebtedness could contain
    provisions prohibiting our repurchase of the notes under certain
    circumstances. If we fail to purchase the notes when required on
    a purchase date, we will be in default under the indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No notes may be purchased at the option of holders if there has
    occurred and is continuing an event of default other than an
    event of default that is cured by the payment of the purchase
    price of the notes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fundamental
    Change Requires Us to Make an Offer to Purchase Notes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a fundamental change (as defined below) occurs at any time,
    we will be required to make you an offer to purchase for cash
    all or a portion of your notes in integral multiples of
    US$1,000, on a date (the &#147;fundamental change purchase
    date&#148;) of our choosing that is not less than 20 nor more
    than 35 business days after the date of the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    59
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    fundamental change notice described below. The price we are
    required to pay is equal to 100% of the principal amount of the
    notes to be purchased plus accrued and unpaid interest to, but
    excluding, the fundamental change purchase date. However, if the
    fundamental change purchase date occurs after a record date and
    on or prior to the corresponding interest payment date, we will
    pay the full amount of accrued and unpaid interest due on such
    payment date to the record holder on the record date
    corresponding to such interest payment date, and the fundamental
    change purchase price payable to the holder who presents the
    note for purchase will be 100% of the principal amount of such
    note.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A &#147;fundamental change&#148; will be deemed to have occurred
    upon a change in control.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A &#147;change in control&#148; means any of the following
    events:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (i)&#160;
</TD>
    <TD align="left">
    a &#147;person&#148; or &#147;group&#148; within the meaning of
    Section l3(d)(3) of the Exchange Act files a Schedule&#160;TO or
    any schedule, form or report under the Exchange Act disclosing
    that such person or group has become the direct or indirect
    &#147;beneficial owner,&#148; as defined in
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    under the Exchange Act, of our common shares representing more
    than 50% of the voting power of our common shares entitled to
    vote generally in the election of directors but with respect to
    Dr.&#160;Shawn Qu and his Affiliated Entities, representing more
    than 60%;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (ii)&#160;
</TD>
    <TD align="left">
    the first day on which a majority of the members of our board of
    directors does not consist of continuing directors (as defined
    below);&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (iii)&#160;
</TD>
    <TD align="left">
    a consolidation, merger or binding share exchange (other than
    any such transaction (a)&#160;that does not result in any
    reclassification, conversions, exchange or cancellation of
    outstanding common shares, and (b)&#160;pursuant to which
    holders of our common shares immediately before the transaction
    have the entitlement to exercise, directly or indirectly, 50% or
    more of the total voting power of all common shares entitled to
    vote generally in elections of directors of the continuing or
    surviving or successor person immediately after giving effect to
    such issuance), or any conveyance, transfer, sale, lease or
    other disposition of all or substantially all of our properties
    and assets to another person;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (iv)&#160;
</TD>
    <TD align="left">
    our shareholders approve any plan or proposal for our
    liquidation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of defining a fundamental change:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the term &#147;person&#148; and the term &#147;group&#148; have
    the meanings given by Section&#160;13(d) and 14(d) of the
    Exchange Act or any successor provisions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the term &#147;group&#148; includes any group acting for the
    purpose of acquiring, holding or disposing of securities within
    the meaning of
    <FONT style="white-space: nowrap">Rule&#160;13d-5(b)(1)</FONT>
    under the Exchange Act or any successor provision;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the term &#147;beneficial owner&#148; is determined in
    accordance with
    <FONT style="white-space: nowrap">Rules&#160;13d-3</FONT>
    and <FONT style="white-space: nowrap">13d-5</FONT>
    under the Exchange Act or any successor provisions, except that
    a person will be deemed to have beneficial ownership of all
    common shares that person has the right to acquire irrespective
    of whether that right is exercisable immediately or only after
    the passage of time;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the term &#147;Affiliated Entities&#148; means Dr.&#160;Shawn Qu
    and his estates, spouses, ancestors and lineal descendants (and
    spouses thereof), the legal representatives of any of the
    foregoing, and the trustee of any bona fide trust of which one
    or more of the foregoing are sole beneficiaries or the grantors,
    or any person of which any of the forgoing, individually or
    collectively, beneficially own voting securities representing at
    least a majority of the total voting power of all classes of
    share capital of such person (exclusive of any matters as to
    which class voting rights exist);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the term &#147;continuing directors&#148; means as of any date
    of determination, any individual who on the date of the
    indenture was a member of the board of directors, together with
    any directors whose election, or, solely to fill the vacancy of
    a continuing director, appointment by the board or whose
    nomination for election by our shareholders is duly approved by
    the vote of a majority of the directors on the board (or such
    lesser number comprising a majority of a nominating committee if
    authority for such nominations or elections has been delegated
    to a nominating committee whose authority and composition have
    been approved by at least a majority of the directors who were
    continuing directors
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    60
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    at the time such committee was formed) then still in office who
    were either directors on the date of the indenture or whose
    election, appointment (in the case of a vacancy of a continuing
    director), or nomination for election was previously approved by
    a majority of the continuing directors, either by specific vote
    or by approval of the proxy statement issued by us in which such
    individual is named as a nominee for director.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, in the case of a consolidation or
    merger, it will not constitute a change in control if at least
    90% of the consideration for our common shares (excluding cash
    payments for fractional shares and cash payments made in respect
    of dissenters&#146; appraisal rights and cash payment of the
    required cash payment, if any) in the consolidation or merger
    constituting the change in control consists of securities traded
    on a United States national securities exchange, or which will
    be so traded when issued or exchanged in connection with the
    change in control, and as a result of such consolidation or
    merger the notes become convertible solely into such securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Within 20 business days after the occurrence of a fundamental
    change, we will provide to all holders of the notes and the
    trustee and paying agent a written notice of the occurrence of
    the fundamental change and of the resulting purchase right (the
    &#147;fundamental change notice&#148;). Such notice shall state,
    among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the events causing a fundamental change;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the date of the fundamental change;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the last date on which a holder may accept the purchase offer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the fundamental change purchase price;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the fundamental change purchase date;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the name and address of the paying agent and the conversion
    agent, if applicable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the applicable conversion rate and any adjustments to the
    applicable conversion rate;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    that the notes with respect to which a fundamental change
    acceptance notice has been delivered by a holder may be
    converted only if the holder withdraws the fundamental change
    acceptance notice in accordance with the terms of the
    indenture;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the procedures that holders must follow to accept our offer to
    purchase their notes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Simultaneously with providing such notice, we will publish a
    notice containing this information in a newspaper of general
    circulation in the City of New York or publish the information
    on our website or through such other public medium as we may use
    at that time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To accept the offer to purchase, you must deliver, on or before
    the fifth business day prior to the fundamental change purchase
    date, a written acceptance notice to the paying agent. Your
    acceptance notice must state:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if certificated, the certificate numbers of your notes to be
    delivered for purchase;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the principal amount of notes to be purchased, which must be
    US$1,000 or an integral multiple thereof;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    that the notes are to be purchased by us pursuant to the
    applicable provisions of the notes and the indenture.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the notes are not in certificated form, a holder wishing to
    exercise this offer to purchase must comply with the applicable
    procedures of the DTC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may withdraw any acceptance notice (in whole or in part) by
    a written notice of withdrawal delivered to the paying agent
    prior to the close of business on the business day prior to the
    fundamental change purchase date. The notice of withdrawal shall
    state:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if certificated notes have been issued, the certificate numbers
    of the withdrawn notes, or if not certificated, your notice must
    comply with appropriate DTC procedures;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    61
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the principal amount of the withdrawn notes;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the principal amount, if any, of the notes which remains subject
    to the acceptance notice.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the notes are not in certificated form, a holder must comply
    with the applicable procedures of the DTC in order to withdraw
    its notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with any fundamental change purchase offer, we
    will:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    comply with the provisions of
    <FONT style="white-space: nowrap">Rule&#160;13e-4,</FONT>
    <FONT style="white-space: nowrap">Rule&#160;14e-1</FONT>
    and any other tender offer rules under the Exchange Act;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    file a Schedule&#160;TO, Form&#160;CB,
    <FONT style="white-space: nowrap">Form&#160;F-X</FONT>
    or any successor or similar schedule or form, if required, under
    the Exchange Act;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    otherwise comply with all federal and state securities laws in
    connection with any offer by us to purchase the notes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our obligation to pay the fundamental change purchase price for
    a note as to which a fundamental change acceptance notice has
    been delivered and not validly withdrawn is conditioned upon the
    holder delivering the note, together with necessary
    endorsements, to the paying agent at any time after delivery of
    the fundamental change acceptance notice. We will cause the
    fundamental change purchase price for the note to be paid
    promptly following the later of the fundamental change purchase
    date or the time of delivery of the note.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the paying agent holds money or securities sufficient to pay
    the fundamental change purchase price of the notes on the
    business day following the fundamental change purchase date,
    then:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the notes will cease to be outstanding and interest will cease
    to accrue (whether or not book-entry transfer of the notes is
    made or whether or not the notes are delivered to the paying
    agent);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    all other rights of the holder will terminate (other than the
    right to receive the fundamental change purchase price upon
    delivery or transfer of the notes).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase rights of the holders could discourage a potential
    acquirer, even if the acquisition may be beneficial to you. The
    fundamental change purchase feature, however, is not the result
    of management&#146;s knowledge of any specific effort to obtain
    control by any means or part of a plan by management to adopt a
    series of anti-takeover provisions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The term fundamental change is limited to specified transactions
    and may not include other events that might adversely affect our
    financial condition. In addition, the requirement that we offer
    to purchase the notes upon a fundamental change may not protect
    holders in the event of a highly leveraged transaction,
    reorganization or similar transaction involving us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a fundamental change were to occur, we may not have enough
    funds to pay the fundamental change purchase price. See the
    section entitled &#147;Risk Factors&#160;&#151; Risks Related to
    the Notes&#160;&#151; We may not be able to raise the funds
    necessary to repay the notes when due, finance a fundamental
    change, purchase the notes on specified dates or make the
    payments due upon conversion, if any.&#148; Any future debt
    agreements or instruments relating to our or our
    subsidiaries&#146; indebtedness could contain provisions
    prohibiting our repurchase of the notes under certain
    circumstances. If we fail to make an offer to purchase the notes
    when required following a fundamental change or fail to pay any
    fundamental change purchase price on the fundamental change
    purchase date, we will be in default under the indenture. In
    addition, we may in the future incur other indebtedness with
    change in control provisions permitting the holders thereof to
    accelerate or to require us to purchase such indebtedness upon
    the occurrence of specified change in control events or on some
    specific dates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No notes may be purchased at the option of holders upon a
    fundamental change if there has occurred and is continuing an
    event of default other than an event of default that is cured by
    the payment of the fundamental change purchase price of the
    notes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    62
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Redemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If as a result of any change in or amendment to the statutes (or
    any rules or regulations thereunder) of a Relevant Taxing
    Jurisdiction (as defined above under
    &#147;&#151;&#160;Additional Amounts&#148;), or any amendment to
    or change in an official interpretation, administration or
    application of such statutes, rules or regulations (including a
    holding by a court of competent jurisdiction), which change or
    amendment becomes effective or, in the case of a change in
    official interpretation, is announced on or after the issue date
    of the notes or, in the case of a successor, on or after the
    date the successor assumes the obligations under the notes, we
    or our successor has or will become obligated to pay Additional
    Amounts as described above under &#147;&#151;&#160;Additional
    Amounts&#148;, we or our successor may, at our or its option,
    redeem all, but not less than all, of the notes, for cash at a
    redemption price equal to 100% of their principal amount,
    together with accrued and unpaid interest to, but excluding, the
    date fixed for redemption and Additional Amounts, if any, upon
    giving irrevocable notice not less than 20&#160;days nor more
    than 60&#160;days prior to the date fixed for redemption (a
    &#147;tax redemption&#148;). However, if the redemption date
    occurs after a record date and on or prior to the corresponding
    interest payment date, we will pay the full amount of accrued
    and unpaid interest due on such payment date to the record
    holder on the record date corresponding to such interest payment
    date, and the redemption price payable to the holder who
    presents the note for redemption will be 100% of the principal
    amount of such note and Additional Amounts, if any. No notice of
    such tax redemption may be given earlier than 60&#160;days prior
    to the earliest date on which we or any such successor would,
    but for such tax redemption, be obligated to pay the Additional
    Amounts. Notwithstanding the foregoing, we or any such successor
    shall not have the right to so redeem the notes unless we have
    or it has taken reasonable measures to avoid the obligation to
    pay Additional Amounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that we or any successor elects to so redeem the
    notes, we or it will deliver to the trustee: (1)&#160;a
    certificate, signed in our name or our successor&#146;s name by
    any two of our or its executive officers or by our or its
    attorney in fact in accordance with our or its bylaws, stating
    that we or our successor is entitled to redeem the notes
    pursuant to their terms and setting forth a statement of facts
    showing that the condition or conditions precedent to our right
    or the right of any successor to so redeem have occurred or been
    satisfied including, that we cannot avoid payment of such
    Additional Amounts by taking reasonable measures available to us
    or it and that all governmental requirements necessary for us or
    any successor to effect the redemption have been complied with;
    and (2)&#160;an opinion of counsel, who is acceptable to the
    trustee, to the effect that we or our successor has or will
    become obligated to pay Additional Amounts as a result of the
    change or amendment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, if we have or our successor has
    given notice of a tax redemption as described above, each holder
    of notes will have the right to elect that such holder&#146;s
    notes will not be subject to such tax redemption. If a holder
    elects not to be subject to a tax redemption, we or our
    successor will not be required to pay Additional Amounts with
    respect to payments made in respect of such holder&#146;s notes
    following the date fixed for redemption, and all subsequent
    payments in respect of such holder&#146;s notes will be subject
    to any tax required to be withheld or deducted under the laws of
    a Relevant Taxing Jurisdiction. The obligation to pay Additional
    Amounts to any electing holder for periods up to the date fixed
    for redemption will remain subject to the exceptions set forth
    above under &#147;&#151;&#160;Additional Amounts.&#148; Holders
    must exercise their option to elect to avoid a tax redemption by
    written notice to the trustee no later than the 15th&#160;day
    prior to the date fixed for redemption.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consolidation,
    Merger and Sale of Assets</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture provides that we shall not consolidate with or
    merge with or into, or convey, transfer or lease all or
    substantially all of our properties and assets to, another
    person, unless (i)&#160;the resulting, surviving or transferee
    person is a person organized and existing under the laws of the
    United States of America, any State thereof or the District of
    Columbia or the laws of Canada or any province or territory
    thereof, and such person (if not us) expressly assumes by
    supplemental indenture all of our obligations under the notes
    and the indenture, and (ii)&#160;immediately after giving effect
    to such transaction, no default or event of default has occurred
    and is continuing under the indenture. Upon any such
    consolidation, merger, conveyance or transfer, the resulting,
    surviving or transferee person shall succeed to, and may
    exercise every right and power of, ours under the indenture.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    63
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although these types of transactions are permitted under the
    indenture, certain of the foregoing transactions could
    constitute a fundamental change (as defined above) permitting
    each holder to require us to purchase the notes of such holder
    as described above.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Events of
    Default</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the following is an event of default:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    default in any payment of interest, including any related
    additional amounts, on any note when due and payable and the
    default continues for a period of 30&#160;days;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    default in the payment of principal of any note, including any
    related Additional Amounts, when due and payable at stated
    maturity, upon redemption or required repurchase, upon
    declaration or otherwise;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    our failure to comply with our obligations to convert the notes
    into common shares, cash or a combination of cash and common
    shares, as applicable, upon exercise of a holder&#146;s
    conversion right;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (4)&#160;
</TD>
    <TD align="left">
    our failure to make an offer upon a fundamental change;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (5)&#160;
</TD>
    <TD align="left">
    our failure to issue a fundamental change notice, in accordance
    with the terms of the indenture;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (6)&#160;
</TD>
    <TD align="left">
    our failure for 60&#160;days after written notice from the
    trustee or the holders of at least 25% in aggregate principal
    amount of the notes then outstanding has been received to comply
    with any of our other agreements contained in the notes or
    indenture;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (7)&#160;
</TD>
    <TD align="left">
    failure by us or any of our significant subsidiaries (as defined
    below) to make any payment of the principal or interest on any
    mortgage, agreement or other instrument under which there may be
    outstanding, or by which there may be secured or evidenced, any
    debt for money borrowed in excess of US$5&#160;million (or its
    equivalent in any other currency or currencies) in the aggregate
    of ours
    <FONT style="white-space: nowrap">and/or</FONT> any
    such subsidiary, whether such debt now exists or shall hereafter
    be created, resulting in such debt becoming or being declared
    due and payable, and such acceleration shall not have been
    rescinded or annulled within 30&#160;days after written notice
    of such acceleration has been received by us or such
    subsidiary;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (8)&#160;
</TD>
    <TD align="left">
    certain events of bankruptcy, insolvency, or reorganization with
    respect to us or any of our significant subsidiaries
    (collectively, the &#147;bankruptcy provisions&#148;).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used herein, the term &#147;significant subsidiary&#148;
    means any subsidiary of ours (or any successor) which, at the
    time of determination, either (a)&#160;had assets which, as of
    the date of our (or such successor&#146;s) most recent quarterly
    consolidated balance sheet, constituted at least 10% of our (or
    such successor&#146;s) total assets on a consolidated basis as
    of such date or (b)&#160;had revenues for the
    <FONT style="white-space: nowrap">12-month</FONT>
    period ending on the date of our (or such successor&#146;s) most
    recent quarterly consolidated statement of income which
    constituted at least 10% of our (or such successor&#146;s) total
    revenues on a consolidated basis for such period; <I>provided
    </I>that CSI Solartronics (Changshu) Ltd., CSI Solar Manufacture
    Inc., CSI Solar Technologies Inc., CSI Central Solar Power Co.,
    Ltd., CSI Solarchip International Co., Ltd. and Changshu CSI
    Advanced Solar Inc., and any of their respective successors
    shall at all times be significant subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an event of default occurs and is continuing, the trustee by
    notice to us, or the holders of at least 25% in principal amount
    of the outstanding notes by notice to us and the trustee, may,
    and the trustee at the request of such holders shall, declare
    100% of the principal of and accrued and unpaid interest,
    including additional amounts, if any, on all the notes to be due
    and payable. Upon such a declaration, such principal and accrued
    and unpaid interest, including any additional amounts, will be
    due and payable immediately. However, upon an event of default
    arising out of the bankruptcy provisions relating to us, the
    aggregate principal amount and accrued and unpaid interest,
    including additional amounts, will be due and payable
    immediately.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of a majority in aggregate principal amount of the
    outstanding notes may waive all past defaults (except with
    respect to nonpayment of principal or interest, including any
    additional amounts) and rescind any such acceleration with
    respect to the notes and its consequences if (1)&#160;rescission
    would not conflict with any judgment or
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    64
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    decree of a court of competent jurisdiction and (2)&#160;all
    existing events of default, other than the nonpayment of the
    principal of and interest, including additional amounts, on the
    notes that have become due solely by such declaration of
    acceleration, have been cured or waived.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the provisions of the indenture relating to the
    duties of the trustee, if an event of default occurs and is
    continuing, the trustee will be under no obligation to exercise
    any of the rights or powers under the indenture at the request
    or direction of any of the holders unless such holders have
    offered to the trustee indemnity or security satisfactory to it
    against any loss, liability or expense. Except to enforce the
    right to receive payment of principal or interest, including any
    additional amounts, when due, no holder may pursue any remedy
    with respect to the indenture or the notes unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    such holder has previously given the trustee written notice that
    an event of default is continuing;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    holders of at least 25% in aggregate principal amount of the
    outstanding notes have made a written request to the trustee to
    pursue the remedy;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    such holders have offered the trustee security or indemnify
    satisfactory to it against any loss, liability or expense;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (4)&#160;
</TD>
    <TD align="left">
    the trustee has not complied with such request within
    60&#160;days after the receipt of the request and the offer of
    security or indemnity;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (5)&#160;
</TD>
    <TD align="left">
    the holders of a majority in aggregate principal amount of the
    outstanding notes have not given the trustee a direction that,
    in the opinion of the trustee, is inconsistent with such request
    within such
    <FONT style="white-space: nowrap">60-day</FONT>
    period.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to certain restrictions, the holders of a majority in
    aggregate principal amount of the outstanding notes are given
    the right to direct the time, method and place of conducting any
    proceeding for any remedy available to the trustee or of
    exercising any trust or power conferred on the trustee. The
    indenture provides that if an event of default has occurred and
    is continuing, the trustee will exercise its powers and rights
    vested in it by the indenture to use the degree of care that a
    prudent person would use in the conduct of its own affairs. The
    trustee, however, may refuse to follow any direction that
    conflicts with law or the indenture or that the trustee
    determines is unduly prejudicial to the rights of any other
    holder or that would involve the trustee in personal liability.
    Prior to taking any action under the indenture, the trustee will
    be entitled to indemnification satisfactory to it in its sole
    discretion against all losses and expenses caused by taking or
    not taking such action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture provides that if a default occurs and is
    continuing and is known to the trustee, the trustee must mail to
    each holder notice of the default within 90&#160;days after it
    occurs. Except in the case of a default in the payment of
    principal of or interest on any note, the trustee may withhold
    notice if and so long as a committee of trust officers of the
    trustee in good faith determines that withholding notice is in
    the interests of the holders. In addition, we are required to
    deliver to the trustee, within 120&#160;days after the end of
    each fiscal year, a certificate indicating whether the signers
    thereof know of any default that occurred during the previous
    year. We also are required to deliver to the trustee, within
    30&#160;days after the occurrence thereof, written notice of any
    events which would constitute certain events of default, their
    status and what action we are taking or propose to take in
    respect thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any portion of the amount payable on the notes upon
    acceleration is considered by a court to be unearned interest
    (through the allocation of a portion of the value of the
    instrument to the embedded warrant or otherwise), the court
    could disallow recovery of any such portion.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Modification
    and Amendment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to certain exceptions, the indenture or the notes may be
    amended with the consent of the holders of at least a majority
    in aggregate principal amount of the notes then outstanding
    (including without limitation, consents obtained in connection
    with a purchase of, or tender offer or exchange offer for, the
    notes) and, subject to certain exceptions, any past default or
    compliance with any provisions may be waived with the consent of
    the holders of a majority in aggregate principal amount of the
    notes then outstanding (including, without limitation, consents
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    65
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    obtained in connection with a purchase of, or tender offer or
    exchange offer for, the notes). However, without the consent of
    each holder of an outstanding note affected, no amendment may,
    among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    reduce the percentage in aggregate principal amount of notes the
    holders of which must consent to an amendment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    reduce the rate, or extend the stated time for payment, of
    interest on any note;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    reduce the principal amount, or extend the stated maturity, of
    any note;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (4)&#160;
</TD>
    <TD align="left">
    change the place or currency of payment of principal or interest
    in respect of any note;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (5)&#160;
</TD>
    <TD align="left">
    make any change that adversely affects the conversion rights of
    any notes, including any change to the provisions described
    under &#147;&#151;&#160;Conversion Rights;&#148;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (6)&#160;
</TD>
    <TD align="left">
    reduce the fundamental change purchase price, redemption price
    or optional purchase price of any note or amend or modify in any
    manner adverse to the holders of notes our obligation to make
    such payments, whether through an amendment or waiver of
    provisions in the covenants, definitions or otherwise;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (7)&#160;
</TD>
    <TD align="left">
    impair the right of any holder to receive payment of principal
    of and interest on such holder&#146;s notes on or after the due
    dates therefor or to institute suit for the enforcement of any
    payment on or with respect to such holder&#146;s notes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (8)&#160;
</TD>
    <TD align="left">
    make any change in the amendment provisions which require each
    holder&#146;s consent or in the waiver provisions;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (9)&#160;
</TD>
    <TD align="left">
    change our obligation to pay additional amounts.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, with the consent of at least 25%
    of holders, we and the trustee may amend the indenture to permit
    settlement upon conversion in cash or any combination of cash
    and common shares as specified in &#147;&#151;&#160;Conversion
    Rights&#160;&#151; Settlement Upon Conversion.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, without the consent of any
    holder, we and the trustee may amend the indenture to, among
    other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    cure any ambiguity, omission, defect or inconsistency;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    provide for the assumption by a successor corporation,
    partnership, trust or limited liability company of our
    obligations as permitted under the indenture;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    add guarantees with respect to the notes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (4)&#160;
</TD>
    <TD align="left">
    secure the notes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (5)&#160;
</TD>
    <TD align="left">
    add to our covenants for the benefit of the holders or surrender
    any right or power conferred upon us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (6)&#160;
</TD>
    <TD align="left">
    increase the conversion rate or interest rate on the notes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (7)&#160;
</TD>
    <TD align="left">
    make any changes or modifications to the indenture necessary in
    connection with the registration of the public offer and sale of
    the notes under the Securities Act pursuant to the resale
    registration rights agreement or the qualification of the
    indenture under the Trust Indenture Act of 1939;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (8)&#160;
</TD>
    <TD align="left">
    evidence and provide for the acceptance of the appointment of a
    successor trustee under the indenture;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (9)&#160;
</TD>
    <TD align="left">
    make any change that does not materially adversely affect the
    rights of any holder, provided that any amendment made solely to
    conform the provisions of the indenture or the notes to the
    description of the notes in this prospectus will not be deemed
    to materially adversely affect the rights of any holder.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consent of the holders is not necessary under the indenture
    to approve the particular form of any proposed amendment. It is
    sufficient if such consent approves the substance of the
    proposed amendment. After an amendment under the indenture
    becomes effective, we are required to mail to the holders a
    notice briefly describing such
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    66
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    amendment. However, the failure to give such notice to all the
    holders, or any defect in the notice, will not impair or affect
    the validity of the amendment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Discharge</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may satisfy and discharge our obligations under the indenture
    by delivering to the registrar for cancellation all outstanding
    notes or by depositing with the trustee or delivering to the
    holders, as applicable, after the notes have become due and
    payable, whether at stated maturity, or any purchase date, or
    upon redemption, conversion or otherwise, cash or securities
    sufficient to pay all of the outstanding notes and paying all
    other sums payable under the indenture by us. Such discharge is
    subject to terms contained in the indenture.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Calculations
    in Respect of Notes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise provided above, we will be responsible for
    making all calculations called for under the indenture and the
    notes. These calculations include, but are not limited to,
    determinations of the last reported sale prices of our common
    shares, accrued interest payable on the notes and the conversion
    rate of the notes. We will make all these calculations in good
    faith and, absent manifest error, our calculations will be final
    and binding on holders of notes. We will provide a schedule of
    our calculations to each of the trustee and the conversion
    agent, and each of the trustee and conversion agent is entitled
    to rely conclusively upon the accuracy of our calculations
    without independent verification. The trustee will forward our
    calculations to any holder of notes upon the written request of
    that holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notices to the holders of the notes shall be validly given if in
    writing in English and mailed by first class mail to them at the
    Company&#146;s expense at their respective addresses in the
    register of the Notes. Any such notice shall be deemed to have
    been given on the later of such publication and the seventh day
    after being so mailed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Trustee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bank of New York is the trustee, registrar and conversion
    agent and the paying agent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Governing
    Law and Submission to Jurisdiction</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The indenture provides that it and the notes will be governed
    by, and construed in accordance with, the laws of the State of
    New York.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the parties to the indenture will submit to the
    jurisdiction of the U.S.&#160;federal and New York State courts
    located in the Borough of Manhattan, City and State of New York
    for purposes of all legal actions and proceedings instituted in
    connection with the notes and the indenture. We have appointed
    CT Corporation System, currently having an office at 111 Eighth
    Avenue, New York, N.Y. 10011, as our authorized agent upon which
    process may be served in any such action.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Listing
    And Trading</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, the notes have been eligible for trading
    in the PORTAL
    Market<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant: SMALL-CAPS">sm</FONT></SUP>.
    Notes sold by means of this prospectus will not remain eligible
    for trading in the PORTAL
    Market<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant: SMALL-CAPS">sm</FONT></SUP>.
    We do not intend to list the notes for trading on any national
    securities exchange or on the Nasdaq Global Market. Our common
    stock is quoted on the Nasdaq Global Market under the symbol
    &#147;CSIQ.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Currency
    Indemnity</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;dollars are the sole currency of account and payment
    for all sums payable by us under or in connection with the
    notes, including damages. Any amount received or recovered in a
    currency other than U.S.&#160;dollars (whether as a result of,
    or through the enforcement of, a judgment or order of a court of
    any jurisdiction, in our
    <FONT style="white-space: nowrap">winding-up</FONT>
    or dissolution or otherwise) by any holder of a note in respect
    of any sum expressed to be due to it from us will only
    constitute a discharge to us to the extent of the
    U.S.&#160;dollar amount that the recipient is able to purchase
    with the amount so received or recovered in that other currency
    on the date of that receipt or recovery (or, if it is not
    practicable to make that purchase on that date, on the first
    date on which it is practicable to do so). If that
    U.S.&#160;dollar
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    67
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    amount is less than the U.S.&#160;dollar amount expressed to be
    due to the recipient under any note, we will indemnify such
    holder against any loss sustained by it as a result; and if the
    amount of U.S.&#160;dollars so purchased is greater than the sum
    originally due to such holder, such holder will, by accepting a
    note, be deemed to have agreed to repay such excess. In any
    event, we will indemnify the recipient against the cost of
    making any such purchase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purposes of the preceding paragraph, it will be
    sufficient for the holder of a note to certify in a satisfactory
    manner (indicating the sources of information used) that it
    would have suffered a loss had an actual purchase of
    U.S.&#160;dollars been made with the amount so received in that
    other currency on the date of receipt or recovery (or, if a
    purchase of U.S.&#160;dollars on such date had not been
    practicable, on the first date on which it would have been
    practicable, it being required that the need for a change of
    date be certified in the manner mentioned above). These
    indemnities constitute a separate and independent obligation
    from our other obligations, will give rise to a separate and
    independent cause of action, will apply irrespective of any
    indulgence granted by any holder of a note and will continue in
    full force and effect despite any other judgment, order, claim
    or proof for a liquidated amount in respect of any sum due under
    any note.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Resale
    Registration Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary of the resale registration rights provided
    in the resale registration rights agreement is not complete.
    Holders should refer to the resale registration rights agreement
    for a full description of the resale registration rights that
    apply to the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent a holder receives common shares upon conversion of
    notes that are not restricted common shares, such common shares
    may be sold over the Nasdaq Global Market without needing to
    rely on the resale shelf registration statement described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes and any common shares issuable upon conversion of the
    notes are referred to collectively as &#147;registrable
    securities.&#148; Pursuant to the resale registration rights
    agreement, we have filed the shelf registration statement
    related to this prospectus to meet our obligations under the
    resale registration rights agreement. We will use our
    commercially reasonable efforts to keep the shelf registration
    statement, of which this prospectus is a part, effective until
    the earliest of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    two years from the latest date of original issuance of the notes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    the date when all registrable securities shall have been
    registered under the Securities Act and disposed of;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    the date on which all registrable securities held by
    non-affiliates are eligible to be sold to the public pursuant to
    Rule 144(k) under the Securities Act;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (4)&#160;
</TD>
    <TD align="left">
    the date on which the registrable securities cease to be
    outstanding.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we notify the holders in accordance with the resale
    registration rights agreement to suspend the use of the
    prospectus upon the occurrence of certain events, then the
    holders will be obligated to suspend the use of the prospectus
    until the requisite changes have been made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A holder of registrable securities that sells registrable
    securities pursuant to the shelf registration statement
    generally will be required to provide information about itself
    and the specifics of the sale, be named as a selling
    securityholder in the related prospectus, deliver a prospectus
    to purchasers, be subject to relevant civil liability provisions
    under the Securities Act in connection with such sales and be
    bound by the provisions of the registration rights agreement
    which are applicable to such holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, and while our obligation under the registration rights
    agreement to maintain an effective shelf registration rights
    agreement remains in effect, such shelf registration statement
    ceases to be effective (without being succeeded immediately by
    an effective replacement shelf registration statement), or the
    shelf registration statement or prospectus contained therein
    ceases to be usable in connection with the resales of notes and
    any common share or other security issuable upon the conversion
    of the notes, in accordance with and during the periods
    specified in the registration rights agreement for a period of
    time (including any suspension period) which exceeds
    60&#160;days in the aggregate in any consecutive
    <FONT style="white-space: nowrap">12-month</FONT>
    period because either (i)&#160;any event occurs as a result of
    which the prospectus
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    68
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    forming part of such shelf registration statement would include
    any untrue statement of a material fact or omit to state any
    material fact necessary to make the statements therein in the
    light of the circumstances under which they were made not
    misleading, (ii)&#160;it shall be necessary to amend such shelf
    registration statement or supplement the related prospectus to
    comply with the Securities Act or Exchange Act or the respective
    rules thereunder, or (iii)&#160;the occurrence or existence of
    any pending corporate development or other similar event with
    respect to us or a public filing with the SEC that, in our
    reasonable discretion, makes it appropriate to suspend the
    availability of a shelf registration statement and the related
    prospectus (each such event, a &#147;resale registration
    default&#148;), additional interest will accrue on the notes,
    from and including the date on which the resale registration
    default shall occur to but excluding the date on which all such
    resale registration defaults have been cured, at the rate of
    (a)&#160;0.25% of the principal amount of the notes per year to
    and including the 90th&#160;day following the occurrence of such
    resale registration default and (b)&#160;0.50% of the principal
    amount of the notes per year from and after the 91st&#160;day
    following the occurrence of such resale registration default. If
    a holder has converted some or all of its notes into common
    shares, the holder will not be entitled to receive any
    additional interest with respect to such common shares or the
    principal amount of the notes converted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attached to the offering memorandum, dated December&#160;4,
    2007, related to the private placement of the notes or otherwise
    made available by us to holders, is a form of notice and
    questionnaire to be completed and delivered by a holder of notes
    prior to any intended distribution of registrable securities
    pursuant to the shelf registration statement. Holders will need
    to complete a notice and questionnaire if they wish to have
    their registrable securities covered by the shelf registration
    statement and related prospectus. Each holder wishing to be
    named as a selling securityholder and sell its registrable
    securities pursuant to the shelf registration statement and
    related prospectus after the date the shelf registration
    statement related to this prospectus is declared effective must
    deliver a questionnaire to us at least 10 business days prior to
    any intended distribution. Within five business days after the
    later of receipt of a questionnaire or the expiration of any
    suspension period in effect when such questionnaire is
    delivered, we will file, if required by applicable law, a
    post-effective amendment to the shelf registration statement or
    a supplement to the prospectus contained in the shelf
    registration statement. In no event will we be required to file
    more than one post-effective amendment in any calendar quarter
    or to file a supplement or post-effective amendment during any
    suspension period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay all expenses incident to our performance of and
    compliance with the registration rights agreement, provide each
    holder that is selling registrable securities pursuant to the
    shelf registration statement copies of the related prospectus as
    reasonably requested and take other actions as are required
    under the terms of the registration rights agreement to permit,
    subject to the foregoing, unrestricted resales of the
    registrable securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the registration rights agreement, each holder must
    indemnify us for certain losses in connection with the shelf
    registration statement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    69
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF SHARE CAPITAL</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a Canadian corporation, and our affairs are governed by
    our articles of continuance, as amended from time to time (the
    &#147;articles&#148;), bylaws as effective from time to time,
    and the CBCA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the date of this prospectus, our authorized share capital
    consists of an unlimited number of common shares. As of the date
    of this prospectus, 27,320,389 common shares were issued and
    outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary description of our share capital does not
    purport to be complete and is qualified in its entirety by
    reference to our articles and our amended bylaws. If you would
    like more information on our common shares, you should review
    our articles and bylaws and the CBCA.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of our common shares are fully paid and non-assessable. Our
    common shares are issued in registered form and may or may not
    be certificated although every shareholder is entitled at their
    option to a share certificate that complies with the CBCA. There
    are no limitations on the rights of shareholders who are not
    residents of Canada to hold and vote common shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividends</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of our common shares are entitled to receive, from funds
    legally available therefor, dividends when and as declared by
    the board of directors. The CBCA restricts the directors&#146;
    ability to declare, and our ability to pay, dividends by
    requiring that certain solvency tests be satisfied at the time
    of such declaration and payment. See the section entitled
    &#147;&#151;&#160;Shareholders&#146; Rights &#151;&#160;Sources
    of Dividends.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each common share is entitled to one vote on all matters upon
    which the common shares are entitled to vote.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Liquidation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to a distribution of assets in the event of our
    liquidation, dissolution or
    <FONT style="white-space: nowrap">winding-up,</FONT>
    whether voluntary or involuntary, or any other distribution of
    our assets for the purposes of winding up our affairs, assets
    available for distribution among the holders of common shares
    shall be distributed among the holders of the common shares on a
    <I>pro rata </I>basis.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Variations
    of Rights of Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All or any of the rights attached to our common shares, or any
    other class of shares duly authorized may, subject to the
    provisions of the CBCA, be varied either with the unanimous
    written consent of the holders of the issued shares of that
    class or by a special resolution passed at a meeting of the
    holders of the shares of that class.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Preferred
    Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our board of directors has the authority, without shareholder
    approval, to issue an unlimited number of preferred shares in
    one or more series. Our board of directors may establish the
    number of shares to be included in each such series and may set
    the designations, preferences, powers and other rights of the
    shares of a series of preferred shares. While the issuance of
    preferred shares provides us with flexibility in connection with
    possible acquisitions or other corporate purposes, it could,
    among other things, have the effect of delaying, deferring or
    preventing a change of control transaction and could adversely
    affect the market price of our common shares and the notes
    offered in this prospectus. We have no current plan to issue any
    preferred shares.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    70
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent and Registrar</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bank of New York is the transfer agent and registrar for our
    common shares. The Bank of New York&#146;s address is One Wall
    Street, New York, New York 10286.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Shareholders&#146;
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The CBCA and our articles and bylaws govern us and our relations
    with our shareholders. The following is a summary of certain
    rights of holders of our common shares under the CBCA. This
    summary is not intended to be complete and is qualified in its
    entirety by reference to our articles and bylaws.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stated
    Objects or Purposes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our articles do not contain any stated objects or purposes and
    do not place any limitations on the business that we may carry
    on.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Shareholder
    Meetings</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We must hold an annual meeting of our shareholders at least once
    every year at a time and place determined by our board of
    directors, provided that the meeting must not be held later than
    15&#160;months after the preceding annual meeting or later than
    six months after the end of our preceding financial year. A
    meeting of our shareholders may be held at a place within Canada
    determined by our directors or, if determined by our directors,
    in New York, New York, United States of America, Los Angeles,
    California, United States of America, London, England, the Hong
    Kong Special Administrative Region of The People&#146;s Republic
    of China or Shanghai, The People&#146;s Republic of China.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Voting at any meeting of shareholders is by show of hands unless
    a poll or ballot is demanded. A poll or ballot may be demanded
    by the chairman of our board of directors or by any shareholder
    present in person or by proxy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A special resolution is a resolution passed by not less than
    two-thirds of the votes cast by the shareholders entitled to
    vote on the resolution at a meeting at which a quorum is
    present. An ordinary resolution is a resolution passed by not
    less than a simple majority of the votes cast by the
    shareholders entitled to vote on the resolution at a meeting at
    which a quorum is present.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Notice
    of Meeting of Shareholders</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our bylaws provide that written notice stating the place, day
    and time of a shareholder meeting and the purpose for which the
    meeting is called, shall be delivered not less than 21&#160;days
    nor more than 60&#160;days before the date of the meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Quorum</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, unless a corporation&#146;s bylaws provide
    otherwise, a quorum is present at a meeting of the shareholders,
    irrespective of the number of shareholders actually present at
    the meeting, if the holders of a majority of the shares entitled
    to vote at the meeting are present in person or represented by
    proxy. Our bylaws provide that a quorum shall be at least two
    shareholders entitled to vote at the meeting represented in
    person or by proxy and holding at least one-third of our total
    issued and outstanding common shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Record
    Date for Notice of Meeting of Shareholders</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our directors may fix in advance a date as the record date for
    the determination of shareholders entitled to receive notice of
    a meeting of shareholders, but such record date shall not
    precede by more than 60&#160;days or by less than 21&#160;days
    the date on which the meeting is to be held. If no record date
    is fixed, the record date for the determination of shareholders
    entitled to receive notice of a meeting of shareholders shall be
    at the close of business on the day immediately preceding the
    day on which the notice is given or, if no notice is given, the
    day on which the meeting is held. If a record date is fixed,
    notice thereof shall be given, not less than seven days before
    the date so fixed by
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    71
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    newspaper advertisement in the manner provided by the CBCA and
    by written notice to each stock exchange in Canada on which our
    shares are listed for trading.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Ability
    to Requisition Special Meetings of the
    Shareholders</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The CBCA provides that the holders of not less than five percent
    of the issued shares of a corporation that carry the right to
    vote at a meeting sought to be held may give notice to the
    directors requiring them to call a meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Shareholder
    Proposals</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A shareholder entitled to vote at a meeting of shareholders who
    has held common shares with a fair market value of at least
    C$2,000 for at least six months may submit to us notice of a
    proposal and discuss at the meeting any matter in respect of
    which the shareholder would have been entitled to submit a
    proposal. A proposal may include nominations for the election of
    directors if the proposal is signed by one or more holders of
    shares representing in the aggregate not less than five percent
    of the shares entitled to vote at the meeting to which the
    proposal is to be presented. This requirement does not preclude
    nominations being made at a meeting of shareholders. The
    proposal must be submitted to us at least 90&#160;days before
    the anniversary date of the notice of meeting that was sent to
    shareholders in connection with the last annual meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Vote
    Required for Extraordinary Transactions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, certain extraordinary corporate actions are
    required to be approved by special resolution. Such
    extraordinary corporate actions include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    amendments to articles;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    arrangements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    amalgamations other than amalgamations involving a holding body
    corporate, one or more wholly owned subsidiaries
    <FONT style="white-space: nowrap">and/or</FONT> one
    or more sister corporations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    continuances under the laws of another jurisdiction;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    voluntary dissolutions;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    sales, leases or exchanges of all or substantially all the
    property of a corporation other than in the ordinary course of
    business.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Related
    Party Transactions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The CBCA does not prohibit related party transactions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dissent
    Rights</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The CBCA provides that our shareholders are entitled to exercise
    dissent rights and demand payment of the fair value of their
    shares in certain circumstances. For this purpose, there is no
    distinction between listed and unlisted shares. Dissent rights
    exist when we resolve to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    amalgamate with a corporation other than a holding body
    corporate, one or more wholly owned subsidiaries
    <FONT style="white-space: nowrap">and/or</FONT> one
    or more sister corporations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    amend the our articles of incorporation to add, change or remove
    any provisions restricting the issue, transfer or ownership of
    shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    amend the ours articles to add, change or remove any restriction
    upon the business or businesses that the we may carry on;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    continue under the laws of another jurisdiction;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    72
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    sell, lease or exchange of all or substantially all our property
    other than in the ordinary course of business;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    carry out a going-private or squeeze-out transaction.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, a court order in connection with an arrangement
    proposed by us may permit shareholders to dissent if the
    arrangement is adopted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    However, a shareholder is not entitled to dissent if an
    amendment to the articles of incorporation is effected by a
    court order approving a reorganization or by a court order made
    in connection with an action for an oppression remedy.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Action
    by Written Consent</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, shareholders can take action by written
    resolution and without a meeting only if all shareholders sign
    the written resolution.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Number
    of Directors and Election</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA the number of directors of a corporation must be
    specified in the corporation&#146;s articles. The articles may
    provide for a minimum and maximum number of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our articles provide that the number of directors will not be
    less than three or more than ten. Our board of directors
    currently consists of six directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our articles provide that our board of directors shall fix and
    may change the number of directors within the minimum and
    maximum number of directors provided for in our articles. In
    addition, our board of directors may appoint one or more
    additional directors, who shall hold office for a term expiring
    not later than the close of the next annual meeting of
    shareholders, but the total number of directors so appointed may
    not exceed one-third of the number of directors elected at the
    previous annual meeting of shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders of a corporation governed by the CBCA elect
    directors by ordinary resolution at each annual meeting of
    shareholders at which such an election is required.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Director
    Qualifications</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, at least 25% of the directors must be Canadian
    residents. A director must not be:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    under eighteen years of age;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    adjudicated as mentally unsound;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a person that is not an individual;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a person who has the status of a bankrupt.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Removal
    of Directors; Staggered Term</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, a corporation&#146;s shareholders may remove at
    a special meeting any director before the expiration of his or
    her term of office and may elect any qualified person in such
    director&#146;s stead for the remainder of such term by ordinary
    resolution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, directors may be elected for a term expiring not
    later than the third annual meeting of shareholders following
    the election. If no term is specified, a director&#146;s term
    expires at the next annual meeting of shareholders. A director
    may be nominated for re-election to the board of directors at
    the end of the director&#146;s term.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    73
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Vacancies
    on the Board of Directors</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, vacancies that exist on the board of directors,
    except a vacancy resulting from an increase in the number or the
    minimum or maximum number of directors or a failure to elect the
    number or minimum number of directors provided for in the
    articles, may be filled by the board if the remaining directors
    constitute a quorum. In the absence of a quorum, the remaining
    directors shall call a meeting of shareholders to fill the
    vacancy.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Limitation
    of Personal Liability of Directors and Officers</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, in exercising their powers and discharging their
    duties, directors and officers must act honestly and in good
    faith with a view to the best interests of the corporation and
    exercise the care, diligence and skill that a reasonably prudent
    person would exercise in comparable circumstances. No provision
    in the corporation&#146;s articles, bylaws, resolutions or
    contracts can relieve a director or officer from the duty to act
    in accordance with the CBCA or relieve a director from liability
    for a breach thereof. However, a director will not be liable for
    breaching his or her duty to act in accordance with the CBCA if
    the director relied in good faith on:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    financial statements represented to him by an officer or in a
    written report of the auditor to fairly reflect the financial
    condition of the corporation;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a report of a person whose profession lends credibility to a
    statement made by such person.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Directors and Officers</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA and pursuant to our bylaws, we may indemnify any
    present or former director or officer or an individual who acts
    or acted at our request as a director or officer, or an
    individual acting in a similar capacity, of another entity,
    against all costs, charges and expenses, including an amount
    paid to settle an action or satisfy a judgment, reasonably
    incurred by such individual in respect of any civil, criminal,
    administrative, investigative or other proceeding in which the
    individual is involved because of that association with the
    corporation or other entity. In order to qualify for
    indemnification such director or officer must:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    have acted honestly and in good faith with a view to our best
    interests, or, as the case may be, to the best interests of the
    other entity for which he or she acted as director or officer or
    in a similar capacity at our request;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in the case of a criminal or administrative action or proceeding
    enforced by a monetary penalty, have had reasonable grounds for
    believing that his or her conduct was lawful.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Indemnification will be provided to an eligible director or
    officer who meets both these tests and was substantially
    successful on the merits in his or her defense of the action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A director or officer is entitled to indemnification from us as
    a matter of right if he or she is not judged by the court or
    other competent authority to have committed any fault or omitted
    to do anything that the individual ought to have done and
    fulfilled the conditions set forth above.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Sources
    of Dividends</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends may be declared at the discretion of the board of
    directors. Under the CBCA, the directors may not declare, and we
    may not pay, dividends if there are reasonable grounds for
    believing that (i)&#160;we are, or would after such payment be
    unable to pay our liabilities as they become due or
    (ii)&#160;the realizable value of our assets would be less than
    the aggregate of our liabilities and of our stated capital of
    all classes of shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Amendments
    to the Bylaws</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The directors may by resolution make, amend or repeal any bylaw
    unless the articles or bylaws provide otherwise. Our articles
    and bylaws do not restrict the power of our directors to make,
    amend or repeal bylaws. When the directors make, amend or repeal
    a bylaw, they are required under the CBCA to submit the change
    to the shareholders at the next meeting of shareholders.
    Shareholders may confirm, reject or amend the bylaw, amendment
    or repeal by ordinary resolution.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    74
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Interested
    Directors Transactions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, if a director or officer has a material interest
    in a material contract or transaction, the director generally
    may not vote on any resolution to approve the contract or
    transaction, but the contract is not void or voidable by reason
    only of the relationship if such interest is disclosed in
    accordance with the requirements set out in the CBCA, the
    contract is approved by the other directors or by the
    shareholders and the contract was fair and reasonable to the
    corporation at the time it was approved.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where a director or officer has an interest in a material
    contract or transaction or a proposed material contract or
    transaction that, in the ordinary course of the
    corporation&#146;s business, would not require approval by the
    directors or shareholders, the interested director or officer
    shall disclose in writing to the corporation or request to have
    entered in the minutes of meetings of directors, the nature and
    the extent of the interest forthwith after the director or
    officer becomes aware of the contract or transaction or proposed
    contract or transaction.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Committees</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, directors of a corporation may appoint from
    their number a committee of directors and delegate to such
    committee certain powers of the directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Derivative
    Actions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, a complainant (as defined below) may apply to
    the court for leave to bring an action in the name of and on
    behalf of a corporation or any of its subsidiaries, or to
    intervene in an existing action to which such body corporate is
    a party for the purpose of prosecuting, defending or
    discontinuing the action. A complainant includes a present or
    former shareholder, a present or former officer or director of
    the corporation or any of its affiliates, or any other person
    who in the discretion of the court is a proper person to make
    such an application. Under the CBCA, no action may be brought
    and no intervention in an action may be made unless the
    complainant has given 14&#160;days&#146; notice to the directors
    of the corporation or its subsidiary of the complainant&#146;s
    intention to apply to the court. The court must be satisfied
    that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the complainant is acting in good faith;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    it appears to be in the interests of the corporation or its
    subsidiary that the action be brought, prosecuted, defended or
    discontinued.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, the court in a derivative action may make any
    order it thinks fit, including orders pertaining to the conduct
    of the action, the making of payments to former and present
    shareholders and payment of reasonable legal fees incurred by
    the complainant.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Oppression
    Remedy</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The CBCA provides an oppression remedy that enables a court to
    make any order it thinks fit to rectify the matters complained
    of, if the court is satisfied upon application of a complainant
    (as defined below) that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any act or omission of the corporation or any of its affiliates
    effects a result;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the business or affairs of the corporation or any of its
    affiliates are or have been conducted in a manner;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the powers of the directors of the corporation or any of its
    affiliates are or have been exercised in a manner,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    that is oppressive or unfairly prejudicial to or that unfairly
    disregards the interests of any security holder, creditor,
    director or officer of the corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A complainant for this purpose includes a present or former
    shareholder, a present or former officer or director of ours or
    any of our affiliates, the director appointed under the CBCA and
    any other person who in the discretion of the court is a proper
    person to make such an application.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    75
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exercise of the court&#146;s jurisdiction does not depend on
    a finding of a breach of such legal and equitable rights.
    Furthermore, the court may order a corporation to pay the
    interim costs of a complainant seeking an oppression remedy, but
    the complainant may be held accountable for such interim costs
    on final disposition of the complaint.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Inspection
    of Books and Records</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the CBCA, our shareholders and creditors and, their
    personal representatives may examine, free of charge during
    normal business hours:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our articles, bylaws and all amendments thereto;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the minutes and resolutions of shareholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    copies of all notices of directors filed under the CBCA;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our securities register.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any of our shareholders may request a copy of the articles,
    bylaws and all amendments thereto free of charge.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exchange
    Controls</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Canada has no system of exchange controls. There are no Canadian
    restrictions on the repatriation of capital or earnings of a
    Canadian public company to non-resident investors. There are no
    laws of Canada or exchange restrictions affecting the remittance
    of dividends or similar payments to non-resident holders of our
    common shares, except as described under
    &#147;Taxation&#160;&#151; Canadian Federal Income Tax
    Considerations.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    76
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ENFORCEABILITY
    OF CIVIL LIABILITIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were incorporated as an Ontario corporation in October 2001
    and were continued as a Canadian corporation under the CBCA in
    June 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a corporation organized under the federal laws of Canada.
    Most of our directors and officers and some of the experts named
    in this prospectus reside principally outside the United States.
    Because these persons are located outside the United States, it
    may not be possible for you to effect service of process within
    the United States upon those persons. Furthermore, it may not be
    possible for you to enforce against us or them, in the United
    States, judgments obtained in U.S.&#160;courts, because all or a
    substantial portion of our assets and the assets of those
    persons are located outside the United States. We have been
    advised by WeirFoulds LLP, our Canadian counsel, that there are
    defenses that can be raised to the enforceability, in original
    actions in Canadian courts, of liabilities based upon the
    U.S.&#160;federal securities laws and to the enforceability in
    Canadian courts of judgments of U.S.&#160;courts obtained in
    actions based upon the civil liability provisions of
    U.S.&#160;federal securities laws, such that the enforcement in
    Canada of such liabilities and judgments is not certain.
    Therefore, it may not be possible to enforce those actions
    against us, our directors and officers or the experts named in
    this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our constituent documents do not contain provisions requiring
    that disputes, including those arising under the securities laws
    of the United States, between us, our officers, directors and
    shareholders, be arbitrated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Substantially all of our current operations are conducted in
    China, and substantially all of our assets are located in China.
    A majority of our directors and officers are nationals or
    residents of jurisdictions other than the United States and a
    substantial portion of their assets are located outside the
    United States. As a result, it may be difficult for a
    shareholder to effect service of process within the United
    States upon us or such persons, or to enforce against us or them
    judgments obtained in United States courts, including judgments
    predicated upon the civil liability provisions of the securities
    laws of the United States or any state in the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Chen&#160;&#038; Co. Law Firm, our counsel as to PRC law, has
    advised us that there is uncertainty as to whether the courts of
    the PRC would:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    recognize or enforce judgments of United States courts obtained
    against us or our directors or officers predicated upon the
    civil liability provisions of the securities laws of the United
    States or any state in the United States;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    entertain original actions brought in each respective
    jurisdiction against us or our directors or officers predicated
    upon the securities laws of the United States or any state in
    the United States.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Chen&#160;&#038; Co. Law Firm has advised us further that the
    recognition and enforcement of foreign judgments are provided
    for under the PRC Civil Procedures Law. PRC courts may recognize
    and enforce foreign judgments in accordance with the
    requirements of the PRC Civil Procedures Law based either on
    treaties between the PRC and the country where the judgment is
    made or on reciprocity between jurisdictions. China does not
    have any treaties or other arrangements that provide for the
    reciprocal recognition and enforcement of foreign judgments with
    the United States or Canada. As a result, it is generally
    difficult to recognize and enforce in China a judgment rendered
    by a court in either of these two jurisdictions.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    77
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TAXATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    U.S. Federal Income Tax Considerations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion is a summary of certain
    U.S.&#160;federal income tax considerations to U.S.&#160;Holders
    (as defined below) of the purchase, ownership and disposition of
    notes and common shares into which the notes may be converted.
    This summary is based on the tax laws of the United States as in
    effect on the date of this prospectus and on U.S.&#160;Treasury
    regulations in effect or, in some cases, proposed, as of the
    date of this prospectus, as well as judicial and administrative
    interpretations thereof available on or before such date. All of
    the foregoing authorities are subject to change, which change
    could apply retroactively and could affect the tax consequences
    described below. Except where noted, this summary deals only
    with notes held as capital assets by U.S.&#160;Holders and with
    common shares received by such U.S.&#160;Holders upon conversion
    of such notes and held as capital assets. This summary does not
    address all aspects of U.S.&#160;federal income taxes and does
    not deal with all tax consequences that may be relevant to
    holders in light of their personal circumstances or particular
    situations, such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    tax consequences to holders who may be subject to special tax
    treatment, including dealers in securities or currencies,
    financial institutions, regulated investment companies, real
    estate investment trusts, tax-exempt entities, insurance
    companies, or traders in securities that elect to use a
    mark-to-market method of accounting for their securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    tax consequences to holders holding notes or common shares as a
    part of a hedging, integrated or conversion transaction or a
    straddle or persons deemed to sell notes or common shares under
    the constructive sale provisions of the Internal Revenue Code of
    1986, as amended (the &#147;Code&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    tax consequences to holders of notes or common shares whose
    &#147;functional currency&#148; is not the U.S.&#160;dollar;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    tax consequences to holders of notes or common shares that own,
    actually or constructively, 10% or more of our common shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    tax consequences to investors in partnerships or other
    pass-through entities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    alternative minimum tax consequences, if any;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any state, local or
    <FONT style="white-space: nowrap">non-U.S.&#160;tax</FONT>
    consequences;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any estate or gift tax consequences.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a partnership (or other entity treated as a partnership for
    U.S.&#160;federal income tax purposes) holds notes or common
    shares, the tax treatment of a partner will generally depend
    upon the status of the partner and the activities of the
    partnership. Partners in partnerships (or other entities treated
    as partnerships for U.S.&#160;federal income tax purposes)
    holding the notes or common shares should consult their tax
    advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>INVESTORS ARE URGED TO CONSULT THEIR TAX ADVISORS ABOUT THE
    APPLICATION OF THE U.S.&#160;FEDERAL TAX RULES&#160;TO THEIR
    PARTICULAR CIRCUMSTANCES AS WELL AS THE STATE, LOCAL AND
    <FONT style="white-space: nowrap">NON-U.S.&#160;TAX</FONT>
    CONSEQUENCES TO THEM OF THE PURCHASE, OWNERSHIP AND DISPOSITION
    OF NOTES&#160;AND COMMON SHARES.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used herein, the term &#147;U.S.&#160;Holder&#148; means a
    beneficial owner of notes or common shares received upon
    conversion of the notes that is, for U.S.&#160;federal income
    tax purposes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    an individual who is a citizen or resident of the United States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a corporation (or any other entity treated as a corporation for
    U.S.&#160;federal income tax purposes) created or organized in
    or under the laws of the United States, any state thereof or the
    District of Columbia;
</TD>
</TR>

</TABLE>

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    <BR>
    78
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    an estate the income of which is subject to U.S.&#160;federal
    income taxation regardless of its source;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a trust, if it (i)&#160;is subject to the primary supervision of
    a court within the United States and one or more
    U.S.&#160;persons have the authority to control all substantial
    decisions of the trust, or (ii)&#160;has a valid election in
    effect under applicable U.S.&#160;Treasury regulations to be
    treated as a U.S.&#160;person.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Payment
    of Interest</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Interest on a note will generally be taxable to a
    U.S.&#160;Holder as ordinary income at the time it is paid or
    accrued in accordance with the U.S.&#160;Holder&#146;s method of
    accounting for tax purposes. Interest income on a note generally
    will constitute foreign source income and generally will
    constitute &#147;passive category income&#148; or, in the case
    of certain U.S.&#160;Holders, &#147;general category
    income.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Additional
    Interest</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may be required to pay additional interest in certain
    circumstances described above under the heading
    &#147;Description of Notes&#160;&#151; Additional Amounts.&#148;
    We believe (and the rest of this discussion assumes) there is
    only a remote possibility that we will be obligated to make any
    such additional payments on the notes, and the notes therefore
    will not be treated as &#147;contingent payment debt
    instruments&#148; under applicable Treasury regulations.
    Assuming our position is respected, any such additional interest
    would generally be taxable to a U.S.&#160;Holder at the time
    such payments are received or accrued, in accordance with the
    U.S.&#160;Holder&#146;s usual method of accounting for tax
    purposes, subject to the discussion below under
    &#147;&#151;&#160;Amortizable Bond Premium.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our determination that the notes are not contingent payment debt
    instruments is not binding on the Internal Revenue Service (the
    &#147;IRS&#148;). If the IRS were to successfully challenge our
    determination and the notes were treated as contingent payment
    debt instruments, a U.S.&#160;Holder would be required, among
    other things, to accrue interest income, regardless of the
    U.S.&#160;Holder&#146;s method of accounting, at a rate higher
    than the stated interest rate on the notes and to treat as
    taxable ordinary income, rather than capital gain, any gain
    recognized on a sale, exchange or redemption of a note and the
    entire amount of realized gain upon a conversion of a note. Our
    determination that the notes are not contingent payment debt
    instruments is binding on U.S.&#160;Holders unless they disclose
    their contrary positions to the IRS in the manner that is
    required by applicable U.S.&#160;Treasury regulations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Market
    Discount</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a U.S.&#160;Holder acquires a note other than at its original
    issue at a cost (excluding any amount attributable to accrued
    interest) that is less than the stated redemption price at
    maturity, the amount of such difference is treated as
    &#147;market discount&#148; for U.S.&#160;federal income tax
    purposes, unless such difference is less than .0025 multiplied
    by the stated redemption price at maturity multiplied by the
    number of complete years until maturity (from the date of
    acquisition).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the market discount rules of the Code, a U.S.&#160;Holder
    is required to treat any gain on the sale, exchange, retirement
    or other disposition of a note as ordinary income to the extent
    of the accrued market discount that has not been previously
    included in income. If a U.S.&#160;Holder disposes of a note
    with market discount in certain otherwise nontaxable
    transactions, such holder may be required to include accrued
    market discount as ordinary income as if the holder had sold the
    note at its then fair market value. In general, the amount of
    market discount that has accrued is determined on a ratable
    basis. A U.S.&#160;Holder may, however, elect to determine the
    amount of accrued market discount on a constant yield to
    maturity basis. This election is made on a
    <FONT style="white-space: nowrap">note-by-note</FONT>
    basis and is irrevocable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to notes with market discount, a U.S.&#160;Holder
    may not be allowed to deduct immediately a portion of the
    interest expense on any indebtedness incurred or continued to
    purchase or to carry the notes. A U.S.&#160;Holder may elect to
    include market discount in income currently as it accrues, in
    which case the interest deferral rule set forth in the preceding
    sentence will not apply. This election will apply to all debt
    instruments that a U.S.&#160;Holder acquires on or after the
    first day of the first taxable year to which the election
    applies and may not be revoked without the consent of the IRS.
    U.S.&#160;Holders should consult their tax advisors before
    making this election.
</DIV>

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    <BR>
    79
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Amortizable
    Bond Premium</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, if a U.S.&#160;Holder&#146;s purchase price for a
    note, reduced by (i)&#160;an amount equal to the value of the
    conversion option and (ii)&#160;any amount attributable to
    accrued interest, exceeds the stated principal amount of the
    note, such excess will constitute bond premium. A
    U.S.&#160;Holder generally may elect to amortize the premium
    over the remaining term of the note on a constant yield method
    as an offset to interest when includible in income under such
    holder&#146;s regular accounting method. If a U.S.&#160;Holder
    does not elect to amortize bond premium, that premium will
    decrease the gain or increase the loss such holder would
    otherwise recognize on disposition of the note. An election to
    amortize premium on a constant yield method will also apply to
    all debt obligations held or subsequently acquired by the
    electing U.S.&#160;Holder on or after the first day of the first
    taxable year to which the election applies and may not be
    revoked without the consent of the IRS. U.S.&#160;Holders should
    consult their tax advisors before making this election.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Disposition
    of Notes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as provided below under &#147;Conversion of Notes,&#148;
    and subject to the passive foreign investment rules discussed
    below under &#147;Passive Foreign Investment Company,&#148; a
    U.S.&#160;Holder will recognize gain or loss on the sale,
    exchange, redemption, retirement or other taxable disposition of
    a note equal to the difference between the amount realized upon
    the disposition (less any amount attributable to accrued but
    unpaid interest not previously included in income, which will be
    taxable as such) and the U.S.&#160;Holder&#146;s tax basis in
    the note. A U.S.&#160;Holder&#146;s tax basis in a note
    generally will be the U.S.&#160;Holder&#146;s cost therefor,
    reduced by (i)&#160;any principal payments received by such
    holder and (ii)&#160;the amount of amortized bond premium, if
    any, taken into account with respect to the note, and increased
    by the amount of market discount, if any, previously included in
    income with respect to the note. Such gain or loss will be
    U.S.&#160;source gain or loss and generally will be capital gain
    or loss (except as described above under
    &#147;&#151;&#160;Market Discount&#148;) and will be long-term
    capital gain or loss if at the time of the sale, exchange,
    redemption or other disposition such note has been held by such
    U.S.&#160;Holder for more than one year. Such gain or loss will
    generally be U.S.&#160;source. Long-term capital gain realized
    by a non-corporate U.S.&#160;Holder will generally be subject to
    taxation at a reduced rate. The deductibility of capital losses
    is subject to limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event we are a passive foreign investment company, a
    U.S.&#160;Holder generally will be taxed upon the sale,
    exchange, redemption or other taxable disposition of a note in
    the same manner that such U.S.&#160;Holder would be taxed upon
    the sale, exchange, redemption or other taxable disposition of
    common shares in a passive foreign investment company, except
    that the notes will not be eligible for the
    &#147;mark-to-market&#148; election. See the discussion under
    &#147;Passive Foreign Investment Company,&#148; below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    of Notes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a U.S.&#160;Holder receives solely cash in exchange for notes
    upon conversion, the U.S.&#160;Holder&#146;s gain or loss will
    be determined in the same manner as if the U.S.&#160;Holder
    disposed of the notes in a taxable disposition (as described
    above under &#147;Disposition of Notes&#148;). The tax treatment
    of a conversion of a note into cash and common shares is
    uncertain, and U.S.&#160;Holders should consult their tax
    advisors regarding the consequences of such a conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Treatment as a Recapitalization.</I></B>&#160;If a
    combination of cash and shares is received by a U.S.&#160;Holder
    upon conversion of notes, we intend to take the position that
    the notes are securities for U.S.&#160;federal income tax
    purposes and that the conversion would be treated as a
    recapitalization. In such case, gain, but not loss, would be
    recognized equal to the excess of the fair market value of the
    common shares and cash received (other than amounts attributable
    to accrued interest, which will be treated as such) over a
    U.S.&#160;Holder&#146;s tax basis in the notes, but in no event
    should the gain recognized exceed the amount of cash received
    (other than cash received in lieu of a fractional share or cash
    attributable to accrued interest). The amount of gain or loss
    recognized on the receipt of cash in lieu of a fractional share
    would be equal to the difference between the amount of cash a
    U.S.&#160;Holder would receive in respect of the fractional
    share and the portion of the U.S.&#160;Holder&#146;s tax basis
    in the common shares received that is allocable to the
    fractional share. Except as described above under
    &#147;&#151;&#160;Market Discount,&#148; any gain or loss
    recognized on conversion or upon the receipt of cash in lieu of
    a fractional share generally would be capital gain or loss and
    would be long- term capital gain or loss if, at the time of the
    conversion, the note has been held for more than one year.
    However, in the event we are a passive foreign investment
    company, a U.S.&#160;Holder generally will be subject to tax on
    such gain in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    80
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the same manner as if such gain were recognized on the sale of
    common shares in a passive foreign investment company. See the
    discussion under &#147;Passive Foreign Investment Company,&#148;
    below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tax basis of the common shares received upon such a
    conversion (including any fractional share deemed to be received
    by the U.S.&#160;Holder but other than common shares
    attributable to accrued interest, the tax basis of which would
    equal the amount of accrued interest with respect to which the
    common shares were received) would equal the tax basis of the
    note that was converted, reduced by the amount of any cash
    received (other than cash received in lieu of a fractional share
    or cash attributable to accrued interest), and increased by the
    amount of gain, if any, recognized (other than with respect to a
    fractional share). A U.S.&#160;Holder&#146;s holding period for
    common shares would include the period during which the
    U.S.&#160;Holder held the notes, except that the holding period
    of any common shares received with respect to accrued interest
    would commence on the day after the date of conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Alternative Treatment as Part&#160;Conversion and
    Part&#160;Redemption.</I></B>&#160;If the above-discussed
    conversion of a note into cash and common shares were not
    treated as a recapitalization, the cash payment received may be
    treated as proceeds from the sale of a portion of the note and
    taxed in the manner described under &#147;Disposition of
    Notes&#148; above (or in the case of cash received in lieu of a
    fractional share, taxed as a disposition of a fractional share),
    in which case the common shares received on such a conversion
    would be treated as received upon a conversion of the other
    portion of the note, which generally would not be taxable to a
    U.S.&#160;Holder except to the extent of any common shares
    received with respect to accrued interest. In that case, the
    U.S.&#160;Holder&#146;s tax basis in the note would generally be
    allocated <I>pro rata </I>among the common shares received, the
    fractional share that is sold for cash and the portion of the
    note that is treated as sold for cash. The holding period for
    the common shares received in the conversion would include the
    holding period for the notes, except that the holding period of
    any common shares received with respect to accrued interest
    would commence on the day after the date of conversion.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Possible
    Effect of the Change in Conversion Consideration</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In certain situations, we may provide for the conversion of the
    notes into shares of an acquirer. Depending on the
    circumstances, such an adjustment could result in a deemed
    taxable exchange to a U.S.&#160;Holder and the modified note
    could be treated as newly issued at that time, potentially
    resulting in the recognition of taxable gain or loss.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividends
    and Other Distributions on the Common Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the passive foreign investment company rules
    discussed below under &#147;Passive Foreign Investment
    Company,&#148; the gross amount of all our distributions to a
    U.S.&#160;Holder with respect to the common shares (including
    any Canadian taxes withheld therefrom) will be included in the
    U.S.&#160;Holder&#146;s gross income as foreign source ordinary
    dividend income on the date of receipt by the U.S.&#160;Holder,
    but only to the extent that the distribution is paid out of our
    current or accumulated earnings and profits (as determined under
    U.S.&#160;federal income tax principles). To the extent that the
    amount of the distribution exceeds our current and accumulated
    earnings and profits, it will be treated first as a tax-free
    return of a U.S.&#160;Holder&#146;s tax basis in its common
    shares, and to the extent the amount of the distribution exceeds
    the U.S.&#160;Holder&#146;s tax basis, the excess will be taxed
    as capital gain. We do not intend to calculate our earnings and
    profits under U.S.&#160;federal income tax principles.
    Therefore, a U.S.&#160;Holder should expect that a distribution
    will be treated as a dividend. The dividends will not be
    eligible for the dividends-received deduction allowed to
    corporations in respect of dividends received from other
    U.S.&#160;corporations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to non-corporate U.S.&#160;Holders for taxable
    years beginning before January&#160;1, 2011, dividends may
    constitute &#147;qualified dividend income&#148; that is taxed
    at the lower applicable capital gains rate provided that
    (1)&#160;the common shares are readily tradable on an
    established securities market in the United States or we are
    eligible for the benefits of the income tax treaty between the
    United States and Canada, (2)&#160;we are not a passive foreign
    investment company (as discussed below) for either our taxable
    year in which the dividend was paid or the preceding taxable
    year, (3)&#160;certain holding period requirements are met and
    (4)&#160;the U.S.&#160;Holder is not under an obligation to make
    related payments with respect to positions in substantially
    similar or related property. U.S.&#160;Treasury guidance
    indicates that our common shares, which are listed on the Nasdaq
    Global Market, are readily tradable on an established securities
    market in the United States. There can be no assurance that our
    common shares will be considered readily tradable on an
    established securities market in later years. U.S.&#160;Holders
    should consult their tax advisors regarding the availability of
    the lower rate for dividends paid with respect to our common
    shares.
</DIV>

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    <BR>
    81
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to certain limitations, Canadian taxes withheld from a
    distribution to a U.S.&#160;Holder will be eligible for credit
    against such U.S.&#160;Holder&#146;s U.S.&#160;federal income
    tax liability. If a refund of the tax withheld is available to
    the U.S.&#160;Holder under the laws of Canada or under the
    income tax treaty between the United States and Canada, the
    amount of tax withheld that is refundable will not be eligible
    for such credit against the U.S.&#160;Holder&#146;s
    U.S.&#160;federal income tax liability (and will not be eligible
    for the deduction against the U.S.&#160;Holder&#146;s
    U.S.&#160;federal taxable income). If the dividends are
    qualified dividend income (as discussed above), the amount of
    the dividend taken into account for purposes of calculating the
    foreign tax credit limitation will in general be limited to the
    gross amount of the dividend, multiplied by the reduced rate
    divided by the highest rate of tax normally applicable to
    dividends. The limitation on foreign taxes eligible for credit
    is calculated separately with respect to specific classes of
    income. For this purpose, dividends distributed by us with
    respect to common shares generally will constitute &#147;passive
    category income&#148; but could, in the case of certain
    U.S.&#160;Holders, constitute &#147;general category
    income.&#148; The rules relating to the determination of the
    U.S.&#160;foreign tax credit are complex, and U.S.&#160;Holders
    should consult their tax advisors to determine whether and to
    what extent a credit would be available. A U.S.&#160;Holder that
    does not elect to claim a foreign tax credit with respect to any
    foreign taxes for a given taxable year may instead claim an
    itemized deduction for all foreign taxes paid in that taxable
    year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Constructive
    Distributions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The conversion rate of the notes will be adjusted in certain
    circumstances. Adjustments (or failures to make adjustments)
    that have the effect of increasing a U.S.&#160;Holder&#146;s
    proportionate interest in our assets or earnings may in some
    circumstances result in a deemed distribution to a
    U.S.&#160;Holder for U.S.&#160;federal income tax purposes.
    Adjustments to the conversion rate made pursuant to <I>a bona
    fide </I>reasonable adjustment formula that has the effect of
    preventing the dilution of the interest of the holders of the
    notes, however, will generally not be considered to result in a
    deemed distribution to a U.S.&#160;Holder. Certain of the
    possible conversion rate adjustments provided in the notes
    (including, without limitation, adjustments in respect of
    taxable dividends to holders of our common shares) will not
    qualify as being pursuant to <I>a bona fide </I>reasonable
    adjustment formula. If such adjustments are made, a
    U.S.&#160;Holder will be deemed to have received a distribution
    even though the U.S.&#160;Holder has not received any cash or
    property as a result of such adjustments. In addition, an
    adjustment to the conversion rate in connection with a
    fundamental change may be treated as a deemed distribution. Any
    deemed distributions will be taxable as a dividend, return of
    capital, or capital gain as described in &#147;Dividends and
    Other Distributions on the Common Shares&#148; above. It is not
    clear whether a constructive dividend deemed paid to a
    non-corporate U.S.&#160;Holder could be &#147;qualified dividend
    income&#148; as discussed above under &#147;Dividends and Other
    Distributions on the Common Shares.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dispositions
    of Common Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the passive foreign investment company rules
    discussed below under &#147;Passive Foreign Investment
    Company,&#148; a U.S.&#160;Holder will recognize
    U.S.&#160;source taxable gain or loss on any sale, exchange or
    other taxable disposition of a common share equal to the
    difference between the amount realized for the common share and
    the U.S.&#160;Holder&#146;s tax basis in the common share.
    Except as discussed below, such gain or loss generally will be
    capital gain or loss and will be long-term capital gain or loss
    if at the time of the sale, exchange or other disposition such
    common shares have been held by such U.S.&#160;Holder for more
    than one year. Long-term capital gain realized by a
    non-corporate U.S.&#160;Holder will generally be subject to
    taxation at a reduced rate. The deductibility of capital losses
    is subject to limitations. Under the market discount rules of
    the Code, any gain recognized by a U.S.&#160;Holder upon the
    disposition of common stock should be treated as ordinary income
    to the extent of any accrued market discount not previously
    included in income by the U.S.&#160;Holder with respect to the
    note converted into such common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Passive
    Foreign Investment Company</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not expect to be a passive foreign investment company
    (&#147;PFIC&#148;) for U.S.&#160;federal income tax purposes for
    our current taxable year ending December&#160;31, 2008. However,
    our actual PFIC status for 2008 will not be determinable until
    after the close of our 2008 taxable year, and there can be no
    assurance that we will not be a PFIC for our 2008 taxable year
    or any future taxable year. A
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    is considered to be a PFIC for any taxable year if either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    at least 75% of its gross income is passive income,&#160;or
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    82
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    at least 50% of the value of its assets (based on an average of
    the quarterly values of the assets during a taxable year) is
    attributable to assets that produce or are held for the
    production of passive income (the &#147;asset test&#148;).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will be treated as owning our proportionate share of the
    assets and earning our proportionate share of the income of any
    other corporation in which we own, directly or indirectly, 25%
    or more (by value) of the stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We must make a separate determination each year as to whether we
    are a PFIC. As a result, our PFIC status may change. In
    particular, because the total value of our assets for purposes
    of the asset test will be calculated using the market price of
    our common shares (assuming that we continue to a publicly
    traded corporation for purposes of the applicable PFIC rules),
    our PFIC status will depend in large part on the market price of
    our common shares. Accordingly, fluctuations in the market price
    of our common shares may result in our being a PFIC for any
    year. If we are a PFIC for any year during which a
    U.S.&#160;Holder holds common shares, we generally will continue
    to be treated as a PFIC for all succeeding years during which
    such U.S.&#160;Holder holds common shares, absent a special
    election. For instance, if we cease to be a PFIC, a
    U.S.&#160;Holder may avoid some of the adverse effects of the
    PFIC regime by making a deemed sale election with respect to the
    common shares. If we are a PFIC for any taxable year and any of
    our
    <FONT style="white-space: nowrap">non-U.S.&#160;subsidiaries</FONT>
    is also a PFIC, a U.S.&#160;Holder would be treated as owning a
    proportionate amount (by value) of the shares of the
    lower-tier&#160;PFIC for purposes of the application of these
    rules. U.S.&#160;Holders are urged to consult their tax advisors
    about the application of the PFIC rules to any of our
    subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are a PFIC for any taxable year during which a
    U.S.&#160;Holder holds common shares, such U.S.&#160;Holder will
    be subject to special tax rules with respect to any &#147;excess
    distribution&#148; that it receives and any gain it realizes
    from a sale or other disposition (including a pledge) of the
    common shares, unless the U.S.&#160;Holder makes a
    &#147;mark-to-market&#148; election as discussed below.
    Distributions received by a U.S.&#160;Holder in a taxable year
    that are greater than 125% of the average annual distributions
    such U.S.&#160;Holder received during the shorter of the three
    preceding taxable years or its holding period for the common
    shares will be treated as an excess distribution. Under these
    special tax rules:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the excess distribution or gain will be allocated ratably over
    the U.S.&#160;Holder&#146;s holding period for the common shares,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the amount allocated to the current taxable year, and any
    taxable year prior to the first taxable year in which we became
    a PFIC, will be treated as ordinary income,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the amount allocated to each other year will be subject to the
    highest tax rate in effect for that year and the interest charge
    generally applicable to underpayments of tax will be imposed on
    the resulting tax attributable to each such year.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tax liability for amounts allocated to years prior to the
    year of disposition or &#147;excess distribution&#148; cannot be
    offset by any net operating losses for such years, and gains
    (but not losses) realized on the sale of the common shares
    cannot be treated as capital, even if the U.S.&#160;Holder holds
    the common shares as capital assets. A U.S.&#160;Holder&#146;s
    holding period in its common shares generally will include its
    holding period in the note exchanged for such common shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Alternatively, a U.S.&#160;Holder of &#147;marketable
    stock&#148; (as defined below) in a PFIC may make a
    mark-to-market election with respect to shares of a PFIC to
    elect out of the tax treatment discussed above. If a
    U.S.&#160;Holder makes a valid mark-to-market election for the
    common shares, the U.S.&#160;Holder will include in income each
    year an amount equal to the excess, if any, of the fair market
    value of the common shares as of the close of its taxable year
    over its adjusted basis in such common shares. The
    U.S.&#160;Holder is allowed a deduction for the excess, if any,
    of the adjusted basis of the common shares over their fair
    market value as of the close of the taxable year. However,
    deductions are allowable only to the extent of any net
    mark-to-market gains on the common shares included in the
    U.S.&#160;Holder&#146;s income for prior taxable years. Amounts
    included in a U.S.&#160;Holder&#146;s income under a
    mark-to-market election, as well as gain on the actual sale or
    other disposition of the common shares, are treated as ordinary
    income. Ordinary loss treatment also applies to the deductible
    portion of any mark-to-market loss on the common shares, as well
    as to any loss realized on the actual sale or disposition of the
    common shares, to the extent that the amount of such loss does
    not exceed the net mark-to-market gains previously included for
    such common shares. A U.S.&#160;Holder&#146;s basis in the
    common shares will be adjusted to reflect any such income or
    loss amounts. If a U.S.&#160;Holder makes such an
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    83
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    election, the tax rules that ordinarily apply to distributions
    by corporations that are not PFICs would apply to distributions
    by us, except that the lower applicable capital gains rate for
    &#147;qualified dividend income&#148; discussed above under
    &#147;Dividends and Other Distributions on the Common
    Shares&#148; would not apply.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The mark-to-market election is available only for
    &#147;marketable stock,&#148; which is stock that is traded in
    other than de minimis quantities on at least 15&#160;days during
    each calendar quarter on a qualified exchange, including the
    Nasdaq Global Market, or other market, as defined in applicable
    U.S.&#160;Treasury regulations. We expect that our common shares
    will continue to be listed on the Nasdaq Global Market and,
    consequently, the mark-to-market election would be available to
    U.S.&#160;Holders of common shares were we to be a PFIC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    is a PFIC, a holder of shares (but not a holder of convertible
    notes) in that corporation can avoid taxation under the rules
    described above by making a &#147;qualified electing fund&#148;
    election to include its share of the corporation&#146;s income
    on a current basis. However, a U.S.&#160;Holder can make a
    qualified electing fund election with respect to its common
    shares only if we furnish the U.S.&#160;Holder annually with
    certain tax information, and we do not intend to prepare or
    provide such information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A U.S.&#160;Holder that holds common shares in any year in which
    we are a PFIC will be required to file IRS Form&#160;8621
    regarding distributions received on the common shares and any
    gain realized on the disposition of the common shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;Holders are urged to consult their tax advisors
    regarding the application of the PFIC rules to their investment
    in notes and common shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Information
    Reporting and Backup Withholding</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payments of interest on the notes, dividends on common shares
    and the proceeds of a sale or redemption of a note or common
    share generally will be subject to information reporting to the
    IRS and possible U.S.&#160;backup withholding at a current rate
    of 28%, unless the conditions of an applicable exemption are
    satisfied. Backup withholding will not apply to a
    U.S.&#160;Holder who furnishes a correct taxpayer identification
    number and makes any other required certification or who is
    otherwise exempt from backup withholding. U.S.&#160;Holders who
    are required to establish their exempt status can provide such
    certification on IRS
    <FONT style="white-space: nowrap">Form&#160;W-9.</FONT>
    U.S.&#160;Holders should consult their tax advisors regarding
    the application of the U.S.&#160;information reporting and
    backup withholding rules.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Backup withholding is not an additional tax. Amounts withheld as
    backup withholding may be credited against a
    U.S.&#160;Holder&#146;s U.S.&#160;federal income tax liability,
    and a U.S.&#160;Holder may obtain a refund of any excess amounts
    withheld under the backup withholding rules by timely filing the
    appropriate claim for refund with the IRS and furnishing any
    required information.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Canadian
    Federal Income Tax Considerations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is, as of the date hereof, a fair and adequate
    summary of the principal Canadian federal income tax
    consequences generally applicable to a person (in this summary,
    a &#147;Holder&#148;) who acquires Notes under the Offering at
    par and who, at all relevant times for the purposes of the
    Income Tax Act (Canada) (the &#147;Canadian Tax Act&#148;) deals
    at arm&#146;s length with and is not affiliated with the Company
    and is the beneficial owner of the Notes and any common shares
    to which the Notes have been converted (the &#147;Common
    Shares&#148; and together, the &#147;Securities&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary is based on the facts set forth in this prospectus,
    the current provisions of the Canadian Tax Act and regulations
    thereunder, and counsel&#146;s understanding of the current
    published administrative and assessing policies and practices of
    the Canada Revenue Agency (the &#147;CRA&#148;), and takes into
    account all specific proposals to amend the Canadian Tax Act
    (the &#147;Proposed Amendments&#148;) publicly announced by or
    on behalf of the Minister of Finance (Canada) prior to the date
    hereof. It is assumed that all such amendments will be enacted
    as currently proposed, and that there will be no other change to
    any relevant law or administrative or assessing policy or
    practice, although no assurances can be given in this respect.
    Except as otherwise expressly set out herein, this summary also
    does not take into account any provincial, territorial or
    foreign income tax law, or any income tax treaty or convention,
    the implications of which may differ from the Canadian federal
    income tax considerations.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    84
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All amounts relative to the acquisition, holding or disposition
    of the Securities (including adjusted cost base, interest,
    dividends and proceeds of disposition) must be expressed in
    Canadian dollars for purposes of the Canadian Tax Act. An amount
    denominated in foreign currency, such as U.S.&#160;dollars,
    would generally need to be converted into Canadian dollars based
    on the rate of exchange quoted by the Bank of Canada at noon on
    the day such amount arose.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>This summary is of a general nature only and is not
    exhaustive of all Canadian federal income tax considerations
    that may be relevant to a particular Holder. It is not intended
    to be, and should not be construed as, legal or tax advice to
    any particular Holder. Therefore, each person contemplating a
    purchase of Notes under the Offering is urged to consult the
    person&#146;s own tax advisers with respect to the person&#146;s
    particular circumstances.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Holders
    Who Are Not Residents of Canada</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This section of the summary applies solely to Holders who at all
    relevant times for purposes of the Canadian Tax Act and any
    applicable tax treaty or convention,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    are not and are not deemed to be resident in Canada,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    hold the securities as capital property,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    do not and are not deemed to use or hold any Securities in or in
    the course of a business carried on in Canada,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    do not carry on an insurance business in Canada and elsewhere,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (each such Holder, a &#147;Non-Resident Holder&#148;).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Interest</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Non-Resident Holder to whom the Company pays or credits, or is
    deemed to pay or credit, an amount as, on account of, or in lieu
    of interest on a Note will not be subject to Canadian federal
    income tax under the Canadian Tax Act on the amount.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conversion
    of Notes for Common Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Non-Resident Holder who exchanges a Note for Common Shares
    pursuant to the terms of the Note will not be subject to
    Canadian federal income tax under the Canadian Tax Act as a
    result of such exchange.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Disposition
    of Notes or Common Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Non-Resident Holder who realizes a capital gain on the actual
    or deemed disposition of a Note or Common Share will not be
    subject to Canadian federal income tax under the Canadian Tax
    Act in respect of the capital gain unless such Note or Common
    Share, as the case may be, constitutes &#147;taxable Canadian
    property&#148; to the Non-Resident Holder for purposes of the
    Canadian Tax Act and the Non-Resident Holder is not exempt from
    Canadian federal income tax on such gain pursuant to the terms
    of an applicable tax treaty or convention.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, a Common Share owned by a Non-Resident Holder will
    not be taxable Canadian property of the Non-Resident Holder at a
    particular time provided that, at that time,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the common shares of the Company are listed on the Nasdaq Global
    Market,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    neither the Non-Resident Holder nor persons with whom the
    Non-Resident Holder does not deal at arm&#146;s length alone or
    in any combination has owned 25% or more of the shares of any
    class or series of shares in the capital of the Company at any
    time in the previous five years,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Common Share was not acquired in a transaction (including on
    an exchange of the related Note pursuant to the terms of such
    Note) as a result of which it was deemed to be taxable Canadian
    property of the Non-Resident Holder.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    85
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Notes will not constitute taxable Canadian property of a
    Non-Resident Holder provided that the common shares of the
    Company are not taxable Canadian property.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dividends</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends paid or credited or deemed to be paid or credited to a
    Non-Resident Holder by the Company on the Common Shares will be
    subject to Canadian withholding tax at the rate of 25% unless
    reduced by the terms of an applicable tax treaty or convention.
    Under the Canada-United States Tax Convention (1980) (the
    &#147;U.S.&#160;Treaty&#148;), the rate of withholding tax on
    dividends paid or credited to a Non-Resident Holder who is a
    resident in the United States for purposes of the
    U.S.&#160;Treaty (a &#147;U.S.&#160;Holder&#148;) is generally
    limited to 15% of the gross amount of the dividend (or 5% in the
    case of a U.S.&#160;Holder that is a corporation beneficially
    owning at least 10% of the Company&#146;s &#147;voting
    stock&#148; within the meaning of the U.S.&#160;Treaty).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">U.S.
    Holders</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;21, 2007, the Minister of Finance (Canada) and
    the United States Secretary of the Treasury signed the fifth
    protocol to the U.S.&#160;Treaty (the &#147;Protocol&#148;)
    which includes amendments to many of the provision of the
    U.S.&#160;Treaty, including significant amendments to the
    limitation on benefits provision. The Protocol will enter into
    force once it is ratified by both the Canadian and United States
    governments and will have effect in respect of withholding
    taxes, after the first day of the second month that begins after
    the date on which the Protocol enters into force.
    U.S.&#160;Holders are urged to consult their own tax advisors to
    determine the impact of the Protocol and their entitlement to
    relief under the U.S.&#160;Treaty based on their particular
    circumstances.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Holders
    Who Are Residents of Canada</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This section of the summary applies solely to a Holder who at
    all relevant times for the purposes of the Canadian Tax Act:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    is or is deemed to be resident in Canada,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    holds the Securities as capital property,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    is neither a &#147;financial institution&#148; for the purposes
    of the mark-to-market rules in the Tax Act nor a &#147;specified
    financial institution&#148;,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    is not an entity an interest in which is a &#147;tax shelter
    investment&#148;,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    is not subject to proposed subsection 261(4) of the Canadian Tax
    Act.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a &#147;Resident Holder&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Securities generally will be considered to be capital
    property to a Resident Holder unless the Resident Holder holds
    the Securities in the course of carrying on a business of
    trading or dealing in securities or otherwise as part of a
    business of buying and selling securities, or has acquired them
    in a transaction or transactions considered to be an adventure
    or concern in the nature of trade.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder whose Securities might not constitute capital
    property may, in certain circumstances, irrevocably elect under
    subsection 39(4) of the Tax Act to have the Securities and all
    other Canadian securities held by the Resident Holder treated as
    capital property.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Interest</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder that is a corporation, partnership, unit trust
    or trust of which a corporation is a beneficiary, will be
    required to include in its income for a taxation year any
    interest on a Note that accrues to the Resident Holder to the
    end of the taxation year or that becomes receivable or is
    received by it before the end of the taxation year, to the
    extent that the Resident Holder did not include the amount in
    income for a preceding taxation year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any other Resident Holder, including an individual, will be
    required to include in income for a taxation year any interest
    on a Note received or receivable (depending upon the method
    regularly followed by the Resident Holder in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    86
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    computing income) by the Resident Holder in the taxation year to
    the extent that the Resident Holder did not include the interest
    in income for a preceding taxation year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conversion
    of Notes for Common Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder who exchanges a Note for Common Shares
    pursuant to the terms of the Note will be deemed to have
    acquired those Common Shares at a cost equal to the adjusted
    cost base of the Note to the Resident Holder immediately before
    the exchange. The exchange will not be considered to be a
    disposition of the Note for the purposes of the Canadian Tax
    Act, and therefore will not give rise to a capital gain or
    capital loss.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The adjusted cost base to the Resident Holder of the Common
    Shares so received will be determined by averaging the cost of
    those shares with the adjusted cost base of all other common
    shares of the Company held by the Resident Holder as capital
    property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder who upon conversion of a Note receives $200 or
    less in lieu of a fraction of a Common Share may treat this
    amount either as proceeds of disposition of the fraction of the
    Common Share, thereby realizing a capital gain or capital loss,
    or as a reduction of the cost of the Common Shares that the
    Resident Holder receives on the conversion.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Disposition
    of Notes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder who disposes or is deemed to dispose of a
    Note, including by sale, conversion, redemption, repayment or
    purchase by the Company, generally will be required to include
    in income for the taxation year in which the disposition occurs
    the amount of interest accrued or deemed to accrue to the date
    of disposition, to the extent that the Resident Holder has not
    otherwise included the amount in income for the taxation year or
    a preceding taxation year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder who disposes of a Note (but excluding a
    disposition by exchange of a Note exclusively for Common Shares
    (other than an amount not more than the U.S.&#160;dollar
    equivalent of Canadian $200 received in lieu of a fraction of a
    Common Share) pursuant to the terms of the Note) generally will
    realize a capital gain (or capital loss) equal to the amount by
    which the Resident Holder&#146;s proceeds of disposition, less
    reasonable costs of disposition, exceed (or are exceeded by) the
    adjusted cost base of the Note to the Resident Holder. Any
    capital gain or loss so arising will be subject to the usual
    rules governing the taxation of capital gains and capital
    losses. See the section entitled &#147;Canadian Federal Income
    Tax Considerations&#160;&#151; Holders Who are Residents of
    Canada &#151;&#160;Capital Gains and Capital Losses.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Disposition
    of Common Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder who disposes of a Common Share generally will
    realize a capital gain (or capital loss) equal to the amount by
    which the Resident Holder&#146;s proceeds of disposition, less
    reasonable costs of disposition, exceed (or are exceeded by) the
    adjusted cost base of the Common Share to the Resident Holder.
    Any capital gain or loss so arising will be subject to the usual
    rules governing the taxation of capital gains and capital
    losses. See the section entitled &#147;Canadian Federal Income
    Tax Considerations&#160;&#151; Holders Who are Residents of
    Canada&#160;&#151; Capital Gains and Capital Losses.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capital
    Gains and Capital Losses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder who realizes a capital gain or capital loss in
    a taxation year will be required to include one half of the
    capital gain (&#147;taxable capital gain&#148;) in income, and
    may deduct one half of the capital loss (&#147;allowable capital
    loss&#148;) against taxable capital gains realized in the
    taxation year of the disposition. The Resident Holder may deduct
    any unused allowable capital loss against net taxable capital
    gains realized in any of the three preceding taxation years or
    any subsequent taxation year, subject to and accordance with the
    provisions of the Canadian Tax Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount of any capital loss arising from a disposition or
    deemed disposition of a Common Share by a Resident Holder may,
    to the extent and under circumstances specified in the Canadian
    Tax Act, be reduced by the amount of certain dividends received
    or deemed to be received by the Resident Holder on a Common
    Share. Resident Holders to whom these rules may be relevant
    should consult their own tax advisers.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    87
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Resident Holders who are individuals (other than certain trusts)
    may be subject to alternative minimum tax in respect of realized
    capital gains.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividends</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder who is an individual (other than certain
    trusts) will be required to include in income any taxable
    dividend that the Resident Holder receives, or is deemed to
    receive, on Common Shares, and will be subject to the
    <FONT style="white-space: nowrap">gross-up</FONT> and
    dividend tax credit rules applicable to taxable dividends
    received from taxable Canadian corporations, including the
    enhanced
    <FONT style="white-space: nowrap">gross-up</FONT> and
    dividend tax credit for &#147;eligible dividends&#148; (as
    defined in the Canadian Tax Act). A taxable dividend will be
    eligible for the enhanced
    <FONT style="white-space: nowrap">gross-up</FONT> and
    dividend tax credit if the paying corporation designates the
    taxable dividend as an eligible dividend by providing written
    notice to the dividend recipient. There may be limitations on
    the ability of a corporation to designate dividends as eligible
    dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Resident Holders who are individuals (other than certain trusts)
    may be subject to alternative minimum tax in respect of taxable
    dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder that is a corporation generally will be
    required to include in income any taxable dividend that it
    receives or is deemed to be receive on Common Shares, and
    generally will be entitled to deduct an equivalent amount in
    computing its taxable income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder that is a &#147;private corporation&#148; or a
    &#147;subject corporation&#148; (each as defined in the Canadian
    Tax Act), may be liable under Part&#160;IV of the Canadian Tax
    Act to pay a refundable tax of
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    on any taxable dividend that it receives or is deemed to receive
    on Common Shares to the extent that such taxable dividend is
    deductible in computing such Resident Holder&#146;s taxable
    income. Any such Part&#160;IV tax will generally be refundable
    to such Resident Holder at the rate of $1 for every $3 of
    taxable dividends that it pays while it is a private corporation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Canadian-Controlled
    Private Corporations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Resident Holder that is, throughout the relevant taxation
    year, a &#147;Canadian-controlled private corporation&#148; (as
    defined in the Canadian Tax Act) may be liable to pay an
    additional refundable tax of
    6<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    on its &#147;aggregate investment income&#148; (as defined in
    the Canadian Tax Act) for the year, including interest income,
    taxable capital gains and non-deductible dividends.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    88
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELLING
    SECURITYHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes were originally issued by us and sold by the initial
    purchaser of the notes in transactions exempt from the
    registration requirements of the Securities Act to persons
    reasonably believed to be qualified institutional buyers as
    defined by Rule&#160;144A under the Securities Act. Selling
    securityholders, including their transferees, pledgees or donees
    or their successors, may from time to time offer and sell
    pursuant to this prospectus any or all of the notes and common
    shares into which the notes are convertible. Those purchasers
    may have made subsequent transfers of the notes to purchasers
    that are qualified institutional buyers pursuant to
    Rule&#160;144A. We have no knowledge whether the selling
    securityholders listed below received the notes on the initial
    distribution or through subsequent transfers after the close of
    the initial private placement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information, as of
    February&#160;29, 2008, with respect to the selling
    securityholders and the principal amount of notes and the common
    shares issuable upon conversion of the notes beneficially owned
    by each securityholder that may be offered pursuant to this
    prospectus. The information is based on information provided by
    or on behalf of the selling securityholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selling securityholders may offer all, some or none of the
    notes or the common shares into which the notes are convertible.
    Thus, we cannot estimate the amount of the notes or common
    shares that will be held by the selling securityholders upon
    consummation of any sales. The columns showing ownership after
    completion of the offering assumes that the selling
    securityholders will sell all of the notes and all of the shares
    of common stock issuable upon conversion of the notes offered
    pursuant to this prospectus. In addition, the selling
    securityholders identified below may have sold, transferred or
    otherwise disposed of all or a portion of their notes since the
    date on which they provided the information regarding their
    notes in transactions exempt from the registration requirements
    of the Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of common shares issuable upon conversion of the
    notes shown in the table below assumes conversion of the full
    amount of notes held by each selling securityholder at the
    initial conversion rate of 50.6073 common shares per US$1,000
    principal amount of notes and a cash payment in lieu of any
    fractional shares. This conversion price is subject to
    adjustment in certain events. Accordingly, the number of
    conversion shares may increase or decrease from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Principal Amount<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Notes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Principal Amount<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Owned After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Notes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares Being<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Completion of the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Address of Securityholder</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered Hereby</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Registered Hereby</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt; z-index: 1; position: relative">
    Vicis Capital Master Fund
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,821.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt; z-index: 1; position: relative">
    <FONT style="white-space: nowrap">c/o&#160;Vicis</FONT>
    Capital LLC<BR>
    126 East 56th&#160;Street, Suite 700<BR>
    New York, NY 10022
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Bancroft Fund&#160;Ltd.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,607.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    65 Madison Avenue, Suite 550<BR>
    Morristown, NJ 07960
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt; z-index: 1; position: relative">
    Ellsworth Fund&#160;Ltd.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,607.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt; z-index: 1; position: relative">
    65 Madison Avenue, Suite 550<BR>
    Morristown, NJ 07960
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Aristeia International Limited
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,923,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,923,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400,961.8756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    <FONT style="white-space: nowrap">c/o&#160;Aristeia</FONT>
    Capital LLC<BR>
    136 Madison Avenue, 3rd Floor<BR>
    New York, NY 10016
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt; z-index: 1; position: relative">
    Aristeia Partners LP
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    877,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    877,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,382.62841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt; z-index: 1; position: relative">
    <FONT style="white-space: nowrap">c/o&#160;Aristeia</FONT>
    Capital LLC<BR>
    136 Madison Avenue, 3rd Floor<BR>
    New York, NY 10016
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    89
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Principal Amount<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Notes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Principal Amount<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Owned After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Notes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares Being<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Completion of the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Address of Securityholder</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered Hereby</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Registered Hereby</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offering</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CALAMOS Market Neutral Income Fund&#160;&#151;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101,214.66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    CALAMOS Investment Trust<BR>
    Calamos Advisors LLC<BR>
    2020 Calamos Court<BR>
    Naperville, IL 60563
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt; z-index: 1; position: relative">
    Radcliffe SPC, Ltd. for and on behalf
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    506,073.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt; z-index: 1; position: relative">
    of the Class A Segregated Portfolio
    <FONT style="white-space: nowrap">c/o&#160;RG</FONT>
    Capital Management, L.P.<BR>
    3 Bala Plaza East, Suite 501<BR>
    Bala Cynwyd, PA 19004
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sunrise Partners Limited Partnership
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,607.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    2 American Lane<BR>
    Greenwich, CT 06831
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt; z-index: 1; position: relative">
    Fore ERISA Fund, Ltd.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    385,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    385,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,483.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt; z-index: 1; position: relative">
    280 Park Ave,
    43<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP>
    Floor<BR>
    New York, NY 10017
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fore Convertible Master Fund, Ltd.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,290,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,290,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115,890.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 10pt">
    280 Park Ave,
    43<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP>
    Floor<BR>
    New York, NY 10017
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based upon information provided by the selling securityholders,
    none of the selling securityholders nor any of their affiliates,
    officers, directors or principal equity holders has held any
    position or office or has had any material relationship with us
    within the past three years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent that any of the selling securityholders identified
    above are broker-dealers, they may be deemed to be, under
    interpretations of the SEC, &#147;underwriters&#148; within the
    meaning of the Securities Act, with respect to the securities it
    sells pursuant to this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to selling securityholders that are affiliates of
    broker-dealers, based on information provided by the selling
    securityholders we believe that such entities acquired their
    notes and underlying common shares in the ordinary course of
    business and, at the time of the purchase of the notes and the
    underlying common shares, such selling securityholders had no
    agreements or undertakings, directly or indirectly, with any
    person to distribute the notes or underlying common shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, after the date of this prospectus, a holder notifies us
    pursuant to the registration rights agreement of its intent to
    dispose of notes pursuant to the registration statement, we may
    supplement this prospectus or amend the registration statement
    to include that information. With respect to any holder who
    acquires notes after the effectiveness of this registration
    statement, we may supplement this prospectus or amend the
    registration statement to add that holder to the foregoing table.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    90
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PLAN OF
    DISTRIBUTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will not receive any of the proceeds of the sale of the notes
    or the common shares issuable upon conversion of the notes
    offered by this prospectus. The notes or the common shares
    issuable upon conversion of the notes may be sold from time to
    time to purchasers:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    directly by the selling securityholders or their pledgees,
    donees, transferees or any successors in interest (all of whom
    may be selling securityholders);&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    through underwriters, broker-dealers or agents who may receive
    compensation in the form of discounts, concessions or
    commissions from the selling securityholders or the purchasers
    of the notes or the common shares issuable upon conversion of
    the notes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selling securityholders and any such broker-dealers or
    agents who participate in the distribution of the notes or the
    common shares issuable upon conversion of the notes may be
    deemed to be &#147;underwriters.&#148; As a result, any profits
    on the sale of the notes or the common shares issuable upon
    conversion of the notes by selling securityholders and any
    discounts, commissions or concessions received by any such
    broker-dealers or agents might be deemed to be underwriting
    discounts and commissions under the Securities Act. If the
    selling securityholders were to be deemed underwriters, the
    selling securityholders may be subject to certain statutory
    liabilities of, including, but not limited to, Sections&#160;11,
    12 and 17 of the Securities Act and
    <FONT style="white-space: nowrap">Rule&#160;10b-5</FONT>
    under the Exchange Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any selling securityholder who is a &#147;broker-dealer&#148;
    may be deemed to be an &#147;underwriter&#148; within the
    meaning of Section&#160;2(11) of the Securities Act. These
    securityholders purchased their notes in the open market, not
    directly from us, and we are not aware of any underwriting plan
    or agreement, underwriters&#146; or dealers&#146; compensation,
    or passive market-making or stabilization transactions involving
    the purchase or distribution of these securities by these
    securityholders. To our knowledge, none of the selling
    securityholders who are affiliates of broker-dealers purchased
    the notes outside of the ordinary course of business or, at the
    time of the purchase of the notes, had any agreement or
    understanding, directly or indirectly, with any person to
    distribute the securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the notes or the common shares issuable upon conversion of
    the notes are sold through underwriters or broker-dealers, the
    selling securityholders will be responsible for underwriting
    discounts or commissions or agent&#146;s commissions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The notes or the common shares issuable upon conversion of the
    notes may be sold in one or more transactions at:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    fixed prices;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    prevailing market prices at the time of sale;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    varying prices determined at the time of sale;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    negotiated prices.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These sales may be effected in transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    on any national securities exchange or quotation service on
    which the notes or the common shares issuable upon conversion of
    the notes may be listed or quoted at the time of the sale,
    including the Nasdaq Global Market;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in transactions otherwise than on such exchanges or services or
    in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    through the writing of options.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These transactions may include block transactions or crosses.
    Crosses are transactions in which the same broker acts as an
    agent on both sides of the trade.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with sales of the notes or the common shares
    issuable upon conversion of the notes, the selling
    securityholders may enter into hedging transactions with
    broker-dealers. These broker-dealers may in turn engage in short
    sales of the notes or the common shares issuable upon conversion
    of the notes in the course of hedging their
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    91
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    positions. The selling securityholders may also sell the notes
    or the common shares issuable upon conversion of the notes or
    short and deliver notes or the common shares issuable upon
    conversion of the notes to close out short positions, or loan or
    pledge notes or the common shares upon conversion of the notes
    to broker-dealers that in turn may sell the notes or the common
    shares issuable upon conversion of the notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To our knowledge, there are currently no plans, arrangements or
    understandings between any selling securityholders and any
    underwriter, broker-dealer or agent regarding the sale of the
    notes or the common shares issuable upon conversion of the notes
    by the selling securityholders. There can be no assurance that
    any selling securityholder will sell any or all of the notes or
    the common shares issuable upon conversion of the notes pursuant
    to this prospectus. In addition, any notes or the common shares
    issuable upon conversion of the notes covered by this prospectus
    that qualify for sale pursuant to Rule&#160;144 of the
    Securities Act may be sold under Rule&#160;144 rather than
    pursuant to this prospectus. We cannot assure you that any such
    selling securityholder will not transfer, devise or gift the
    notes or the common shares issuable upon conversion of the notes
    or by other means not described in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although the notes issued in the initial placement are eligible
    for trading in the PORTAL
    Market<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant: SMALL-CAPS">sm</FONT></SUP>,
    notes sold using this prospectus will no longer be eligible for
    trading in the PORTAL system. We have not listed, and do not
    intend to list, the notes on any securities exchange or
    automated quotation system.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our common shares are listed on the Nasdaq Global Market under
    the symbol &#147;CSIQ.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selling securityholders and any other person participating
    in such distribution will be subject to the Exchange Act. The
    Exchange Act rules include, without limitation,
    Regulation&#160;M, which may limit the timing of purchases and
    sales of any of the notes and the underlying common shares by
    the selling securityholders and any other such person. In
    addition, Regulation&#160;M of the Exchange Act may restrict the
    ability of any person engaged in the distribution of the notes
    and the underlying common shares to engage in market-making
    activities with respect to the particular notes and the
    underlying common shares being distributed for a period of up to
    five business days prior to the commencement of such
    distribution. This may affect the marketability of the notes and
    the underlying common shares and the ability of any person or
    entity to engage in market-making activities with respect to the
    notes and the underlying common shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the registration rights agreement, we and the
    selling securityholders will be indemnified by the other against
    certain liabilities, including certain liabilities under the
    Securities Act or will be entitled to contribution in connection
    with these liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have agreed to pay the expenses incidental to the
    registration, offering and sale of the notes and the common
    shares issuable upon conversion of the notes to the public other
    than commissions, fees and discounts of underwriters, brokers,
    dealers and agents.
</DIV>
<A name='122'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the notes offered by this prospectus will be
    passed upon for us by Latham&#160;&#038; Watkins LLP. The
    validity of the common shares and certain other legal matters as
    to Canadian law will be passed upon for us by WeirFoulds LLP.
</DIV>
<A name='123'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial statements and related financial statement
    schedule incorporated in this prospectus by reference from our
    annual report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    have been audited by Deloitte Touche Tohmatsu CPA Ltd., an
    independent registered public accounting firm, as stated in
    their report, which is incorporated herein by reference, and
    have been so incorporated in reliance upon the report of such
    firm given upon their authority as experts in accounting and
    auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The offices of Deloitte Touche Tohmatsu CPA Ltd. are located at
    30/F, Bund Center, 222 Yan An Road East, Shanghai, People&#146;s
    Republic of China.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    92
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    NOT REQUIRED IN PROSPECTUS<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Expenses</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a statement of the expenses (all of which are
    estimated) to be incurred by Canadian Solar Inc. in connection
    with a distribution of securities registered under this
    registration statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SEC registration fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,947.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,240.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Printing fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Miscellaneous
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    500.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    224,187.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;8.<I>&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Directors and Officers.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Canada Business Corporations Act, and pursuant to our
    bylaws, we may indemnify any present or former director or
    officer or an individual who acts or acted at our request as a
    director or officer, or an individual acting in a similar
    capacity, of another entity, against all costs, charges and
    expenses, including an amount paid to settle an action or
    satisfy a judgment, reasonably incurred by such individual in
    respect of any civil, criminal, administrative, investigative or
    other proceeding in which the individual is involved because of
    that association with the corporation or other entity. In order
    to qualify for indemnification such director or officer must:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="3%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    have acted honestly and in good faith with a view to our best
    interests, or, as the case may be, to the best interests of the
    other entity for which he or she acted as director or officer or
    in a similar capacity at our request;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in the case of a criminal or administrative action or proceeding
    enforced by a monetary penalty, have had reasonable grounds for
    believing that his or her conduct was lawful.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Indemnification will be provided to an eligible director or
    officer who meets both these tests and was substantially
    successful on the merits in his or her defense of the action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A director or officer is entitled to indemnification from the
    company as a matter of right if he or she is not judged by the
    court or other competent authority to have committed any fault
    or omitted to do anything that the individual ought to have done
    and fulfilled the conditions set forth above.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;9.<I>&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Exhibits.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="7%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="88%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exhibit Description</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    4.1*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Registrant&#146;s specimen certificate.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    4.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Indenture related to the Convertible Senior Notes due 2017,
    dated as of December&#160;10, 2007, between the registrant and
    The Bank of New York, as trustee.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    4.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of 6.0%&#160;Convertible Senior Notes due 2017 (contained
    in Exhibit&#160;4.2).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    4.4
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Registration Rights Agreement dated as of December&#160;10, 2007
    between the registrant and Piper Jaffray&#160;&#038; Co.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    5.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of WeirFoulds LLP regarding the validity of common
    shares being registered.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    5.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Latham&#160;&#038; Watkins LLP regarding the validity
    of the Convertible Senior Notes.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    8.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Latham&#160;&#038; Watkins LLP regarding certain U.S.
    tax matters.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    12.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Statement of Computation of Ratio of Earnings to Fixed Charges.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    23.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Deloitte Touche Tohmatsu CPA Ltd.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    23.2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of WeirFoulds LLP (included in Exhibit&#160;5.1).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    23.3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Chen&#160;&#038; Co. Law Firm.
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="7%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="88%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exhibit Description</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    23.4
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Latham&#160;&#038; Watkins LLP (included in
    Exhibit&#160;5.2 and Exhibit&#160;8.1).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    24.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Powers of Attorney (included in signature pages in Part&#160;II
    of this registration statement).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    25.1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Statement of Eligibility of The Bank of New York as trustee on
    <FONT style="white-space: nowrap">Form&#160;T-1.</FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Previously filed with the registrant&#146;s registration
    statement on
    <FONT style="white-space: nowrap">Form&#160;F-1</FONT>
    (File
    <FONT style="white-space: nowrap">No.&#160;333-138144)</FONT>
    and incorporated herein by reference</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;10.<I>&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Undertakings.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="5%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    The Company hereby undertakes:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="6%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (1)&#160;
</TD>
    <TD align="left">
    To file, during any period in which offers or sales are being
    made, a post-effective amendment to this registration statement:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="15%"></TD>
    <TD width="5%"></TD>
    <TD width="80%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (i)&#160;
</TD>
    <TD align="left">
    To include any prospectus required by section&#160;10(a)(3) of
    the Securities Act of 1933 (the &#147;Act&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (ii)&#160;
</TD>
    <TD align="left">
    To reflect in the prospectus any facts or events arising after
    the effective date of the registration statement (or the most
    recent post-effective amendment thereof) which, individually or
    in the aggregate, represent a fundamental change in the
    information set forth in the registration statement.
    Notwithstanding the foregoing, any increase or decrease in
    volume of securities offered (if the total dollar value of
    securities offered would not exceed that which was registered)
    and any deviation from the low or high end of the estimated
    maximum offering range may be reflected in the form of
    prospectus filed with the Commission pursuant to
    Rule&#160;424(b) if, in the aggregate, the changes in volume and
    price represent no more than 20% change in the maximum aggregate
    offering price set forth in the &#147;Calculation of
    Registration Fee&#148; table in the effective registration
    statement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (iii)&#160;
</TD>
    <TD align="left">
    To include any material information with respect to the plan of
    distribution not previously disclosed in the registration
    statement or any material change to that information in the
    registration statement;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 15%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Provided, however, that paragraphs (i), (ii)&#160;and
    (iii)&#160;do not apply if the information required to be
    included in a post-effective amendment by those paragraphs is
    contained in reports filed with or furnished to the Commission
    by the registrant pursuant to Section&#160;13 or
    Section&#160;15(d) of the Securities Exchange Act of 1934 that
    are incorporated by reference in the registration statement, or
    is contained in a form of prospectus filed pursuant to
    Rule&#160;424(b) that is part of the registration statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="6%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (2)&#160;
</TD>
    <TD align="left">
    That, for the purpose of determining any liability under the
    Act, each such post-effective amendment shall be deemed to be a
    new registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (3)&#160;
</TD>
    <TD align="left">
    To remove from registration by means of a post-effective
    amendment any of the securities being registered which remain
    unsold at the termination of the offering.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (4)&#160;
</TD>
    <TD align="left">
    To file a post-effective amendment to the registration statement
    to include any financial statements required by Item&#160;8.A.
    of
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    at the start of any delayed offering or throughout a continuous
    offering. Financial statements and information otherwise
    required by Section&#160;10(a)(3) of the Act need not be
    furnished, provided that the Company includes in the prospectus,
    by means of a post-effective amendment, financial statements
    required pursuant to this paragraph (a)(4) and other information
    necessary to ensure that all other information in the prospectus
    is at least as current as the date of those financial statements.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="5%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    The Company hereby undertakes that, for purposes of determining
    any liability under the Act, each filing of its annual report
    pursuant to Section&#160;13(a) or Section&#160;15(d) of the
    Exchange Act (and, where applicable, each filing of an employee
    benefit plan&#146;s annual report under Section&#160;15(d) of
    the Exchange Act) that is incorporated by reference in the
    registration statement shall be deemed to be a new registration
    statement relating to the securities offered therein, and the
    offering of such securities at that time will be deemed to be
    the initial bona fide offering thereof.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (c)&#160;
</TD>
    <TD align="left">
    Insofar as indemnification for liabilities arising under the Act
    may be permitted to directors, officers and controlling persons
    of the Company pursuant to the foregoing provisions, or
    otherwise, the Company has been advised that in the opinion of
    the Commission such indemnification is against public policy as
    expressed in the Act and is, therefore, unenforceable. In the
    event that a claim for indemnification against such liabilities
    (other than the payment by the Company of expenses incurred or
    paid by a director, officer or controlling person of the Company
    in the successful defense of any action, suit or proceeding) is
    asserted by such director, officer or controlling person in
    connection with the securities being registered, the Company
    will, unless in the opinion of its counsel the matter has been
    settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question whether such
    indemnification by it is against public policy as expressed in
    the Act and will be governed by the final adjudication of such
    issue.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, as
    amended, the registrant certifies that it has reasonable grounds
    to believe that it meets all of the requirements for filing on
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    and has duly caused this registration statement to be signed on
    its behalf by the undersigned, thereunto duly authorized, in the
    City of Suzhou, China, on March&#160;3, 2008.
</DIV>

<DIV style="margin-top: 16pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 58%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CANADIAN SOLAR INC.</B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="58%"></TD>
    <TD width="3%"></TD>
    <TD width="39%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;Shawn
    (Xiaohua) Qu</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 61%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 61%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;Shawn (Xiaohua) Qu
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="61%"></TD>
    <TD width="8%"></TD>
    <TD width="31%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Title:&#160;
</TD>
    <TD align="left">
    Chairman and Chief Executive
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 69%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Officer
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">POWER OF
    ATTORNEY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each person whose signature appears below hereby authorizes and
    appoints Mr.&#160;Shawn (Xiaohua) Qu, with full power to act
    alone, as his or her true and lawful attorney-in-fact, with the
    power of substitution, for and in such person&#146;s name, place
    and stead, in any and all capacities, to sign any and all
    amendments (including post-effective amendments) to this
    registration statement, and to file the same, with all exhibits
    thereto, and other documents in connection therewith, with the
    Securities and Exchange Commission, granting unto said
    attorney-in-fact full power and authority to do and perform each
    and every act and thing requisite and necessary to be done as
    fully to all intents and purposes as he or she might or could do
    in person, hereby ratifying and confirming all that said
    attorney-in-fact may lawfully do or cause to be done by virtue
    hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, this
    registration statement has been signed by the following persons
    in the capacities indicated and as of March&#160;3, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
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    <TD width="3%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="56%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    Signature
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    Title
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Shawn
    (Xiaohua) Qu</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Shawn
    (Xiaohua) Qu
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chairman and Chief Executive Officer<BR>
    (principal executive officer)
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Bing
    Zhu</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Bing
    Zhu
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Director and Chief Financial Officer<BR>
    (principal financial and accounting officer)
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Robert
    McDermott</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Robert
    McDermott
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Lars-Eric
    Johansson</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Lars-Eric
    Johansson
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Michael
    G. Potter</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Michael
    G. Potter
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Yan
    Zhuang</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Yan
    Zhuang
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Donald
    J. Puglisi</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Name:&#160;Donald
    J. Puglisi<BR>
    Title:&#160;Managing Director,<BR>
    Puglisi&#160;&#038; Associates
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Authorized Representative in the United States
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-4
</DIV><!-- END PAGE WIDTH -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>2
<FILENAME>h01912exv4w2.txt
<DESCRIPTION>EX--4.2 INDENTURE RELATED TO THE SENIOR CONVERTIBLE NOTES
<TEXT>
<PAGE>

                                                                     Exhibit 4.2

                                                                  EXECUTION COPY

                                   ----------

                               CANADIAN SOLAR INC.

                                       And

                              THE BANK OF NEW YORK,
                                   as Trustee

                                   ----------

                                    INDENTURE

                                   Dated as of

                                December 10, 2007

                                   ----------

                     6.0% Convertible Senior Notes due 2017

                                   ----------

<PAGE>

                             CROSS REFERENCE TABLE*

*NOTE: This Cross Reference Table shall not, for any purpose, be deemed to be
part of the Indenture.

<TABLE>
<CAPTION>
Trust Indenture Act Section   Indenture Section
<S>                           <C>
Section 310(a)(1)             6.09
(a)(2)                        6.09
(a)(3)                        Not Applicable
(a)(4)                        Not Applicable
(a)(5)                        6.09
(b)                           6.08; 6.10; 6.11
(c)                           Not Applicable
Section 311(a)                6.13
(b)                           6.13
Section 312(a)                4.01; 4.02
(b)                           4.02(a)
(c)                           4.02(b)
Section 313(a)                4.03
(b)                           4.03
(c)                           4.03
(d)                           4.03(a)
Section 314(a)                4.04
(b)                           Not Applicable
(c)(1)                        13.05
(c)(2)                        13.05
(c)(3)                        Not Applicable
(d)                           Not Applicable
(e)                           13.05
Section 315(a)                6.01
(b)                           5.08
(c)                           6.01
(d)                           6.01
(e)                           5.09
Section 316(a)                7.01
(a)(1)(A)                     7.01; 5.01
(a)(1)(B)                     5.07
(a)(2)                        Not Applicable
(b)                           5.04
(c)                           7.01
Section 317(a)(1)             5.03; 5.02; 5.05
(a)(2)                        5.02
(b)                           6.05; 11.01
Section 318(a)                13.07
(c)                           13.07
</TABLE>


                                       -i-

<PAGE>

                                TABLE OF CONTENTS

                                   ----------

<TABLE>
<S>                                                                           <C>
ARTICLE 1 Definitions......................................................    1
  Section 1.01  Definitions................................................    1
ARTICLE 2 Issue, Description, Execution, Registration  And Exchange Of
          Securities.......................................................   10
  Section 2.01  Designation Amount And Issue Of Securities.................   10
  Section 2.02  Form of Securities.........................................   10
  Section 2.03  Date And Denomination Of Securities; Payments Of
                Interest...................................................   11
  Section 2.04  Execution of Securities....................................   13
  Section 2.05  Exchange and Registration of Transfer of Securities;
                Restrictions on Transfer...................................   13
  Section 2.06  Mutilated, Destroyed, Lost or Stolen Securities............   18
  Section 2.07  Temporary Securities.......................................   19
  Section 2.08  Cancellation of Securities.................................   19
  Section 2.09  CUSIP Numbers..............................................   19
ARTICLE 3 Particular Covenants Of The Company..............................   20
  Section 3.01  Payment of Principal, Premium and Interest.................   20
  Section 3.02  Maintenance of Office or Agency............................   20
  Section 3.03  Appointments to Fill Vacancies in Trustee's Office.........   20
  Section 3.04  Provisions as to Paying Agent..............................   20
  Section 3.05  Existence..................................................   21
  Section 3.06  Maintenance of Properties..................................   22
  Section 3.07  Payment of Taxes and Other Claims..........................   22
  Section 3.08  Rule 144A Information Requirement..........................   22
  Section 3.09  Stay, Extension and Usury Laws.............................   22
  Section 3.10  Compliance Certificate.....................................   23
  Section 3.11  Additional Interest Notice.................................   23
  Section 3.12  Reports....................................................   23
ARTICLE 4 Securityholders' Lists And Reports  By The Company And The
          Trustee.........................................................    24
  Section 4.01  Securityholders' Lists....................................    24
  Section 4.02  Preservation And Disclosure Of Lists......................    24
  Section 4.03  Reports By Trustee........................................    24
</TABLE>


                                      -ii-

<PAGE>

<TABLE>
<S>                                                                           <C>
  Section 4.04  Reports by Company.........................................   25
ARTICLE 5 Remedies Of The Trustee And Securityholders On An Event Of
          Default..........................................................   25
  Section 5.01  Events Of Default..........................................   25
  Section 5.02  Payments of Securities on Default; Suit Therefor...........   27
  Section 5.03  Application of Monies Collected By Trustee.................   29
  Section 5.04  Proceedings by Securityholders.............................   29
  Section 5.05  Proceedings By Trustee.....................................   30
  Section 5.06  Remedies Cumulative And Continuing.........................   30
  Section 5.07  Direction of Proceedings and Waiver of Defaults By
                Majority of Securityholders................................   31
  Section 5.08  Notice of Defaults.........................................   31
  Section 5.09  Undertaking To Pay Costs...................................   31
ARTICLE 6 The Trustee......................................................   32
  Section 6.01  Duties and Responsibilities of Trustee.....................   32
  Section 6.02  Reliance on Documents, Opinions, Etc.......................   33
  Section 6.03  No Responsibility For Recitals, Etc........................   35
  Section 6.04  Trustee, Paying Agents, Conversion Agents or Registrar
                May Own Securities.........................................   35
  Section 6.05  Monies to Be Held in Trust.................................   35
  Section 6.06  Compensation and Expenses of Trustee; Indemnity for
                Trustee....................................................   35
  Section 6.07  Officers' Certificate As Evidence..........................   36
  Section 6.08  Conflicting Interests of Trustee...........................   36
  Section 6.09  Eligibility of Trustee.....................................   36
  Section 6.10  Resignation or Removal of Trustee..........................   36
  Section 6.11  Acceptance by Successor Trustee............................   38
  Section 6.12  Succession By Merger.......................................   38
  Section 6.13  Preferential Collection of Claims..........................   39
  Section 6.14  Trustee's Application For Instructions From The Company....   39
ARTICLE 7 The Securityholders..............................................   39
  Section 7.01  Action By Securityholders..................................   39
  Section 7.02  Proof of Execution by Securityholders......................   39
  Section 7.03  Who Are Deemed Absolute Owners.............................   40
  Section 7.04  Company-owned Securities Disregarded.......................   40
</TABLE>


                                      -iii-

<PAGE>

<TABLE>
<S>                                                                           <C>
  Section 7.05  Revocation Of Consents, Future Holders Bound...............   40
ARTICLE 8 Meetings Of Securityholders......................................   41
  Section 8.01  Purpose Of Meetings........................................   41
  Section 8.02  Call Of Meetings By Trustee................................   41
  Section 8.03  Call Of Meetings By Company Or Securityholders.............   41
  Section 8.04  Qualifications For Voting..................................   42
  Section 8.05  Regulations................................................   42
  Section 8.06  Voting.....................................................   42
  Section 8.07  No Delay Of Rights By Meeting..............................   43
ARTICLE 9 Supplemental Indentures..........................................   43
  Section 9.01  Supplemental Indentures Without Consent of
                Securityholders............................................   43
  Section 9.02  Supplemental Indenture With Consent Of Securityholders.....   45
  Section 9.03  Effect Of Supplemental Indenture...........................   46
  Section 9.04  Notation On Securities.....................................   46
  Section 9.05  Evidence Of Compliance Of Supplemental Indenture To Be
                Furnished To Trustee.......................................   46
ARTICLE 10 Consolidation, Merger, Sale, Conveyance And Lease...............   46
  Section 10.01 Company May Consolidate On Certain Terms...................   46
  Section 10.02 Successor To Be Substituted................................   47
  Section 10.03 Officers' Certificate and Opinion Of Counsel To Be Given
                To Trustee.................................................   48
ARTICLE 11 Satisfaction And Discharge Of Indenture.........................   48
  Section 11.01 Discharge Of Indenture.....................................   48
  Section 11.02 Deposited Monies To Be Held In Trust By Trustee............   48
  Section 11.03 Paying Agent To Repay Monies Held..........................   49
  Section 11.04 Return Of Unclaimed Monies.................................   49
  Section 11.05 Reinstatement..............................................   49
ARTICLE 12 Immunity Of Incorporators, Stockholders, Officers And
           Directors.......................................................   49
  Section 12.01  Indenture And Securities Solely Corporate Obligations.....   49
ARTICLE 13 General Provisions..............................................   50
  Section 13.01 Provisions Binding On Company's Successors.................   50
  Section 13.02 Official Acts By Successor Corporation.....................   50
  Section 13.03 Addresses For Notices, Etc.................................   50
</TABLE>


                                      -iv-

<PAGE>

<TABLE>
<S>                                                                           <C>
  Section 13.04 Governing Law..............................................   50
  Section 13.05 Evidence Of Compliance With Conditions Precedent,
                Certificates To Trustee....................................   51
  Section 13.06 Legal Holidays.............................................   51
  Section 13.07 Trust Indenture Act........................................   51
  Section 13.08 No Security Interest Created...............................   52
  Section 13.09 Benefits Of Indenture......................................   52
  Section 13.10 Table Of Contents, Headings, Etc...........................   52
  Section 13.11 Authenticating Agent.......................................   52
  Section 13.12 Execution In Counterparts..................................   53
  Section 13.13 Severability...............................................   53
  Section 13.14 Currency Indemnity.........................................   53
  Section 13.15 Submission to Jurisdiction, Etc............................   53
  Section 13.16 Waiver of Immunity.........................................   54
  Section 13.17 Judgment Currency..........................................   54
ARTICLE 14 Redemption And Repurchase Of Securities.........................   55
  Section 14.01 Redemption of Securities...................................   55
  Section 14.02 Notice of Optional Redemption; Selection of Securities.....   55
  Section 14.03 Payment of Securities Called For Redemption by the
                Company....................................................   57
  Section 14.04 Conversion Arrangement on Call for Redemption..............   57
  Section 14.05 Requirement of Offer to Purchase Upon a Fundamental
                Change.....................................................   58
  Section 14.06 Securities Repurchased in Part.............................   61
  Section 14.07 Repayment to the Company...................................   61
  Section 14.08 Repurchase of Securities at Option of the Holder on
                Specified Dates............................................   61
  Section 14.09 Redemption For Tax Reasons.................................   64
ARTICLE 15 Conversion Of Securities........................................   66
  Section 15.01 Right To Convert...........................................   66
  Section 15.02 Exercise Of Conversion Privilege; Issuance Of Common
                Shares On Conversion; No Adjustment For Interest Or
                Dividends..................................................   66
  Section 15.03 Net Share Settlement Election..............................   68
  Section 15.04 Net Share Settlement Notices...............................   69
</TABLE>


                                       -v-

<PAGE>

<TABLE>
<S>                                                                           <C>
  Section 15.05 Cash Payments in Lieu of Fractional Shares.................   69
  Section 15.06 Conversion Rate............................................   70
  Section 15.07 Adjustment Of Conversion Rate..............................   70
  Section 15.08 Effect Of Reclassification, Consolidation, Merger or
                Sale.......................................................   78
  Section 15.09 Taxes On Shares Issued. Additional Amounts.................   79
  Section 15.10 Reservation of Shares, Shares to Be Fully Paid; Compliance
                With Governmental Requirements; Listing of Common
                Shares.....................................................   81
  Section 15.11 Responsibility Of Trustee..................................   82
  Section 15.12 Notice To Holders Prior To Certain Actions.................   82
  Section 15.13 Adjustment to Conversion Rate upon Occurrence of a
                Fundamental Change.........................................   83
  Section 15.14 Transfer Restrictions......................................   85
</TABLE>

                                      -vi-


<PAGE>

                                    INDENTURE

     INDENTURE dated as of December 10, 2007 between Canadian Solar Inc., a
Canadian corporation (hereinafter called the "Company"), having its principal
office at No. 199 Lushan Road, Suzhou New District, Suzhou, Jiangsu 215129,
People's Republic of China, and The Bank of New York, a New York banking
corporation, as trustee hereunder (hereinafter called the "Trustee").

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the issue of its 6.0% Convertible Senior Notes due 2017 (the "Securities") and,
to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the
execution and delivery of this Indenture; and

     WHEREAS, all acts and things necessary to make the Securities, when
executed by the Company and authenticated and delivered by the Trustee or a duly
authorized authenticating agent, as in this Indenture provided, the valid,
binding and legal obligations of the Company, and to constitute this Indenture a
valid agreement according to its terms, have been done and performed, and the
execution of this Indenture and the issue hereunder of the Securities have in
all respects been duly authorized,

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     That in order to declare the terms and conditions upon which the Securities
are, and are to be, authenticated, issued and delivered, and in consideration of
the premises and of the purchase and acceptance of the Securities by the holders
thereof, the Company covenants and agrees with the Trustee for the equal and
proportionate benefit of the respective holders from time to time of the
Securities (except as otherwise provided below), as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.01 Definitions. The terms defined in this Section 1.01 (except as
herein otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture and of any indenture supplemental hereto
shall have the respective meanings specified in this Section 1.01. All other
terms used in this Indenture that are defined in the Trust Indenture Act or
which are by reference therein defined in the Securities Act (except as herein
otherwise expressly provided or unless the context otherwise requires) shall
have the meanings assigned to such terms in the Trust Indenture Act (as defined
herein) and in the Securities Act (as defined herein) as in force at the date of
the execution of this Indenture. The words "herein", "hereof", "hereunder" and
words of similar import refer to this Indenture as a whole and not to any
particular Article, Section or other Subdivision. The terms defined in this
Article include the plural as well as the singular.

     "Additional Amounts" has the meaning specified in Section 15.09.

     "Additional Common Shares" has the meaning specified in Section 15.13.

<PAGE>

     "Additional Interest" has the meaning given the term "Additional Interest
Amount" in Section 2(e) of the Registration Rights Agreement.

     "Additional Securities" means any Securities (other than the Initial
Securities) issued pursuant to this Indenture in accordance with Section 2.01
hereof, as part of the same series and with the same CUSIP number as the Initial
Securities.

     "Agent Members" has the meaning specified in Section 2.05(a).

     "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control", when used with respect to any specified Person means the power to
direct or cause the direction of the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise, and the terms "controlling" and "controlled" have
meanings correlative to the foregoing.

     "Affiliated Entities" means Dr. Shawn Qu and his estates, spouses,
ancestors and lineal descendants (and spouses thereof), the legal
representatives of any of the foregoing, and the trustee of any bona fide trust
of which one or more of the foregoing are sole beneficiaries or the grantors, or
any Person of which any of the forgoing, individually or collectively,
beneficially own voting securities representing at least a majority of the total
voting power of all classes of share capital of such Person (exclusive of any
matters as to which class voting rights exist).

     "Board of Directors" means the Board of Directors of the Company or a
committee of such Board duly authorized to act for it hereunder.

     "Business Day" means any day except a Saturday, Sunday or legal holiday on
which The Federal Reserve Bank of New York is authorized or obligated by law,
regulation or executive order to close.

     "Cash Settlement Averaging Period" means (a) with respect to any Conversion
Date occurring on or after the 12th Scheduled Trading Day immediately preceding
the Maturity Date, Redemption Date, Repurchase Date or Fundamental Change
Purchase Date, the ten (10) consecutive Trading Day period beginning on, and
including, the 12th Scheduled Trading Day immediately preceding such date,
subject to any extension due to a Market Disruption Event and (b) in all other
cases, the ten (10) consecutive Trading Day period beginning on, and including,
the third Trading Day immediately following the relevant Conversion Date.

     "Change in Control" means the occurrence of any of the following
transactions:

          (i) a "person" or "group" within the meaning of Section l3(d)(3) of
the Exchange Act files a Schedule TO or any schedule, form or report under the
Exchange Act disclosing that such person or group has become the direct or
indirect "beneficial owner," as defined in Rule 13d-3 under the Exchange Act, of
Common Shares representing more than 50% of the voting power of the Common
Shares entitled to vote generally in the election of the Board


                                       -2-

<PAGE>

of Directors, but with respect to Dr. Shawn Qu and his Affiliated Entities,
representing more than 60%; or

          (ii) the first day on which a majority of the members of the Board of
Directors does not consist of Continuing Directors; or

          (iii) a consolidation, merger or binding share exchange (other than
any such transaction (a) that does not result in any reclassification,
conversions, exchange or cancellation of outstanding Common Shares, and (b)
pursuant to which holders of the Common Shares immediately before the
transaction have the entitlement to exercise, directly or indirectly, 50% or
more of the total voting power of all Common Shares entitled to vote generally
in elections of the Board of Directors of the continuing or surviving or
successor Person immediately after giving effect to such issuance), or any
conveyance, transfer, sale, lease or other disposition of all or substantially
all of our properties and assets to another Person; or

          (iv) the Company's shareholders approve any plan or proposal for the
Company's liquidation.

     Notwithstanding the foregoing, in the case of a consolidation or merger, it
will not constitute a Change in Control if at least 90% of the consideration for
the Common Shares (excluding cash payments for fractional shares and cash
payments made in respect of dissenters' appraisal rights and cash payment of the
required cash payment, if any) in the consolidation or merger constituting the
Change in Control consists of securities traded on a United States national
securities exchange, or which will be so traded when issued or exchanged in
connection with the Change in Control, and as a result of such consolidation or
merger the securities become convertible solely into such securities.

     "Commission" means the Securities and Exchange Commission, as from time to
time constituted, created under the Exchange Act, or, if at any time after the
execution of this Indenture such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

     "Common Share Price" has the meaning specified in Section 15.13.

     "Common Shares" means any shares of any class of the Company which has no
preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the Company
and that is not subject to redemption by the Company. Subject to the provisions
of Section 15.08, however, shares issuable on conversion of Securities shall
include only shares of the class designated as common shares of the Company at
the date of this Indenture (namely, the Common Shares, no par value) or shares
of any class or classes resulting from any reclassification or reclassifications
thereof and that have no preference in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation, dissolution or
winding up of the Company and that are not subject to redemption by the Company;
provided that if at any time there shall be more than one such resulting class,
the shares of each such class then so issuable on conversion shall be
substantially in the proportion that the total number of shares of such class
resulting from all


                                       -3-

<PAGE>

such reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications.

     "Company" means the corporation named as the "Company" in the preamble to
this Indenture, and, subject to the provisions of Article 10 and Section 15.08,
shall include its successors and assigns.

     "Company Order" has the meaning specified in Section 2.01.

     "Continuing Directors" means as of any date of determination, any
individual who on the date of this Indenture was a member of the Board of
Directors, together with any directors whose election, or, solely to fill the
vacancy of a Continuing Director, appointment by the Board of Directors or whose
nomination for election by the Company's shareholders is duly approved by the
vote of a majority of the directors on the Board of Directors (or such lesser
number comprising a majority of a nominating committee if authority for such
nominations or elections has been delegated to a nominating committee whose
authority and composition have been approved by at least a majority of the
directors who were Continuing Directors at the time such committee was formed)
then still in office who were either directors on the date of this Indenture or
whose election, appointment (in the case of a vacancy of a Continuing Director),
or nomination for election was previously approved by a majority of the
Continuing Directors, either by specific vote or by approval of the proxy
statement issued by the Company in which such individual is named as a nominee
for director.

     "Conversion Date" means the Business Day on which the holder satisfies all
of the requirements set forth in Section 15.02.

     "Conversion Notice" has the meaning specified in Section 15.02.

     "Conversion Price" as of any date shall equal $1,000 divided by the
Conversion Rate as of such date.

     "Conversion Rate" has the meaning specified in Section 15.06.

     "Conversion Value" means the product of (a) the Conversion Rate multiplied
by (b) the average of the Volume Weighted Average Price per Common Share on each
of the Trading Days during the applicable Cash Settlement Averaging Period. The
"Conversion Rate," as such term is used in the immediately preceding sentence,
shall be appropriately adjusted to take into account the occurrence on or before
the relevant Trading Day in the applicable Cash Settlement Averaging Period of
any event that would require an adjustment to the applicable Conversion Rate
pursuant to Section 15.07 of this Indenture.

     "Corporate Trust Office" or other similar term, means the designated office
of the Trustee at which at any particular time its corporate trust business as
it relates to this Indenture shall be administered, which office is, at the date
as of which this Indenture is dated, located at The Bank of New York, 101
Barclay Street, Floor 4 East, New York, New York 10286, Fax No. (212) 815-5802
or (212) 815-5803, Attn: Global Trust Services (Canadian Solar Inc. - 6.0%
Convertible Senior Notes due 2017), with a copy to: The Bank of New York, 12/F
Three Pacific


                                       -4-

<PAGE>

Place, 1 Queen's Road East, Hong Kong, Fax No. (852) 2295-3283, Attn: Global
Corporate Trust.

     "Custodian" means The Bank of New York, as custodian with respect to the
Securities in global form, or any successor entity thereto.

     "Daily Common Share Amount" means, for each Trading Day of the Cash
Settlement Averaging Period and each $1,000 principal amount of Securities
surrendered for conversion, a number of Common Shares (but in no event less than
zero) determined pursuant to the following formula:

    ( volume weighted average price        conversion rate )        specified
    (    per common share on such     x   in effect on the )   -       cash
    (          trading day                 conversion date )          amount
    -------------------------------------------------------------------------
     volume weighted average price per common share on such   x   10
                           trading day

The "Conversion Rate in effect on the Conversion Date," as such term is used in
the formula set forth above, shall be appropriately adjusted to take into
account the occurrence on or before the relevant Trading Day of any event that
would require an adjustment to the applicable Conversion Rate pursuant to
Section 15.07 of this Indenture.

     "Defaulted Interest" has the meaning specified in Section 2.03.

     "Depositary" means, the clearing agency registered under the Exchange Act
that is designated to act as the Depositary for the Global Securities. The
Depository Trust Company shall be the initial Depositary, until a successor
shall have been appointed and become such pursuant to the applicable provisions
of this Indenture, and thereafter, "Depositary" shall mean or include such
successor.

     "Effective Date" has the meaning specified in Section 15.13.

     "Event of Default" means any event specified in Section 5.01 as an Event of
Default.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder, as in effect from time to
time.

     "Ex-Dividend Date" means, with respect to any distribution on Common
Shares, the first day on which the Common Shares trade on the applicable
exchange, or in the applicable market, regular way, without the right to receive
such distribution.

     "Fundamental Change" shall mean the occurrence of a Change in Control.

     "Fundamental Change Expiration Time" has the meaning specified in Section
14.05(b).

     "Fundamental Change Notice" has the meaning specified in Section 14.05(b).

     "Fundamental Change Purchase Date" has the meaning specified in Section
14.05.


                                       -5-

<PAGE>

     "Fundamental Change Purchase Notice" has the meaning specified in Section
14.05(b).

     "Global Security" has the meaning specified in Section 2.02.

     "Indenture" means this instrument as originally executed or, if amended or
supplemented as herein provided, as so amended or supplemented.

     "Ineligible Consideration" has the meaning specified in Section 15.08.

     "Initial Purchaser" means Piper Jaffray & Co.

     "Initial Securities" means securities in an aggregate principal amount of
$75,000,000 initially issued under this Indenture.

     "Interest" means, when used with reference to the Securities, any interest
payable under the terms of the Securities, including Additional Interest, if
any, payable under the terms of the Registration Rights Agreement and any
Additional Amounts.

     "Last Reported Sale Price" of the Common Shares on any date means the
closing sale price per share (or, if no closing sale price is reported, the
average of the bid and ask prices or, if more than one in either case, the
average of the average bid and the average ask prices) on such date as reported
on the Nasdaq Global Market or other principal United States securities exchange
on which Common Shares are traded or, if the Common Shares are not listed for
trading on a United States national or regional securities exchange on the
relevant date, the "Last Reported Sale Price" of the Common Shares will be the
last quoted bid price for the Common Shares in the over-the-counter market on
the relevant date as reported by the National Quotation Bureau or similar
organization. If the Common Shares are not so quoted, the "Last Reported Sale
Price" of the Common Shares will be the average of the mid-point of the last bid
and ask prices for the Common Shares on the relevant date from each of at least
three U.S. nationally recognized independent investment banking firms selected
by us for this purpose. The Last Reported Sale Price shall be determined without
reference to extended or after hours trading.

     "Market Disruption Event" means the occurrence or existence for more than
one-half hour period in the aggregate on any Trading Day for the Company's
Common Shares of any suspension or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by the stock exchange or
otherwise) in the Company's Common Shares or in any options, contracts or future
contracts relating solely to the Company's Common Shares, and such suspension or
limitation occurs or exists at any time before 1:00 p.m. (New York City time) on
such day.

     "Maturity Date" means December 15, 2017.

     "Notice of Election" has the meaning specified in Section 14.09.

     "Officers' Certificate", when used with respect to the Company, means a
certificate signed by the Chairman of the Board, the Chief Executive Officer,
the Chief Financial Officer or any Vice President (whether or not designated by
a number or numbers or word or words added


                                       -6-

<PAGE>

before or after the title "Vice President") and the Treasurer or any Assistant
Treasurer or the Secretary or Assistant Secretary of the Company.

     "Opinion of Counsel" means an opinion in writing signed by legal counsel,
who may be an employee of or counsel to the Company, which opinion shall be
reasonably acceptable to the Trustee.

     "Outstanding", when used with reference to Securities and subject to the
provisions of Section 7.04, means, as of any particular time, all Securities
authenticated and delivered by the Trustee under this Indenture, except:

     (a) Securities theretofore canceled by the Trustee or delivered to the
Trustee for cancellation;

     (b) Securities, or portions thereof, (i) for the redemption of which monies
in the necessary amount shall have been deposited in trust with the Trustee or
with any paying agent (other than the Company) or (ii) that shall have been
otherwise defeased in accordance with Article 11;

     (c) Securities in lieu of which, or in substitution for which, other
Securities shall have been authenticated and delivered pursuant to the terms of
Section 2.06; and

     (d) Securities converted into either Common Shares, cash, or a combination
of cash and Common Shares pursuant to Article 15 and Securities deemed not
outstanding pursuant to Article 14.

     "Person" means a corporation, an association, a partnership, a limited
liability company, an individual, a joint venture, a joint stock company, a
trust, an unincorporated organization or a government or an agency or a
political subdivision thereof.

     "PORTAL Market" means the PORTAL Market operated by The Nasdaq Stock
Market, Inc. or any successor thereto.

     "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security, and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.06 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security that it replaces.

     "Prescribed Securities" has the meaning specified in Section 15.08.

     "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

     "Registration Rights Agreement" means the Registration Rights Agreement
dated as of December 10, 2007 between the Company and the Initial Purchaser, as
amended from time to time in accordance with its terms.


                                       -7-

<PAGE>

     "Relevant Taxing Jurisdiction" means any jurisdiction in which the Company
or any successor are organized or resident for tax purposes or through which
payment is made (or any political subdivision or taxing authority thereof or
therein).

     "Repurchase Date" has the meaning specified in Section 14.08(a).

     "Responsible Officer" shall mean, when used with respect to the Trustee,
any officer in the Corporate Trust Office of the Trustee with direct
responsibility for the administration of this Indenture and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of such person's knowledge of and familiarity with
the particular subject.

     "Restricted Securities" has the meaning specified in Section 2.05(a).

     "Restricted Securities Legend" means the legend labeled as such and that is
set forth in Exhibit A hereto.

     "Rights" has the meaning specified in Section 15.07(b).

     "Rights Plan" has the meaning specified in Section 15.07(b).

     "Rule 144" means Rule 144 as promulgated under the Securities Act.

     "Rule 144A" means Rule 144A as promulgated under the Securities Act.

     "Scheduled Trading Day" means a day that is scheduled to be a Trading Day.

     "Securities" has the meaning specified in the preamble to this Indenture.
The Initial Securities and the Additional Securities shall be treated as a
single class and have the same CUSIP number for purposes of this Indenture.

     "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder, as in effect from time to time.

     "Security Register" has the meaning specified in Section 2.05.

     "Security Registrar" has the meaning specified in Section 2.05.

     "Securityholder" or "holder" as applied to any Security, or other similar
terms, means any Person in whose name at the time a particular Security is
registered on the Security Registrar's books.

     "Significant Subsidiary" means a Subsidiary of the Company (or any
successor) which, at the time of determination, either (a) had assets which, as
of the date of the Company's (or such successor's) most recent quarterly
consolidated balance sheet, constituted at least 10% of the Company's (or such
successor's) total assets on a consolidated basis as of such date or (b) had
revenues for the 12-month period ending on the date of the Company's (or such
successor's) most recent quarterly consolidated statement of income which
constituted at least 10% of the


                                       -8-

<PAGE>

Company's (or such successor's) total revenues on a consolidated basis for such
period; provided that CSI Solartronics (Changshu) Ltd., CSI Solar Manufacture
Inc., CSI Solar Technologies Inc., CSI Central Solar Power Co., Ltd., CSI
Solarchip International Co., Ltd. and Changshu CSI Advanced Solar Inc., and any
of their respective successors shall at all times be Significant Subsidiaries.

     "Spin-Off" has the meaning specified in Section 15.07(c).

     "Subsidiary" means, with respect to any Person, (i) any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of capital stock or other equity interest entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by such Person or one or more of the other subsidiaries
of that Person (or a combination thereof) and (ii) any partnership (a) the sole
general partner or managing general partner of which is such Person or a
subsidiary of such Person or (b) the only general partners of which are such
Person or of one or more subsidiaries of such Person (or any combination
thereof).

     "Tax Redemption Date" has the meaning specified in Section 15.09.

     "Tax Redemption Price" has the meaning specified in Section 15.09.

     "Trading Day" means a day during which (i) there is no Market Disruption
Event and (ii) the Nasdaq Global Market, or if the Company's Common Shares are
not listed on the Nasdaq Global Market, the principal U.S. securities exchange
on which the Company's Common Shares are listed, is open for trading or if the
Company's Common Shares are not admitted for trading or quotation on or by any
exchange, bureau or other organization referred to in the definition of Last
Reported Sale Price (excluding the third sentence of that definition), "trading
day" will mean any Business Day.

     "Trigger Event" has the meaning specified in Section 15.07(c).

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended, as
it was in force at the date of this Indenture, except as provided in Section
9.03 and Section 15.08; provided that if the Trust Indenture Act of 1939 is
amended after the date hereof, the term "Trust Indenture Act" shall mean, to the
extent required by such amendment, the Trust Indenture Act of 1939 as so
amended.

     "Trustee" means The Bank of New York and its successors and any corporation
resulting from or surviving any consolidation or merger to which it or its
successors may be a party and any successor trustee at the time serving as
successor trustee hereunder.

     "Volume Weighted Average Price" per Common Share on any Trading Day means
such price as displayed on Bloomberg (or any successor service) page CSIQ
(equity) VAP in respect of the period from 9:30 a.m. to 4:00 p.m., New York City
time, on such Trading Day. If such price is not available, the Volume Weighted
Average Price means the market value per Common


                                       -9-

<PAGE>

Share on such day as determined by a nationally recognized independent
investment banking firm retained for this purpose by the Company.

                                    ARTICLE 2
                   ISSUE, DESCRIPTION, EXECUTION, REGISTRATION
                           AND EXCHANGE OF SECURITIES

     Section 2.01 Designation Amount And Issue Of Securities. The Securities
shall be designated as "6.0% Convertible Senior Notes due 2017."

     The Trustee shall authenticate and make available for delivery Initial
Securities for original issue in the aggregate principal amount of up to
$75,000,000 upon receipt of a written order or orders of the Company signed by
two Officers of the Company (a "Company Order"). The Company Order shall specify
the amount of Securities to be authenticated, shall provide that all such
Securities will be represented by a Restricted Global Security and the date on
which each original issue of Securities is to be authenticated. The aggregate
principal amount of Initial Securities outstanding at any time may not exceed
$75,000,000 except as provided in Section 2.06. The Company may, from time to
time after the execution of this Indenture, execute and deliver to the Trustee
for authentication Additional Securities, and the Trustee shall thereupon
authenticate and deliver said Additional Securities to or upon the written order
of the Company, without any further action by the Company hereunder; provided
however that the Company may issue Additional Securities only if: (1) such
Additional Securities and Initial Securities are treated as part of the same
issue of debt instruments for purposes of U.S. federal income tax laws; (2) such
Additional Securities shall have the same CUSIP number as the Initial
Securities; and (3) the Trustee receives an Officers' Certificate and an Opinion
of Counsel to the effect that such issuance of Additional Securities complies
with the provisions of this Indenture, including each provision of this
paragraph.

     Section 2.02 Form of Securities. The Securities and the Trustee's
certificate of authentication to be borne by such Securities shall be
substantially in the form set forth in Exhibit A. The terms and provisions
contained in the form of Security attached as Exhibit A hereto shall constitute,
and are hereby expressly made, a part of this Indenture and, to the extent
applicable, the Company and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound thereby.

     Any of the Securities may have such letters, numbers or other marks of
identification and such notations, legends, endorsements or changes as the
officers executing the same may approve (execution thereof to be conclusive
evidence of such approval) and as are not inconsistent with the provisions of
this Indenture, or as may be required by the Custodian, the Depositary or by The
Nasdaq Stock Market, Inc. in order for the Securities to be tradable in the
PORTAL Market or as may be required for the Securities to be tradable on any
other market developed for trading of securities pursuant to Rule 144A or as may
be required to comply with any applicable law or with any rule or regulation
made pursuant thereto or with any rule or regulation of any securities exchange
or automated quotation system on which the Securities may be listed, or to
conform to usage, or to indicate any special limitations or restrictions to
which any particular Securities are subject.


                                      -10-

<PAGE>

     So long as the Securities are eligible for book-entry settlement with the
Depositary, or unless otherwise required by law, or otherwise contemplated by
Section 1.1(1), all of the Securities will be represented by one or more
Securities in global form registered in the name of the Depositary or the
nominee of the Depositary (a "Global Security"). The transfer and exchange of
beneficial interests in any such Global Security shall be effected through the
Depositary in accordance with this Indenture and the applicable procedures of
the Depositary. Except as provided in Section 1.1(1), beneficial owners of a
Global Security shall not be entitled to have certificates registered in their
names, will not receive or be entitled to receive physical delivery of
certificates in definitive form and will not be considered holders of such
Global Security (other than in an enforcement by such owner of a beneficial
interest to exchange such beneficial interest for Securities in certificated
form).

     Any Global Security shall represent such of the outstanding Securities as
shall be specified therein and shall provide that it shall represent the
aggregate amount of outstanding Securities from time to time endorsed thereon
and that the aggregate amount of outstanding Securities represented thereby may
from time to time be increased or reduced to reflect redemptions, repurchases,
conversions, transfers or exchanges permitted hereby or to reflect the increase
in the principal amount of the Securities permitted by Section 2.01. Any
endorsement of a Global Security to reflect the amount of any increase or
decrease in the amount of outstanding Securities represented thereby shall be
made by the Trustee or the Custodian, at the direction of the Trustee, in such
manner and upon instructions given by the holder of such Global Securities in
accordance with this Indenture. Payment of principal of and Interest and
premium, if any, on any Global Security shall be made to the holder of such
Security.

     Section 2.03 Date And Denomination Of Securities; Payments Of Interest. The
Securities shall be issuable in registered form without coupons in denominations
of $1,000 principal amount and multiples thereof. Each Security shall be dated
the date of its authentication and shall bear Interest from the date specified
on the face of the form of Security attached as Exhibit A hereto. Interest on
the Securities shall be computed on the basis of a 360-day year comprised of
twelve 30-day months.

     The Person in whose name any Security (or its Predecessor Security) is
registered on the Security Register at the close of business on any record date
with respect to any interest payment date shall be entitled to receive the
Interest payable on such interest payment date, except that the Interest payable
upon redemption or repurchase will be payable to the Person to whom principal is
payable pursuant to such redemption or repurchase (unless the redemption date or
the repurchase date, as the case may be, falls after a record date and on or
prior to the corresponding interest payment date, in which case the semi-annual
payment of Interest becoming due on such interest payment date shall be payable
to the holders of such Securities registered as such on the applicable record
date).

     Notwithstanding the foregoing, if any Security (or portion thereof) is
converted into Common Shares during the period after a record date for the
payment of Interest to, but excluding, the opening of business on the next
succeeding interest payment date, holders of such Security at the close of
business on the record date shall receive Interest payable on such Security (or
portion thereof) on the corresponding interest payment date notwithstanding the
conversion. Such Security (or portion thereof), upon surrender for conversion,
shall be


                                      -11-

<PAGE>

accompanied by funds equal to the amount of Interest payable on such Security so
converted; provided that no such payment shall be made (i) if the Company has
specified a redemption date that is after a record date but on or prior to the
next succeeding interest payment date, (ii) if the Company has specified a
Fundamental Change Purchase Date that is after a record date but on or prior to
the next succeeding interest payment date or (iii) to the extent of any overdue
Interest at the time of conversion with respect to such Security. Interest shall
be payable at the office or agency of the Company maintained by the Company for
such purposes in the Borough of Manhattan, City of New York, which shall
initially be an office or agency of The Bank of New York, having an office as of
the date of this Indenture at 101 Barclay Street, Floor 4 East, New York, New
York 10286, attention: Global Trust Services (Canadian Solar Inc. - 6.0%
Convertible Senior Notes due 2017). The Company shall pay Interest (i) on any
Securities in certificated form by check mailed to the address of the Person
entitled thereto as it appears in the Security Register (or upon written notice,
by wire transfer in immediately available funds, if such Person is entitled to
Interest on aggregate principal in excess of $5 million, which shall remain in
effect until such Person notifies, in writing, the Registrar to the contrary) or
(ii) on any Global Security by wire transfer of immediately available funds to
the account of the Depositary or its nominee. The term "record date" with
respect to any interest payment date shall mean the June 1 and December 1
preceding the applicable June 15 or December 15 interest payment date,
respectively.

     Notwithstanding the foregoing, any Interest on any Security which is
payable, but is not punctually paid or duly provided for, on any June 15 or
December 15 (herein called "Defaulted Interest") shall forthwith cease to be
payable to the Securityholder on the relevant record date by virtue of his
having been such Securityholder, and such Defaulted Interest shall be paid by
the Company, at its election in each case, as provided in clause (1) or (2)
below:

     (1) The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Securities (or their respective Predecessor
Securities) are registered at the close of business on a special record date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security and the date of the
proposed payment (which shall be not less than twenty-five (25) days after the
receipt by the Trustee of such notice, unless the Trustee shall consent to an
earlier date), and at the same time the Company shall deposit with the Trustee
an amount of money equal to the aggregate amount to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee for
such deposit on or prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a
special record date for the payment of such Defaulted Interest which shall be
not more than fifteen (15) days and not less than ten (10) days prior to the
date of the proposed payment, and not less than ten (10) days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such special record date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed,
first-class postage prepaid, to each holder at his address as it appears in the
Security Register, not less than ten (10) days prior to such special record
date. Notice of the proposed payment of such Defaulted Interest and the special
record date therefor having been so


                                      -12-

<PAGE>

mailed, such Defaulted Interest shall be paid to the Persons in whose names the
Securities (or their respective Predecessor Securities) are registered at the
close of business on such special record date and shall no longer be payable
pursuant to the following clause (2) of this Section 2.03.

     (2) The Company may make payment of any Defaulted Interest in any other
lawful manner not inconsistent with the requirements of any securities exchange
or automated quotation system on which the Securities may be listed or
designated for issuance, and upon such notice as may be required by such
exchange or automated quotation system, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of
payment shall be deemed practicable by the Trustee.

     Section 2.04 Execution of Securities. The Securities shall be signed in the
name and on behalf of the Company by the manual or facsimile signature of its
Chairman of the Board, Chief Executive Officer, Chief Financial Officer or any
Vice President (whether or not designated by a number or numbers or word or
words added before or after the title "Vice President") and attested by the
manual or facsimile signature of its Secretary or any of its Assistant
Secretaries or any Vice President (whether or not designated by a number or
numbers or word or words added before or after the title "Vice President") or
its Treasurer or any of its Assistant Treasurers (which may be printed,
engraved or otherwise reproduced thereon, by facsimile or otherwise). Only such
Securities as shall bear thereon a certificate of authentication substantially
in the form set forth on the form of Security attached as Exhibit A hereto,
manually executed by the Trustee (or an authenticating agent appointed by the
Trustee as provided by Section 13.11), shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose. Such certificate by the
Trustee (or such an authenticating agent) upon any Security executed by the
Company shall be conclusive evidence that the Security so authenticated has been
duly authenticated and delivered hereunder and that the holder is entitled to
the benefits of this Indenture.

     In case any officer of the Company who shall have signed any of the
Securities shall cease to be such officer before the Securities so signed shall
have been authenticated and delivered by the Trustee, or disposed of by the
Company, such Securities nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Securities had not ceased to be
such officer of the Company, and any Security may be signed on behalf of the
Company by such persons as, at the actual date of the execution of such
Security, shall be the proper officers of the Company, although at the date of
the execution of this Indenture any such person was not such an officer.

     Section 2.05 Exchange and Registration of Transfer of Securities;
Restrictions on Transfer. (1) The Company shall cause to be kept at the
Corporate Trust Office a register (the register maintained in such office and in
any other office or agency of the Company designated pursuant to Section 3.02
being herein sometimes collectively referred to as the "Security Register") in
which, subject to such reasonable regulations as it may prescribe, the Company
shall provide for the registration of Securities and of transfers of Securities.
The Security Register shall be in written form or in any form capable of being
converted into written form within a reasonably prompt period of time. The
Trustee is hereby appointed "Security


                                      -13-

<PAGE>

Registrar" for the purpose of registering Securities and transfers of Securities
as herein provided. The Company may appoint one or more co-registrars in
accordance with Section 3.02.

     Upon surrender for registration of transfer of any Security to the Security
Registrar or any co-registrar, and satisfaction of the requirements for such
transfer set forth in this Section 2.05, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Securities of any authorized denominations and
of a like aggregate principal amount and bearing such restrictive legends as may
be required by this Indenture.

     Securities may be exchanged for other Securities of any authorized
denominations and of a like aggregate principal amount, upon surrender of the
Securities to be exchanged at any such office or agency maintained by the
Company pursuant to Section 3.02. Whenever any Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Securityholder making the exchange is entitled
to receive bearing registration numbers not contemporaneously outstanding.

     All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.

     All Securities presented or surrendered for registration of transfer or for
exchange, redemption, repurchase or conversion shall (if so required by the
Company or the Security Registrar) be duly endorsed, or be accompanied by a
written instrument or instruments of transfer in form satisfactory to the
Company, and the Securities shall be duly executed by the Securityholder thereof
or his attorney duly authorized in writing.

     No service charge shall be made to any holder for any registration of
transfer or exchange of Securities, but the Company may require payment by the
holder of a sum sufficient to cover any tax, assessment or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Securities.

     Neither the Company nor the Trustee nor any Security Registrar shall be
required to exchange or register a transfer of (a) any Securities or portions
thereof for a period of fifteen (15) days next preceding any selection of
Securities to be redeemed, (b) any Securities or portions thereof surrendered
for conversion pursuant to Article 15 or (c) any Securities or portions thereof
tendered for repurchase (and not withdrawn) pursuant to Article 14.

     (a) The following provisions shall apply only to Global Securities:

          (i) Each Global Security authenticated under this Indenture shall be
     registered in the name of the Depositary or a nominee thereof and delivered
     to such Depositary or a nominee thereof or Custodian therefor, and each
     such Global Security shall constitute a single Security for all purposes of
     this Indenture.

          (ii) Notwithstanding any other provision in this Indenture, no Global
     Security may be exchanged in whole or in part for Securities registered,
     and no transfer


                                      -14-

<PAGE>

     of a Global Security in whole or in part may be registered, in the name of
     any Person other than the Depositary or a nominee thereof unless (A) the
     Depositary (i) has notified the Company that it is unwilling or unable to
     continue as Depositary for such Global Security and a successor depositary
     has not been appointed by the Company within ninety (90) days or (ii) has
     ceased to be a clearing agency registered under the Exchange Act and no
     successor clearing agency has been appointed by the Company within 90 days,
     (B) an Event of Default has occurred and is continuing or (C) the Company,
     in its sole discretion, notifies the Trustee in writing that it no longer
     wishes to have all the Securities represented by Global Securities;
     provided that beneficial interests in a Global Security may be exchanged
     for definitive certificated Securities upon request by or on behalf of the
     Depositary in accordance with customary procedures. Any Global Security
     exchanged pursuant to clause (A) or (B) above shall be so exchanged in
     whole and not in part and any Global Security exchanged pursuant to clause
     (C) above may be exchanged in whole or from time to time in part as
     directed by the Company. Any Security issued in exchange for a Global
     Security or any portion thereof shall be a Global Security; provided that
     any such Security so issued that is registered in the name of a Person
     other than the Depositary or a nominee thereof shall not be a Global
     Security.

          (iii) Securities issued in exchange for a Global Security or any
     portion thereof pursuant to clause (ii) above shall be issued in
     definitive, fully registered form, without interest coupons, shall have an
     aggregate principal amount equal to that of such Global Security or portion
     thereof to be so exchanged, shall be registered in such names and be in
     such authorized denominations as the Depositary shall designate and shall
     bear any legends required hereunder. Any Global Security to be exchanged in
     whole shall be surrendered by the Depositary to the Trustee, as Security
     Registrar. With regard to any Global Security to be exchanged in part,
     either such Global Security shall be so surrendered for exchange or, if the
     Trustee is acting as Custodian for the Depositary or its nominee with
     respect to such Global Security, the principal amount thereof shall be
     reduced, by an amount equal to the portion thereof to be so exchanged, by
     means of an appropriate adjustment made on the records of the Trustee. Upon
     any such surrender or adjustment, the Trustee shall authenticate and make
     available for delivery the Security issuable on such exchange to or upon
     the written order of the Depositary or an authorized representative
     thereof.

          (iv) In the event of the occurrence of any of the events specified in
     clause (ii) above, the Company will promptly make available to the Trustee
     a reasonable supply of certificated Securities in definitive, fully
     registered form, without interest coupons.

          (v) Neither any members of, or participants in, the Depositary ("Agent
     Members") nor any other Persons on whose behalf Agent Members may act shall
     have any rights under this Indenture with respect to any Global Security
     registered in the name of the Depositary or any nominee thereof, and the
     Depositary or such nominee, as the case may be, may be treated by the
     Company, the Trustee and any agent of the Company or the Trustee as the
     absolute owner and holder of such Global Security for


                                      -15-

<PAGE>

     all purposes whatsoever. Notwithstanding the foregoing, nothing herein
     shall prevent the Company, the Trustee or any agent of the Company or the
     Trustee from giving effect to any written certification, proxy or other
     authorization furnished by the Depositary or such nominee, as the case may
     be, or impair, as between the Depositary, its Agent Members and any other
     Person on whose behalf an Agent Member may act, the operation of customary
     practices of such Persons governing the exercise of the rights of a holder
     of any Security.

          (vi) At such time as all interests in a Global Security have been
     redeemed, repurchased, converted, canceled or exchanged for Securities in
     certificated form, such Global Security shall, upon receipt thereof, be
     canceled by the Trustee in accordance with standing procedures and
     instructions existing between the Depositary and the Custodian. At any time
     prior to such cancellation, if any interest in a Global Security is
     redeemed, repurchased, converted, canceled or exchanged for Securities in
     certificated form, the principal amount of such Global Security shall, in
     accordance with the standing procedures and instructions existing between
     the Depositary and the Custodian, be appropriately reduced, and an
     endorsement shall be made on such Global Security, by the Trustee or the
     Custodian, at the direction of the Trustee, to reflect such reduction.

     (b) The transfer restrictions set forth below shall apply to the
Securities, whether in the form of a Global Security or a Certificated Security.

     Until the date that is two years after the last original issue date of the
Securities, any certificate evidencing such Security (and all securities issued
in exchange therefor or in substitution thereof) and any share certificate
representing Common Shares issued upon conversion of any Security shall bear the
Restricted Securities Legend, unless (1) such Security or such Common Shares
have been sold pursuant to a registration statement that has been declared
effective under the Securities Act (and which continues to be effective at the
time of such transfer) or pursuant to Rule 144 under the Securities Act or any
similar provision then in force, or such Common Shares have been issued upon
conversion of Securities that have been transferred pursuant to a registration
statement that has been declared effective under the Securities Act or pursuant
to Rule 144 under the Securities Act or any similar provision then in force, (2)
such Security or such Common Shares are eligible for resale pursuant to Rule
144(k) under the Securities Act (or any successor provision) as is in effect on
the date of transfer of such Security or (3) otherwise agreed by the Company in
writing, with written notice thereof to the Trustee.

     Every Security that bears or is required under this Section 2.05(b) to bear
the Restricted Securities Legend (the "Restricted Securities") shall be subject
to the restrictions on transfer set forth in this Section 2.05(b) (including
those set forth in the Restricted Securities Legend) unless such restrictions on
transfer shall be waived by written consent of the Company, and the holder of
each such Restricted Security, by such Securityholder's acceptance thereof,
agrees to be bound by all such restrictions on transfer. As used in this Section
2.05(b), the term "transfer" encompasses any sale, pledge, loan, transfer or
other disposition whatsoever of any Restricted Security or any interest therein.


                                      -16-

<PAGE>

     Any Security (or security issued in exchange or substitution therefor) as
to which such restrictions on transfer shall have expired in accordance with
their terms or as to conditions for removal of the Restricted Securities Legend
have been satisfied may, upon surrender of such Security for exchange to the
Security Registrar in accordance with the provisions of this Section 2.05, be
exchanged for a new Security or Securities, of like tenor and aggregate
principal amount, which shall not bear the Restricted Securities Legend. If the
Restricted Security surrendered for exchange is represented by a Global Security
bearing a Restricted Securities Legend, the principal amount of the Global
Security so legended shall be reduced by the appropriate principal amount and
the principal amount of a Global Security without the Restricted Securities
Legend shall be increased by an equal principal amount. If a Global Security
without the Restricted Securities Legend is not then outstanding, the Company
shall execute and the Trustee shall authenticate and deliver a Global Security
without the Restricted Securities Legend to the Depositary.

     Any such Common Shares as to which such restrictions on transfer shall have
expired in accordance with their terms or as to which the conditions for removal
of the foregoing legend set forth therein have been satisfied may, upon
surrender of the certificates representing such Common Shares for exchange in
accordance with the procedures of the transfer agent for the Common Shares, be
exchanged for a new certificate or certificates for a like number of Common
Shares, which shall not bear the Restricted Securities Legend.

     (c) Any Security or Common Shares issued upon the conversion of a Security
that is purchased or owned by the Company or any Subsidiary thereof may not be
resold by the Company or such Subsidiary unless registered under the Securities
Act or resold pursuant to an exemption from the registration requirements of the
Securities Act in a transaction which results in such Securities or Common
Shares, as the case may be, no longer being "restricted securities" (as defined
under Rule 144).

     (d) The Company shall use its best efforts to prevent any Affiliate who is
not a Subsidiary from reselling any Security or Common Shares issued upon the
conversion of a Security, except for the resale of such Securities or Common
Shares pursuant to an effective registration statement or resales of such
Securities or Common Shares to the Company or a Subsidiary.

     (e) The Trustee shall have no responsibility or obligation to any Agent
Members or any other Person with respect to the accuracy of the books or
records, or the acts or omissions, of the Depositary or its nominee or of any
participant or member thereof, with respect to any ownership interest in the
Securities or with respect to the delivery to any Agent Member or other Person
(other than the Depositary) of any notice (including any notice of redemption or
repurchase) or the payment of any amount, under or with respect to such
Securities. All notices and communications to be given to the Securityholders
and all payments to be made to Securityholders under the Securities shall be
given or made only to or upon the order of the registered Securityholders (which
shall be the Depository or its nominee in the case of a Global Security). The
rights of beneficial owners in any Global Security shall be exercised only
through the Depositary subject to the customary procedures of the Depositary.
The Trustee may rely and shall be fully protected in relying upon information
furnished by the Depositary with respect to its Agent Members.


                                      -17-

<PAGE>

     The Trustee shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer imposed under this
Indenture or under applicable law with respect to any transfer of any interest
in any Security (including any transfers between or among Agent Members in any
Global Security) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and when
expressly required by, the terms of this Indenture, and to examine the same to
determine substantial compliance as to form with the express requirements
hereof.

     Section 2.06 Mutilated, Destroyed, Lost or Stolen Securities. In case any
Security shall become mutilated or be destroyed, lost or stolen, the Company in
its discretion may execute, and upon its written request the Trustee or an
authenticating agent appointed by the Trustee shall authenticate and make
available for delivery, a new Security, bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Security, or in lieu
of and in substitution for the Security so destroyed, lost or stolen. In every
case, the applicant for a substituted Security shall furnish to the Company, to
the Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any loss,
liability, cost or expense caused by or connected with such substitution, and,
in every case of destruction, loss or theft, the applicant shall also furnish to
the Company, to the Trustee and, if applicable, to such authenticating agent
evidence to their satisfaction of the destruction, loss or theft of such
Security and of the ownership thereof.

     Following receipt by the Trustee or such authenticating agent, as the case
may be, of satisfactory security or indemnity and evidence, as described in the
preceding paragraph, the Trustee or such authenticating agent may authenticate
any such substituted Security and make available for delivery such Security.
Upon the issuance of any substituted Security, the Company may require the
payment by the holder of a sum sufficient to cover any tax, assessment or other
governmental charge that may be imposed in relation thereto and any other
expenses connected therewith. In case any Security which has matured or is about
to mature or has been called for redemption or has been tendered for purchase
upon a Fundamental Change or on a Repurchase Date (and not withdrawn) or is to
be converted into Common Shares shall become mutilated or be destroyed, lost or
stolen, the Company may, instead of issuing a substitute Security, pay or
authorize the payment of or convert or authorize the conversion of the same
(without surrender thereof except in the case of a mutilated Security), as the
case may be, if the applicant for such payment or conversion shall furnish to
the Company, to the Trustee and, if applicable, to such authenticating agent
such security or indemnity as may be required by them to save each of them
harmless for any loss, liability, cost or expense caused by or in connection
with such substitution, and, in every case of destruction, loss or theft, the
applicant shall also furnish to the Company, the Trustee and, if applicable, any
paying agent or conversion agent evidence to their satisfaction of the
destruction, loss or theft of such Security and of the ownership thereof.

     Every substitute Security issued pursuant to the provisions of this Section
2.06 by virtue of the fact that any Security is destroyed, lost or stolen shall
constitute an additional contractual obligation of the Company, whether or not
the destroyed, lost or stolen Security shall be found at any time, and shall be
entitled to all the benefits of (but shall be subject to all the limitations set
forth in) this Indenture equally and proportionately with any and all other
Securities duly issued hereunder. To the extent permitted by law, all Securities
shall be held and owned upon the


                                      -18-

<PAGE>

express condition that the foregoing provisions are exclusive with respect to
the replacement or payment or conversion or redemption or repurchase of
mutilated, destroyed, lost or stolen Securities and shall preclude any and all
other rights or remedies notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment or
conversion or redemption or repurchase of negotiable instruments or other
securities without their surrender.

     Section 2.07 Temporary Securities. Pending the preparation of Securities in
certificated form, the Company may execute and the Trustee or an authenticating
agent appointed by the Trustee shall, upon the written request of the Company,
authenticate and deliver temporary Securities (printed or lithographed).
Temporary Securities shall be issuable in any authorized denomination, and
substantially in the form of the Securities in certificated form, but with such
omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company. Every such temporary
Security shall be executed by the Company and authenticated by the Trustee or
such authenticating agent upon the same conditions and in substantially the same
manner, and with the same effect, as the Securities in certificated form.
Without unreasonable delay, the Company will execute and deliver to the Trustee
or such authenticating agent Securities in certificated form and thereupon any
or all temporary Securities may be surrendered in exchange therefor, at each
office or agency maintained by the Company pursuant to Section 3.02 and the
Trustee or such authenticating agent shall authenticate and make available for
delivery in exchange for such temporary Securities an equal aggregate principal
amount of Securities in certificated form. Such exchange shall be made by the
Company at its own expense and without any charge therefor. Until so exchanged,
the temporary Securities shall in all respects be entitled to the same benefits
and subject to the same limitations under this Indenture as Securities in
certificated form authenticated and delivered hereunder.

     Section 2.08 Cancellation of Securities. All Securities surrendered for the
purpose of payment, redemption, repurchase, conversion, exchange or registration
of transfer shall, if surrendered to the Company or any paying agent or any
Security Registrar or any conversion agent, be surrendered to the Trustee and
promptly canceled by it, or, if surrendered to the Trustee, shall be promptly
canceled by it, and no Securities shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Indenture. The Trustee
shall dispose of such canceled Securities in accordance with its customary
procedures. If the Company shall acquire any of the Securities, such acquisition
shall not operate as a redemption, repurchase or satisfaction of the
indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

     Section 2.09 CUSIP Numbers. The Company in issuing the Securities may use
"CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use
"CUSIP" numbers in notices of redemption or repurchases as a convenience to
Securityholders; provided that any such notice may state that no representation
is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption or a repurchase and
that reliance may be placed only on the other identification numbers printed on
the Securities, and any such redemption or repurchase shall not be affected by
any defect in or omission of such


                                      -19-

<PAGE>

numbers. The Company will promptly notify the Trustee of any change in the
"CUSIP" numbers.

                                    ARTICLE 3
                       PARTICULAR COVENANTS OF THE COMPANY

     Section 3.01 Payment of Principal, Premium and Interest. The Company will
duly and punctually pay or cause to be paid the principal of and premium, if any
(including the redemption price upon redemption or the repurchase price upon
repurchase, in each case pursuant to Article 14), and Interest, on each of the
Securities at the places, at the respective times and in the manner provided
herein and in the Securities.

     Section 3.02 Maintenance of Office or Agency. The Company will maintain an
office or agency in the Borough of Manhattan, the City of New York, where the
Securities may be surrendered for registration of transfer or exchange or for
presentation for payment or for conversion, redemption or repurchase and where
notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency not designated or appointed by the Trustee. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office.

     The Company may also from time to time designate co-registrars and one or
more offices or agencies where the Securities may be presented or surrendered
for any or all such purposes and may from time to time rescind such
designations. The Company will give prompt written notice of any such
designation or rescission and of any change in the location of any such other
office or agency.

     The Company hereby initially designates the Trustee as paying agent,
Security Registrar, Custodian and conversion agent and the Corporate Trust
Office shall be considered as an office or agency of the Company for each of the
aforesaid purposes.

     Section 3.03 Appointments to Fill Vacancies in Trustee's Office. The
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee,
will appoint, in the manner provided in Section 6.10, a Trustee, so that there
shall at all times be a Trustee hereunder.

     Section 3.04 Provisions as to Paying Agent. If the Company shall appoint a
paying agent other than the Trustee, or if the Trustee shall appoint such a
paying agent, the Company will cause such paying agent to execute and deliver to
the Trustee an instrument in which such agent shall agree with the Trustee,
subject to the provisions of this Section 3.04:

          (1) that it will hold all sums held by it as such agent for the
     payment of the principal of and premium, if any, or Interest on the
     Securities (whether such sums have been paid to it by the Company or by any
     other obligor on the Securities) in trust for the benefit of the holders of
     the Securities;


                                      -20-

<PAGE>

          (2) that it will give the Trustee notice of any failure by the Company
     (or by any other obligor on the Securities) to make any payment of the
     principal of and premium, if any, or Interest on the Securities when the
     same shall be due and payable; and

          (3) that at any time during the continuance of an Event of Default,
     upon request of the Trustee, it will forthwith pay to the Trustee all sums
     so held in trust.

     The Company shall, at least one Business Day prior to each due date of the
principal of, premium, if any, or Interest on the Securities, deposit with the
paying agent a sum (in funds which are immediately available on the due date for
such payment) sufficient to pay such principal, premium, if any, or Interest,
and (unless such paying agent is the Trustee) the Company will promptly notify
the Trustee of any failure to take such action; provided that such deposit shall
be received by the paying agent no later than 10:00 a.m. New York City time, one
Business Day prior to such payment due date.

     (a) If the Company shall act as its own paying agent, it will, on or before
each due date of the principal of, premium, if any, or Interest on the
Securities, set aside, segregate and hold in trust for the benefit of the
holders of the Securities a sum sufficient to pay such principal, premium, if
any, or Interest so becoming due and will promptly notify the Trustee of any
failure to take such action and of any failure by the Company (or any other
obligor under the Securities) to make any payment of the principal of, premium,
if any, or Interest on the Securities when the same shall become due and
payable.

     (b) Anything in this Section 3.04 to the contrary notwithstanding, the
Company may, at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture, or for any other reason, pay or cause to be paid to
the Trustee all sums held in trust by the Company or any paying agent hereunder
as required by this Section 3.04, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any paying agent
to the Trustee, the Company or such paying agent shall be released from all
further liability with respect to such sums.

     (c) Anything in this Section 3.04 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 3.04 is subject to
Sections 11.03 and 11.04.

     The Trustee shall not be responsible for the actions of any other paying
agents (including the Company if acting as its own paying agent) and shall have
no control of any funds held by such other paying agents.

     Section 3.05 Existence. Subject to Article 10, the Company will do or cause
to be done all things necessary to preserve and keep in full force and effect
its existence and rights (charter and statutory); provided that the Company
shall not be required to preserve any such right if the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and that the loss thereof is not disadvantageous in any
material respect to the Securityholders.


                                      -21-

<PAGE>

     Section 3.06 Maintenance of Properties. The Company will cause all
properties used or useful in the conduct of its business or the business of any
Significant Subsidiary to be maintained and kept in good condition, repair and
working order and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements
thereof, all as is consistent with the Company's past practice and is in the
judgment of the Company may be necessary so that the business carried on in
connection therewith may be properly and advantageously conducted at all times;
provided that nothing in this Section 3.06 shall prevent the Company from
discontinuing the operation or maintenance of any of such properties if such
discontinuance is, in the judgment of the Company, desirable in the conduct of
its business or the business of any Subsidiary and not disadvantageous in any
material respect to the Securityholders.

     Section 3.07 Payment of Taxes and Other Claims. The Company will pay or
discharge, or cause to be paid or discharged, before the same may become
delinquent, (i) all taxes, assessments and governmental charges levied or
imposed upon the Company or any Significant Subsidiary or upon the income,
profits or property of the Company or any Significant Subsidiary, (ii) all
claims for labor, materials and supplies which, if unpaid, might by law become a
lien or charge upon the property of the Company or any Significant Subsidiary
and (iii) all stamp taxes and other duties, if any, which may be imposed by the
United States or any political subdivision thereof or therein in connection with
the issuance, transfer, exchange, conversion, redemption or repurchase of any
Securities or with respect to this Indenture other than pursuant to Section
2.06; provided that, in the case of clauses (i) and (ii), the Company shall not
be required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim (A) if the failure to do so will not, in the
aggregate, have a material adverse impact on the Company and its Subsidiaries,
taken as a whole, or (B) if the amount, applicability or validity is being
contested in good faith by appropriate proceedings.

     Section 3.08 Rule 144A Information Requirement. Within the period prior to
the date that is two years after the last original issue date of the Securities,
the Company shall, during any period in which it is not subject to Section 13 or
15(d) under the Exchange Act, make available to any holder or beneficial holder
of Securities or any Common Shares issued upon conversion thereof which continue
to be Restricted Securities in connection with any sale thereof and any
prospective purchaser of Securities or such Common Shares designated by such
holder or beneficial holder, the information required pursuant to Rule
144A(d)(4) under the Securities Act upon the request of any holder or beneficial
holder of the Securities or such Common Shares and it will take such further
action as any holder or beneficial holder of such Securities or such Common
Shares may reasonably request, all to the extent required from time to time to
enable such holder or beneficial holder to sell its Securities or Common Shares
without registration under the Securities Act within the limitation of the
exemption provided by Rule 144A, as such Rule may be amended from time to time.
Upon the request of any holder or any beneficial holder of the Securities or
such Common Shares, the Company will deliver to such holder a written statement
as to whether it has complied with such requirements.

     Section 3.09 Stay, Extension and Usury Laws. The Company (to the extent
that it may lawfully do so) shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay, extension
or usury law or other law which would


                                      -22-

<PAGE>

prohibit or forgive the Company from paying all or any portion of the principal
of, premium, if any, or Interest on the Securities as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture and the Company (to the extent it
may lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been
enacted.

     Section 3.10 Compliance Certificate. The Company shall deliver to the
Trustee, within one hundred twenty (120) days after the end of each fiscal year
of the Company, a certificate signed by either the principal executive officer,
principal financial officer or principal accounting officer of the Company,
stating whether or not to the best knowledge of the signer thereof the Company
is in default in the performance and observance of any of the terms, provisions
and conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company shall be in
default, specifying all such defaults and the nature and the status thereof of
which the signer may have knowledge.

     The Company will deliver to the Trustee, forthwith upon becoming aware of
(i) any default in the performance or observance of any covenant, agreement or
condition contained in this Indenture, or (ii) any Event of Default, an
Officers' Certificate specifying with particularity such default or Event of
Default and further stating what action the Company has taken, is taking or
proposes to take with respect thereto.

     Any notice required to be given under this Section 3.10 shall be delivered
to a Responsible Officer of the Trustee at its Corporate Trust Office.

     Section 3.11 Additional Interest Notice. If the Company is required to pay
Additional Interest to holders of Securities pursuant to the Registration Rights
Agreement or Additional Amounts pursuant to Section 15.09 hereof, the Company
shall deliver to the Trustee an Officers' Certificate to that effect stating (i)
the amount of such Additional Interest or Additional Amounts that is payable,
(ii) the reason why such Additional Interest or Additional Amounts are payable
and (iii) the date on which such Additional Interest or Additional Amounts are
payable. Unless and until a Responsible Officer of the Trustee receives such an
Officers' Certificate, the Trustee may assume without inquiry that no Additional
Interest or Additional Amounts are payable. If the Company has paid Additional
Interest or Additional Amounts to the persons entitled to such amounts, the
Company shall deliver to the Trustee an Officers' Certificate setting forth the
particulars of such payment.

     Section 3.12 Reports

     (a) The Company shall file all reports and other information and documents
which it is required to file with the Commission pursuant to Section 13 or 15(d)
of the Exchange Act, and within 15 days after it files them with the Commission,
the Company shall file copies of all such reports, information and other
documents with the Trustee; provided that any such reports, information and
documents filed with the Commission pursuant to its Electronic Data Gathering,
Analysis and Retrieval (or EDGAR) system shall be deemed to be filed with the
Trustee. The Company also shall comply with the provisions of the Trust
Indenture Act Section 314(a).


                                      -23-

<PAGE>

     (b) Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee and
Agents are entitled to rely exclusively on Officers' Certificates).

                                    ARTICLE 4
                       SECURITYHOLDERS' LISTS AND REPORTS
                         BY THE COMPANY AND THE TRUSTEE

     Section 4.01 Securityholders' Lists. The Company will furnish or cause to
be furnished to the Trustee, semiannually, not more than fifteen (15) days after
each June 1 or December 1 in each year beginning with June 1, 2008, and at such
other times as the Trustee may request in writing, within thirty (30) days after
receipt by the Company of any such request (or such lesser time as the Trustee
may reasonably request in order to enable it to timely provide any notice to be
provided by it hereunder), a list in such form as the Trustee may reasonably
require of the names and addresses of the holders of Securities as of a date not
more than fifteen (15) days (or such other date as the Trustee may reasonably
request in order to so provide any such notices) prior to the time such
information is furnished, except that no such list need be furnished by the
Company to the Trustee so long as the Trustee is acting as the sole Security
Registrar.

     Section 4.02 Preservation And Disclosure Of Lists. The Trustee shall
preserve, in as current a form as is reasonably practicable, all information as
to the names and addresses of the holders of Securities contained in the most
recent list furnished to it as provided in Section 4.01 or maintained by the
Trustee in its capacity as Security Registrar or co-registrar in respect of the
Securities, if so acting. The Trustee may destroy any list furnished to it as
provided in Section 4.01 upon receipt of a new list so furnished.

     (a) The rights of Securityholders to communicate with other holders of
Securities with respect to their rights under this Indenture or under the
Securities, and the corresponding rights and duties of the Trustee, shall be as
provided by the Trust Indenture Act.

     (b) Every Securityholder, by receiving and holding the same, agrees with
the Company and the Trustee that neither the Company nor the Trustee nor any
agent of either of them shall be held accountable by reason of any disclosure of
information as to names and addresses of holders of Securities made pursuant to
the Trust Indenture Act.

     Section 4.03 Reports By Trustee. Within sixty (60) days after May 15 of
each year commencing with the year 2008 and for so long as any Notes remain
outstanding, the Trustee shall transmit to holders of Securities such reports
dated as of May 15 of the year in which such reports are made concerning the
Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto. In
the event that no events have occurred under the applicable sections of the
Trust Indenture Act the Trustee shall be under no duty or obligation to provide
such reports.

     A copy of such report shall, at the time of such transmission to holders of
Securities, be filed by the Trustee with each stock exchange and automated
quotation system upon which the


                                      -24-

<PAGE>

Securities are listed and with the Commission. The Company will promptly notify
the Trustee in writing when the Securities are listed on any stock exchange or
automated quotation system or delisted therefrom.

     Section 4.04 Reports by Company. The Company shall file with the Trustee
(and the Commission if at any time after the Indenture becomes qualified under
the Trust Indenture Act), and transmit to holders of Securities, such
information, documents and other reports and such summaries thereof, as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto, whether or not the Securities are governed by the
Trust Indenture Act; provided that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act shall be filed with the Trustee within fifteen (15) days after the
same is so required to be filed with the Commission. Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee's receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company's compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officers'
Certificate).

                                    ARTICLE 5
                   REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
                             ON AN EVENT OF DEFAULT

     Section 5.01 Events Of Default. If one or more of the following Events of
Default (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body) shall have occurred and be continuing:

     (a) default in the payment of any installment of Interest, including any
Additional Interest, upon any of the Securities as and when the same shall
become due and payable, and continuance of such default for a period of thirty
(30) days; or

     (b) default in the payment of the principal of or premium, if any, on any
of the Securities, including any Additional Amounts, as and when the same shall
become due and payable either at maturity or in connection with any redemption
or repurchase, by acceleration or otherwise, upon declaration or otherwise; or

     (c) default in the Company's obligation to provide an offer to purchase the
Securities in the form of a Fundamental Change Notice upon a Fundamental Change
as provided in Section 14.05; or

     (d) failure on the part of the Company duly to observe or perform any other
of the covenants or agreements on the part of the Company in the Securities or
in this Indenture (other than a covenant or agreement a default in whose
performance or whose breach is elsewhere in this Section 5.01 specifically dealt
with) continued for a period of sixty (60) days after the date on which written
notice of such failure, requiring the Company to remedy the same, shall have
been given to the Company by the Trustee, or the Company and a Responsible
Officer of the


                                      -25-

<PAGE>

Trustee by the holders of at least twenty-five percent (25%) in aggregate
principal amount of the Securities at the time outstanding determined in
accordance with Section 7.04; or

     (e) failure by the Company or any of its Significant Subsidiaries to make
any payment of the principal or interest on any mortgage, agreement or other
instrument under which there may be outstanding, or by which there may be
secured or evidenced, any debt for money borrowed in excess of US$5 million (or
its equivalent in any other currency or currencies) in the aggregate of the
Company and/or any such Significant Subsidiary, whether such debt now exists or
shall hereafter be created, resulting in such debt becoming or being declared
due and payable, and such acceleration shall not have been rescinded or annulled
within 30 days after written notice of such acceleration has been received by
the Company or such Significant Subsidiary; or

     (f) failure by the Company to comply with its obligations to deliver Common
Shares, cash or a combination of cash and Common Shares upon conversion of the
Securities within the time period specified in Section 15.02; or

     (g) the Company or any of its Significant Subsidiaries shall commence a
voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to the Company or such Significant Subsidiary or its or
their debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official of the Company or such
Significant Subsidiary or any substantial part of the property of the Company or
such Significant Subsidiary, or shall consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against the Company or such Significant
Subsidiary, or shall make a general assignment for the benefit of creditors, or
shall fail generally to pay its or their debts as they become due; or

     (h) an involuntary case or other proceeding shall be commenced against the
Company or any of its Significant Subsidiaries seeking liquidation,
reorganization or other relief with respect to the Company or such Significant
Subsidiary or its or their debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of the Company or such
Significant Subsidiary or any substantial part of the property of the Company or
such Significant Subsidiary, and such involuntary case or other proceeding shall
remain undismissed and unstayed for a period of sixty (60) consecutive days;

then, and in each and every such case (other than an Event of Default specified
in Section 5.01(g) or 5.01(h) with respect to the Company), unless the principal
of all of the Securities shall have already become due and payable, either the
Trustee or the holders of not less than twenty-five percent (25%) in aggregate
principal amount of the Securities then outstanding hereunder determined in
accordance with Section 7.04, by notice in writing to the Company (and to the
Trustee if given by Securityholders), may declare the principal of and premium,
if any, on all the Securities and the Interest accrued thereon to be due and
payable immediately, and upon any such declaration the same shall become and
shall be immediately due and payable, anything in this Indenture or in the
Securities contained to the contrary notwithstanding. If an Event of Default
specified in Section 5.01(g) or 5.01(h) occurs with respect to the Company, the
principal of all the Securities and the Interest accrued thereon shall


                                      -26-

<PAGE>

be immediately and automatically due and payable without necessity of further
action. This provision, however, is subject to the conditions that if, at any
time after the principal of the Securities shall have been so declared due and
payable, and before any judgment or decree for the payment of the monies due
shall have been obtained or entered as hereinafter provided, the Company shall
pay or shall deposit with the Trustee a sum sufficient to pay all matured
installments of Interest upon all Securities and the principal of and premium,
if any, on any and all Securities which shall have become due otherwise than by
acceleration (with interest on overdue installments of Interest (to the extent
that payment of such interest is enforceable under applicable law) and on such
principal and premium, if any, at the rate borne by the Securities, to the date
of such payment or deposit) and amounts due to the Trustee pursuant to Section
6.06, and if any and all defaults under this Indenture, other than the
nonpayment of principal of and premium, if any, and accrued Interest on
Securities which shall have become due by acceleration, shall have been cured or
waived pursuant to Section 5.07, then and in every such case the holders of a
majority in aggregate principal amount of the Securities then outstanding, by
written notice to the Company and to the Trustee, may waive all defaults or
Events of Default and rescind and annul such declaration and its consequences;
but no such waiver or rescission and annulment shall extend to or shall affect
any subsequent default or Event of Default, or shall impair any right consequent
thereon. The Company shall notify in writing a Responsible Officer of the
Trustee, promptly upon becoming aware thereof, of any Event of Default.

     In case the Trustee shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned because
of such waiver or rescission and annulment or for any other reason or shall have
been determined adversely to the Trustee, then and in every such case the
Company, the holders of Securities, and the Trustee shall be restored
respectively to their several positions and rights hereunder, and all rights,
remedies and powers of the Company, the holders of Securities, and the Trustee
shall continue as though no such proceeding had been taken.

     Section 5.02 Payments of Securities on Default; Suit Therefor. The Company
covenants that in case default shall be made in the payment of (a) any
installment of Interest upon any of the Securities as and when the same shall
become due and payable, and such default shall have continued for a period of
thirty (30) days, or (b) the payment of the principal of or premium, if any, on
any of the Securities as and when the same shall have become due and payable,
whether at maturity of the Securities or in connection with any redemption or
repurchase, by or under this Indenture, by declaration (subject to Section 5.01)
or otherwise, then, upon demand of the Trustee, the Company will pay to the
Trustee, for the benefit of the holders of the Securities, the whole amount that
then shall have become due and payable on all such Securities for principal and
premium, if any, or Interest, as the case may be, with interest upon the overdue
principal and premium, if any, and (to the extent that payment of such interest
is enforceable under applicable law) upon the overdue installments of Interest
at the rate set forth in the Securities for overdue payments of principal and
Interest and, in addition thereto, such further amount as shall be sufficient to
cover the costs and expenses of collection, including reasonable compensation to
the Trustee, its agents, attorneys and counsel, and all other amounts due the
Trustee under Section 6.06. Until such demand by the Trustee, the Company may
pay the principal of and premium, if any, and Interest on the Securities to the
registered holders, whether or not the Securities are overdue.


                                      -27-

<PAGE>

     If the Company shall fail forthwith to pay such amounts upon such demand,
the Trustee, in its own name and as trustee of an express trust, shall be
entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on the
Securities and collect in the manner provided by law out of the property of the
Company or any other obligor on the Securities wherever situated the monies
adjudged or decreed to be payable.

     If there shall be pending proceedings for the bankruptcy or for the
reorganization of the Company or any other obligor on the Securities under Title
11 of the United States Code, or any other applicable law, or in case a
receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
sequestrator or similar official shall have been appointed for or taken
possession of the Company or such other obligor, the property of the Company or
such other obligor, or in the case of any other judicial proceedings relative to
the Company or such other obligor upon the Securities, or to the creditors or
property of the Company or such other obligor, the Trustee, irrespective of
whether the principal of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand pursuant to the provisions of this Section 5.02,
shall be entitled and empowered, by intervention in such proceedings or
otherwise, to file and prove a claim or claims for the whole amount of
principal, premium, if any, and Interest owing and unpaid in respect of the
Securities, and, in case of any judicial proceedings, to file such proofs of
claim and other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee and of the Securityholders allowed in such
judicial proceedings relative to the Company or any other obligor on the
Securities, its or their creditors, or its or their property, and to collect and
receive any monies or other property payable or deliverable on any such claims,
and to distribute the same after the deduction of any amounts due the Trustee
under Section 6.06, and to take any other action with respect to such claims,
including participating as a member of any official committee of creditors, as
it reasonably deems necessary or advisable, and, unless prohibited by law or
applicable regulations, any receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian or similar official is hereby authorized
by each of the Securityholders to make such payments to the Trustee, and, if the
Trustee shall consent to the making of such payments directly to the
Securityholders, to first pay to the Trustee any amount due it for reasonable
compensation, expenses, advances and disbursements, including counsel fees and
expenses incurred by it up to the date of such distribution. To the extent that
such payment of reasonable compensation, expenses, advances and disbursements
out of the estate in any such proceedings shall be denied for any reason,
payment of the same shall be secured by a lien on, and shall be paid out of, any
and all distributions, dividends, monies, securities and other property which
the holders of the Securities may be entitled to receive in such proceedings,
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.

     All rights of action and of asserting claims under this Indenture, or under
any of the Securities, may be enforced by the Trustee without the possession of
any of the Securities, or the production thereof at any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable


                                      -28-

<PAGE>

compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, be for the ratable benefit of the holders of the Securities.

     In any proceedings brought by the Trustee (and in any proceedings involving
the interpretation of any provision of this Indenture to which the Trustee shall
be a party) the Trustee shall be held to represent all the holders of the
Securities, and it shall not be necessary to make any holders of the Securities
parties to any such proceedings.

     Section 5.03 Application of Monies Collected By Trustee. Any monies
collected by the Trustee pursuant to this Article 5 shall be applied in the
order following, at the date or dates fixed by the Trustee for the distribution
of such monies, upon presentation of the several Securities, and stamping
thereon the payment, if only partially paid, and upon surrender thereof, if
fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 6.06;

     SECOND: In case the principal of the outstanding Securities shall not have
become due and be unpaid, to the payment of Interest on the Securities in
default in the order of the maturity of the installments of such Interest, with
interest (to the extent that such interest has been collected by the Trustee)
upon the overdue installments of Interest at the rate borne by the Securities,
such payments to be made ratably to the Persons entitled thereto;

     THIRD: In case the principal of the outstanding Securities shall have
become due, by declaration or otherwise, and be unpaid to the payment of the
whole amount then owing and unpaid upon the Securities for principal and
premium, if any, and Interest, with interest on the overdue principal and
premium, if any, and (to the extent that such interest has been collected by the
Trustee) upon overdue installments of interest at the rate borne by the
Securities, and in case such monies shall be insufficient to pay in full the
whole amounts so due and unpaid upon the Securities, then to the payment of such
principal and premium, if any, and interest without preference or priority of
principal and premium, if any, over interest, or of interest over principal and
premium, if any, or of any installment of interest over any other installment of
Interest, or of any Security over any other Security, ratably to the aggregate
of such principal and premium, if any, and accrued and unpaid Interest; and

     FOURTH: To the payment of the remainder, if any, to the Company or any
other Person lawfully entitled thereto.

     Section 5.04 Proceedings by Securityholders. No holder of any Security
shall have any right by virtue of or by reference to any provision of this
Indenture to institute any suit, action or proceeding in equity or at law upon
or under or with respect to this Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any
other remedy hereunder, unless such holder previously shall have given to the
Trustee written notice of an Event of Default and of the continuance thereof, as
hereinbefore provided, and unless also the holders of not less than twenty-five
percent (25%) in aggregate principal amount of the Securities then outstanding
shall have made written request upon the Trustee to institute such action, suit
or proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable security or indemnity as it may require against the
costs, expenses and


                                      -29-

<PAGE>

liabilities to be incurred therein or thereby, and the Trustee for sixty (60)
days after its receipt of such notice, request and offer of indemnity, shall
have neglected or refused to institute any such action, suit or proceeding and
no direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 5.07; it being understood and intended, and being
expressly covenanted by the taker and holder of every Security with every other
taker and holder and the Trustee, that no one or more holders of Securities
shall have any right in any manner whatever by virtue of or by reference to any
provision of this Indenture to affect, disturb or prejudice the rights of any
other holder of Securities, or to obtain or seek to obtain priority over or
preference to any other such holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all holders of Securities (except as otherwise provided
herein). For the protection and enforcement of this Section 5.04, each and every
Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

     Notwithstanding any other provision of this Indenture and any provision of
any Security, the right of any holder of any Security to receive payment of the
principal of and premium, if any (including the redemption price upon redemption
or any repurchase price pursuant to Article 14), and accrued Interest on such
Security, on or after the respective due dates expressed in such Security or in
the event of redemption, or to institute suit for the enforcement of any such
payment on or after such respective dates against the Company shall not be
impaired or affected without the consent of such holder.

     Anything in this Indenture or the Securities to the contrary
notwithstanding, the holder of any Security, without the consent of either the
Trustee or the holder of any other Security, in its own behalf and for its own
benefit, may enforce, and may institute and maintain any proceeding suitable to
enforce, its rights of conversion as provided herein.

     Section 5.05 Proceedings By Trustee. If an Event of Default has occurred
and is continuing, the Trustee may, in its discretion, proceed to protect and
enforce the rights vested in it by this Indenture by such appropriate judicial
proceedings as are necessary to protect and enforce any of such rights, either
by suit in equity or by action at law or by proceeding in bankruptcy or
otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted in
this Indenture, or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.

     Section 5.06 Remedies Cumulative And Continuing. Except as provided in
Section 2.06, all powers and remedies given by this Article 5 to the Trustee or
to the Securityholders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any thereof or of any other powers and remedies
available to the Trustee or the holders of the Securities, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture, and no delay or omission
of the Trustee or of any holder of any of the Securities to exercise any right
or power accruing upon any default or Event of Default occurring and continuing
as aforesaid shall impair any such right or power, or shall be construed to be a
waiver of any such default or any acquiescence therein, and, subject to the
provisions of Section 5.04, every power and remedy given by this Article 5 or by
law to the Trustee or to the Securityholders may be exercised from time to time,
and as often as shall be deemed expedient, by the Trustee or by the
Securityholders.


                                      -30-

<PAGE>

     Section 5.07 Direction of Proceedings and Waiver of Defaults By Majority of
Securityholders. The holders of a majority in aggregate principal amount of the
Securities at the time outstanding determined in accordance with Section 7.04
shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee; provided that (a) such direction shall not be in
conflict with any rule of law or with this Indenture, (b) the Trustee may take
any other action which is not inconsistent with such direction, (c) the Trustee
may decline to take any action that (i) would benefit some Securityholder to the
detriment of other Securityholders; or (ii) for which the Trustee has not
received indemnity satisfactory to it, and (d) the Trustee may decline to take
any action that would involve the Trustee in personal liability. The holders of
a majority in aggregate principal amount of the Securities at the time
outstanding determined in accordance with Section 7.04 may, on behalf of the
holders of all of the Securities, waive any past default or Event of Default
hereunder and its consequences except (i) a default in the payment of Interest
or premium, if any, on, or the principal of, the Securities, (ii) a failure by
the Company to convert any Securities into Common Shares, cash or a combination
of cash and Common Shares, (iii) a default in the payment of the redemption
price pursuant to Article 14, (iv) a default in the payment of any repurchase
price pursuant to Article 14 or (v) a default in respect of a covenant or
provisions hereof which under Article 9 cannot be modified or amended without
the consent of the holders of each or all Securities then outstanding or
affected thereby. Upon any such waiver, the Company, the Trustee and the holders
of the Securities shall be restored to their former positions and rights
hereunder; but no such waiver shall extend to any subsequent or other default or
Event of Default or impair any right consequent thereon. Whenever any default or
Event of Default hereunder shall have been waived as permitted by this Section
5.07, said default or Event of Default shall for all purposes of the Securities
and this Indenture be deemed to have been cured and to be not continuing; but no
such waiver shall extend to any subsequent or other default or Event of Default
or impair any right consequent thereon.

     Section 5.08 Notice of Defaults. The Trustee shall, within ninety (90)
days after a Responsible Officer of the Trustee receives written notice of the
occurrence of a default, mail to all Securityholders, as the names and addresses
of such holders appear upon the Security Register, notice of all defaults known
to a Responsible Officer, unless such defaults shall have been cured or waived
before the giving of such notice; provided that except in the case of default in
the payment of the principal of, or premium, if any, or Interest on any of the
Securities, the Trustee shall be protected in withholding such notice if and so
long as a trust committee of Responsible Officers of the Trustee in good faith
determines that the withholding of such notice is in the interests of the
Securityholders.

     Section 5.09 Undertaking To Pay Costs. All parties to this Indenture
agree, and each holder of any Security by his acceptance thereof shall be deemed
to have agreed, that any court may, in its discretion, require, in any suit for
the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken or omitted by it as Trustee, the filing
by any party litigant in such suit of an undertaking to pay the costs of such
suit and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees and expenses, against any party litigant in
such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; provided that the provisions of this
Section



                                      -31-

<PAGE>

5.09 (to the extent permitted by law) shall not apply to any suit instituted by
the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding in the aggregate more than ten percent in principal
amount of the Securities at the time outstanding determined in accordance with
Section 7.04, or to any suit instituted by any Securityholder for the
enforcement of the payment of the principal of or premium, if any, or Interest
on any Security on or after the due date expressed in such Security or to any
suit for the enforcement of the right to convert any Security in accordance with
the provisions of Article 15.

                                    ARTICLE 6
                                   THE TRUSTEE

     Section 6.01 Duties and Responsibilities of Trustee. The Trustee, prior to
the occurrence of an Event of Default and after the curing of all Events of
Default which may have occurred, undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture. In case an Event of
Default has occurred (which has not been cured or waived), the Trustee shall
exercise such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his own affairs.

     No provision of this Indenture shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own willful misconduct, except that:

     (a) prior to the occurrence of an Event of Default and after the curing or
waiving of all Events of Default which may have occurred:

          (i) the duties and obligations of the Trustee shall be determined
     solely by the express provisions of this Indenture and the Trust Indenture
     Act, and the Trustee shall not be liable except for the performance of such
     duties and obligations as are specifically set forth in this Indenture and
     no implied covenants or obligations shall be read into this Indenture and
     the Trust Indenture Act against the Trustee; and

          (ii) in the absence of bad faith and willful misconduct on the part of
     the Trustee, the Trustee may conclusively rely as to the truth of the
     statements and the correctness of the opinions expressed therein, upon any
     certificates or opinions furnished to the Trustee and conforming to the
     requirements of this Indenture; but, in the case of any such certificates
     or opinions which by any provisions hereof are specifically required to be
     furnished to the Trustee, the Trustee shall be under a duty to examine the
     same to determine whether or not they conform to the requirements of this
     Indenture;

     (b) the Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer or Officers of the Trustee, unless the Trustee
was negligent in ascertaining the pertinent facts;

     (c) the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the written direction
of the holders of not less than a


                                      -32-

<PAGE>

majority in principal amount of the Securities at the time outstanding
determined as provided in Section 7.04 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, under this Indenture;

     (d) whether or not therein provided, every provision of this Indenture
relating to the conduct or affecting the liability of, or affording protection
to, the Trustee shall be subject to the provisions of this Section;

     (e) the Trustee shall not be liable in respect of any payment (as to the
correctness of amount, entitlement to receive or any other matters relating to
payment) or notice effected by the Company or any paying agent or any records
maintained by any co-registrar with respect to the Securities;

     (f) if any party fails to deliver a notice relating to an event the fact of
which, pursuant to this Indenture, requires notice to be sent to the Trustee,
the Trustee may conclusively rely on its failure to receive such notice as
reason to act as if no such event occurred; and

     (g) the Trustee shall not be deemed to have knowledge of any Event of
Default hereunder unless it shall have been notified in writing, which shall
include a reference to this Indenture, of such Event of Default by the Company
or the holders of at least 10% in aggregate principal amount of the Securities.

     (h) the Trustee shall not be liable if prevented or delayed in performing
any of its duties by reason of any present or future law applicable to it, by
any governmental or regulatory authority or by any circumstances beyond its
control.

     (i) under no circumstances will the Trustee be liable to the Company or any
other party to this Indenture for any consequential loss (being loss of
business, goodwill, opportunity or profit) or any special or punitive damages of
any kind whatsoever; in each case however caused or arising and whether or not
foreseeable, even if advised of the possibility of such loss or damage.

     None of the provisions contained in this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of
its rights or powers, if there is reasonable ground for believing that the
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

     Section 6.02 Reliance on Documents, Opinions, Etc. Except as otherwise
provided in Section 6.01:

     (a) the Trustee may conclusively rely and shall be protected in acting upon
any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, bond, Security, note, coupon or other paper or document
(whether in its original or facsimile form) believed by it in good faith to be
genuine and to have been signed or presented by the proper party or parties;


                                      -33-

<PAGE>

     (b) any request, direction, order or demand of the Company mentioned herein
shall be sufficiently evidenced by an Officers' Certificate (unless other
evidence in respect thereof be herein specifically prescribed); and any
resolution of the Board of Directors may be evidenced to the Trustee by a copy
thereof certified by the Secretary or an Assistant Secretary of the Company;

     (c) the Trustee may consult with counsel of its own selection and any
advice or Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or omitted by it hereunder in good
faith and in accordance with such advice or Opinion of Counsel;

     (d) the Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of
any of the Securityholders pursuant to the provisions of this Indenture, unless
such Securityholders shall have offered to the Trustee reasonable security or
indemnity satisfactory to it against the costs, expenses and liabilities which
may be incurred therein or thereby;

     (e) the Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, Security or
other paper or document, but the Trustee may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney;

     (f) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed by it with due care
hereunder;

     (g) the Trustee shall not be liable for any action taken, suffered or
omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Indenture;

     (h) the rights, privileges, protections, immunities and benefits given to
the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other Person employed to act hereunder;

     (i) the Trustee may request that the Company deliver an Officers'
Certificate setting forth the names of individuals and their titles and specimen
signatures of officers authorized at such time to take specified actions
pursuant to this Indenture, which Officers' Certificate may be signed by any
person authorized to sign an Officers' Certificate, including any person
specified as so authorized in any such certificate previously delivered and not
superseded; and

     (j) Any permissive right or authority granted to the Trustee shall not be
construed as a mandatory duty.


                                      -34-

<PAGE>

     Section 6.03 No Responsibility For Recitals, Etc. The recitals contained
herein and in the Securities (except in the Trustee's certificate of
authentication) shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities. The Trustee shall not be accountable for the use or application by
the Company of any Securities or the proceeds of any Securities authenticated
and delivered by the Trustee in conformity with the provisions of this
Indenture.

     Section 6.04 Trustee, Paying Agents, Conversion Agents or Registrar May Own
Securities. The Trustee, any paying agent, any conversion agent or Security
Registrar, in its individual or any other capacity, may become the owner or
pledgee of Securities with the same rights it would have if it were not Trustee,
paying agent, conversion agent or Security Registrar.

     Section 6.05 Monies to Be Held in Trust. Subject to the provisions of
Section 11.04, all monies received by the Trustee shall, until used or applied
as herein provided, be held in trust for the purposes for which they were
received. Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money received by it hereunder except as
may be agreed in writing from time to time by the Company and the Trustee.

     Section 6.06 Compensation and Expenses of Trustee; Indemnity for Trustee.
The Company covenants and agrees to pay to the Trustee from time to time, and
the Trustee shall be entitled to, such compensation for all services rendered by
it hereunder in any capacity (which shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust) as mutually
agreed to from time to time in writing between the Company and the Trustee in
writing, and the Company will pay or reimburse the Trustee upon its request for
all expenses, disbursements and advances properly incurred or made by the
Trustee in accordance with any of the provisions of this Indenture (including
the compensation and the expenses and disbursements of its counsel and of all
Persons not regularly in its employ) except any such expense, disbursement or
advance as may arise from its negligence, willful misconduct, recklessness or
bad faith. The Company also covenants to indemnify the Trustee and any
predecessor Trustee (or any officer, director or employee of the Trustee), in
any capacity under this Indenture and its agents and any authenticating agent or
by anyone appointed by it or to whom any of its functions may be delegated by it
in the carrying out of its functions in the fulfillment of its obligations under
this Indenture, for, and to hold them harmless against, any and all loss,
liability, damage, claim or expense including taxes (other than taxes based on
the income of the Trustee) incurred without negligence, willful misconduct,
recklessness or bad faith on the part of the Trustee or such officers,
directors, employees and agent or authenticating agent, as the case may be, and
arising out of or in connection with the acceptance or administration of this
trust or in any other capacity hereunder, including the costs and expenses of
defending themselves against any claim (whether asserted by the Company, any
holder or any other Person) of liability in connection with the exercise or
performance of any of its or their powers or duties. The obligations of the
Company under this Section 6.06 to compensate or indemnify the Trustee and to
pay or reimburse the Trustee for expenses, disbursements and advances shall be
secured by a lien prior to that of the Securities upon all property and funds
held or collected by the Trustee as such, except funds held in trust for the
benefit of the holders of particular Securities.


                                      -35-

<PAGE>

The obligation of the Company under this Section shall survive the satisfaction
and discharge of this Indenture and the resignation and/or removal of the
Trustee in any capacity hereunder.

     When the Trustee and its agents and any authenticating agent incur expenses
or render services after an Event of Default specified in Section 5.01(g) or (h)
with respect to the Company occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any
bankruptcy, insolvency or similar laws.

     Section 6.07 Officers' Certificate As Evidence. Except as otherwise
provided in Section 6.01, whenever in the administration of the provisions of
this Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or omitting any action hereunder, such
matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of bad faith or willful misconduct on the part
of the Trustee, be deemed to be conclusively proved and established by an
Officers' Certificate delivered to the Trustee.

     Section 6.08 Conflicting Interests of Trustee. If the Trustee has or shall
acquire a conflicting interest within the meaning of the Trust Indenture Act,
the Trustee shall (i) eliminate such interest within 90 days after ascertaining
that it has such conflicting interest, (ii) apply to the Commission for
permission to continue as trustee or (iii) resign, in each case to the extent
and in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture.

     Section 6.09 Eligibility of Trustee. There shall at all times be a Trustee
hereunder which shall be a Person that is eligible pursuant to the Trust
Indenture Act to act as such and has a combined capital and surplus of at least
$50,000,000 (or if such Person is a member of a bank holding company system, its
bank holding company shall have a combined capital and surplus of at least
$50,000,000). If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of any supervising or examining
authority, then for the purposes of this Section the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section 6.09, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

     Section 6.10 Resignation or Removal of Trustee.

     (a) The Trustee may at any time resign by giving written notice of such
resignation to the Company and to the holders of Securities. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee by
written instrument, in duplicate, executed by order of the Board of Directors,
one copy of which instrument shall be delivered to the resigning Trustee and one
copy to the successor trustee. If no successor trustee shall have been so
appointed and have accepted appointment sixty (60) days after the mailing of
such notice of resignation to the Securityholders, the resigning Trustee may,
upon ten (10) Business Days' notice to the Company and the Securityholders,
appoint a successor identified in such notice or may petition, at the expense of
the Company, any court of competent jurisdiction for the appointment of a
successor trustee, or, if any Securityholder who has been a bona fide holder of
a Security or Securities for at least six (6) months may, subject to the
provisions of Section 5.09,


                                      -36-

<PAGE>

on behalf of himself and all others similarly situated, petition any such court
for the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

     (b) In case at any time any of the following shall occur:

          (i) the Trustee shall fail to comply with Section 6.08 after written
     request therefor by the Company or by any Securityholder who has been a
     bona fide holder of a Security or Securities for at least six (6) months;
     or

          (ii) the Trustee shall cease to be eligible in accordance with the
     provisions of Section 6.09 and shall fail to resign after written request
     therefor by the Company or by any such Securityholder; or

          (iii) the Trustee shall become incapable of acting, or shall be
     adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its
     property shall be appointed, or any public officer shall take charge or
     control of the Trustee or of its property or affairs for the purpose of
     rehabilitation, conservation or liquidation;

then, in any such case, the Company may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee, or, subject to the
provisions of Section 5.09, any Securityholder who has been a bona fide holder
of a Security or Securities for at least six (6) months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
trustee; provided that if no successor Trustee shall have been appointed and
have accepted appointment sixty (60) days after either the Company or the
Securityholders has removed the Trustee, or the Trustee resigns, the Trustee so
removed may petition, at the expense of the Company, any court of competent
jurisdiction for an appointment of a successor trustee. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee.

     (c) The holders of a majority in aggregate principal amount of the
Securities at the time outstanding may at any time remove the Trustee and
nominate a successor trustee which shall be deemed appointed as successor
trustee unless, within ten (10) days after notice to the Company of such
nomination, the Company objects thereto, in which case the Trustee so removed or
any Securityholder, or if such Trustee so removed or any Securityholder fails to
act, the Company, upon the terms and conditions and otherwise as provided in
Section 6.10(a), may petition any court of competent jurisdiction for an
appointment of a successor trustee.

     (d) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 6.10 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 6.11.

     (e) Notwithstanding the replacement of the Trustee pursuant to this
Section, the Company's obligations under Section 6.06 shall continue for the
benefit of the retiring Trustee.


                                      -37-

<PAGE>

     Section 6.11 Acceptance by Successor Trustee. Any successor trustee
appointed as provided in Section 6.10 shall execute, acknowledge and deliver to
the Company and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become vested with all the rights,
powers, duties and obligations of its predecessor hereunder, with like effect as
if originally named as trustee herein; but, nevertheless, on the written request
of the Company or of the successor trustee, the trustee ceasing to act shall,
upon payment of any amount then due it pursuant to the provisions of Section
6.06, execute and deliver an instrument transferring to such successor trustee
all the rights and powers of the trustee so ceasing to act. Upon request of any
such successor trustee, the Company shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property and funds held or collected by
such trustee as such, except for funds held in trust for the benefit of holders
of particular Securities, to secure any amounts then due it pursuant to the
provisions of Section 6.06.

     No successor trustee shall accept appointment as provided in this Section
6.11 unless, at the time of such acceptance, such successor trustee shall be
qualified under the provisions of Section 6.08 and be eligible under the
provisions of Section 6.09.

     Upon acceptance of appointment by a successor trustee as provided in this
Section 6.11, the Company (or the former trustee, at the written direction of
the Company) shall mail or cause to be mailed notice of the succession of such
trustee hereunder to the holders of Securities at their addresses as they shall
appear on the Security Register. If the Company fails to mail such notice within
ten (10) days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the
Company.

     Section 6.12 Succession By Merger. Any corporation into which the Trustee
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation succeeding to all or substantially
all of the corporate trust business of the Trustee (including any trust created
by this Indenture), shall be the successor to the Trustee hereunder without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, provided that in the case of any corporation succeeding to all
or substantially all of the corporate trust business of the Trustee, such
corporation shall be qualified under the provisions of Section 6.08 and eligible
under the provisions of Section 6.09.

     In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture, any of the Securities shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the
certificate of authentication of any predecessor trustee or authenticating agent
appointed by such predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee or any authenticating agent
appointed by such successor trustee may authenticate such Securities in the name
of the successor trustee; and in all such cases such certificates shall have the
full force that is provided in the Securities or in this Indenture; provided
that the right to adopt the certificate of authentication of any predecessor
Trustee or


                                      -38-

<PAGE>

authenticate Securities in the name of any predecessor Trustee shall apply only
to its successor or successors by merger, conversion or consolidation.

     Section 6.13 Preferential Collection of Claims. If and when the Trustee
shall be or become a creditor of the Company (or any other obligor upon the
Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of the claims against the Company (or any
such other obligor).

     Section 6.14 Trustee's Application For Instructions From The Company. Any
application by the Trustee for written instructions from the Company (other than
with regard to any action proposed to be taken or omitted to be taken by the
Trustee that affects the rights of the holders of the Securities under this
Indenture) may, at the option of the Trustee, set forth in writing any action
proposed to be taken or omitted by the Trustee under this Indenture and the date
on and/or after which such action shall be taken or such omission shall be
effective. The Trustee shall not be liable for any action taken by, or omission
of, the Trustee in accordance with a proposal included in such application on or
after the date specified in such application (which date shall not be less than
three (3) Business Days after the date any officer of the Company actually
receives such application, unless any such officer shall have consented in
writing to any earlier date) unless prior to taking any such action (or the
effective date in the case of an omission), the Trustee shall have received
written instructions in response to such application specifying the action to be
taken or omitted.

                                    ARTICLE 7
                               THE SECURITYHOLDERS

     Section 7.01 Action By Securityholders. Whenever in this Indenture it is
provided that the holders of a specified percentage in aggregate principal
amount of the Securities may take any action (including the making of any demand
or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action, the holders
of such specified percentage have joined therein may be evidenced (a) by any
instrument or any number of instruments of similar tenor executed by
Securityholders in person or by agent or proxy appointed in writing, or (b) by
the record of the holders of Securities voting in favor thereof at any meeting
of Securityholders duly called and held in accordance with the provisions of
Article 8, or (c) by a combination of such instrument or instruments and any
such record of such a meeting of Securityholders. Whenever the Company or the
Trustee solicits the taking of any action by the holders of the Securities, the
Company or the Trustee may fix in advance of such solicitation, a date as the
record date for determining holders entitled to take such action. The record
date shall be not more than fifteen (15) days prior to the date of commencement
of solicitation of such action.

     Section 7.02 Proof of Execution by Securityholders. Subject to the
provisions of Sections 6.01, 6.02 and 8.05, proof of the execution of any
instrument by a Securityholder or its agent or proxy shall be sufficient if made
in accordance with such reasonable rules and regulations as may be prescribed by
the Trustee or in such manner as shall be satisfactory to the Trustee. The
holding of Securities shall be proved by the registry of such Securities or by a
certificate of the Security Registrar.


                                      -39-

<PAGE>

     The record of any Securityholders' meeting shall be proved in the manner
provided in Section 8.06.

     Section 7.03 Who Are Deemed Absolute Owners. The Company, the Trustee, any
paying agent, any conversion agent and any Security Registrar may deem the
Person in whose name such Security shall be registered upon the Security
Register to be, and may treat it as, the absolute owner of such Security
(whether or not such Security shall be overdue and notwithstanding any notation
of ownership or other writing thereon made by any Person other than the Company
or any Security Registrar) for the purpose of receiving payment of or on account
of the principal of, premium, if any, and Interest on such Security, for
conversion of such Security and for all other purposes; and neither the Company
nor the Trustee nor any paying agent nor any conversion agent nor any Security
Registrar shall be affected by any notice to the contrary. All such payments so
made to any holder for the time being, or upon his order, shall be valid, and,
to the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for monies payable upon any such Security.

     Section 7.04 Company-owned Securities Disregarded. In determining whether
the holders of the requisite aggregate principal amount of Securities have
concurred in any direction, consent, waiver or other action under this
Indenture, Securities which are owned by the Company or any other obligor on the
Securities or any Affiliate of the Company or any other obligor on the
Securities shall be disregarded and deemed not to be outstanding for the purpose
of any such determination; provided that for the purposes of determining whether
the Trustee shall be protected in relying on any such direction, consent, waiver
or other action, only Securities which a Responsible Officer knows are so owned
shall be so disregarded. Securities so owned which have been pledged in good
faith may be regarded as outstanding for the purposes of this Section 7.04 if
the pledgee shall establish to the satisfaction of the Trustee the pledgee's
right to vote such Securities and that the pledgee is not the Company, any other
obligor on the Securities or any Affiliate of the Company or any such other
obligor. In the case of a dispute as to such right, any decision by the Trustee
taken upon the advice of counsel shall be full protection to the Trustee. Upon
request of the Trustee, the Company shall furnish to the Trustee promptly an
Officers' Certificate listing and identifying all Securities, if any, known by
the Company to be owned or held by or for the account of any of the above
described Persons, and, subject to Section 6.01, the Trustee shall be entitled
to accept such Officers' Certificate as conclusive evidence of the facts therein
set forth and of the fact that all Securities not listed therein are outstanding
for the purpose of any such determination.

     Section 7.05 Revocation Of Consents, Future Holders Bound. At any time
prior to (but not after) the evidencing to the Trustee, as provided in Section
7.01, of the taking of any action by the holders of the percentage in aggregate
principal amount of the Securities specified in this Indenture in connection
with such action, any holder of a Security which is shown by the evidence to be
included in the Securities the holders of which have consented to such action
may, by filing written notice with the Trustee at its Corporate Trust Office and
upon proof of holding as provided in Section 7.02, revoke such action so far as
concerns such Security. Except as aforesaid, any such action taken by the holder
of any Security shall be conclusive and binding upon such holder and upon all
future holders and owners of such Security and of any Securities


                                      -40-

<PAGE>

issued in exchange or substitution therefor, irrespective of whether any
notation in regard thereto is made upon such Security or any Security issued in
exchange or substitution therefor.

                                    ARTICLE 8
                           MEETINGS OF SECURITYHOLDERS

     Section 8.01 Purpose Of Meetings. A meeting of Securityholders may be
called at any time and from time to time pursuant to the provisions of this
Article 8 for any of the following purposes:

     (1) to give any notice to the Company or to the Trustee or to give any
directions to the Trustee permitted under this Indenture, or to consent to the
waiving of any default or Event of Default hereunder and its consequences, or to
take any other action authorized to be taken by Securityholders pursuant to any
of the provisions of Article 5;

     (2) to remove the Trustee and nominate a successor trustee pursuant to the
provisions of Article 6;

     (3) to consent to the execution of an indenture or indentures supplemental
hereto pursuant to the provisions of Section 9.02; or

     (4) to take any other action authorized to be taken by or on behalf of the
holders of any specified aggregate principal amount of the Securities under any
other provision of this Indenture or under applicable law.

     Section 8.02 Call Of Meetings By Trustee. The Trustee may at any time call
a meeting of Securityholders at the expense of the Company to take any action
specified in Section 8.01, to be held at such time and at such place as the
Trustee shall determine. Notice of every meeting of the Securityholders, setting
forth the time and the place of such meeting and in general terms the action
proposed to be taken at such meeting and the establishment of any record date
pursuant to Section 7.01, shall be mailed to holders of Securities at their
addresses as they shall appear on the Security Register. Such notice shall also
be mailed to the Company. Such notices shall be mailed not less than twenty (20)
nor more than ninety (90) days prior to the date fixed for the meeting.

     Any meeting of Securityholders shall be valid without notice if the holders
of all Securities then outstanding are present in person or by proxy or if
notice is waived before or after the meeting by the holders of all Securities
outstanding, and if the Company and the Trustee are either present by duly
authorized representatives or have, before or after the meeting, waived notice.

     Section 8.03 Call Of Meetings By Company Or Securityholders. In case at any
time the Company, pursuant to a resolution of its Board of Directors, or the
holders of at least ten percent (10%) in aggregate principal amount of the
Securities then outstanding, shall have requested the Trustee to call a meeting
of Securityholders, by written request setting forth in reasonable detail the
action proposed to be taken at the meeting, and the Trustee shall not have
mailed the notice of such meeting within twenty (20) days after receipt of such
request, then the Company or such


                                      -41-

<PAGE>

Securityholders may determine the time and the place for such meeting and may
call such meeting to take any action authorized in Section 8.01, by mailing
notice thereof as provided in Section 8.02.

     Section 8.04 Qualifications For Voting. To be entitled to vote at any
meeting of Securityholders a person shall (a) be a holder of one or more
Securities on the record date pertaining to such meeting or (b) be a person
appointed by an instrument in writing as proxy by a holder of one or more
Securities on the record date pertaining to such meeting. The only persons who
shall be entitled to be present or to speak at any meeting of Securityholders
shall be the persons entitled to vote at such meeting and their counsel and any
representatives of the Trustee and its counsel and any representatives of the
Company and its counsel.

     Section 8.05 Regulations. Notwithstanding any other provisions of this
Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of Securityholders, in regard to proof of the holding
of Securities and of the appointment of proxies, and in regard to the
appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall think fit.

     The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Securityholders as provided in Section 8.03, in which case the
Company or the Securityholders calling the meeting, as the case may be, shall in
like manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by vote of the holders of a majority
in principal amount of the Securities represented at the meeting and entitled to
vote at the meeting.

     Subject to the provisions of Section 7.04, at any meeting each
Securityholder or proxyholder shall be entitled to one vote for each $1,000
principal amount of Securities held or represented by him; provided that no vote
shall be cast or counted at any meeting in respect of any Security challenged as
not outstanding and ruled by the chairman of the meeting to be not outstanding.
The chairman of the meeting shall have no right to vote other than by virtue of
Securities held by him or instruments in writing as aforesaid duly designating
him as the proxy to vote on behalf of other Securityholders. Any meeting of
Securityholders duly called pursuant to the provisions of Section 8.02 or 8.03
may be adjourned from time to time by the holders of a majority of the aggregate
principal amount of Securities represented at the meeting, whether or not
constituting a quorum, and the meeting may be held as so adjourned without
further notice. For purposes of this Indenture, "quorum" shall mean at a meeting
of Securityholders, one or more Persons present in person holding or
representing in the aggregate not less than 50% in aggregate principal amount of
the Securities then outstanding.

     Section 8.06 Voting. The vote upon any resolution submitted to any meeting
of Securityholders shall be by written ballot on which shall be subscribed the
signatures of the holders of Securities or of their representatives by proxy and
the outstanding principal amount of the Securities held or represented by them.
The permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record in duplicate of
the proceedings of each


                                      -42-

<PAGE>

meeting of Securityholders shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors of
votes on any vote by ballot taken thereat and affidavits by one or more persons
having knowledge of the facts setting forth a copy of the notice of the meeting
and showing that said notice was mailed as provided in Section 8.02. The record
shall show the principal amount of the Securities voting in favor of or against
any resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.

     Any record so signed and verified shall be conclusive evidence of the
matters therein stated.

     Section 8.07 No Delay Of Rights By Meeting. Nothing contained in this
Article 8 shall be deemed or construed to authorize or permit, by reason of any
call of a meeting of Securityholders or any rights expressly or impliedly
conferred hereunder to make such call, any hindrance or delay in the exercise of
any right or rights conferred upon or reserved to the Trustee or to the
Securityholders under any of the provisions of this Indenture or of the
Securities.

                                    ARTICLE 9
                             SUPPLEMENTAL INDENTURES

     Section 9.01 Supplemental Indentures Without Consent of Securityholders.
The Company, when authorized by the resolutions of the Board of Directors, and
the Trustee may, from time to time, and at any time enter into an indenture or
indentures supplemental hereto for one or more of the following purposes:

     (a) make provision with respect to the conversion rights of the holders of
Securities pursuant to the requirements of Section 15.08 and the repurchase
obligations of the Company pursuant to the requirements of Section 14.05;

     (b) to convey, transfer, assign, mortgage or pledge to the Trustee as
security for the Securities, any property or assets or to add any guarantees
with respect to the Securities;

     (c) to evidence the succession of another Person to the Company, or
successive successions, and the assumption by the successor Person of the
covenants, agreements and obligations of the Company pursuant to Article 10;

     (d) to add to the covenants of the Company such further covenants,
restrictions or conditions as the Board of Directors and the Trustee shall
consider to be for the benefit of the holders of Securities, and to make the
occurrence, or the occurrence and continuance, of a default in any such
additional covenants, restrictions or conditions a default or an Event of
Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided that in respect of any
such additional covenant, restriction or condition, such supplemental indenture
may provide for a particular period of grace after default (which period may be
shorter or longer than that allowed in the case of other defaults) or may
provide


                                      -43-

<PAGE>

for an immediate enforcement upon such default or may limit the remedies
available to the Trustee upon such default;

     (e) to increase the Conversion Rate or Interest rate on the Securities;

     (f) to surrender any right or power conferred upon the Company by the
Indenture;

     (g) to provide for the issuance under this Indenture of Securities in
coupon form (including Securities registrable as to principal only) and to
provide for exchangeability of such Securities with the Securities issued
hereunder in fully registered form and to make all appropriate changes for such
purpose;

     (h) to cure any ambiguity or omission or to correct or supplement any
provision contained herein or in any supplemental indenture that may be
defective or inconsistent with any other provision contained herein or in any
supplemental indenture, or to make such other provisions in regard to matters or
questions arising under this Indenture, in each case that shall not materially
adversely affect the interests of the holders of the Securities;

     (i) to evidence and provide for the acceptance of appointment hereunder by
a successor Trustee with respect to the Securities;

     (j) to reopen this Indenture and issue Additional Securities in accordance
with the provisions of Section 2.01 hereof;

     (k) to modify, eliminate or add to the provisions of this Indenture to such
extent as shall be necessary to effect the qualifications of this Indenture
under the Trust Indenture Act, or under any similar federal statute hereafter
enacted; or

     (l) make any change that does not materially adversely affect the rights of
any holder of the Securities, provided that any amendment made solely to conform
the provisions of this Indenture or the Securities to the description of the
notes in the related offering memorandum will not be deemed to materially
adversely affect the rights of any holder.

     Upon the written request of the Company, accompanied by a copy of the
resolutions of the Board of Directors certified by its Secretary or Assistant
Secretary authorizing the execution of any supplemental indenture, the Trustee
is hereby authorized to join with the Company in the execution of any such
supplemental indenture, to make any further appropriate agreements and
stipulations that may be therein contained and to accept the conveyance,
transfer and assignment of any property thereunder, but the Trustee shall not be
obligated to, but may in its discretion, enter into any supplemental indenture
that affects the Trustee's own rights, duties or immunities under this Indenture
or otherwise.

     Any supplemental indenture authorized by the provisions of this Section
9.01 may be executed by the Company and the Trustee without the consent of the
holders of any of the Securities at the time outstanding, notwithstanding any of
the provisions of Section 9.02.


                                      -44-

<PAGE>

     Notwithstanding any other provision of the Indenture or the Securities, the
Registration Rights Agreement and the obligation to pay Additional Interest
thereunder may be amended, modified or waived only in accordance with the
provisions of the Registration Rights Agreement.

     Section 9.02 Supplemental Indenture With Consent Of Securityholders. With
the consent (evidenced as provided in Article 7) of the holders of at least a
majority in aggregate principal amount of the Securities at the time
outstanding, the Company, when authorized by the resolutions of the Board of
Directors, and the Trustee may, from time to time and at any time, enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or any supplemental indenture or of modifying in any manner the
rights of the holders of the Securities; provided that no such supplemental
indenture shall (i) extend the fixed maturity of any Security, change the
Company's obligation to pay Additional Amounts; or reduce the rate or extend the
time of payment of Interest thereon, or reduce the principal amount thereof or
premium, if any, thereon, or reduce any amount payable on redemption or
repurchase thereof, or change the obligation of the Company to make an offer to
purchase any Security upon the happening of a Fundamental Change or upon a
Repurchase Date in a manner adverse to the holders of Securities, or impair the
right of any Securityholder to receive payment of principal of and Interest on
such Holder's Securities on or after the due dates therefor or to institute suit
for the enforcement of any payment thereof, or make the principal thereof or
Interest or premium, if any, thereon payable in any coin or currency other than
that provided in the Securities, or impair the right to convert the Securities
into Common Shares, cash or a combination of cash and Common Shares or reduce
the number of Common Shares or amount of cash or any other property receivable
by a Securityholder upon conversion subject to the terms set forth herein,
including Section 15.07 and Section 15.08, in each case, without the consent of
the holder of each Security so affected, or (ii) modify any of the provisions of
this Section 9.02 or Section 5.07, except to increase any such percentage or to
provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the holder of each Security so affected, or change
any obligation of the Company to maintain an office or agency in the places and
for the purposes set forth in Section 3.02, or reduce the quorum or voting
requirements set forth in Article 8 or reduce the aforesaid percentage of
Securities, the holders of which are required to consent to any such
supplemental indenture, without the consent of the holders of all Securities
then outstanding.

     Notwithstanding the foregoing, with the consent of at least 25% in
aggregate principal amount of the Securities, the Company and the Trustee may
amend this Indenture to permit settlement upon conversion of the Securities in
cash or a combination of cash and Common Shares as described in Section 15.03.
The Trustee shall be held harmless and shall have no liability with respect to
the foregoing.

     Upon the written request of the Company, accompanied by a copy of the
resolutions of the Board of Directors certified by its Secretary or Assistant
Secretary authorizing the execution of any such supplemental indenture, and upon
the filing with the Trustee of evidence of the consent of Securityholders as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own

                                      -45-

<PAGE>

rights, duties or immunities under this Indenture or otherwise, in which case
the Trustee may in its discretion, but shall not be obligated to, enter into
such supplemental indenture.

     It shall not be necessary for the consent of the Securityholders under this
Section 9.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.

     Section 9.03 Effect Of Supplemental Indenture. Any supplemental indenture
executed pursuant to the provisions of this Article 9 shall comply with the
Trust Indenture Act, as then in effect, provided that this Section 9.03 shall
not require such supplemental indenture or the Trustee to be qualified under the
Trust Indenture Act prior to the time such qualification is in fact required
under the terms of the Trust Indenture Act or the Indenture has been qualified
under the Trust Indenture Act, nor shall it constitute any admission or
acknowledgment by any party to such supplemental indenture that any such
qualification is required prior to the time such qualification is in fact
required under the terms of the Trust Indenture Act or the Indenture has been
qualified under the Trust Indenture Act. Upon the execution of any supplemental
indenture pursuant to the provisions of this Article 9, this Indenture shall be
and be deemed to be modified and amended in accordance therewith and the
respective rights, limitation of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the holders of Securities
shall thereafter be determined, exercised and enforced hereunder, subject in all
respects to such modifications and amendments and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

     Section 9.04 Notation On Securities. Securities authenticated and
delivered after the execution of any supplemental indenture pursuant to the
provisions of this Article 9 may bear a notation in form approved by the Trustee
as to any matter provided for in such supplemental indenture. If the Company or
the Trustee shall so determine, new Securities so modified as to conform, in the
opinion of the Trustee and the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may, at the Company's
expense, be prepared and executed by the Company, authenticated by the Trustee
(or an authenticating agent duly appointed by the Trustee pursuant to Section
13.11) and delivered in exchange for the Securities then outstanding, upon
surrender of such Securities then outstanding.

     Section 9.05 Evidence Of Compliance Of Supplemental Indenture To Be
Furnished To Trustee. Prior to entering into any supplemental indenture, the
Trustee shall be provided with an Officers' Certificate and an Opinion of
Counsel as conclusive evidence that any supplemental indenture executed pursuant
hereto complies with the requirements of this Article 9 and is otherwise
authorized or permitted by this Indenture.

                                   ARTICLE 10
                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

     Section 10.01 Company May Consolidate On Certain Terms. Subject to the
provisions of Section 10.02, the Company shall not consolidate with or merge
with or into any other Person or Persons (whether or not affiliated with the
Company), nor shall the Company or its successor or successors be a party or
parties to successive consolidations or mergers, nor shall the


                                      -46-

<PAGE>

Company sell, convey, transfer or lease all or substantially all of the property
and assets of the Company to any other Person (whether or not affiliated with
the Company), unless: (i) the resulting, surviving or transferee Person is a
Person organized and existing under the laws of the United States of America,
any state thereof or the District of Columbia or the laws of Canada or any
province or territory thereof; (ii) upon any such consolidation, merger, sale,
conveyance, transfer or lease, the due and punctual payment of the principal of
and premium, if any, and Interest on all of the Securities, according to their
tenor and the due and punctual performance and observance of all of the
covenants and conditions of this Indenture to be performed by the Company, shall
be expressly assumed, by supplemental indenture satisfactory in form and
substance to the Trustee, executed and delivered to the Trustee by the Person
(if other than the Company) formed by such consolidation, or into which the
Company shall have been merged, or by the Person that shall have acquired or
leased such property, and such supplemental indenture shall provide for the
applicable conversion rights set forth in Section 15.08; and (iii) immediately
after giving effect to the transaction described above, no Event of Default, and
no event which, after notice or lapse of time or both, would become an Event of
Default, shall have happened and be continuing.

     Section 10.02 Successor To Be Substituted. In case of any such
consolidation, merger, sale, conveyance, transfer or lease and upon the
assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the due and
punctual payment of the principal of and premium, if any, and Interest on all of
the Securities and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by the Company, such successor
Person shall succeed to and be substituted for the Company, with the same effect
as if it had been named herein as the party of this first part. Such successor
Person thereupon may cause to be signed, and may issue either in its own name or
in the name of the Company any or all of the Securities, issuable hereunder that
theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of such successor Person instead of the Company and
subject to all the terms, conditions and limitations in this Indenture
prescribed, the Trustee shall authenticate and shall deliver, or cause to be
authenticated and delivered, any Securities that previously shall have been
signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities that such successor Person thereafter shall
cause to be signed and delivered to the Trustee for that purpose. All the
Securities so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Securities theretofore or thereafter issued in
accordance with the terms of this Indenture as though all of such Securities had
been issued at the date of the execution hereof. In the event of any such
consolidation, merger, sale, conveyance, transfer or lease, the Person named as
the "Company" in the first paragraph of this Indenture or any successor that
shall thereafter have become such in the manner prescribed in this Article 10
may be dissolved, wound up and liquidated at any time thereafter and such Person
shall be released from its liabilities as obligor and maker of the Securities
and from its obligations under this Indenture.

     In case of any such consolidation, merger, sale, conveyance, transfer or
lease, such changes in phraseology and form (but not in substance) may be made
in the Securities thereafter to be issued as may be appropriate.


                                      -47-

<PAGE>

     Section 10.03 Officers' Certificate and Opinion Of Counsel To Be Given To
Trustee. The Trustee shall receive an Officers' Certificate and an Opinion of
Counsel as conclusive evidence that any such consolidation, merger, sale,
conveyance, transfer or lease and any such assumption complies with the
provisions of this Article 10.

                                   ARTICLE 11
                     SATISFACTION AND DISCHARGE OF INDENTURE

     Section 11.01 Discharge Of Indenture. When (a) the Company shall deliver to
the Trustee for cancellation all Securities theretofore authenticated (other
than any Securities that have been destroyed, lost or stolen and in lieu of or
in substitution for which other Securities shall have been authenticated and
delivered in each case pursuant to Section 2.06) and not theretofore canceled,
or (b) all the Securities not theretofore canceled or delivered to the Trustee
for cancellation shall have become due and payable, or are by their terms to
become due and payable within one year or are to be called for redemption within
one year under arrangements satisfactory to the Trustee for the giving of notice
of redemption, and the Company shall deposit with the Trustee, in trust, cash
sufficient to pay at maturity or upon redemption of all of the Securities (other
than any Securities that shall have been mutilated, destroyed, lost or stolen
and in lieu of or in substitution for which other Securities shall have been
authenticated and delivered) not theretofore canceled or delivered to the
Trustee for cancellation, including principal and premium, if any, and Interest
due or to become due to such date of maturity or redemption date, as the case
may be, accompanied by a verification report, as to the sufficiency of the
deposited amount, from a nationally recognized firm of independent certified
accountants or other financial professional satisfactory to the Trustee, and if
the Company shall also pay or cause to be paid all other sums payable hereunder
by the Company, then this Indenture shall cease to be of further effect (except
as to (i) remaining rights of registration of transfer, substitution and
exchange and conversion of Securities, (ii) rights hereunder of Securityholders
to receive payments of principal of and premium, if any, and Interest on, the
Securities and the other rights, duties and obligations of Securityholders, as
beneficiaries hereof with respect to the amounts, if any, so deposited with the
Trustee and (iii) the rights, obligations and immunities of the Trustee
hereunder), and the Trustee, on written demand of the Company accompanied by an
Officers' Certificate and an Opinion of Counsel as required by Section 13.05 and
at the cost and expense of the Company, shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture; the Company,
however, hereby agrees to reimburse the Trustee for any costs or expenses
thereafter reasonably and properly incurred by the Trustee and to compensate the
Trustee for any services thereafter reasonably and properly rendered by the
Trustee in connection with this Indenture or the Securities.

     Section 11.02 Deposited Monies To Be Held In Trust By Trustee. Subject to
Section 11.04, all monies deposited with the Trustee pursuant to Section 11.01,
shall be held in trust for the sole benefit of the Securityholders, and such
monies shall be applied by the Trustee to the payment, either directly or
through any paying agent (including the Company if acting as its own paying
agent), to the holders of the particular Securities for the payment or
redemption of which such monies have been deposited with the Trustee, of all
sums due and to become due thereon for principal and Interest and premium, if
any.


                                      -48-

<PAGE>

     Section 11.03 Paying Agent To Repay Monies Held. Upon the satisfaction and
discharge of this Indenture, all monies then held by any paying agent of the
Securities (other than the Trustee) shall, upon written request of the Company,
be repaid to it or paid to the Trustee, and thereupon such paying agent shall be
released from all further liability with respect to such monies.

     Section 11.04 Return Of Unclaimed Monies. Subject to the requirements of
applicable law, any monies deposited with or paid to the Trustee for payment of
the principal of, premium, if any, or Interest on Securities and not applied but
remaining unclaimed by the holders of Securities for two years after the date
upon which the principal of, premium, if any, or Interest on such Securities, as
the case may be, shall have become due and payable, shall be repaid to the
Company by the Trustee on demand and all liability of the Trustee shall
thereupon cease with respect to such monies; and the holder of any of the
Securities shall thereafter look only to the Company for any payment that such
holder may be entitled to collect unless an applicable abandoned property law
designates another Person.

     Section 11.05 Reinstatement. If the Trustee or the paying agent is unable
to apply any money in accordance with Section 11.02 by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to Section 11.01 until such time as the Trustee or
the paying agent is permitted to apply all such money in accordance with Section
11.02; provided that if the Company makes any payment of Interest on or
principal of any Security following the reinstatement of its obligations, the
Company shall be subrogated to the rights of the holders of such Securities to
receive such payment from the money held by the Trustee or paying agent.

                                   ARTICLE 12
                    IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
                             OFFICERS AND DIRECTORS

     Section 12.01 Indenture And Securities Solely Corporate Obligations. No
recourse for the payment of the principal of or premium, if any, or Interest on
any Security, or for any claim based thereon or otherwise in respect thereof,
and no recourse under or upon any obligation, covenant or agreement of the
Company in this Indenture or in any supplemental indenture or in any Security,
or because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, employee, agent, officer, director or
subsidiary, as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issue of the Securities.


                                      -49-

<PAGE>

                                   ARTICLE 13
                               GENERAL PROVISIONS

     Section 13.01 Provisions Binding On Company's Successors. All the
covenants, stipulations, promises and agreements by the Company contained in
this Indenture shall bind its successors and assigns whether so expressed or
not.

     Section 13.02 Official Acts By Successor Corporation. Any act or proceeding
by any provision of this Indenture authorized or required to be done or
performed by any board, committee or officer of the Company shall and may be
done and performed with like force and effect by the like board, committee or
officer of any Person that shall at the time be the lawful sole successor of the
Company.

     Section 13.03 Addresses For Notices, Etc. Any notice or demand which by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the holders of Securities on the Company shall be deemed to
have been sufficiently given or made, for all purposes, if given or served by
being deposited postage prepaid by registered or certified mail in a post office
letter box, or sent by express overnight air courier for next day delivery or
sent by telecopier transmission addressed as follows: to Canadian Solar Inc.,
No. 199 Lushan Road, Suzhou New District, Suzhou, Jiangsu 215011, People's
Republic of China, Fax No.: (86-512) 6690-8087, Attention: Bing Zhu. Any notice,
direction, request or demand hereunder to or upon the Trustee shall be deemed to
have been sufficiently given or made, for all purposes, if given or served by
being deposited, postage prepaid, by registered or certified mail in a post
office letter box or sent by telecopier transmission addressed as follows: The
Bank of New York, 101 Barclay Street, Floor 4 East, New York, New York 10286,
Fax No.: (212) 815-5802 or (212) 815-5803, Attention: Global Trust Services
(Canadian Solar Inc. - 6.0% Convertible Senior Notes due 2017) with a copy to:
The Bank of New York, 12/F Three Pacific Place, 1 Queen's Road East, Hong Kong,
Fax No. (852) 2295-3283 to the attention of Global Corporate Trust (Canadian
Solar Inc. - 6.0% Convertible Senior Notes due 2017).

     The Trustee, by notice to the Company, may designate additional or
different addresses for subsequent notices or communications.

     Any notice or communication mailed to a Securityholder shall be mailed to
him by first class mail, postage prepaid, or sent by express overnight air
courier for next day delivery at his address as it appears on the Security
Register and shall be sufficiently given to him if so mailed within the time
prescribed.

     Failure to mail a notice or communication to a Securityholder or any defect
in it shall not affect its sufficiency with respect to other Securityholders. If
a notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it.

     Section 13.04 Governing Law. This Indenture and each Security shall be
deemed to be a contract made under the laws of the State of New York, and for
all purposes shall be construed in accordance with the laws of the State of New
York.


                                      -50-

<PAGE>

     Section 13.05 Evidence Of Compliance With Conditions Precedent,
Certificates To Trustee. Upon any application or demand by the Company to the
Trustee to take any action under any of the provisions of this Indenture, the
Company shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, and an Opinion of Counsel stating that,
in the opinion of such counsel, all such conditions precedent have been complied
with.

     Each certificate or opinion provided for in this Indenture and delivered to
the Trustee with respect to compliance with a condition or covenant provided for
in this Indenture shall comply with the provisions of the Section 314(e) of the
Trust Indenture Act and shall include: (1) a statement that the person making
such certificate or opinion has read such covenant or condition; (2) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based; (3) a statement that, in the opinion of such person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

     Section 13.06 Legal Holidays. In any case in which the date of maturity of
Interest on or principal of the Securities or the redemption date of any
Security will not be a Business Day, then payment of such Interest on or
principal of the Securities need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as if made on
the date of maturity or the redemption date, and no Interest shall accrue for
the period from and after such date.

     Section 13.07 Trust Indenture Act. This Indenture is hereby made subject
to, and shall be governed by, the provisions of the Trust Indenture Act required
to be part of and to govern indentures qualified under the Trust Indenture Act;
provided that this Section 13.07 shall not require this Indenture or the Trustee
to be qualified under the Trust Indenture Act prior to the time such
qualification is in fact required under the terms of the Trust Indenture Act,
nor shall it constitute any admission or acknowledgment by any party to the
Indenture that any such qualification is required prior to the time such
qualification is in fact required under the terms of the Trust Indenture Act. If
any provision hereof limits, qualifies or conflicts with another provision
hereof which is required to be included in an indenture qualified under the
Trust Indenture Act, such required provision shall control. The following Trust
Indenture Act terms have the following meanings:

     "indenture securities" means the Securities.

     "indenture security holder" means a holder.

     "indenture to be qualified" means this Indenture.

     "indenture trustee" or "institutional trustee" means the Trustee.

     "obligor" on the indenture securities means the Company and any other
obligor on the indenture securities.


                                      -51-

<PAGE>

     Section 13.08 No Security Interest Created. Nothing in this Indenture or
in the Securities, expressed or implied, shall be construed to constitute a
security interest under the Uniform Commercial Code or similar legislation, as
now or hereafter enacted and in effect, in any jurisdiction in which property of
the Company or its subsidiaries is located.

     Section 13.09 Benefits Of Indenture. Nothing in this Indenture or in the
Securities, express or implied, shall give to any Person, other than the parties
hereto, any paying agent, any authenticating agent, any Security Registrar and
their successors hereunder and the holders of Securities any benefit or any
legal or equitable right, remedy or claim under this Indenture.

     Section 13.10 Table Of Contents, Headings, Etc. The table of contents and
the titles and headings of the Articles and Sections of this Indenture have been
inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions
hereof.

     Section 13.11 Authenticating Agent. The Trustee may appoint an
authenticating agent that shall be authorized to act on its behalf, and subject
to its direction, in the authentication and delivery of Securities in connection
with the original issuance thereof and transfers and exchanges of Securities
hereunder, including under Sections 2.04, 2.05, 2.06, 2.07, 14.03 and 14.05, as
fully to all intents and purposes as though the authenticating agent had been
expressly authorized by this Indenture and those Sections to authenticate and
deliver Securities. For all purposes of this Indenture, the authentication and
delivery of Securities by the authenticating agent shall be deemed to be
authentication and delivery of such Securities "by the Trustee" and a
certificate of authentication executed on behalf of the Trustee by an
authenticating agent shall be deemed to satisfy any requirement hereunder or in
the Securities for the Trustee's certificate of authentication. Such
authenticating agent shall at all times be a Person eligible to serve as trustee
hereunder pursuant to Section 6.09.

     Any corporation into which any authenticating agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any authenticating agent
shall be a party, or any corporation succeeding to the corporate trust business
of any authenticating agent, shall be the successor of the authenticating agent
hereunder, if such successor corporation is otherwise eligible under this
Section 13.11, without the execution or filing of any paper or any further act
on the part of the parties hereto or the authenticating agent or such successor
corporation.

     Any authenticating agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of any authenticating agent by giving written notice of
termination to such authenticating agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time any
authenticating agent shall cease to be eligible under this Section, the Trustee
shall either promptly appoint a successor authenticating agent or itself assume
the duties and obligations of the former authenticating agent under this
Indenture and, upon such appointment of a successor authenticating agent, if
made, shall give written notice of such appointment of a successor
authenticating agent to the Company and shall mail notice of such appointment of
a successor authenticating agent to all holders of Securities as the names and
addresses of such holders appear on the Security Register.


                                      -52-

<PAGE>

     The Company agrees to pay to the authenticating agent from time to time
such reasonable compensation for its services as shall be agreed upon in writing
between the Company and the authenticating agent.

     The provisions of Sections 6.02, 6.03, 6.04 and 7.03 and this Section 13.11
shall be applicable to any authenticating agent.

     Section 13.12 Execution In Counterparts. This Indenture may be executed in
any number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one and the same instrument.

     Section 13.13 Severability. In case any provision in this Indenture or in
the Securities shall be invalid, illegal or unenforceable, then (to the extent
permitted by law) the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

     Section 13.14 Currency Indemnity. U.S. Dollars are the sole currency of
account and payment for all sums payable by the Company under or in connection
with the Securities, including damages. Any amount received or recovered in a
currency other than U.S. Dollars (whether as a result of, or of the enforcement
of, a judgment or order of a court of any jurisdiction, in the winding-up or
dissolution of the Company or otherwise) by any holder of a Security in respect
of any sum expressed to be due to it from the Company shall only constitute a
discharge to the Company, to the extent of the U.S. Dollar amount which the
recipient is able to purchase with the amount so received or recovered in that
other currency on the date of that receipt or recovery (or, if it is not
practicable to make that purchase on that date, on the first date on which it is
practicable to do so). If that U.S. Dollar amount is less than the U.S. Dollar
amount expressed to be due to the recipient under any Security, the Company
shall indemnify such holder against any loss sustained by it as a result, and if
the amount of U.S. Dollars so purchased is greater than the sum originally due
to such holder, such holder shall, by accepting a Security, be deemed to have
agreed to repay such excess. In any event, the Company shall indemnify the
recipient against the cost of making any such purchase.

     For the purposes of this Section 13.14, it shall be sufficient for the
holder of a Security to certify in a satisfactory manner (indicating the sources
of information used) that it would have suffered a loss had an actual purchase
of U.S. Dollars been made with the amount so received in that other currency on
the date of receipt or recovery (or, if a purchase of U.S. Dollars on such date
had not been practicable, on the first date on which it would have been
practicable, it being required that the need for a change of date be certified
in the manner mentioned above). These indemnities constitute a separate and
independent obligation from the other obligations of the Company, shall give
rise to a separate and independent cause of action, shall apply irrespective of
any indulgence granted by any holder of a Security and shall continue in full
force and effect despite any other judgment, order, claim or proof for a
liquidated amount in respect of any sum due under any Security.

     Section 13.15 Submission to Jurisdiction, Etc.


                                      -53-

<PAGE>

     The Company hereby submits to the non-exclusive jurisdiction of the U.S.
federal and New York state courts in the Borough of Manhattan, The City of New
York in any suit or proceeding arising out of or relating to this Agreement or
the transactions contemplated hereby. The parties hereby irrevocably and
unconditionally waive any objection to the laying of venue of any lawsuit,
action or other proceeding in such courts, and hereby further irrevocably and
unconditionally waive and agree not to plead or claim in any such court that any
such lawsuit, action or other proceeding brought in any such court has been
brought in an inconvenient forum. The Company irrevocably appoints CT
Corporation System, 111 Eighth Avenue, New York, N.Y. 10011, as its authorized
agent in the Borough of Manhattan, The City of New York, New York upon which
process may be served in any such suit or proceeding, and agrees that service of
process upon such agent, and written notice of said service to the Company by
the person serving the same to the address provided in Section 13.03 shall be
deemed in every respect effective service of process upon the Company in any
such suit or proceeding. The Company further agrees to take any and all actions
as may be necessary to maintain such designation and appointment of such agent
in full force and effect for a period of seven years from the date of this
Indenture.

     Section 13.16 Waiver of Immunity

     With respect to any suit or proceeding arising out of or relating to this
Indenture, the Purchase Agreement, the Registration Rights Agreement or the
Securities or the transactions contemplated hereby or thereby, each party
irrevocably waives, to the fullest extent permitted by applicable law, all
immunity (whether on the basis of sovereignty or otherwise) from jurisdiction,
service of process, attachment (both before and after judgment) and execution to
which it might otherwise be entitled, and with respect to any such suit or
proceeding, each party waives any such immunity in any court of competent
jurisdiction, and will not raise or claim or cause to be pleaded any such
immunity at or in respect of any such suit or proceeding, including, without
limitation, any immunity pursuant to the U.S. Foreign Sovereign Immunities Act
of 1976, as amended.

     Section 13.17 Judgment Currency

     The obligation of the Company in respect of any sum due to the Initial
Purchaser under this Indenture shall, notwithstanding any judgment in a currency
other than U.S. dollars or any other applicable currency (the "Judgment
Currency"), not be discharged until the first Business Day, following receipt by
the Initial Purchaser of any sum adjudged to be so due in the Judgment Currency,
on which (and only to the extent that) the Initial Purchaser may in accordance
with normal banking procedures purchase U.S. dollars or any other applicable
currency with the Judgment Currency; if the U.S. dollars or other applicable
currency so purchased are less than the sum originally due to the Initial
Purchaser hereunder, the Company agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Initial Purchaser against
such loss. If the U.S. dollars or other applicable currency so purchased are
greater than the sum originally due to the Initial Purchaser hereunder, the
Initial Purchaser agrees to pay to the Company an amount equal to the excess of
the U.S. dollars or other applicable currency so purchased over the sum
originally due to the Initial Purchaser hereunder.


                                      -54-

<PAGE>

                                   ARTICLE 14
                     REDEMPTION AND REPURCHASE OF SECURITIES

     Section 14.01 Redemption of Securities. The Company may not redeem any
Securities prior to December 24, 2012. At any time on or after December 24, 2012
and prior to maturity, and subject to the proviso below, the Securities may be
redeemed in cash at the option of the Company, at any time and from time to
time, upon notice as set forth in Section 14.02, at a redemption price per
security equal to 100% of the principal amount of the Security, together with
accrued and unpaid Interest, if any, to, but excluding, the date fixed for
redemption; (i) in whole or in part, if the Last Reported Sale Price of the
Common Shares for at least 20 Trading Days in a period of 30 consecutive Trading
Days ending within five (5) Trading Days immediately preceding the notice to
holders is at least 130% of the applicable Conversion Price in effect on such
Trading Day or (ii) in whole only, if at least 95% of the initial aggregate
principal amount of Securities originally issued have been redeemed, repurchased
or converted and, in each case, cancelled by the Trustee; and provided further
that if the redemption date falls after a record date and on or prior the
corresponding interest payment date, then the full amount of Interest payable on
such interest payment date shall be paid to the holders of record of such
Securities on the applicable record date instead of the holders surrendering
such Securities for redemption on such date.

     Section 14.02 Notice of Optional Redemption; Selection of Securities. In
case the Company shall desire to exercise the right to redeem all or, as the
case may be, any part of the Securities pursuant to Section 14.01, it shall fix
a date for redemption and it or, at its written request received by the Trustee
not fewer than forty-five (45) days prior (or such shorter period of time as may
be acceptable to the Trustee) to the date fixed for redemption, the Trustee in
the name of and at the expense of the Company, shall mail or cause to be mailed
a notice of such redemption not fewer than twenty (20) nor more than sixty (60)
days prior to the redemption date to each holder of Securities so to be redeemed
as a whole or in part at its last address as the same appears on the Security
Register; provided that if the Company shall give such notice, it shall also
give written notice of the redemption date to the Trustee. Such mailing shall be
by first class mail. The notice, if mailed in the manner herein provided, shall
be conclusively presumed to have been duly given, whether or not the holder
receives such notice. In any case, failure to give such notice by mail or any
defect in the notice to the holder of any Security designated for redemption as
a whole or in part shall not affect the validity of the proceedings for the
redemption of any other Security. Concurrently with the mailing of any such
notice of redemption, the Company shall issue a press release announcing such
redemption, the form and content of which press release shall be determined by
the Company in its sole discretion. The failure to issue any such press release
or any defect therein shall not affect the validity of the redemption notice or
any of the proceedings for the redemption of any Security called for redemption.

     Each such notice of redemption shall specify the aggregate principal amount
of Securities to be redeemed, the CUSIP number or numbers of the Securities
being redeemed, the date fixed for redemption (which shall be a Business Day),
the redemption price at which Securities are to be redeemed, the place or places
of payment, that payment will be made upon presentation and surrender of such
Securities, that Interest accrued to the date fixed for redemption will be paid
as specified in said notice, and that on and after said date Interest thereon or
on the portion thereof


                                      -55-

<PAGE>

to be redeemed will cease to accrue. Such notice shall also state the current
Conversion Rate and Conversion Price and the date on which the right to convert
such Securities or portions thereof into Common Shares will expire. If fewer
than all the Securities are to be redeemed, the notice of redemption shall
identify the Securities to be redeemed (including CUSIP numbers, if any). In
case any Security is to be redeemed in part only, the notice of redemption shall
state the portion of the principal amount thereof to be redeemed and shall state
that, on and after the redemption date, upon surrender of such Security, a new
Security or Securities in principal amount equal to the unredeemed portion
thereof will be issued.

     On or prior to the redemption date specified in the notice of redemption
given as provided in this Section 14.02, the Company will deposit with the
Trustee or with one or more paying agents (or, if the Company is acting as its
own paying agent, set aside, segregate and hold in trust as provided in Section
3.04) an amount of money in immediately available funds sufficient to redeem on
the redemption date all the Securities (or portions thereof) so called for
redemption (other than those theretofore surrendered for conversion into Common
Shares) at the appropriate redemption price, together with accrued Interest to,
but excluding, the redemption date; provided that if such payment is made on the
redemption date it must be received by the Trustee or paying agent, as the case
may be, by 10:00 a.m. New York City time on such date. The Company shall be
entitled to retain any interest, yield or gain on amounts deposited with the
Trustee or any paying agent pursuant to this Section 14.02 in excess of amounts
required hereunder to pay the redemption price and accrued interest to, but
excluding, the redemption date. If any Security called for redemption is
converted pursuant hereto prior to such redemption date, any money deposited
with the Trustee or any paying agent or so segregated and held in trust for the
redemption of such Security shall be paid to the Company upon its written
request, or, if then held by the Company, shall be discharged from such trust.
Whenever any Securities are to be redeemed, the Company will give the Trustee
written notice in the form of an Officers' Certificate not fewer than forty-five
(45) days (or such shorter period of time as may be acceptable to the Trustee)
prior to the redemption date as to the aggregate principal amount of Securities
to be redeemed.

     If less than all of the outstanding Securities are to be redeemed, the
Trustee shall select the Securities or portions thereof of the Global Security
or the Securities in certificated form to be redeemed (in principal amounts of
$1,000 or multiples thereof) by lot, on a pro rata basis or by another method
the Trustee deems fair and appropriate. If any Security selected for partial
redemption is submitted for conversion in part after such selection, the portion
of such Security submitted for conversion shall be deemed (so far as may be
possible) to be the portion to be selected for redemption. The Securities (or
portions thereof) so selected shall be deemed duly selected for redemption for
all purposes hereof, notwithstanding that any such Security is submitted for
conversion in part before the mailing of the notice of redemption.

     Upon any redemption of less than all of the outstanding Securities, the
Company and the Trustee may (but need not), solely for purposes of determining
the pro rata allocation among such Securities as are unconverted and outstanding
at the time of redemption, treat as outstanding any Securities surrendered for
conversion during the period of fifteen (15) days next preceding the mailing of
a notice of redemption and may (but need not) treat as outstanding any


                                      -56-

<PAGE>

Security authenticated and delivered during such period in exchange for the
unconverted portion of any Security converted in part during such period.

     Section 14.03 Payment of Securities Called For Redemption by the Company.
If notice of redemption has been given as provided in Section 14.02, the
Securities or portion of Securities with respect to which such notice has been
given shall, unless converted into Common Shares pursuant to the terms hereof,
become due and payable on the date fixed for redemption and at the place or
places stated in such notice at the applicable redemption price, together with
Interest accrued to (but excluding) the redemption date, and on and after said
date (unless the Company shall default in the payment of such Securities at the
redemption price, together with Interest accrued to said date) Interest on the
Securities or portion of Securities so called for redemption shall cease to
accrue and, after the close of business on the Business Day immediately
preceding the redemption date (unless the Company shall default in the payment
of such Securities at the redemption price, together with Interest accrued to
said date) such Securities shall cease to be convertible into Common Shares and,
except as provided in Section 6.05 and Section 11.04, to be entitled to any
benefit or security under this Indenture, and the holders thereof shall have no
right in respect of such Securities except the right to receive the redemption
price thereof and unpaid Interest to (but excluding) the redemption date. On
presentation and surrender of such Securities at a place of payment in said
notice specified, the said Securities or the specified portions thereof shall be
paid and redeemed by the Company at the applicable redemption price, together
with Interest accrued thereon to, but excluding, the redemption date; provided
that if the redemption date falls after a record date and on or prior the
corresponding interest payment date, then the Interest payable on such interest
payment date shall be paid to the holders of record of such Securities on the
applicable record date instead of the holders surrendering such Securities for
redemption on such date.

     Upon presentation of any Security redeemed in part only, the Company shall
execute and the Trustee shall authenticate and make available for delivery to
the holder thereof, at the expense of the Company, a new Security or Securities,
of authorized denominations, in principal amount equal to the unredeemed portion
of the Securities so presented.

     Notwithstanding the foregoing, the Trustee shall not redeem any Securities
or mail any notice of redemption (i) during the continuance of a default in
payment of Interest or premium, if any, on the Securities and (ii) if the
principal amount of the Securities has been accelerated.

     Section 14.04 Conversion Arrangement on Call for Redemption. In connection
with any redemption of Securities, the Company may arrange for the purchase and
conversion of any Securities by an agreement with one or more investment banks
or other purchasers to purchase such Securities by paying to the Trustee in
trust for the Securityholders, on or before the date fixed for redemption, an
amount not less than the applicable redemption price, together with Interest
accrued to, but excluding, the date fixed for redemption, of such Securities.
Notwithstanding anything to the contrary contained in this Article 14, the
obligation of the Company to pay the redemption price of such Securities,
together with Interest accrued to, but excluding, the date fixed for redemption,
shall be deemed to be satisfied and discharged to the extent such amount is so
paid by such purchasers. If such an agreement is entered into, a copy of which
will be filed with the Trustee prior to the date fixed for redemption, any
Securities not duly surrendered for conversion by the holders thereof may, at
the option of the Company, be


                                      -57-

<PAGE>

deemed, to the fullest extent permitted by law, acquired by such purchasers from
such holders and (notwithstanding anything to the contrary contained in Article
15) surrendered by such purchasers for conversion, all as of immediately prior
to the close of business on the date fixed for redemption (and the right to
convert any such Securities shall be extended through such time), subject to
payment of the above amount as aforesaid. At the direction of the Company, the
Trustee shall hold and dispose of any such amount paid to it in the same manner
as it would monies deposited with it by the Company for the redemption of
Securities. Without the Trustee's prior written consent, no arrangement between
the Company and such purchasers for the purchase and conversion of any
Securities shall increase or otherwise affect any of the powers, duties,
responsibilities or obligations of the Trustee as set forth in this Indenture.

     Section 14.05 Requirement of Offer to Purchase Upon a Fundamental Change.
If there shall occur a Fundamental Change at any time prior to maturity of the
Securities, then the Company shall be required to make an offer to each
Securityholder to purchase for cash all of such holder's Securities, or any
portion thereof that is a multiple of $1,000 principal amount, on the date (the
"Fundamental Change Purchase Date") specified by the Company that is not less
than twenty (20) Business Days and not more than thirty-five (35) Business Days
after the date of the Fundamental Change Notice (as defined in Section 14.05(b))
of such Fundamental Change at a purchase price equal to 100% of the principal
amount thereof, together with accrued Interest to, but excluding, the
Fundamental Change Purchase Date; provided that if such Fundamental Change
Purchase Date falls after a record date and on or prior to the corresponding
interest payment date, then the full amount of Interest payable on such interest
payment date shall be paid to the holders of record of the Securities on the
applicable record date instead of the holders surrendering the Securities for
purchase on such Fundamental Change Purchase Date. Purchases of Securities under
this Section 14.05 shall be made, at the option of the holder thereof, upon:

          (i) delivery to the Trustee (or other paying agent appointed by the
     Company) by a holder of a duly completed notice (the "Fundamental Change
     Purchase Notice") in the form set forth on the reverse of the Security
     prior to the close of business on the Fundamental Change Purchase Date; and

          (ii) delivery or book-entry transfer of the Securities to the Trustee
     (or other paying agent appointed by the Company) at any time after delivery
     of the Fundamental Change Purchase Notice (together with all necessary
     endorsements) at the Corporate Trust Office of the Trustee (or other paying
     agent appointed by the Company) in the Borough of Manhattan as provided in
     Section 3.02 or at any other office of the paying agent, such delivery
     being a condition to receipt by the holder of the purchase price therefor;
     provided that such purchase price shall be so paid pursuant to this Section
     14.05 only if the Security so delivered to the Trustee (or other paying
     agent appointed by the Company) shall conform in all respects to the
     description thereof in the related Fundamental Change Purchase Notice.

     The Company shall purchase from each holder thereof that accepts the offer
to purchase, pursuant to this Section 14.05, a portion of a Security, if the
principal amount of such portion is $1,000 or a whole multiple of $1,000.
Provisions of this Indenture that apply to the purchase of all of a Security
also apply to the purchase of such portion of such Security.


                                      -58-

<PAGE>

     Any purchase by the Company contemplated pursuant to the provisions of this
Section 14.05 shall be consummated by the delivery of the consideration to be
received by the holder promptly following the later of the Fundamental Change
Purchase Date and the time of the book-entry transfer or delivery of the
Security.

     Notwithstanding anything herein to the contrary, any holder delivering to
the Trustee (or other paying agent appointed by the Company) the Fundamental
Change Purchase Notice contemplated by this Section 14.05 shall have the right
to withdraw such Fundamental Change Purchase Notice at any time prior to the
close of business on the Fundamental Change Purchase Date by delivery of a
written notice of withdrawal to the Trustee (or other paying agent appointed by
the Company) in accordance with Section 14.05(c) below.

     The Trustee (or other paying agent appointed by the Company) shall promptly
notify the Company of the receipt by it of any Fundamental Change Purchase
Notice or written notice of withdrawal thereof.

     (b) On or before the 20th Business Day after the occurrence of a
Fundamental Change, the Company or at its written request (which must be
received by the Trustee at least five (5) Business Days prior to the date the
Trustee is requested to give notice as described below, unless the Trustee shall
agree in writing to a shorter period), the Trustee, in the name of and at the
expense of the Company, shall mail or cause to be mailed to all holders of
record on the date of the Fundamental Change a notice (the "Fundamental Change
Notice") of the occurrence of such Fundamental Change and of the right at the
option of the holders to accept the Company's offer to purchase arising as a
result thereof. Such mailing shall be by first class mail. If the Company shall
give such notice, the Company shall also deliver a copy of the Fundamental
Change Notice to the Trustee at such time as it is mailed to Securityholders.
Concurrently with the mailing of any Fundamental Change Notice, the Company
shall issue a press release announcing such Fundamental Change referred to in
the Fundamental Change Notice, the form and content of which press release shall
be determined by the Company in its sole discretion. The failure to issue any
such press release or any defect therein shall not affect the validity of the
Fundamental Change Notice or any proceedings for the purchase of any Security
which any Securityholder may elect to accept the Company's offer to purchase as
provided in this Section 14.05.

     Each Fundamental Change Notice shall specify the circumstances constituting
the Fundamental Change, the Fundamental Change Purchase Date, the price at which
the Company is offering to purchase Securities, that the holder must accept the
offer to purchase on or prior to the close of business on the fifth Business Day
prior to the Fundamental Change Purchase Date (the "Fundamental Change
Expiration Time"), that the holder shall have the right to withdraw any
Securities surrendered prior to the close of business on the Business Day prior
to the Fundamental Change Purchase Date, a description of the procedure which a
Securityholder must follow to accept such offer to purchase and to withdraw any
surrendered Securities, the place or places where the holder is to surrender
such holder's Securities, the amount of Interest accrued on each Security to the
Fundamental Change Purchase Date and the CUSIP number or numbers of the
Securities (if then generally in use) and include a form of Fundamental Change
Purchase Notice.


                                      -59-

<PAGE>

     No failure of the Company to give the foregoing notices and no defect
therein shall limit the Securityholders' rights to accept the Company's offer to
purchase the Securities or affect the validity of the proceedings for the
purchase of the Securities pursuant to this Section 14.05.

     (c) A Fundamental Change Purchase Notice may be withdrawn by means of a
written notice of withdrawal delivered to the office of the Trustee (or other
paying agent appointed by the Company) in accordance with the Fundamental Change
Purchase Notice at any time prior to the close of business on the Business Day
prior to the Fundamental Change Purchase Date, specifying:

          (i) the certificate number, if any, of the Security in respect of
     which such notice of withdrawal is being submitted, or the appropriate
     Depositary information if the Security in respect of which such notice of
     withdrawal is being submitted is represented by a Global Security,

          (ii) the principal amount of the Security with respect to which such
     notice of withdrawal is being submitted, and

          (iii) the principal amount, if any, of such Security that remains
     subject to the original Fundamental Change Purchase Notice and that has
     been or will be delivered for purchase by the Company.

     A written notice of withdrawal of a Fundamental Change Purchase Notice may
be in the form set forth in the preceding paragraph or may be in the form of a
conditional withdrawal contained in a Fundamental Change Purchase Notice
pursuant to the terms of Section 14.05.

     (d) No later than 10:00 a.m. New York City time at least one Business Day
prior to the Fundamental Change Purchase Date, the Company will deposit with the
Trustee (or other paying agent appointed by the Company or if the Company is
acting as its own paying agent, set aside, segregate and hold in trust as
provided in Section 3.04) an amount of money sufficient to purchase on the
Fundamental Change Purchase Date all the Securities to be purchased on such date
at the appropriate purchase price, together with accrued Interest to, but
excluding, the Fundamental Change Purchase Date. Subject to receipt of funds
and/or Securities by the Trustee (or other paying agent appointed by the
Company), payment for Securities surrendered for purchase (and not withdrawn)
prior to the Fundamental Change Expiration Time will be made promptly (but in no
event more than five (5) Business Days) following the later of (x) the
Fundamental Change Purchase Date with respect to such Security (provided the
holder has satisfied the conditions in this Section 14.05) and (y) the time of
delivery of such Security to the Trustee (or other paying agent appointed by the
Company) by the holder thereof in the manner required by this Section 14.05) by
mailing checks for the amount payable to the holders of such Securities entitled
thereto as they shall appear in the Security Register.

     If the Trustee (or other paying agent appointed by the Company) holds money
sufficient to repurchase on the Fundamental Change Purchase Date all the
Securities or portions thereof that are to be purchased as of the Fundamental
Change Purchase Date, then on or after the Fundamental Change Purchase Date (i)
the Securities will cease to be outstanding, (ii) Interest on the Securities
will cease to accrue, and (iii) all other rights of the holders of such
Securities will


                                      -60-

<PAGE>

terminate, whether or not book-entry transfer of the Securities has been made or
the Securities have been delivered to the Trustee or paying agent, other than
the right to receive the repurchase price upon delivery of the Securities.

     (e) The Company will comply with the provisions of Rule 13e-4 and any other
tender offer rules under the Exchange Act to the extent then applicable in
connection with the repurchase rights of the holders of Securities in the event
of a Fundamental Change.

     Section 14.06 Securities Repurchased in Part. Upon presentation of any
Security purchased pursuant to Section 14.05 or repurchased pursuant to Section
14.08, only in part, the Company shall execute and the Trustee shall
authenticate and make available for delivery to the holder thereof, at the
expense of the Company, a new Security or Securities, of any authorized
denomination, in aggregate principal amount equal to the unrepurchased portion
of the Securities presented.

     Section 14.07 Repayment to the Company. To the extent that the aggregate
amount of cash or money deposited by the Company pursuant to Section 14.05(d) or
14.08(e) exceeds the aggregate purchase or repurchase price of the Securities or
portions thereof which the Company is obligated to purchase as of the
Fundamental Change Purchase Date or repurchase as of the Repurchase Date, as
applicable, then, unless otherwise agreed in writing with the Company, promptly
after the Business Day following the Fundamental Change Repurchase Date or the
Repurchase Date, as applicable, the Trustee shall return any such excess to the
Company together with interest, if any, thereon.

     Section 14.08 Repurchase of Securities at Option of the Holder on Specified
Dates.

     (a) Any holder may require the Company to repurchase any outstanding
Securities for cash on December 24, 2012 and December 15, 2014 (each a
"Repurchase Date") at a purchase price per Security equal to 100% of the
aggregate principal amount of the Security, together with any accrued and unpaid
Interest, to but not including the applicable Repurchase Date (the "Repurchase
Price"); provided that if such Repurchase Date falls after a record date and on
or prior to the corresponding interest payment date, then the full amount of
Interest payable on such interest payment date shall be paid to the holders of
record of such Securities on the applicable record date instead of the holders
surrendering such Securities for repurchase on such date.

     (b) The Company shall give written notice (the "Repurchase Notice") of the
applicable Repurchase Date by notice sent by first-class mail to the Trustee and
to each holder (at its address shown in the register of the Registrar) and to
beneficial owners as required by applicable law, not less than 25 Business Days
prior to each Repurchase Date. Each Repurchase Notice shall include a repurchase
election notice (a "Repurchase Election Notice") and shall state:

     (1) the Repurchase Price, the Repurchase Date, and the current Conversion
Rate and Conversion Price in effect;

     (2) the name and address of the Paying Agent and the Conversion Agent;


                                      -61-

<PAGE>

     (3) that Securities as to which a Repurchase Notice has been given may be
converted only to the extent that the Repurchase Election Notice has been
withdrawn in accordance with the terms of this Indenture;

     (4) that Securities must be surrendered to the Paying Agent to collect
payment;

     (5) that the Repurchase Price for any Security as to which a Repurchase
Notice has been given and not withdrawn will be paid promptly following the
later of the Repurchase Date and the time of surrender of such Security as
described in subclause (4) above;

     (6) the procedures the holder must follow to exercise rights under this
Section and a brief description of those rights;

     (7) briefly, the conversion rights of the Securities;

     (8) the procedures for withdrawing a Repurchase Election Notice;

     (9) that, unless the Company defaults in making payment on Securities for
which a Repurchase Election Notice has been submitted, interest, if any, on such
Securities will cease to accrue on and after the Repurchase Date; and

     (10) the CUSIP number of the Securities.

     If any of the Securities are to be redeemed in the form of a Global
Security, the Company shall modify such notice to the extent necessary to accord
with the procedures of the Depositary applicable to redemptions.

     At the Company's request, the Trustee shall give such Repurchase Notice on
behalf of the Company and at the Company's expense; provided, however, that, in
all cases, the text of such Repurchase Notice shall be prepared by the Company.

     (c) Repurchases of Securities by the Company pursuant to this Section 14.08
shall be made, at the option of the holder thereof, upon:

     (1) delivery to the Paying Agent by the holder of the Repurchase Election
Notice at any time from the opening of business on the date that is 25 Business
Days prior to the applicable Repurchase Date until the close of business on the
fifth Business Day immediately preceding such Repurchase Date stating:

     (i) if certificated Securities have been issued, the certificate number of
the Security which the holder will deliver to be purchased (or, if a holder's
Securities are not certificated, the Repurchase Election Notice must comply with
applicable procedures of the Depositary),

     (ii) the portion (which may be 100%) of the principal amount of the
Securities which the holder will deliver to be repurchased, which portion must
be in a principal amount of $1,000 or an integral multiple thereof, and


                                      -62-

<PAGE>

     (iii) that such Securities shall be repurchased as of the applicable
Repurchase Date pursuant to the terms and conditions specified in the Securities
and in this Section 14.08.

     (2) delivery of such Security to the Trustee (or other paying agent
appointed by the Company) at any time after delivery of the Repurchase Notice
(together with all necessary endorsements) at the offices of the Trustee (or
other paying agent appointed by the Company). Delivery of such Security shall be
a condition to receipt by the holder of the Repurchase Price therefor. The
Repurchase Price shall be paid pursuant to this Section 14.08 only if the
Security delivered to the Trustee (or other paying agent appointed by the
Company) shall conform in all respects to the description thereof in the related
Repurchase Election Notice, as determined by the Company.

     (d) Notwithstanding anything herein to the contrary, any holder delivering
to the Trustee or paying agent the Repurchase Election Notice contemplated by
this Section 14.08 shall have the right to withdraw such Repurchase Election
Notice at any time prior to the close of business on the Business Day
immediately preceding the Repurchase Date by delivery of a written notice of
withdrawal to the Trustee or paying agent specifying:

     (1) if certificated Securities have been issued, the certificate number of
the Security in respect of which such notice of withdrawal is being submitted
(or, if a holder's Securities are not certificated, the withdrawal notice must
comply with the applicable procedures of the Depositary),

     (2) the aggregate principal amount of the Security with respect to which
such notice of withdrawal is being submitted, and

     (3) the aggregate principal amount, if any, of such Security which remains
subject to the original Repurchase Election Notice and which has been or will be
delivered for purchase by the Company.

     The Paying Agent shall promptly notify the Company of the receipt by it of
any Repurchase Election Notice or written notice of withdrawal thereof.

     (e) On or before 10:00 a.m., New York City time one Business Day prior to
the applicable Repurchase Date, the Company shall deposit with the Trustee or
with the paying agent (or if the Company or an Affiliate of the Company is
acting as the paying agent, shall segregate and hold in trust) an amount of
money (in immediately available funds if deposited on such Repurchase Date)
sufficient to pay the aggregate Repurchase Price of all the Securities or
portions thereof which are to be purchased as of the applicable Repurchase Date.
The manner in which the deposit required by this Section 14.08 is made by the
Company shall be at the option of the Company; provided that such deposit shall
be made in a manner such that the Trustee or a paying agent shall have
immediately available funds on the applicable Repurchase Date.

     If the Trustee or a paying agent holds, in accordance with the terms
hereof, money sufficient to pay the Repurchase Price of any Security for which a
Repurchase Election Notice has been tendered and not withdrawn on the applicable
Repurchase Date, then, on the applicable Repurchase Date, such Security will
cease to be outstanding, whether or not the Security is


                                      -63-

<PAGE>

delivered to the Paying Agent, and the rights of the holder in respect thereof
shall terminate (other than the right to receive the Repurchase Price as
aforesaid) and interest will cease to accrue on such Security.

     The Repurchase Price shall be paid promptly to such holder with respect to
Securities for which a Repurchase Election Notice has been tendered and not
withdrawn, subject to receipt of funds by the Trustee or paying agent, promptly
following the later of (x) the Repurchase Date with respect to such Security
(provided the conditions in Section 14.08 have been satisfied) and (y) the time
of delivery of such Security to the Trustee or paying agent by the holder
thereof in the manner required by Section 14.08. Securities in respect of which
a Repurchase Election Notice has been given by the holder thereof may not be
converted pursuant to Article 15 hereof on or after the date of the delivery of
such Repurchase Election Notice, unless such Repurchase Election Notice has
first been validly withdrawn as specified in Section 14.08.

     The Company shall purchase from the holder thereof, pursuant to this
Section 14.08, a portion of a Security if the principal amount of such portion
is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that
apply to the purchase of all of a Security also apply to the purchase of such
portion of such Security.

     (f) There shall be no purchase of any Securities pursuant to this Section
14.08 if there has occurred (prior to, on or after as the case may be, the
giving, by the holders of such Securities, of the required Repurchase Election
Notice) and is continuing an Event of Default (other than a default in the
payment of the Repurchase Price) and the principal amount of the Securities has
been accelerated in accordance with the Indenture and such acceleration has not
been rescinded. The Trustee or paying agent will promptly return to the
respective holders thereof any Securities (x) with respect to which a Repurchase
Election Notice has been withdrawn in compliance with this Indenture, or (y)
held by it during the continuance of an Event of Default (other than a default
in the payment of the Repurchase Price) in which case, upon such return, the
Repurchase Election Notice with respect thereto shall be deemed to have been
withdrawn.

     Section 14.09 Redemption For Tax Reasons. The Company may, at its option,
redeem the Securities, in whole but not in part, for an amount equal to 100% of
the aggregate principal amount of the Security, plus accrued and unpaid Interest
(the "Tax Redemption Price"), to, but excluding, the date of redemption (the
"Tax Redemption Date") if the Company has become or would become obligated to
pay to the holders Additional Amounts (which are more than a de minimis amount)
as a result of any amendment or change occurring after December 10, 2007 in the
laws or any regulations of Relevant Taxing Jurisdiction, or any change occurring
after December 10, 2007 in the interpretation or application of any such laws or
regulations by any legislative body, court, governmental agency, taxing
authority or regulatory authority (including the enactment of any legislation
and the publication of any judicial decision or regulatory or administrative
determination); provided the Company cannot avoid these obligations by taking
reasonable measures available to it and that it delivers to the Trustee (i) an
opinion of legal counsel specializing in taxation, who is acceptable to the
trustee, to the effect that the Company or its successor has or will become
obligated to pay Additional Amounts as a result of the change or amendment, that
the Company or such successor cannot avoid payment of such Additional Amounts by
taking reasonable measures available to it or its successors and that all


                                      -64-

<PAGE>

governmental requirements necessary for it or any successor to effect the
redemption have been complied with; and (ii) an Officers' Certificate, signed in
the Company's name or its successor's name by any two of the Company's or its
successor's executive officers or by the Company's or its successor's attorney
in fact in accordance with the Company's or its successor's bylaws, stating that
the Company or its successor is entitled to redeem the Securities pursuant to
their terms and setting forth a statement of facts showing that the condition or
conditions precedent to the Company's right or the right of any successor to so
redeem have occurred or been satisfied, that the Company or such successor
cannot avoid payment of such Additional Amounts by taking reasonable measures
available to it or its successors and that all governmental requirements
necessary for it or any successor to effect the redemption have been complied
with. Subject to Section 15.09 of this Indenture, the Company will not and will
not cause any paying agent or the Trustee to deduct from such Tax Redemption
Price any amounts on account of, or in respect of, any taxes. In such event, the
Company will give notice to the Trustee and the holders of the Securities not
less than 20 days prior to the date fixed for redemption, except that (i) the
Company will not give notice of redemption earlier than 60 days prior to the
earliest date on or from which it would be obligated to pay any such Additional
Amounts, and (ii) at the time the Company gives the notice, the circumstances
creating its obligation to pay such Additional Amounts remain in effect.

     Upon receiving such notice of redemption, each holder who does not wish to
have the Company redeem its Securities pursuant to this Section 14.09 can elect
to (i) convert its Securities pursuant to Article 15 of this Indenture or (ii)
not have its Securities redeemed, provided that no Additional Amounts will be
payable on any payment of interest or principal with respect to the Securities
after such Tax Redemption Date. All future payments will be subject to the
deduction or withholding of any taxes required to be deducted or withheld.

     Where no such election is made, the Holder will have its Securities
redeemed without any further action. If a Holder does not elect to convert its
Securities pursuant to Article 15 but wishes to elect to not have its Securities
redeemed, such holder must deliver to the Company (if the Company is acting as
its own paying agent), or to the Trustee or a paying agent designated by the
Company for such purpose in the notice of redemption, a written notice of
election (the "Notice of Election") duly completed and signed, so as to be
received by the Trustee or paying agent no later than the close of business on a
Business Day at least fifteen (15) Business Days prior to the Tax Redemption
Date.

     A Holder may withdraw any Notice of Election by delivering to the Company
(if the Company is acting as its own paying agent), or to the Trustee or a
paying agent designated by the Company in the notice of redemption, a written
notice of withdrawal prior to the close of business on the Business Day prior to
the Tax Redemption Date.

     If cash sufficient to pay the Redemption Price of all Securities (or
portions thereof) to be redeemed on the Tax Redemption Date is deposited with
the Trustee or paying agent prior to 10:00 a.m., New York City time, on the Tax
Redemption Date, then on such Tax Redemption Date, interest, including
Additional Interest, Additional Amounts, if any, cease to accrue on such
Securities or portions thereof.


                                      -65-

<PAGE>

                                   ARTICLE 15
                            CONVERSION OF SECURITIES

     Section 15.01 Right To Convert. (a) Subject to and upon compliance with
the provisions of this Indenture, prior to the close of business on the Business
Day immediately preceding the Maturity Date, subject to prior redemption or
repurchase, the holder of any Security shall have the right, at such holder's
option, to convert the principal amount of the Security, or any portion of such
principal amount which is a multiple of $1,000, into fully paid and
non-assessable Common Shares (as such shares shall then be constituted) at the
Conversion Rate in effect at such time, by surrender of the Security to be so
converted in whole or in part, together with any required funds, in the manner
provided in Section 15.02. With the consent of holders of at least 25% of the
aggregate principal amount of Securities then outstanding and as described in
Section 15.03, the Securities may, at the Company's option, be convertible into
cash or a combination of cash and Common Shares.

     If any Securities have been called for redemption pursuant to Section
14.02, such Securities may be converted, at any time until the close of business
on the Business Day immediately preceding the redemption date, unless the
Company fails to pay the redemption price of such Securities.

     A Security in respect of which a holder is electing to accept the Company's
offer to purchase such holder's Securities upon a Fundamental Change pursuant to
Section 14.05 or on a Repurchase Date pursuant to Section 14.08 may be converted
only if such holder withdraws its election in accordance with Section 14.05 or
Section 14.08, as applicable. A holder of Securities is not entitled to any
rights of a holder of Common Shares until such holder has converted its
Securities into Common Shares, and only to the extent such Securities are deemed
to have been converted into Common Shares under this Article 15.

     Section 15.02 Exercise Of Conversion Privilege; Issuance Of Common Shares
On Conversion; No Adjustment For Interest Or Dividends. In order to exercise
the conversion privilege with respect to any Security in certificated form, the
Company must receive at the office or agency of the Company maintained for that
purpose or, at the option of such holder, the Corporate Trust Office, such
Security with the original or facsimile of the form entitled "Conversion Notice"
on the reverse thereof, duly completed and manually signed, together with such
Securities duly endorsed for transfer, accompanied by the funds, if any,
required by this Section 15.02. Such notice shall also state the name or names
(with address or addresses) in which the certificate or certificates for Common
Shares which shall be issuable on such conversion shall be issued. The
Conversion Agent shall be entitled to assume, without duty to inquire, each
converting Securityholder has, as a condition precedent to exercising its
conversion right, paid all stamp, issue, registration, and similar taxes or
duties or transfer costs which it is required to pay. Once deposited, a
Conversion Notice may not be withdrawn without the written consent of the
Company (with a copy of such consent together with the relevant Conversion
Notice sent to the relevant Conversion Agent at the same time.

     In order to exercise the conversion privilege with respect to any interest
in a Global Security, the beneficial holder must complete, or cause to be
completed, the appropriate instruction form for conversion pursuant to the
Depositary's book-entry conversion program,


                                      -66-

<PAGE>

deliver, or cause to be delivered, by book-entry delivery an interest in such
Global Security, furnish appropriate endorsements and transfer documents if
required by the Company or the Trustee or conversion agent.

     As promptly as practicable after satisfaction of the requirements for
conversion set forth above, subject to compliance with any restrictions on
transfer if shares issuable on conversion are to be issued in a name other than
that of the Securityholder (as if such transfer were a transfer of the Security
or Securities (or portion thereof) so converted), the Company shall issue and
shall deliver to such Securityholder at the office or agency maintained by the
Company for such purpose pursuant to Section 3.02, a certificate or certificates
for the number of full Common Shares issuable upon the conversion of such
Security or portion thereof as determined by the Company in accordance with the
provisions of this Article 15 and a check or cash in respect of any fractional
interest in respect of a Common Share arising upon such conversion, calculated
by the Company as provided in Section 15.05. In case any Security of a
denomination greater than $1,000 shall be surrendered for partial conversion,
and subject to Section 2.03, the Company shall execute and the Trustee shall
authenticate and deliver to the holder of the Security so surrendered, without
charge to him, a new Security or Securities in authorized denominations in an
aggregate principal amount equal to the unconverted portion of the surrendered
Security.

     Each conversion shall be deemed to have been effected as to any such
Security (or portion thereof) on the date on which the requirements set forth
above in this Section 15.02 have been satisfied as to such Security (or portion
thereof), and the Person in whose name any certificate or certificates for
Common Shares shall be issuable upon such conversion shall be deemed to have
become on said date the holder of record of the shares represented thereby;
provided that any such surrender on any date when the stock transfer books of
the Company shall be closed shall constitute the Person in whose name the
certificates are to be issued as the record holder thereof for all purposes on
the next succeeding day on which such stock transfer books are open, but such
conversion shall be at the Conversion Rate in effect on the date upon which such
Security shall be surrendered.

     Any Security or portion thereof surrendered for conversion during the
period from the close of business on the record date for any interest payment
date to the close of business on the Business Day preceding the following
interest payment date shall be accompanied by payment, in immediately available
funds or other funds acceptable to the Company, of an amount equal to the
Interest otherwise payable on such interest payment date on the principal amount
being converted; provided that no such payment need be made (1) if the Company
has specified a redemption date that is after a record date and on or prior to
the next interest payment date, (2) if the Company has specified a Fundamental
Change Purchase Date following a Fundamental Change or in connection with a
Repurchase Date, in each case that is after a record date and on or prior to the
next interest payment date or (3) to the extent of any overdue Interest, if any
overdue Interest exists at the time of conversion with respect to such Security.
Except as provided above in this Section 15.02, no payment or other adjustment
shall be made for Interest accrued on any Security converted or for dividends on
any shares issued upon the conversion of such Security as provided in this
Article 15.

     Upon the conversion of an interest in a Global Security, the Trustee (or
other conversion agent appointed by the Company), or the Custodian at the
direction of the Trustee (or other


                                      -67-

<PAGE>

conversion agent appointed by the Company), shall make a notation on such Global
Security as to the reduction in the principal amount represented thereby. The
Company shall notify the Trustee in writing of any conversions of Securities
effected through any conversion agent other than the Trustee.

     Upon the conversion of a Security, any accrued but unpaid Interest to the
conversion date with respect to the converted Security shall not be cancelled,
extinguished or forfeited, but rather shall be deemed to be paid in full to the
holder thereof through delivery of the Common Shares, cash or combination of
cash and Common Shares, as applicable, in exchange for the Security being
converted pursuant to the provisions hereof; and the fair market value of such
Common Shares, cash or combination of cash and Common Shares, as applicable,
shall be treated as issued, to the extent thereof, first in exchange for and in
satisfaction of the Company's obligation to pay the principal amount of the
converted Security, the accrued but unpaid Interest through the conversion date,
and the balance, if any, of such fair market value of such Common Shares, cash
or combination of cash and Common Shares, as applicable, (any such cash payment)
shall be treated as issued in exchange for and in satisfaction of the right to
convert the Security being converted pursuant to the provisions hereof.

     Section 15.03 Net Share Settlement Election. With the consent of holders
of at least 25% of the aggregate principal amount of Securities outstanding, the
Company and Trustee may enter into a supplemental indenture so as to permit, at
the Company's option, settlement upon conversion in cash or any combination of
cash and Common Shares in lieu of delivery of common shares in satisfaction of
the Conversion obligation upon conversion of the Securities. If such consent has
been given, at any time on or prior to the 2nd Scheduled Trading Day following
the applicable conversion date (except, in respect of Securities to be converted
during the period beginning twelve (12) Scheduled Trading Days immediately
preceding a redemption date, repurchase date, Fundamental Change Repurchase Date
or the Maturity Date for such Securities, no later than the date we deliver our
notice of redemption, the Repurchase Notice, the Fundamental Change Repurchase
Notice or the 13th Scheduled Trading Day preceding the Maturity Date, as
applicable), the Company may elect to satisfy the obligation upon conversion of
the Securities with respect to any Securities converted after the date of such
election by delivering cash up to the aggregate principal amount of Securities
to be converted, Common Shares, or a combination thereof in respect of the
remainder, if any, of the obligation upon conversion of the Securities. Such
election (a "Net Share Settlement" election) shall be in the Company's sole
discretion and shall not require the consent of Securityholders after the
supplemental indenture permitting such Net Share Settlement has been properly
entered into pursuant to the terms of this Section 15.03.

     The Company shall treat all holders with the same Cash Settlement Averaging
Period in the same manner. The Company shall not, however, have any obligation
to settle any obligations to convert the Securities arising with respect to
different Cash Settlement Averaging Periods in the same manner.

     The amount of Cash and/or number of shares of Common Shares, as the case
may be, due upon conversion of Securities shall be determined as follows:


                                      -68-

<PAGE>

     (a) If the Company elects to satisfy the entire obligation to convert the
Securities by delivering Common Shares, the Company shall deliver to the
converting holder a number of shares of Common Shares equal to (i) (A) the
aggregate principal amount of Securities to be converted divided by (B) 1,000
multiplied by (ii) the Conversion Rate in effect on the relevant Conversion Date
(provided that the Company shall deliver cash in lieu of fractional shares as
described in Section 15.05).

     (b) If the Company elects to satisfy the entire obligation to convert the
Securities by paying cash, the Company shall pay to the converting holder, for
each $1,000 principal amount of Securities so converted, cash in an amount equal
to the Conversion Value.

     (c) If the Company elects to satisfy the obligation to convert the
Securities by delivering or paying, as the case may be, a combination of cash
and Common Shares, the Company shall deliver to the converting holder, for each
$1,000 principal amount of Securities so converted (x) cash in an amount equal
to the lesser of (A) the Specified Cash Amount and (B) the Conversion Value; and
(y) if the Conversion Value is greater than the Specified Cash Amount, a number
of shares of Common Stock equal to the sum of the Daily Share Amounts for each
of the twenty Trading Days in the Cash Settlement Averaging Period (provided
that the Company shall deliver Cash in lieu of fractional shares as described in
Section 15.05).

     Any settlement of an obligation to convert the Securities made entirely or
partially in cash (other than cash in lieu of fractional shares) shall occur on
the third Business Day immediately following the final Trading Day of the Cash
Settlement Averaging Period.

     Section 15.04 Net Share Settlement Notices. If the Company has elected to
make a Net Share Settlement as described in Section 15.03, the Company shall
promptly (i) issue a press release and post such information on its website or
otherwise publicly disclose this information or (ii) provide written notice to
holders by mailing such notice to holders at their address in the Register (in
the case of a certificated Security), or through the facilities of the
Depositary (in the case of a Global Security). This notice to holders shall
include the amount to be satisfied in cash as a fixed dollar amount per $1,000
principal amount of Securities (the "Specified Cash Amount"). If, subsequent to
the Company electing a Net Share Settlement, the Company fails to timely notify
converting holders of the Specified Cash Amount, the Specified Cash Amount shall
be deemed to be $1,000.

     Section 15.05 Cash Payments in Lieu of Fractional Shares. No fractional
Common Shares or scrip certificates representing fractional shares shall be
issued upon conversion of Securities. If more than one Security shall be
surrendered for conversion at one time by the same holder, the number of full
shares that shall be issuable upon conversion shall be computed on the basis of
the aggregate principal amount of the Securities (or specified portions thereof
to the extent permitted hereby) so surrendered. If any fractional share would be
issuable upon the conversion of any Security or Securities, the Company shall
make an adjustment and payment therefor in cash at the current market price
thereof to the holder of Securities, but in no event to exceed the U.S. dollar
equivalent of Cdn $200. For purposes of this Section 15.05 only, the current
market price of a Common Share shall be the Last Reported Sale Price on the last
Trading Day immediately preceding the day on which the Securities (or specified
portions thereof) are deemed to have been converted.


                                      -69-

<PAGE>

     Section 15.06 Conversion Rate. Each $1,000 principal amount of the
Securities shall be convertible into the number of Common Shares specified in
the form of Security (herein called the "Conversion Rate") attached as Exhibit A
hereto, subject to adjustment as provided in this Article 15.

     Section 15.07 Adjustment Of Conversion Rate. The Conversion Rate shall be
adjusted, without duplication, from time to time by the Company in accordance
with this Section 15.07, except that the Company will not make any adjustment if
holders of Securities are entitled to participate on the relevant distribution
or payment date, as a result of holding the Securities, in the transactions
described in Sections Section 15.07(b), Section 15.07(c) and Section
15.07(d)below without having to convert their Securities (based on the
Conversion Rate in effect immediately before the relevant Ex-Dividend Date) or
holders of Common Shares are not eligible to participate in the relevant
transaction described below in this Section 15.07:

     (a) If the Company, at any time or from time to time while any of the
Securities are outstanding, issues Common Shares as a dividend or distribution
on Common Shares (including a Common Share bonus or as a result of the
capitalization of profits or reserves), or if the Company effects a Common Share
split or Common Share combination, then the Conversion Rate will be adjusted
based on the following formula:

                                     (OS')
                         CR' = CR0 X (---)
                                     (OS0)

     where:

     CR0 = the Conversion Rate in effect immediately prior to the Ex-Dividend
Date for such dividend or distribution, or the effective date of such Common
Share split or Common Share combination, as applicable;

     CR' = the Conversion Rate in effect immediately after the opening of
business on such Ex-Dividend Date for such dividend or distribution or effective
date of such Common Share split or Common Share combination, as applicable;

     OS0 = the number of Common Shares outstanding immediately prior to such
Ex-Dividend Date for such dividend or distribution or effective date of such
Common Share split or Common Share combination; and

     OS' = the number of Common Shares outstanding immediately after the opening
of business on such Ex-Dividend Date for such dividend or distribution or
effective date of such Common Share split or Common Share combination, but after
giving effect to such dividend, distribution, Common Share split or Common Share
combination, as applicable.

     Such adjustment shall become effective immediately after the Ex-Dividend
Date for such dividend or distribution, or the effective date for such share
split or share combination. If any dividend or distribution of the type
described in this Section 15.07(a) is declared but not so paid or made, the
Conversion Rate shall again be adjusted, as of the date that is the earlier of
(i) the


                                      -70-

<PAGE>

public announcement of the non-payment of the dividend or distribution and (ii)
the date that the dividend or distribution was to be paid, to the Conversion
Rate which would then be in effect if such dividend or distribution had not been
declared.

     (b) If the Company, at any time or from time to time while any of the
Securities are outstanding, distributes to all or substantially all holders of
Common Shares any rights (including subscription bonuses) or warrants entitling
them for a period of not more than 45 calendar days from the record date for
such rights or warrants to subscribe for or purchase Common Shares at an
exercise price per Common Share less than the Last Reported Sales Price of
Common Shares on the Trading Day immediately preceding the date of announcement
of such distribution, the Conversion Rate shall be adjusted based on the
following formula:

                                     (OS0 + X)
                         CR' = CR0 X (-------)
                                     (OS0 + Y)

     CR0 = the Conversion Rate in effect immediately prior to the Ex-Dividend
Date for such distribution;

     CR' = the Conversion Rate in effect immediately after the opening of
business on the Ex-Dividend Date for such distribution;

     OS0 = the number of Common Shares outstanding immediately before such
Ex-Dividend Date for such issuance;

     X = the total number of Common Shares issuable pursuant to such rights or
warrants; and

     Y = the number of Common Shares equal to the quotient of (A) the aggregate
price payable to exercise such rights or warrants divided by (B) the average of
the Last Reported Sale Prices of Common Shares for the 10 consecutive Trading
Day period ending on the Trading Day immediately preceding the Ex-Dividend Date
for such distribution.

     To the extent such rights or warrants are not exercised or converted prior
to the expiration of the exercisability or convertability thereof, the
Conversion Rate shall be readjusted, as of such expiration date, to the
Conversion Rate which would then be in effect had the adjustments made upon the
issuance of such rights or warrants been made on the basis of the delivery of
only the number of Common Shares actually delivered. In the event that such
rights or warrants are not so issued, the Conversion Rate shall again be
adjusted to be the Conversion Rate which would then be in effect if such rights
or warrants had not been issued. In determining whether any rights or warrants
entitle the holders to subscribe for or purchase Common Shares at less than the
Last Reported Price of Common Shares immediately preceding the date of
announcement of such distribution, and in determining the aggregate offering
price of such Common Shares, there shall be taken into account any consideration
received for such rights or warrants and the value of such consideration, if
other than cash, as shall be determined in good faith by the Board of Directors
of the Company.


                                      -71-

<PAGE>

     With respect to any rights or warrants (the "Rights") that may be issued or
distributed pursuant to any rights plans implemented by the Company after the
date of this Indenture (a "Rights Plan"), the holders of Securities will
receive, with respect to any Common Shares issued upon conversion, the Rights
described therein (whether or not the Rights have separated from the Common
Shares at the time of conversion), subject to the limitations set forth in and
in accordance with any such Rights Plan; provided that if at the time of
conversion the Rights have separated from the Common Shares in accordance with
the provisions of the Rights Plan so that holders would not be entitled to
receive any rights in respect of the Common Shares, if any, issuable upon
conversion of the Securities as a result of the timing of the Conversion Date,
the Conversion Rate will be adjusted as if the Company distributed to all
holders of Common Shares securities constituting such rights as provided in the
first paragraph of this clause (b) of this Section 15.07, subject to a
corresponding readjustment to the Conversion Rate on an equitable basis in the
event that such Rights are later redeemed, repurchased, invalidated or
terminated. A further adjustment will occur as described in above in this clause
(b) of this Section 15.07 if such Rights become exercisable to purchase
different securities, evidences of indebtedness or assets, subject to a
corresponding readjustment to the Conversion Rate on an equitable basis in the
event that such Rights are later redeemed, repurchased, invalidated or
terminated. Other than as specified in this paragraph of this clause (b) of this
Section 15.07, there will not be any adjustment to the Conversion Rate as the
result of the issuance of any Rights, the distribution of separate certificates
representing such Rights, the exercise or redemption of such Rights in
accordance with any Rights Plan or the termination or invalidation of any
Rights.

     (c) If the Company, at any time or from time to time while the Securities
are outstanding, distributes any share capital of the Company, evidences of
indebtedness or other assets or property of the Company or rights to acquire the
Company's share capital or other securities to all, or substantially all,
holders of its Common Shares, excluding:

     (i) dividends or distributions referred to in Section 15.07(a);

     (ii) rights or warrants referred to in Section 15.07(b);

     (iii) dividends or distributions paid exclusively in cash; and

     (iv) Spin-Offs (as defined below) to which the provisions set forth below
in this Section 15.07(c) shall apply;

     then the Conversion Rate will be adjusted based on the following formula:

                                     (   SP0   )
                         CR' = CR0 X (---------)
                                     (SP0 - FMV)

     CR0 = the Conversion Rate in effect immediately prior to the Ex-Dividend
Date for such distribution;


                                      -72-

<PAGE>

     CR' = the Conversion Rate in effect immediately after the opening of
business on the Ex-Dividend Date for such distribution;

     SP0 = the average of the Last Reported Sale Prices of the Common Shares
over the 10 consecutive Trading Day period ending on the Trading Day immediately
preceding the Ex-Dividend Date for such distribution; and

     FMV = the fair market value (as determined in good faith by the Board of
Directors of the Company) of the share capital, evidences of indebtedness,
assets, property or rights distributed with respect to each outstanding Common
Share on the Ex-Dividend Date for such distribution.

     Such adjustment shall become effective immediately prior to the opening of
business on the day following the Ex-Dividend Date for such distribution.

     Where there has been a payment of a dividend or other distribution on the
Common Shares in the Company's share capital of any class or series, or similar
equity interest, of or relating to a Subsidiary or other business unit (a
"Spin-Off"), the Conversion Rate in effect immediately before 5:00 p.m., New
York City time, on the 15th Trading Day immediately following the effective date
of the Spin-Off shall be increased based on the following formula:

                                     (FMV0 + MP0)
                         CR' = CR0 X (----------)
                                     (    MP0   )

     where

     CR0 = the Conversion Rate in effect on the 15th Trading Day immediately
following, and including, the effective date of the Spin-Off;

     CR' = the Conversion Rate in effect immediately after the 15th Trading Day
immediately following, and including, the effective date of the Spin-Off;

     FMV0 = the average of the Last Reported Sale Prices of the Company's share
capital or similar equity interest distributed to holders of Common Shares
applicable to one Common Share over the first 10 consecutive Trading Day period
beginning on, and including, the 5th Trading Day after the effective date of the
Spin-Off; and

     MP0 = the average of the Last Reported Sale Prices of Common Shares over
the first 10 consecutive Trading Day period beginning on, and including, the 5th
Trading Day the effective date of the Spin-Off.

     The adjustment to the Conversion Rate under the preceding paragraph will
occur on the 15th Trading Day from, and including, the effective date of the
Spin-Off; provided that in respect of any conversion within the 15 Trading Days
following the effective date of any Spin-Off, references within this Section
15.07(c) to "10 Trading Days" shall be deemed replaced with such lesser number
of Trading Days as have elapsed between the effective date of such Spin-Off and
the Conversion Date in determining the Conversion Rate.


                                      -73-

<PAGE>

     If any dividend or distribution described in this Section 15.07(c) is
declared but not paid or made, the Conversion Rate shall be readjusted, as of
the date that is the earlier of (i) the public announcement of the non-payment
of the dividend or distribution and (ii) the date that the dividend or
distribution was to have been paid, in which case, the Conversion Rate will be
the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared.

     For the purposes of this Section 15.07(c), rights, warrants or options
distributed by the Company to all holders of Common Shares entitling them to
subscribe for or purchase shares of the Company's capital stock (either
initially or under certain circumstances), which rights, warrants or options
until the occurrence of a specified event or events (a "Trigger Event"): (1) are
deemed to be transferred with such Common Shares; (2) are not exercisable; and
(3) are also issued in respect of future issuances of Common Shares, shall be
deemed not to have been distributed for purposes of this Section 15.07(c), (and
no adjustment to the Conversion Rate under this Section 15.07(c) will be
required) until the occurrence of the earliest Trigger Event, whereupon such
rights and warrants shall be deemed to have been distributed and an appropriate
adjustment (if any is required) to the Conversion Rate shall be made under this
Section 15.07(c). If any such right, warrant or option, including any such
existing rights, warrants or options distributed prior to the date of this
Indenture, are subject to events, upon the occurrence of which such rights,
warrants or options become exercisable to purchase different securities,
evidences of indebtedness or other assets, then the date of the occurrence of
any and each such event shall be deemed to be the date of distribution and
record date with respect to new rights, warrants or options with such rights
(and a termination or expiration of the existing rights, warrants or options
without exercise by any of the holders thereof). In addition, in the event of
any distribution (or deemed distribution) of rights, warrants or options or any
Trigger Event or other event (of the type described in the preceding sentence)
with respect thereto that was counted for purposes of calculating a distribution
amount for which an adjustment to the Conversion Rate under this Section
15.07(c) was made, (1) in the case of any such rights, warrants or options which
shall all have been redeemed or purchased without exercise by any Holders
thereof, the Conversion Rate shall be readjusted upon such final purchase to
give effect to such distribution or Trigger Event, as the case may be, as though
it were a cash distribution, equal to the per share redemption or purchase price
received by a holder of Common Shares with respect to such rights, warrants or
options (assuming such holder had retained such rights, warrants or options),
made to all applicable holders of Common Shares as of the date of such
redemption or purchase, and (2) in the case of such rights, warrants or options
which shall have expired or been terminated without exercise by any holders
thereof, the Conversion Rate shall be readjusted as if such rights, warrants or
options had not been issued.

     (d) If the Company pays any cash dividend or other distribution (other than
the cash portion of any distributions for which the Conversion Rate is adjusted
pursuant to Section 15.07(c)) to all, or substantially all, holders of Common
Shares (including as a result of capital reductions and Common Share redemptions
or authorizations), the Conversion Rate shall be adjusted based on the following
formula:

                                          (  SP0  )
                              CR' = CR0 X (-------)
                                          (SP0 - C)


                                      -74-

<PAGE>

     where

     CR0 = the Conversion Rate in effect immediately prior to the Ex-Dividend
Date for such dividend or distribution;

     CR' = the Conversion Rate in effect immediately after the opening of
business on the Ex-Dividend Date for such dividend or distribution;

     SP0 = the average of the Last Reported Sale Prices of a Common Share over
the 10 consecutive Trading Day period ending on the Trading Day immediately
preceding the Ex-Dividend Date for such dividend or distribution; and

     C = the full amount of such dividend or distribution per share the Company
distributes to holders of Common Shares.

     If any dividend or distribution described in this Section 15.07(d) is
declared but not so paid or made, the new Conversion Rate shall be adjusted, as
of the date that is the earlier of (i) the public announcement of the
non-payment of the dividend or distribution and (ii) the date that the dividend
or distribution was to be paid, to the Conversion Rate that would then be in
effect if such dividend or distribution had not been declared.

     (e) If the Company or any Subsidiary makes a payment in respect of a tender
offer or exchange offer for Common Shares, to the extent that the cash and value
(which will be, except for the value of traded securities, determined by the
Board of Directors) of any other consideration included in the payment per
Common Share exceeds the Last Reported Sale Price per Common Share on the
Trading Day immediately following the last date on which tenders or exchanges
may be made pursuant to such tender or exchange offer, the Conversion Rate shall
be adjusted as of the close of business on the 10th Trading Day from and
including the Trading Day immediately following the date the tender or exchange
offer expires based on the following formula:

                                     (AC + (SP' x OS'))
                         CR' = CR0 X (----------------)
                                     (    OS0 x SP'   )

     where

     CR0 = the Conversion Rate in effect on the day immediately prior to the
effective date of the adjustment;

     CR' = the Conversion Rate in effect immediately following the effective
date of the adjustment;

     AC = the aggregate value of all cash and any other consideration (as
determined by the Board of Directors) paid or payable for Common Shares
purchased in such tender or exchange offer;


                                      -75-

<PAGE>

     OS0 = the number of Common Shares outstanding on the Trading Day
immediately prior to the date such tender or exchange offer expires;

     OS' = the number of Common Shares outstanding on the Trading Day
immediately after the date such tender or exchange offer expires (after giving
effect to the purchase or exchange of Common Shares pursuant to such tender or
exchange offer); and

     SP' = the average of the Last Reported Sale Prices of Common Shares over
the 10 consecutive Trading Day period commencing on the Trading Day immediately
following the date such tender or exchange offer expires.

     The adjustment to the Applicable Conversion Rate under this Section
15.07(e) shall occur on the 10th Trading Day from, and including, the Trading
Day next succeeding the date such tender or exchange offer expires; provided
that in respect of any conversion within the 10 Trading Days immediately
following, and including, the expiration date of any tender or exchange offer,
references within this Section 15.07(e) to "10 Trading Days" shall be deemed
replaced with such lesser number of Trading Days as have elapsed between the
expiration date of such tender or exchange offer and the Conversion Date in
determining the Conversion Rate.

     If the Company is obligated to purchase shares pursuant to any such tender
or exchange offer, but the Company is permanently prevented by applicable law
from effecting any such purchases or all such purchases are rescinded, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would
then be in effect if such tender or exchange had not been made.

     (f) No adjustment to the Conversion Rate will be required unless the
adjustment would require an increase or decrease of at least 1% of the
Conversion Rate. If the adjustment is not made because the adjustment does not
change the Conversion Rate by at least 1%, then the adjustment that is not made
will be carried forward and taken into account in any future adjustments. In
addition, the Company will make any carry forward adjustments not otherwise
effected upon an offer by the Company to purchase the Securities in connection
with a Fundamental Change or with respect to a repurchase at the option of
holders, upon any Redemption Date, upon any conversion of the Securities, within
one year of the first such adjustment carried forward and on the record date
immediately prior to the Maturity of the Securities. Adjustments to the
Conversion Rate will be rounded to the nearest ten-thousandth, with five
one-hundred-thousandths rounded upward (e.g., 0.76545 would be rounded up to
0.7655).

     (g) The Company from time to time may, to the extent permitted by
applicable law and subject to the applicable rules of the Nasdaq Global Market,
increase the Conversion Rate by any amount for a period of at least 20 days if
the Board of Directors shall have made a determination that such increase would
be in the best interests of the Company, which determination shall be
conclusive. Whenever the Applicable Conversion Rate is increased pursuant to
this Section 15.07(g) or Section 15.07(h) below, the Company shall mail to
Holders of record of the Securities a notice of the increase at least 15 days
prior to the date the increased Conversion Rate takes effect, and such notice
shall state the increased Conversion Rate and the period during which it will be
in effect.


                                      -76-

<PAGE>

     (h) The Company may (but is not required to) make such increases in the
Conversion Rate, in addition to any adjustments required by Section 15.07(a),
Section 15.07(b), Section 15.07(c), Section 15.07(d), Section 15.07(e) or
Section 15.07(g), as the Board of Directors considers to be advisable to avoid
or diminish income tax to holders resulting from any dividend or distribution of
Capital Stock issuable on conversion of the Securities (or rights to acquire
shares) or from any event treated as such for income tax purposes.

     (i) Except as otherwise provided in this Indenture, all calculations under
this Article 15 shall be made by the Company. No adjustment shall be made for
the Company's issuance of Common Shares or securities convertible into or
exchangeable for Common Shares or rights to purchase Common Shares or
convertible or exchangeable securities, other than as provided in this Section
15.07. The Company shall make such calculations in good faith and, absent
manifest error, such calculations shall be binding on the holders, the Trustee
and the Conversion Agent.

     (j) Whenever the Conversion Rate is adjusted as herein provided, the
Company shall promptly file with the Trustee and any conversion agent an
Officers' Certificate setting forth the Conversion Rate after such adjustment
and setting forth a brief statement of the facts requiring such adjustment.
Unless and until a Responsible Officer of the Trustee shall have received such
Officers' Certificate, the Trustee shall not be deemed to have knowledge of any
adjustment of the Conversion Rate and may assume without inquiry that the last
Conversion Rate of which it has knowledge is still in effect. Promptly after
delivery of such certificate, the Company shall prepare a notice of such
adjustment of the Conversion Rate setting forth the adjusted Conversion Rate, a
brief statement of the facts requiring such adjustment and the date on which
each adjustment becomes effective and shall mail such notice of such adjustment
of the Conversion Rate to each Securityholder at such holder's last address
appearing on the list of Securityholders provided for in Section 2.05, within 20
days after execution thereof. Failure to deliver such notice shall not affect
the legality or validity of any such adjustment.

     (k) For purposes of this Section 15.07, the number of Common Shares at any
time outstanding shall not include shares held in the treasury of the Company so
long as the Company does not pay any dividend or make any distribution on Common
Shares held in the treasury of the Company, but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of Common Shares.

     (l) Notwithstanding anything to the contrary in this Article 15, no
adjustment to the Conversion Rate shall be made:

     (i) upon the issuance of any Common Shares pursuant to any present or
future plan providing for the reinvestment of dividends or Interest payable on
the Company's Securities and the investment of additional optional amounts in
Common Shares under any plan;

     (ii) upon the issuance of any Common Share, or any option, warrant, right
or exercisable, exchangeable or convertible security to purchase the Company's
Common Shares, pursuant to any future agreements entered into with suppliers of
raw materials or machinery or consideration or inducement to enter into such
supply agreement, except if such distribution is to all or substantially all
holders of the Company's Common Shares;


                                      -77-

<PAGE>

     (iii) upon the issuance of any Common Shares or options or rights to
purchase those shares pursuant to any present or future employee, director or
consultant benefit plan or program of or assumed by the Company or any
Subsidiary;

     (iv) upon the issuance of any Common Shares pursuant to any option,
warrant, right or exercisable, exchangeable or convertible security not
described in (ii) above outstanding as of the date the Securities were first
issued;

     (v) for a change in the par value of the Common Shares if the Common Shares
then have a par value, or from par value to no par value or from no par value to
par value;

     (vi) for accrued and unpaid Interest, including any Additional Amounts; or

     (vii) for the avoidance of doubt, for the issuance of Common Shares by the
Company (other than to all or substantially all holders of Common Shares) or the
payment of cash by the Company upon conversion or repurchase of Securities.

     (m) In the event of an adjustment to the Conversion Rate pursuant to
Sections 15.07(d) or (e), in no event will the Conversion Rate exceed 56.6773
Common Shares per $1,000 principal amount of notes, in each case otherwise
subject to adjustments as set forth in Sections 15.07(a), (b) and (c).

     Section 15.08 Effect Of Reclassification, Consolidation, Merger or Sale. If
any of the following events occur, namely (i) any reclassification or change of
the outstanding Common Shares, (ii) any consolidation, merger or combination of
the Company with another Person as a result of which holders of Common Shares
shall be entitled to receive cash, securities or other property with respect to
or in exchange for such Common Shares, or (iii) any sale or conveyance of all or
substantially all of the properties and assets of the Company to any other
Person as a result of which holders of Common Shares shall be entitled to
receive cash, securities or other property with respect to or in exchange for
such Common Shares, then the Company or the successor or purchasing Person, as
the case may be, shall execute with the Trustee a supplemental indenture (which
shall comply with the Trust Indenture Act as in force at the date of execution
of such supplemental indenture) providing that each Security shall be
convertible into either (a) cash or (b) the kind and amount of shares of cash,
securities or other property receivable upon such reclassification, change,
consolidation, merger, combination, sale or conveyance by a holder of a number
of Common Shares issuable upon conversion of such Securities (assuming, for such
purposes, a sufficient number of authorized Common Shares are available to
convert all such Securities) immediately prior to such reclassification, change,
consolidation, merger, combination, sale or conveyance assuming such holder of
Common Shares did not exercise his rights of election, if any, as to the kind or
amount of stock, other securities or other property or assets (including cash)
receivable upon such reclassification, change, consolidation, merger,
combination, sale or conveyance (provided that, if the kind or amount of stock,
other securities or other property or assets (including cash) receivable upon
such reclassification, change, consolidation, merger, combination, sale or
conveyance is not the same for each Common Share in respect of which such rights
of election shall not have been exercised ("non-electing share"), then for the
purposes of this Section 15.08 the kind and amount of stock, other securities or
other property or assets (including cash) receivable upon


                                      -78-

<PAGE>

such reclassification, change, consolidation, merger, combination, sale or
conveyance for each non-electing share shall be deemed to be the weighted
average of the types and amounts of consideration received by the holders of the
Common Shares that affirmatively make such an election. Such supplemental
indenture shall provide for adjustments which shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Article 15.

     The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each holder of Securities, at its address appearing on
the Security Register provided for in Section 2.05 of this Indenture, within
twenty (20) days after execution thereof. Failure to deliver such notice shall
not affect the legality or validity of such supplemental indenture.

     The above provisions of this Section shall similarly apply to successive
reclassifications, changes, consolidations, mergers, combinations, sales and
conveyances.

     If, as a result of this Section 15.08 holders of Securities would otherwise
be entitled to receive, upon conversion of the Securities, any property
(including cash) or securities that would not constitute "Prescribed Securities"
for the purposes of clause 212(1)(b)(vii)(E) of the Income Tax Act (Canada)
(referred to herein as "Ineligible Consideration"), such holders shall not be
entitled to receive such Ineligible Consideration but the Company or the
successor or acquirer, as the case may be, shall have the right (at the sole
option of the Company or the successor or acquirer, as the case may be) to
deliver either such Ineligible Consideration or Prescribed Securities for the
purposes of clause 212(1)(b)(vii)(E) of the Income Tax Act (Canada) with a
market value equal to the market value of such Ineligible Consideration. In
general, Prescribed Securities would include Common Shares and other shares
which are not redeemable by the holder within five years of the date of issuance
of the Securities. The Company shall give notice to the holders of Securities at
least 30 days prior to the effective date of such transaction in writing and by
release to a business newswire stating the consideration into which the
Securities will be convertible after the effective date of such transaction.
After such notice, the Company or the successor or acquirer, as the case may be,
may not change the consideration to be delivered upon conversion of the Security
except in accordance with any other provision of this Indenture.

     If this Section 15.08 applies to any event or occurrence, Section 15.07
shall not apply.

     Section 15.09 Taxes On Shares Issued. Additional Amounts. The issuance of
stock certificates on conversions of Securities shall be made without charge to
the converting Securityholder for any documentary, stamp or similar issue or
transfer tax in respect of the issue thereof. The Company shall not, however, be
required to pay any such tax which may be payable in respect of any transfer
involved in the issue and delivery of stock in any name other than that of the
holder of any Security converted, and the Company shall not be required to issue
or deliver any such stock certificate unless and until the Person or Persons
requesting the issue thereof shall have paid to the Company the amount of such
tax or shall have established to the satisfaction of the Company that such tax
has been paid.

     Nothing in this Indenture shall preclude any tax withholding required by
law, regulation or governmental policy having the force of law within any
Relevant Taxing Jurisdiction. In the event that any such withholding or
deduction is so required, the Company shall pay to the holder of each Security
such additional amounts ("Additional Amounts") as may be necessary to


                                      -79-

<PAGE>

ensure that the net amount received by the holder after such withholding or
deduction (including any taxes on the Additional Amounts) shall equal the
amounts which would have been received by such holder had no such withholding or
deduction been required, except that no Additional Amounts shall be payable:

          (a) for or on account of:

               (1) any tax, duty, assessment or other governmental charge that
     would not have been imposed but for:

                    (A) the existence of any present or former connection
          between the holder or beneficial owner of such Security, and the
          Relevant Taxing Jurisdiction other than merely holding such Security
          or the receipt of payments thereunder, including, without limitation,
          such holder or beneficial owner being or having been a national,
          domiciliary or resident of such Relevant Taxing Jurisdiction or
          treated as a resident thereof or being or having been physically
          present, carried on business or engaged in a trade or business therein
          or having or having had a permanent establishment therein;

                    (B) the presentation of such Security (in cases in which
          presentation is required) more than 30 days after the later of the
          date on which the payment of the principal of, premium, if any, and
          interest on, such Security became due and payable pursuant to the
          terms thereof or was made or duly provided for; or

                    (C) the failure of the holder or beneficial owner to comply
          with a timely request from the Company or any successor, to provide
          information concerning such holder's or beneficial owner's
          nationality, residence, identity or connection with the Relevant
          Taxing Jurisdiction, or to make any declaration or satisfy any other
          reporting requirement relating to such matters, if and to the extent
          that due and timely compliance with such request is required by law,
          regulation or administrative practice of the Relevant Taxing
          Jurisdiction to reduce or eliminate any withholding or deduction as to
          which Additional Amounts would have otherwise been payable to such
          holder or beneficial owner;

               (2) any estate, inheritance, gift, sale, transfer, capital gains,
     excise, personal property or similar tax, assessment or other governmental
     charge;

               (3) any tax, duty, assessment or other governmental charge that
     is payable otherwise than by withholding from payments under or with
     respect to the Securities; or

               (4) any combination of taxes, duties, assessments or other
     governmental charges referred to in the preceding clauses (1), (2) or (3)
     (the "Excluded Taxes"); or

          (b) with respect to any payment of the principal of, or premium, if
any, or Interest on, such Security to a holder, if the holder is a fiduciary,
partnership or person other than the sole beneficial owner of any payment to the
extent that such payment would be required to be included in the income under
the laws of the Relevant Taxing Jurisdiction, for tax purposes, of a beneficiary
or settlor with respect to the fiduciary, a member of that partnership or a
beneficial owner who would not have been entitled to such Additional Amounts had
that beneficiary, settlor, partner or beneficial owner been the holder thereof
(an "Excluded Holder").


                                      -80-

<PAGE>

          Whenever there is mentioned in any context the payment of principal
of, and any premium or Interest on, any Security, such mention shall be deemed
to include payment of Additional Amounts provided for in this Indenture to the
extent that, in such context, Additional Amounts are, were or would be payable
in respect thereof.

          (c) In the event that the Company is required by law, regulation or
government policy in a Relevant Taxing Jurisdiction to withhold or deduct taxes
or other amounts from a payment made to a holder or beneficial owner of a
Security, the Company shall make such withholding or deduction and shall remit
the full amount deducted or withheld to the relevant authority in the Relevant
Taxing Jurisdiction in accordance with applicable law. The Company shall furnish
to such holder or beneficial owner the original or a certified copy of a receipt
or other reasonable evidence of payment of taxes made by the Company to relevant
authority in the Relevant Taxing Jurisdiction within 60 days after the date of
any such payment.

          Subject to the exclusions of subsections (a) and (b) of this Section
15.09, the Company shall indemnify a holder or beneficial owner of a Security
for the full amount of any taxes paid by such holder or beneficial owner and any
liability (including penalties, interest and reasonable expenses) arising from
or with respect to such taxes, whether or not they were correctly or legally
asserted; provided, that reasonable supporting documentation is provided by such
holder or beneficial owner with such written demand. Payment under this
indemnification shall be made within 30 days from the date the holder or
beneficial owner makes written demand for it.

     Section 15.10 Reservation of Shares, Shares to Be Fully Paid; Compliance
With Governmental Requirements; Listing of Common Shares. The Company shall
provide, free from preemptive rights, out of its authorized but unissued shares
or shares held in treasury, sufficient Common Shares to provide for the
conversion of the Securities from time to time as such Securities are presented
for conversion.

     Before taking any action which would cause an adjustment increasing the
Conversion Rate to an amount that would cause the Conversion Price to be reduced
below the then par value, if any, of the Common Shares issuable upon conversion
of the Securities, the Company will take all corporate action which may, in the
opinion of its counsel, be necessary in order that the Company may validly and
legally issue shares of such Common Shares at such adjusted Conversion Rate.

     The Company covenants that all Common Shares which may be issued upon
conversion of Securities will upon issue be fully paid and non-assessable by the
Company and free from all taxes, liens and charges with respect to the issue
thereof.

     The Company covenants that, if any Common Shares to be provided for the
purpose of conversion of Securities hereunder require registration with or
approval of any governmental authority under any federal or state law before
such shares may be validly issued upon conversion, the Company will in good
faith and as expeditiously as possible, to the extent then permitted by the
rules and interpretations of the Commission (or any successor thereto), endeavor
to secure such registration or approval, as the case may be.


                                      -81-

<PAGE>

     The Company covenants that, if at any time the Common Shares shall be
listed on the Nasdaq Global Market or any other national securities exchange or
automated quotation system, the Company will, if permitted by the rules of such
exchange or automated quotation system, list and keep listed, so long as the
Common Shares shall be so listed on such exchange or automated quotation system,
all Common Shares issuable upon conversion of the Security; provided that if the
rules of such exchange or automated quotation system permit the Company to defer
the listing of such Common Shares until the first conversion of the Securities
into Common Shares in accordance with the provisions of this Indenture, the
Company covenants to list such Common Shares issuable upon conversion of the
Securities in accordance with the requirements of such exchange or automated
quotation system at such time.

     Section 15.11 Responsibility Of Trustee. The Trustee and any other
conversion agent shall not at any time be under any duty or responsibility to
any holder of Securities to determine the Conversion Rate or whether any facts
exist which may require any adjustment of the Conversion Rate, or with respect
to the nature or extent or calculation of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture
provided to be employed, in making the same. The Trustee and any other
conversion agent shall not be accountable with respect to the validity or value
(or the kind or amount) of any Common Shares, or of any securities or property,
which may at any time be issued or delivered upon the conversion of any
Security; and the Trustee and any other conversion agent make no representations
with respect thereto. Neither the Trustee nor any conversion agent shall be
responsible for any failure of the Company to issue, register the transfer of or
deliver any Common Shares or stock certificates or other securities or property
or cash upon the surrender of any Security for the purpose of conversion or to
comply with any of the duties, responsibilities or covenants of the Company
contained in this Article 15. Without limiting the generality of the foregoing,
neither the Trustee nor any conversion agent shall be under any responsibility
to determine the correctness of any provisions contained in any supplemental
indenture entered into pursuant to Section 15.08 relating either to the kind or
amount of shares of stock or securities or property (including cash) receivable
by Securityholders upon the conversion of their Securities after any event
referred to in such Section 15.08 or to any adjustment to be made with respect
thereto, but, subject to the provisions of Section 6.01, may accept as
conclusive evidence of the correctness of any such provisions, and shall be
protected in relying upon, the Officers' Certificate (which the Company shall be
obligated to file with the Trustee prior to the execution of any such
supplemental indenture) with respect thereto.

     Section 15.12 Notice To Holders Prior To Certain Actions. In case:

     (a) the Company shall declare a dividend (or any other distribution) on its
Common Shares that would require an adjustment in the Conversion Rate pursuant
to Section 15.07; or

     (b) the Company shall authorize the granting to the holders of all or
substantially all of its Common Shares of rights or warrants to subscribe for or
purchase any share of any class or any other rights or warrants; or

     (c) of any reclassification or reorganization of the Common Shares of the
Company (other than a subdivision or combination of its outstanding Common
Shares, or a change in par value, or from par value to no par value, or from no
par value to par value), or of any


                                      -82-

<PAGE>

consolidation or merger to which the Company is a party and for which approval
of any stockholders of the Company is required, or of the sale or transfer of
all or substantially all of the assets of the Company; or

     (d) of the voluntary or involuntary dissolution, liquidation or winding up
of the Company;

the Company shall cause to be filed with the Trustee and to be mailed to each
holder of Securities at his address appearing on the Security Register provided
for in Section 2.05 of this Indenture, as promptly as possible but in any event
at least ten (10) days prior to the applicable date hereinafter specified, a
notice stating (x) the date on which a record is to be taken for the purpose of
such dividend, distribution or rights or warrants, or, if a record is not to be
taken, the date as of which the holders of Common Shares of record to be
entitled to such dividend, distribution or rights are to be determined, or (y)
the date on which such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up is expected to become effective or occur,
and the date as of which it is expected that holders of Common Shares of record
shall be entitled to exchange their Common Shares for securities or other
property deliverable upon such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up. Failure to give such notice,
or any defect therein, shall not affect the legality or validity of such
dividend, distribution, reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up.

     Section 15.13 Adjustment to Conversion Rate upon Occurrence of a
Fundamental Change.

     If a Fundamental Change occurs prior to December 24, 2012, and a holder
elects to convert its Securities in connection with such transaction, the
Company shall, under certain circumstances, increase the Conversion Rate for the
Securities so surrendered for conversion as described in this Section 15.13. A
conversion of Securities will be deemed for these purposes to be "in connection
with" such Fundamental Change if the notice of conversion of the Securities is
received by the conversion agent from, and including, the Effective Date of the
Fundamental Change up to, and including, the Business Day immediately prior to
the Fundamental Change Purchase Date. Upon surrender of Securities for
conversion in connection with a Fundamental Change, the Company will deliver
Common Shares unless it has previously obtained consent from holders as
specified in Section 9.02 and Section 15.03, in which case the Company shall
have the option to deliver, in lieu of Common Shares, including the Additional
Common Shares, cash or a combination of cash and Common Shares.

     Notwithstanding the foregoing, a holder shall not be entitled to an
adjustment to the Conversion Rate pursuant to this Section 15.13 if at least 90%
of the consideration for the Common Shares (excluding cash payments for
fractional shares and cash payments made in respect of dissenters' appraisal
rights and cash payment of the required cash payment, if any) in the transaction
or transactions constituting the Fundamental Change consists of securities
traded on a United States national securities exchange, or which will be so
traded when issued or exchanged in connection with the Fundamental Change, and
as a result of such transaction or transactions the Securities become
convertible solely into such securities.


                                      -83-

<PAGE>

     In connection with an applicable Fundamental Change, we will increase the
Conversion Rate by the number of Additional Common Shares (the "Additional
Common Shares") as determined by reference to the table below, based on the date
on which the Fundamental Change occurs or becomes effective (the "Effective
Date"), and the price paid per Common Share, translated, if necessary, into U.S.
dollars at the exchange rate in effect on such, in the Fundamental Change (the
"Common Share Price"). If holders of our Common Shares receive only cash in the
Fundamental Change, the Common Share Price shall be the cash amount paid per
Common Share, translated, if necessary, into U.S. dollars at the exchange rate
in effect on the Effective Date of the Fundamental Change. Otherwise, the Common
Share Price shall be the average of the Last Reported Sale Prices of our Common
Shares over the five Trading Day period ending on the Trading Day preceding the
Effective Date of the Fundamental Change.

     The Common Share Prices set forth in the first row of the table below
(i.e., column headers) will be adjusted as of any date on which the Conversion
Rate of the Securities is otherwise adjusted. The adjusted Common Share Prices
will equal the Common Share Prices applicable immediately prior to such
adjustment, multiplied by a fraction, the numerator of which is the Conversion
Rate immediately prior to the adjustment giving rise to the Common Share Price
adjustment and the denominator of which is the Conversion Rate as so adjusted.
The number of Additional Common Shares will be adjusted in the same manner as
the Conversion Rate as set forth in Section 15.07.

                            Common Share Price (US$)

<TABLE>
<CAPTION>
Effective Date     $17.64  $19.00  $20.00  $21.00  $22.00  $23.00  $24.00  $25.00  $26.00  $27.00  $28.00  $30.00  $32.50  $35.00
- -----------------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------
<S>                <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>
December 10, 2007   6.07    2.93    4.19    3.53    2.97    2.49    2.07    1.73    1.42    1.15    0.92    0.56    0.25    0.07
December 15, 2008   6.07    2.93    4.19    3.53    2.97    2.49    2.07    1.73    1.42    1.15    0.92    0.56    0.25    0.07
December 15, 2009   6.07    2.93    4.19    3.53    2.97    2.49    2.07    1.71    1.39    1.11    0.88    0.52    0.23    0.06
December 15, 2010   6.07    2.93    4.19    3.53    2.92    2.38    1.94    1.56    1.25    0.98    0.76    0.43    0.17    0.02
December 15, 2011   6.07    2.93    4.05    3.23    2.46    1.94    1.53    1.19    0.92    0.69    0.51    0.25    0.07    0.00
December 24, 2012   6.07    0.00    0.00    0.00    0.00    0.00    0.00    0.00    0.00    0.00    0.00    0.00    0.00    0.00
</TABLE>

     The exact Common Share Prices and Effective Dates may not be set forth in
the table above, in which case:

     o If the Common Share Price is between two Common Share Price amounts in
the table or the Effective Date is between two Effective Dates in the table, the
number of Additional Common Shares will be determined by a straight-line
interpolation between the number of Additional Common Shares set forth for the
higher and lower Common Share Price amounts and the two dates, as applicable,
based on a 365-day year.

     o If the Common Share Price is greater than US$35.00 (subject to
adjustment), the Conversion Rate will not be adjusted.

     o If the Common Share Price is less than US$17.64 (subject to adjustment),
the Conversion Rate will not be adjusted.

     Notwithstanding the foregoing, in no event will the total number of Common
Shares issuable upon conversion exceed 56.6773 per US$1,000 principal amount of
Securities, subject to adjustment in the same manner as the Conversion Rate as
set forth in Section 15.07.


                                      -84-

<PAGE>

     Section 15.14 Transfer Restrictions. (a) Common Shares issued upon
conversion of Restricted Securities (all Common Shares issued in exchange
therefor or substitution thereof) shall be represented by certificates bearing
the Restricted Securities Legend and shall be subject to the restrictions or
transfer set forth in the Restricted Securities Legend.

     (b) Any Common Shares as to which such restrictions on transfer as to which
the conditions for removal of the Restricted Securities Legend have been
satisfied may, upon surrender of the certificates representing such Common
Shares for exchange in accordance with the procedures of the transfer agent for
the Common Shares, be exchanged for a new certificate or certificates for a like
number of Common Shares, which shall not bear the Restricted Securities Legend.


                                      -85-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed.

                                        CANADIAN SOLAR INC.


                                        By: /s/ Bing Zhu
                                            ------------------------------------
                                            Name:  Bing Zhu
                                            Title: CFO


                                        THE BANK OF NEW YORK,
                                        as Trustee


                                        By: /s/Tin Wan Chung
                                            ------------------------------------
                                            Name:  Tin Wan Chung
                                            Title: Assistant Treasurer

<PAGE>

                                                                       EXHIBIT A

                           [GLOBAL SECURITIES LEGEND]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE
"DEPOSITARY", WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY) TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT
HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                         [RESTRICTED SECURITIES LEGEND]

THE SECURITIES AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS SECURITY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE
COMMON SHARES ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION UNDER
THE SECURITIES ACT.

BY ITS ACQUISITION HEREOF, THE HOLDER (1) AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY PRIOR TO THE END OF THE PERIOD WHILE SUCH SECURITY IS NOT
ELIGIBLE TO BE RESOLD PURSUANT TO RULE 144(K) UNDER THE SECURITIES ACT AS IN
EFFECT ON THE DATE OF TRANSFER OF THIS SECURITY (THE "RESALE RESTRICTION
TERMINATION DATE") ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, INCLUDING RULE 144, IF AVAILABLE, SUBJECT TO THE COMPANY'S AND THE
TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D)
TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF


                                       A-1

<PAGE>

THEM, AND IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF
TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED
AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON
THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.


                                       A-2

<PAGE>

                               CANADIAN SOLAR INC.

                     6.0% CONVERTIBLE SENIOR NOTES DUE 2017

$                                                                         CUSIP:

No.

     Canadian Solar Inc., a Canadian corporation (herein called the "Company",
which term includes any successor corporation under the Indenture referred to on
the reverse hereof), for value received hereby promises to pay to _____________
or its registered assigns, [the principal sum of ___________ Dollars] [the
principal sum of $[_______________] (which principal amount may from time to
time be increased or decreased to such other principal amounts (which, taken
together with the principal amount of all other Securities, shall not exceed
$[_______________]) as then set forth on Schedule I hereto)]1  on December 15,
2017 at the office or agency of the Company maintained for that purpose in
accordance with the terms of the Indenture, in such coin or currency of the
United States of America as at the time of payment shall be legal tender for the
payment of public and private debts, and to pay Interest, semiannually on June
15 or December 15 of each year, commencing June 15, 2008, on said principal sum
at said office or agency, in like coin or currency, at the rate per annum of
6.0%, from the June 15 or December 15, as the case may be, next preceding the
date of this Security to which Interest has been paid or duly provided for, or
unless no Interest has been paid or duly provided for on the Securities, in
which case from December 10, 2007 until payment of said principal sum has been
made or duly provided for. Except as otherwise provided in the Indenture, the
Interest payable on the Security pursuant to the Indenture on any June 15 or
December 15 will be paid to the Person entitled thereto as it appears in the
Security Register at the close of business on the record date, which shall be
the June 1 or December 1 (whether or not a Business Day) next preceding such
June 15 or December 15, as provided in the Indenture; provided that any such
Interest not punctually paid or duly provided for shall be payable as provided
in the Indenture. The Company shall pay Interest (i) on any Securities in
certificated form by check mailed to the address of the Person entitled thereto
as it appears in the Security Register (provided that the holder of Securities
with an aggregate principal amount in excess of $5,000,000 shall, at the written
election of such holder, be paid by wire transfer of immediately available
funds) or (ii) on any Global Security by wire transfer of immediately available
funds to the account of the Depositary or its nominee.

     The Company promises to pay Interest on overdue principal, premium, if any,
and (to the extent that payment of such Interest is enforceable under applicable
law) interest at the rate of 6.0% per annum.

     Reference is made to the further provisions of this Security set forth on
the reverse hereof, including, without limitation, provisions giving the holder
of this Security the right to convert this Security into Common Shares of the
Company or cash or a combination of cash and Common Shares on the terms and
subject to the limitations referred to on the reverse hereof and

- ----------
     1   Include in Global Security.


                                       A-3

<PAGE>

as more fully specified in the Indenture. Such further provisions shall for all
purposes have the same effect as though fully set forth at this place.

     This Security shall be deemed to be a contract made under the laws of the
State of New York, and for all purposes shall be construed in accordance with
and governed by the laws of the State of New York.

     This Security shall not be valid or become obligatory for any purpose until
the certificate of authentication hereon shall have been manually signed by the
Trustee or a duly authorized authenticating agent under the Indenture.


                                       A-4

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Security to be duly
executed.

                                        CANADIAN SOLAR INC.


                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:


Attest:


By:
    ---------------------------------
    Name:
    Title:

Dated:


TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Securities described in the within-named Indenture.

THE BANK OF NEW YORK, as Trustee


By:
    ---------------------------------
    Authorized Signatory


                                       A-5

<PAGE>

                           FORM OF REVERSE OF SECURITY

                               CANADIAN SOLAR INC.

                     6.0% CONVERTIBLE SENIOR NOTES DUE 2017

     This Security is one of a duly authorized issue of Securities of the
Company, designated as its "6.0% Convertible Senior Notes due 2017" (herein
called the "Securities"), issued and to be issued under and pursuant to an
Indenture dated as of December 10, 2007 (herein called the "Indenture"), between
the Company and The Bank of New York, as trustee (herein called the "Trustee"),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a description of the rights, limitations of rights, obligations, duties
and immunities thereunder of the Trustee, the Company and the holders of the
Securities.

     The Securities are unsecured obligations of the Company. The aggregate
principal amount of Initial Securities outstanding at any time may not exceed
$75,000,000 in aggregate principal amount, except as provided in Section 2.06 of
the Indenture. The Indenture pursuant to which this Security is issued provides
that Additional Securities may be issued thereunder, if certain conditions are
met. The Indenture does not limit other debt of the Company, whether secured or
unsecured.

     In case an Event of Default shall have occurred and be continuing, the
principal of, premium, if any, and accrued and unpaid Interest on all Securities
may be declared by either the Trustee or the holders of not less than 25% in
aggregate principal amount of the Securities then outstanding, and upon said
declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the holders of at least a majority in aggregate principal
amount of the Securities at the time outstanding, to execute supplemental
indentures adding any provisions to or changing in any manner or eliminating any
of the provisions of the Indenture or of any supplemental indenture or modifying
in any manner the rights of the holders of the Securities; provided that no such
supplemental indenture may be entered without the consent of the holders of all
Securities then outstanding except in the events described in Section 9.02 of
the Indenture.

     Subject to the provisions of the Indenture, the holders of a majority in
aggregate principal amount of the Securities at the time outstanding may on
behalf of the holders of all of the Securities waive any past default or Event
of Default under the Indenture and its consequences except (A) a default in the
payment of Interest, or any premium on, or the principal of, any of the
Securities, (B) a failure by the Company to convert any Securities into Common
Shares of the Company, cash or a combination of cash and Common Shares, (C) a
default in the payment of the redemption price pursuant to Article 14 of the
Indenture, (D) a default in failing to make an offer to purchase pursuant to a
Fundamental Change or in the payment of the repurchase price or the fundamental
change repurchase price pursuant to Article 14 of the Indenture, or (E) a
default in respect of a covenant or provisions of the Indenture which under
Article 9 of the Indenture cannot be modified or amended without the consent of
the holders of each or all Securities then outstanding or affected thereby. Upon
any such waiver, the Company, the Trustee and the


                                       A-6

<PAGE>

holders of the Securities shall be restored to their former positions and rights
hereunder; but no such waiver shall extend to any subsequent or other default or
Event of Default or impair any right consequent thereon. Whenever any default or
Event of Default hereunder shall have been waived as permitted by Section 5.07
of the Indenture, said default or Event of Default shall for all purposes of the
Securities and the Indenture be deemed to have been cured and to be not
continuing; but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon.

     No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and Interest
on this Security at the place, at the respective times, at the rate and in the
coin or currency herein prescribed.

     Interest on the Securities shall be computed on the basis of a 360-day year
of twelve 30-day months.

     The Securities are issuable in fully registered form, without coupons, in
denominations of $1,000 principal amount and any multiple of $1,000. At the
office or agency of the Company referred to on the face hereof, and in the
manner and subject to the limitations provided in the Indenture, without payment
of any service charge but may be with payment of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in connection
with any registration or exchange of Securities, Securities may be exchanged for
a like aggregate principal amount of Securities of any other authorized
denominations.

     The Company may not redeem any Securities prior to December 24, 2012. At
any time on or after December 24, 2012 and prior to maturity, and subject to the
proviso below, the Securities may be redeemed in cash at the option of the
Company, at any time and from time to time, upon notice as set forth in Section
14.02, at a redemption price per security equal to 100% of the principal amount
of the Security, together with accrued and unpaid Interest, if any, to, but
excluding, the date fixed for redemption; (i) in whole or in part, if the Last
Reported Sale Price of the Common Shares for at least 20 Trading Days in a
period of 30 consecutive Trading Days ending within five (5) Trading Days
immediately preceding the notice to holders is at least 130% of the applicable
Conversion Price in effect on such Trading Day or (ii) in whole only, if at
least 95% of the initial aggregate principal amount of Securities originally
issued have been redeemed, repurchased or converted and, in each case, cancelled
by the Trustee; and provided further that if the redemption date falls after a
record date and on or prior the corresponding interest payment date, then the
full amount of Interest payable on such interest payment date shall be paid to
the holders of record of such Securities on the applicable record date instead
of the holders surrendering such Securities for redemption on such date. We are
required to give notice of redemption by mail to holders not more than 60 but
not less than 20 days prior to the redemption date.

     The Company may not give notice of any redemption of the Securities if a
default in the payment of Interest, or premium, if any, on the Securities has
occurred and is continuing or if the principal amount of the Securities has been
accelerated.

     The Securities are not subject to redemption through the operation of any
sinking fund.


                                       A-7

<PAGE>

     All payments made by the Company or any successor to the Company under or
with respect to the Securities will be made without withholding or deduction for
taxes unless the Company is required to do so in accordance with Section 15.09
of the Indenture, in which case the Company will pay such Additional Amounts as
may be necessary so that the net amount received by holders of the Securities
(other than certain exclusions) after such withholding or deduction shall equal
the amount that would have been received in the absence of such withholding or
deduction.

     In the event of certain changes to the laws governing a Relevant Taxing
Jurisdiction, the Company will have the option to redeem, in whole but not in
part, the Securities for a purchase price equal to 100% of the principal amount
of the Securities to be purchased plus any accrued and unpaid Interest,
including any Additional Amounts, up to, but excluding, the Repurchase Date.
Upon the Company's giving a notice of redemption, a holder may elect not to have
its Securities redeemed, in which case such holder would not be entitled to
receive the Additional Amounts after the redemption date.

     The holders may require the Company to repurchase any outstanding
Securities for cash, on December 24, 2012 and December 15, 2014 (each a
"Repurchase Date") at a purchase price per Security equal to 100% of the
aggregate principal amount of the Security, together with any accrued and unpaid
interest, to but not including the applicable Repurchase Date; provided that if
such Repurchase Date is an interest payment date, interest on the Securities
will be payable to the Holders in whose names the Securities are registered at
the close of business on the relevant Regular Record Date. The Company shall
give written notice of the applicable Repurchase Date by delivery of the
Repurchase Notice as provided in the Indenture, to each Holder (at its address
shown in the register of the Registrar) and to beneficial owners as required by
applicable law, not less than 20 Business Days prior to each Repurchase Date.

     If a Fundamental Change occurs at any time prior to maturity of the
Securities, the Company shall become obligated to make an offer to purchase,
which may be accepted at the option of the holder, all or any portion of the
Securities held by such holder, on a date specified by the Company not less than
twenty (20) and not more than thirty-five (35) Business Days after notice
thereof at a purchase price of 100% of the principal amount, plus any accrued
and unpaid Interest, on such Security up to, but excluding, the Fundamental
Change Purchase Date; provided that if the repurchase date falls after a record
date and on or prior the corresponding interest payment date, then the full
amount of Interest payable on such interest payment date shall be paid to the
holders of record of such Securities on the applicable record date instead of
the holders surrendering such Securities for repurchase on such date. The
Securities will be redeemable in multiples of $1,000 principal amount. The
Company shall mail to all holders of record of the Securities a notice of the
occurrence of a Fundamental Change, the Company's offer to purchase and the
holder's right to accept the Company's offer to purchase arising as a result
thereof on or before the 20th day after the occurrence of such Fundamental
Change. To accept such offer, a holder shall deliver to the Company such
Security with the form entitled "Fundamental Change Purchase Notice" on the
reverse thereof duly completed, together with the Security, duly endorsed for
transfer, at any time prior to the close of business on the fifth Business Day
prior to the Fundamental Change Purchase Date, and shall deliver the Securities
to the Trustee (or other paying agent appointed by the Company) as set forth in
the Indenture.


                                       A-8

<PAGE>

     Holders have the right to withdraw any Fundamental Change Purchase Notice
by delivering to the Trustee (or other paying agent appointed by the Company) a
written notice of withdrawal up to the close of business on the Fundamental
Change Purchase Date all as provided in the Indenture.

     If sufficient money to pay the purchase price of all Securities or portions
thereof to be purchased as of the Fundamental Change Purchase Date is deposited
with the Trustee (or other paying agent appointed by the Company), on the
Business Day following the Fundamental Change Purchase Date, the Securities will
cease to be outstanding, Interest will cease to accrue on such Securities (or
portions thereof) immediately after the Fundamental Change Purchase Date, and
the holder thereof shall have no other rights as such other than the right to
receive the repurchase price upon surrender of such Security.

     Subject to the provisions of the Indenture, at any time prior to the final
maturity date of the Securities, the holder hereof has the right, at its option,
to convert each $1,000 principal amount of the Securities into 50.6073 shares of
the Company's Common Shares (a conversion price of approximately $19.76 per
share), as such shares shall be constituted at the date of conversion and
subject to adjustment from time to time as provided in the Indenture, upon
surrender of this Security with the form entitled "Conversion Notice" on the
reverse thereof duly completed, to the Company at the office or agency of the
Company maintained for that purpose in accordance with the terms of the
Indenture, or at the option of such holder, the Corporate Trust Office, and,
unless the shares issuable on conversion are to be issued in the same name as
this Security, duly endorsed by, or accompanied by instruments of transfer in
form satisfactory to the Company duly executed by, the holder or by his duly
authorized attorney.

     The Conversion Rate on any Securities surrendered for conversion in
connection with a Fundamental Change may be increased by an amount, if any,
determined in accordance with Section 15.01 of the Indenture.

     With the consent of at least 25% of holders, the Company and the Trustee
may amend the Indenture to permit, at the Company's option, settlement upon
conversion in cash or a combination of cash and Common Shares as described in
the Indenture.

     No adjustment in respect of Interest on any Security converted or dividends
on any shares issued upon conversion of such Security will be made upon any
conversion except as set forth in the next sentence. If this Security (or
portion hereof) is surrendered for conversion during the period from the close
of business on any record date for the payment of Interest to the close of
business on the Business Day preceding the following interest payment date, this
Security (or portion hereof being converted) must be accompanied by payment, in
immediately available funds or other funds acceptable to the Company, of an
amount equal to the Interest otherwise payable on such interest payment date on
the principal amount being converted; provided that no such payment shall be
required (1) if the Company has specified a redemption date that is after a
record date and on or prior to the next interest payment date, (2) if the
Company has specified a Fundamental Change Purchase Date following a Fundamental
Change or a Purchase Date that is during such period or (3) to the extent of any
overdue Interest, if any overdue Interest exists at the time of conversion with
respect to such Security.


                                       A-9

<PAGE>

     No fractional shares will be issued upon any conversion, but an adjustment
and payment in cash (not exceeding the U.S. dollar equivalent of Cdn$200) will
be made, as provided in the Indenture, in respect of any fraction of a share
which would otherwise be issuable upon the surrender of any Security or
Securities for conversion.

     A Security in respect of which a holder accepts an offer by the Company to
purchase its Securities upon a Fundamental Change may be converted only if such
holder withdraws its election to exercise either such right in accordance with
the terms of the Indenture.

     Any Securities called for redemption, unless surrendered for conversion by
the holders thereof on or before the close of business on the Business Day
preceding the redemption date, may be deemed to be redeemed from the holders of
such Securities for an amount equal to the applicable redemption price, together
with accrued but unpaid Interest to, but excluding, the date fixed for
redemption, by one or more investment banks or other purchasers who may agree
with the Company (i) to purchase such Securities from the holders thereof and
convert them into shares of the Company's Common Shares and (ii) to make payment
for such Securities as aforesaid to the Trustee in trust for the holders.

     Upon due presentment for registration of transfer of this Security at the
office or agency of the Company maintained for that purpose in accordance with
the terms of the Indenture, a new Security or Securities of authorized
denominations for an equal aggregate principal amount will be issued to the
transferee in exchange thereof, subject to the limitations provided in the
Indenture, without charge except for any tax, assessment or other governmental
charge may be imposed in connection therewith.

     The Company, the Trustee, any authenticating agent, any paying agent, any
conversion agent and any Security Registrar may deem and treat the registered
holder hereof as the absolute owner of this Security (whether or not this
Security shall be overdue and notwithstanding any notation of ownership or other
writing hereon made by anyone other than the Company or any Security Registrar)
for the purpose of receiving payment hereof, or on account hereof, for the
conversion hereof and for all other purposes, and neither the Company nor the
Trustee nor any other authenticating agent nor any paying agent nor other
conversion agent nor any Security Registrar shall be affected by any notice to
the contrary. All payments made to or upon the order of such registered holder
shall be valid, and, to the extent of the sum or sums paid, satisfy and
discharge liability for monies payable on this Security.

     No recourse for the payment of the principal of or any premium or Interest
on this Security, or for any claim based hereon or otherwise in respect hereof,
and no recourse under or upon any obligation, covenant or agreement of the
Company in the Indenture or any supplemental indenture or in any Security, or
because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, employee, agent, officer or director or
subsidiary, as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment or penalty or otherwise, all such liability
being, by acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.


                                      A-10

<PAGE>

     This Security shall be deemed to be a contract made under the laws of New
York, and for all purposes shall be construed in accordance with the laws of New
York, without regard to conflicts of laws principles thereof.

     Terms used in this Security and defined in the Indenture are used herein as
therein defined.


                                      A-11

<PAGE>

                                  ABBREVIATIONS

          The following abbreviations, when used in the inscription of the face
of this Security, shall be construed as though they were written out in full
according to applicable laws or regulations.

<TABLE>
<S>         <C>                                           <C>
TEN COM -   as tenants in common                          UNIF GIFT MIN ACT -___ Custodian ___
TEN ENT -   as tenant by the entireties                   (Cust)    (Minor)
JT TEN -    as joint tenants with right of survivorship   under Uniform Gifts to Minors Act
            and not as tenants in common                  _________________________________
            (State)
</TABLE>

            Additional abbreviations may also be used though not in the above
list.

<PAGE>

                                CONVERSION NOTICE

TO:             CANADIAN SOLAR INC.
                No. 199 Lushan Road
                Suzhou New District
                Suzhou, Jiangsu 215129
                People's Republic of China

                THE BANK OF NEW YORK
                101 Barclay Street, 4 East
                New York, NY 10286
                U.S.A.
                Facsimile No.: (212) 815-5802 or (212) 815-5803
                Attention: Global Corporate Trust

With a copy to:

                THE BANK OF NEW YORK
                12/F Three Pacific Place
                1 Queen's Road East
                Hong Kong
                Facsimile No.: (852) 2295-3283
                Attention: Global Corporate Trust

     The undersigned registered owner of this Security hereby irrevocably
exercises the option to convert this Security, or the portion thereof (which is
$1,000 or a multiple thereof) below designated, into Common Shares of Canadian
Solar Inc., cash or a combination of cash and Common Shares in accordance with
the terms of the Indenture referred to in this Security, and directs that the
shares and/or cash issuable and deliverable upon such conversion, together with
any check in payment for fractional shares and any Securities representing any
unconverted principal amount hereof, be issued and delivered to the registered
holder hereof unless a different name has been indicated below. Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the Indenture. If shares or any portion of this Security not converted are to
be issued in the name of a person other than the undersigned, the undersigned
will provide the appropriate information below and pay all transfer taxes
payable with respect thereto. Any amount required to be paid by the undersigned
on account of Interest accompanies this Security.

Dated: ______________________

                                        ________________________________________


                                        ________________________________________
                                        Signature(s)

<PAGE>

                                        Signature(s) must be guaranteed by an
                                        "eligible guarantor institution" meeting
                                        the requirements of the Security
                                        Registrar, which requirements include
                                        membership or participation in the
                                        Security Transfer Agent Medallion
                                        Program ("STAMP") or such other
                                        "signature guarantee program" as may be
                                        determined by the Security Registrar in
                                        addition to, or in substitution for,
                                        STAMP, all in accordance with the
                                        Securities Exchange Act of 1934, as
                                        amended.


                                        ________________________________________
                                        Signature Guarantee

1.   Total principal amount and serial or identification numbers of Securities
     to be converted:

     Total principal amount of Securities: _______________

     [Serial or identifying number of Securities: ______________________________
                                                      (not required for Bonds
                                                     represented by the Global
                                                               Bond)

     ISIN number of Securities: __________________________

     N.B. If necessary, the serial or identifying numbers of Securities can be
     attached separately.

2.   Name and address of the person in whose name Common Shares required to be
     delivered on conversion are to be registered:

     Name: __________________________

     Address: _______________________

3.   I/We hereby request that the certificate for the Common Shares (together
     with any cash) required to be delivered upon conversion be dispatched (at
     my/our own risk and expense) to the local agent whose name and address is
     given below and in the manner specified below, or if the conditions specify
     that delivery of the Common Shares is to be made in book-entry form, the
     Common Shares be credited to the securities account specified below:

     Name: __________________________

     Address: _______________________

              _______________________

<PAGE>

     Contact Person: ________________

     Telephone No.: _________________

     Fax No.: _______________________

     Manner of Dispatch: _________________

     Securities House: ___________________

     Securities Account Number: _______________

4.   I/We hereby declare that any applicable condition to conversion of the
     Securities, if any, has been complied with by me/us.

5.   I/We hereby declare that all stamp, issue, registration or similar taxes
     and duties payable on conversion, issue or delivery of Common Shares of any
     other property or cash have been paid.

6.   I/We hereby declare that all stamp, issue, registration or similar taxes
     and duties payable on conversion, issue or delivery of Common Shares or any
     other property or cash have been paid.

<PAGE>

                       FUNDAMENTAL CHANGE PURCHASE NOTICE

TO:             CANADIAN SOLAR INC.
                No. 199 Lushan Road
                Suzhou New District
                Suzhou, Jiangsu 215129
                People's Republic of China

                THE BANK OF NEW YORK
                101 Barclay Street, 4 East
                New York, NY 10286
                U.S.A.
                Facsimile No.: (212) 815-5802 or (212) 815-5803
                Attention: Global Corporate Trust

With a copy to:

                THE BANK OF NEW YORK
                12/F Three Pacific Place
                1 Queen's Road East
                Hong Kong
                Facsimile No.: (852) 2295-3283
                Attention: Global Corporate Trust

     The undersigned registered owner of this Security hereby irrevocably
acknowledges receipt of a notice from Canadian Solar Inc. (the "Company")
regarding the right of holders to accept the Company's offer to purchase the
Securities upon the occurrence of a Fundamental Change with respect to the
Company and accepts such offer and requests and instructs the Company to repay
the entire principal amount of this Security, or the portion thereof (which is
$1,000 or an integral multiple thereof) below designated, in accordance with the
terms of the Indenture at the price of 100% of such entire principal amount or
portion thereof, together with accrued Interest to, but excluding, the
Fundamental Change Purchase Date, to the registered holder hereof, provided that
if such Fundamental Change Purchase Date falls after a record date and on or
prior to the corresponding interest payment date, then the full amount of
Interest payable on such interest payment date shall be paid to the holders of
record of the Securities on the applicable record date instead of the holders
surrendering the Securities for repurchase on such Fundamental Change Purchase
Date. Capitalized terms used herein but not defined shall have the meanings
ascribed to such terms in the Indenture. The Securities shall be purchased by
the Company as of the portion thereof, together with accrued Interest to, but
excluding, the Fundamental Change Purchase Date pursuant to the terms and
conditions specified in the Indenture, provided that if such Fundamental Change
Purchase Date falls after a record date and on or prior to the corresponding
interest payment date, then the full amount of Interest payable on such interest
payment date shall be paid to the holders of record of the Securities on the
applicable record date instead of the holders surrendering the Securities for
repurchase on such Fundamental Change Purchase Date. The undersigned registered
owner elects:

<PAGE>

[ ]       to withdraw this Fundamental Change Purchase Notice as to $[ ]
principal amount of the Securities to which this Fundamental Change Purchase
Notice relates (Certificate Numbers:    ), or

[ ]       to accept the offer receive cash in respect of $[ ] principal amount
of the Securities to which this Fundamental Change Purchase Notice relates.

     Dated:

     Signature(s):

     NOTICE: The above signatures of the holder(s) hereof must correspond with
the name as written upon the face of the Security in every particular without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Principal amount to be repurchased (if less than all):

     Social Security or Other Taxpayer Identification Number:

<PAGE>

                      REPURCHASE NOTICE ON SPECIFIED DATES

TO:             CANADIAN SOLAR INC.
                No. 199 Lushan Road
                Suzhou New District
                Suzhou, Jiangsu 215129
                People's Republic of China

                THE BANK OF NEW YORK
                101 Barclay Street, 4 East
                New York, NY 10286
                U.S.A.
                Facsimile No.: (212) 815-5802 or (212) 815-5803
                Attention: Global Corporate Trust

With a copy to:

                THE BANK OF NEW YORK
                12/F Three Pacific Place
                1 Queen's Road East
                Hong Kong
                Facsimile No.: (852) 2295-3283
                Attention: Global Corporate Trust

     The undersigned registered owner of this Security hereby irrevocably
acknowledges receipt of a notice from Canadian Solar Inc. (the "Company")
regarding the right of holders to elect to require the Company to repurchase the
Securities on [December 24, 2012/December 15, 2014] and requests and instructs
the Company to repay the entire principal amount of this Security, or the
portion thereof (which is $1,000 or an integral multiple thereof) below
designated, in accordance with the terms of the Indenture at the price of 100%
of such entire principal amount or portion thereof, together with accrued
Interest to, but excluding, the Repurchase Date, to the registered holder
hereof, provided that if such Repurchase Date falls after a record date and on
or prior to the corresponding interest payment date, then the full amount of
Interest payable on such interest payment date shall be paid to the holders of
record of the Securities on the applicable record date instead of the holders
surrendering the Securities for repurchase on such Repurchase Date. Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms
in the Indenture. The Securities shall be repurchased by the Company as of the
portion thereof, together with accrued Interest to, by excluding, the Repurchase
Date pursuant to the terms and conditions specified in the Indenture, provided
that if such Repurchase Date falls after a record date and on or prior to the
corresponding interest payment date, then the full amount of Interest payable on
such interest payment date shall be paid to the holders of record of the
Securities on the applicable record date instead of the holders surrendering the
Securities for repurchase on such Repurchase Date. The undersigned registered
owner elects:

<PAGE>

[ ]       to withdraw this Repurchase Notice as to $[ ] principal amount of the
Securities to which this Repurchase Notice relates (Certificate Numbers: ), or

[ ]       to receive cash in respect of $[ ] principal amount of the Securities
to which this Repurchase Notice relates.

     Dated:

     Signature(s):

     NOTICE: The above signatures of the holder(s) hereof must correspond with
the name as written upon the face of the Security in every particular without
alteration or enlargement or any change whatever.

     Security Certificate Number (if applicable):

     Principal amount to be repurchased (if less than all):

     Social Security or Other Taxpayer Identification Number:

<PAGE>

                                   ASSIGNMENT

     For value received ______________________________hereby sell(s) assign(s)
and transfer(s) unto___________________________________ (Please insert social
security or other Taxpayer Identification Number of assignee) the within
Security, and hereby irrevocably constitutes and appoints
______________________________________ attorney to transfer said Security on the
books of the Company, with full power of substitution in the premises.

     In connection with any transfer of the Security prior to the date that is
two years after the last original issue date of the Securities (other than any
transfer pursuant to a registration statement that has been declared effective
under the Securities Act), the undersigned confirms that such Security is being
transferred:

     [ ]  To Canadian Solar Inc. or a subsidiary thereof; or

     [ ]  To a "qualified institutional buyer" in compliance with Rule 144A
          under the Securities Act of 1933, as amended; or

     [ ]  Pursuant to and in compliance with Rule 144 under the Securities Act
          of 1933, as amended; or

     [ ]  Pursuant to a Registration Statement which has been declared
          effective under the Securities Act of 1933, as amended, and which
          continues to be effective at the time of transfer;

and unless the Security has been transferred to Canadian Solar Inc. or a
subsidiary thereof, the undersigned confirms that such Security is not being
transferred to an "affiliate" of the Company as defined in Rule 144 under the
Securities Act of 1933, as amended.

     Unless one of the boxes is checked, the Trustee will refuse to register any
of the Securities evidenced by this certificate in the name of any person other
than the registered holder thereof.

Dated: ______________________

                                        ________________________________________


                                        ________________________________________
                                        Signature(s)

                                        Signature(s) must be guaranteed by an
                                        "eligible guarantor institution" meeting
                                        the requirements of the Security
                                        Registrar, which requirements include
                                        membership or participation in the
                                        Security Transfer Agent Medallion
                                        Program ("STAMP") or such other
                                        "signature guarantee program" as may be
                                        determined by the Security Registrar in

<PAGE>

                                        addition to, or in substitution for,
                                        STAMP, all in accordance with the
                                        Securities Exchange Act of 1934, as
                                        amended.


                                        ________________________________________
                                        Signature Guarantee

NOTICE: The signature on the Conversion Notice, the Repurchase Notice or the
Assignment must correspond with the name as written upon the face of the
Security in every particular without alteration or enlargement or any change
whatever.

<PAGE>

                                                                     Schedule I*


                               CANADIAN SOLAR INC.
                     ___% CONVERTIBLE SENIOR NOTES DUE 2017

No. _______

<TABLE>
<CAPTION>
                          Notation Explaining Principal   Authorized Signature of
Date   Principal Amount          Amount Recorded            Trustee or Custodian
- ----   ----------------   -----------------------------   -----------------------
<S>    <C>                <C>                             <C>

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------

- ----   ----------------   -----------------------------   -----------------------
</TABLE>

- ----------
     *    To be included only for a Global Security.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.4
<SEQUENCE>3
<FILENAME>h01912exv4w4.txt
<DESCRIPTION>EX-4.4 REGISTRATION RIGHTS AGREEMENT
<TEXT>
<PAGE>
                                                                     Exhibit 4.4

                                                                  EXECUTION COPY






                          REGISTRATION RIGHTS AGREEMENT


                          Dated as of December 10, 2007


                                     between


                               CANADIAN SOLAR INC.


                                       and


                               PIPER JAFFRAY & CO.





<PAGE>

     REGISTRATION RIGHTS AGREEMENT, dated as of December 10, 2007 (the
"Agreement"), between Canadian Solar Inc., a Canadian corporation (the
"Company"), and Piper Jaffray & Co (the "Initial Purchaser"), who are parties to
that certain Purchase Agreement, dated December 4, 2007 (the "Purchase
Agreement"). In order to induce the Initial Purchaser to enter into the Purchase
Agreement, the Company has agreed to provide the registration rights set forth
in this Agreement. The execution of this Agreement is a condition to the closing
under the Purchase Agreement.

     The Company agrees with the Initial Purchaser, (i) for its benefit as
Initial Purchaser and (ii) for the benefit of the beneficial owners (including
the Initial Purchaser) from time to time of the Securities (as defined herein)
and the beneficial owners from time to time of the Underlying Common Shares (as
defined herein) issued upon conversion of the Securities (each of the foregoing
a "Holder" and together the "Holders"), as follows:

     SECTION 1. Definitions. Capitalized terms used herein without definition
shall have their respective meanings set forth in the Purchase Agreement. As
used in this Agreement, the following terms shall have the following meanings:

     "Additional Interest Amount" has the meaning set forth in Section 2(e)
hereof.

     "Affiliate" means with respect to any specified person, an "affiliate," as
defined in Rule 144, of such person.

     "Amendment Effectiveness Deadline" has the meaning set forth in Section
2(d) hereof.

     "Business Day" means any day, except a Saturday, Sunday or legal holiday on
which banking institutions in The City of New York are authorized or obligated
by law or executive order to close.

     "Common Shares" means the common shares, no par value per share, of the
Company, and any other common shares as may constitute "Common Shares" for
purposes of the Indenture, including the Underlying Common Shares.

     "Deferral Notice" has the meaning set forth in Section 3(h) hereof.

     "Deferral Period" has the meaning set forth in Section 3(h) hereof.

     "Effectiveness Deadline" has the meaning set forth in Section 2(a) hereof.

     "Effectiveness Period" means the period commencing on the first date that a
Shelf Registration Statement is declared effective under the Securities Act
hereof and ending on the date that all Securities and the Underlying Common
Shares have ceased to be Registrable Securities.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations of the SEC promulgated thereunder.

     "Filing Deadline" has the meaning set forth in Section 2(a) hereof.
<PAGE>

     "Holder" has the meaning set forth in the second paragraph of this
Agreement.

     "Indenture" means the Indenture, dated as of December 10, 2007, between the
Company and The Bank of New York, as trustee, pursuant to which the Securities
are being issued.

     "Initial Purchaser" has the meaning set forth in the preamble hereof.

     "Interest Payment Date" means each June 15 and December 15.

     "Issue Date" means the first date of original issuance of the Securities.

     "Judgment Currency" has the meaning set forth in Section 8(h) hereof.

     "Material Event" has the meaning set forth in Section 3(h) hereof.

     "Notice and Questionnaire" means a written notice delivered to the Company
containing substantially the information called for by the Selling
Securityholder Notice and Questionnaire attached as Annex A to the Offering
Memorandum of the Company, dated December 4, 2007, relating to the offer of the
Securities.

     "Notice Holder" means, on any date, any Holder that has delivered a Notice
and Questionnaire to the Company on or prior to such date.

     "Purchase Agreement" has the meaning set forth in the preamble hereof.

     "Prospectus" means a prospectus included in a Shelf Registration Statement
(including, without limitation, an "issuer free writing prospectus," as such
term is defined in Rule 433 under the Securities Act and a prospectus that
discloses information previously omitted pursuant to Rule 430A under the
Securities Act), as amended or supplemented, and all materials incorporated by
reference in such prospectus or free writing prospectus.

     "Record Holder" means with respect to any Interest Payment Date relating to
any Securities or Underlying Common Shares as to which any Additional Interest
Amount has accrued, the registered holder of such Security or Underlying Common
Shares on the June 1 or December 1 immediately preceding the Interest Payment
Date.

     "Registrable Securities" means the Securities until such Securities have
been converted into or exchanged for the Underlying Common Shares and, at all
times subsequent to any such conversion, the Underlying Common Shares and any
securities into or for which such Underlying Common Shares has been converted or
exchanged, and any security issued with respect thereto upon any share dividend,
split or similar event until, in the case of any such security, (A) the earliest
of (i) two years from the latest date of original issuance of the Securities,
(ii) its effective registration under the Securities Act and resale in
accordance with a Shelf Registration Statement, (iii) expiration of the holding
period that would be applicable thereto for non-affiliates pursuant to Rule
144(k) under the Securities Act (as in effect on the date of its transfer), or
(iv) its cessation of being outstanding, and (B) as a result of the event or

                                       3
<PAGE>
circumstance described in any of the foregoing clauses (i) through (iv), the
legend with respect to transfer restrictions required under the Indenture is
removed or removable in accordance with the terms of the Indenture or such
legend, as the case may be.

     "Registration Default" has the meaning set forth in Section 2(e) hereof.

     "Registration Default Period" has the meaning set forth in Section 2(e)
hereof.

     "Rule 144" means Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC.

     "Rule 144A" means Rule 144A under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC.

     "SEC" means the Securities and Exchange Commission.

     "Securities" means the 6.0% Convertible Senior Notes due 2017 of the
Company to be purchased pursuant to the Purchase Agreement.

     "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated by the SEC thereunder.

     "Shelf Registration Statement" has the meaning set forth in Section 2(a)
hereof, including amendments to such registration statement, all exhibits and
all materials incorporated by reference in such registration statement.

     "Special Counsel" means Wilson Sonsini Goodrich and Rosati, Professional
Counsel, or one such other successor counsel as shall be specified by the
Holders of a majority of the Registrable Securities, but which may, with the
written consent of the Initial Purchaser (which shall not be unreasonably
withheld), be another nationally recognized law firm experienced in securities
law matters designated by the Company. For purposes of determining Holders of a
majority of the Registrable Securities in this definition, Holders of Securities
shall be deemed to be the Holders of the number of shares of Underlying Common
Shares into which such Securities are or would be convertible as of the date the
consent is requested.

     "TIA" means the Trust Indenture Act of 1939, as amended.

     "Trustee" means The Bank of New York, the Trustee under the Indenture.

     "Underlying Common Shares" means the Common Shares into which the
Securities are convertible or issued upon any such conversion.

     SECTION 2. Shelf Registration. (a) The Company shall prepare and file or
cause to be prepared and filed with the SEC, as soon as practicable but in any
event by the date (the "Filing Deadline") 120 days after the Issue Date, a
registration statement for an offering to be made on a delayed or continuous
basis pursuant to Rule 415 of the Securities Act registering the resale from
time to time by Holders thereof of all of the Registrable Securities (a "Shelf
Registration

                                       4
<PAGE>

Statement"). The Shelf Registration Statement shall be on Form F-3 or another
appropriate form permitting registration of the Registrable Securities for
resale by the Holders in accordance with the methods of distribution elected by
the Holders and set forth in the Shelf Registration Statement; provided, however
that in no event shall such method of distribution take the form of an
underwritten offering of the Registrable Securities without the prior written
consent of the Company. The Company shall use its commercially reasonable
efforts to cause a Shelf Registration Statement to be declared effective under
the Securities Act as promptly as is practicable but in any event by the date
(the "Effectiveness Deadline") that is 210 days after the Issue Date, and to
keep a Shelf Registration Statement continuously effective under the Securities
Act until the expiration of the Effectiveness Period. Each Holder that became a
Notice Holder on or prior to the date five Business Days prior to the date the
initial Shelf Registration Statement is declared effective shall be named as a
selling security holder in the initial Shelf Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver or make
available the Prospectus to purchasers of Registrable Securities in accordance
with applicable law. Only Registrable Securities shall be included in a Shelf
Registration Statement.

     (b) If a Shelf Registration Statement covering resales of the Registrable
Securities ceases to be effective for any reason at any time during the
Effectiveness Period (other than because all securities registered thereunder
shall have been resold pursuant thereto or shall have otherwise ceased to be
Registrable Securities), the Company shall use its reasonable best efforts to
obtain the prompt withdrawal of any order suspending the effectiveness thereof,
and in any event shall within 30 days of such cessation of effectiveness amend
the Shelf Registration Statement in a manner reasonably expected to obtain the
withdrawal of the order suspending the effectiveness thereof, or file an
additional Shelf Registration Statement so that all Registrable Securities
outstanding as of the date of such filing are covered by a Shelf Registration
Statement. If a new Shelf Registration Statement is filed pursuant to this
Section 2(b), the Company shall use its commercially reasonable efforts to cause
the new Shelf Registration Statement to become effective as promptly as is
practicable after such filing and to keep the new Shelf Registration Statement
continuously effective until the end of the Effectiveness Period.

     (c) The Company shall amend and supplement the Prospectus and/or amend the
Shelf Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such
Shelf Registration Statement or file a new Shelf Registration Statement, if
required by the Securities Act or as necessary and reasonably requested by the
Initial Purchaser or by the Trustee on behalf of the Holders of the Registrable
Securities covered by such Shelf Registration Statement to correct any material
misstatements or omissions with respect to any Holder as necessary to name a
Notice Holder as a selling securityholder pursuant to Section 2(d) below.

     (d) Each Holder may sell Registrable Securities pursuant to a Shelf
Registration Statement and related Prospectus only in accordance with this
Section 2(d) and Section 3(h). Each Holder wishing to sell Registrable
Securities pursuant to a Shelf Registration Statement and related Prospectus
shall deliver a Notice and Questionnaire to the Company at least 10 Business
Days prior to any intended distribution of Registrable Securities under the
Shelf Registration Statement. From and after the date the initial Shelf
Registration Statement is declared effective,

                                    5

<PAGE>

the Company shall, as promptly as practicable after the date a Notice and
Questionnaire is delivered pursuant to Section 8(c) hereof, and in any event on
or before the later of (x) five Business Days after such delivery date or (y)
five Business Days after the expiration of any Deferral Period in effect when
the Notice and Questionnaire is delivered or put into effect within five
Business Days of such delivery date:

          (i) if required by applicable law, file with the SEC a post-effective
     amendment to the Shelf Registration Statement or prepare and, if required
     by applicable law, file a supplement to the related Prospectus or a
     supplement or amendment to any document incorporated therein by reference
     or file a new Shelf Registration Statement or any other required document
     so that the Holder delivering such Notice and Questionnaire is named as a
     selling securityholder in a Shelf Registration Statement and the related
     Prospectus in such a manner as to permit such Holder to deliver or make
     available such Prospectus to purchasers of the Registrable Securities in
     accordance with applicable law and, if the Company shall file a
     post-effective amendment to a Shelf Registration Statement or shall file a
     new Shelf Registration Statement, the Company shall use its commercially
     reasonable efforts to cause such post-effective amendment or new Shelf
     Registration Statement to be declared effective under the Securities Act as
     promptly as is practicable, but in any event by the date (the "Amendment
     Effectiveness Deadline") that is 45 days after the date such post-effective
     amendment or new Shelf Registration Statement is required by this Section
     2(d) to be filed; provided, however, that the Shelf Registration Statement
     shall include the disclosure required by Rule 430B under the Securities Act
     in order to enable the Company to add selling security holders on to the
     Shelf Registration Statement pursuant to the filing of prospectus
     supplements; and provided further, if the Company is then able to name a
     selling security holder to the Shelf Registration Statement by means of
     either a supplement to the related prospectus or a post-effective
     amendment, the Company shall file a prospectus supplement to name the
     Holder as a selling security holder in the Shelf Registration Statement;

          (ii) provide such Holder copies of any documents filed pursuant to
     Section 2(d)(i); and

          (iii) notify such Holder as promptly as practicable after the
     effectiveness under the Securities Act of any new Shelf Registration
     Statement or post-effective amendment filed pursuant to Section 2(d)(i);

provided that if such Notice and Questionnaire is delivered during a Deferral
Period, the Company shall so inform the Holder delivering such Notice and
Questionnaire and shall take the actions set forth in clauses (i), (ii) and
(iii) above upon expiration of the Deferral Period in accordance with Section
3(h); and provided, further, that in no event will the Company be required to
file more than one such amendment to the Shelf Registration Statement in any
calendar quarter for all such Holders. Notwithstanding anything contained herein
to the contrary, (i) the Company shall be under no obligation to name any Holder
that is not a Notice Holder as a selling securityholder in any Shelf
Registration Statement or related Prospectus and (ii) the Amendment
Effectiveness Deadline shall be extended by ten Business Days from the
expiration of a Deferral Period.

                                       6
<PAGE>

     (e) The parties hereto agree that the Holders of Registrable Securities
will suffer damages, and that it would not be feasible to ascertain the extent
of such damages with precision, if:

          (i) the initial Shelf Registration Statement has not been filed on or
     prior to the Filing Deadline,

          (ii) the initial Shelf Registration Statement has not been declared
     effective under the Securities Act on or prior to the Effectiveness
     Deadline,

          (iii) the Company has failed to perform its obligations set forth in
     Section 2(d)(i) within the time period required therein,

          (iv) a post-effective amendment to a Shelf Registration Statement
     filed pursuant to Section 2(d)(i) has not become effective under the
     Securities Act on or prior to the Amendment Effectiveness Deadline, or

          (v) the aggregate duration of Deferral Periods in any period exceeds
     the number of days permitted in respect of such period pursuant to Section
     3(h) hereof.

Each event described in any of the foregoing clauses (i) through (vi) is
individually referred to herein as a "Registration Default." For purposes of
this Agreement, each Registration Default set forth above shall begin and end on
the dates set forth in the table set forth below:

<Table>
<Caption>
  Type of
Registration
Default by
  Clause                           Beginning Date                                         Ending Date
- ------------         --------------------------------------------       -----------------------------------------------
<S>                  <C>                                                <C>
   (i)               Filing Deadline                                    the date the initial Shelf Registration
                                                                        Statement is filed

   (ii)              Effectiveness Deadline                             the date the initial Shelf Registration
                                                                        Statement becomes effective under the
                                                                        Securities Act

   (iii)             the date by which the Company is                   the date the Company performs its
                     required to perform its obligations                obligations set forth in Section 2(d)(i)
                     under Section 2(d)(i)

   (iv)              the Amendment Effectiveness Deadline               the date the applicable post-effective
                                                                        amendment to a Shelf Registration Statement
                                                                        becomes effective under the Securities Act

</Table>



                                       7
<PAGE>

<Table>
<Caption>
  Type of
Registration
Default by
  Clause                           Beginning Date                                         Ending Date
- ------------         --------------------------------------------       -----------------------------------------------
<S>                  <C>                                                <C>
   (v)               the date on which the aggregate duration           termination of the Deferral Period
                     of the Deferral Periods in any period exceeds      that caused the limit on the aggregate duration
                     the number of days permitted by Section 3(h)       of Deferral Periods to be exceeded
</Table>

For purposes of this Agreement, Registration Defaults shall begin on the dates
set forth in the table above and shall continue until the ending dates set forth
in the table above.


     Commencing on (and including) any date that a Registration Default has
begun and ending on (but excluding) the next date on which there are no
Registration Defaults that have occurred and are continuing (a "Registration
Default Period"), the Company shall pay, as liquidated damages and not as a
penalty, to Record Holders of Registrable Securities in respect of each day in
the Registration Default Period, additional interest in respect of any Security
that is a Registrable Security that has not been converted into Underlying
Common Shares, at a rate per annum equal to 0.25% of the aggregate principal
amount of such Security (the "Initial Additional Interest Amount") for the first
90 days since the date that a Registration Default begins, and at a rate per
annum equal to 0.50% of the aggregate principal amount of such Security (the
"Subsequent Additional Interest Amount", and together with the Initial
Additional Interest Amount, the "Additional Interest Amount") after the first 90
days of such Registration Default Period; provided that in no event shall any
Additional Interest Amount accrue at an aggregate rate per annum exceeding 0.50%
of the aggregate principal amount of such Security; and provided further that in
the case of a Registration Default Period that is in effect solely as a result
of a Registration Default of the type described in clause (iii) or (iv) of the
preceding paragraph, such Additional Interest Amount shall be paid only to the
Holders (as set forth in the succeeding paragraph) that have delivered Notices
and Questionnaires that caused the Company to incur the obligations set forth in
Section 2(d), the non-performance of which is the basis of such Registration
Default. Notwithstanding the foregoing, no Additional Interest Amount shall
accrue as to any Registrable Security from and after the earlier of (x) the date
such security is no longer a Registrable Security and (y) expiration of the
Effectiveness Period. The rates of accrual of the Additional Interest Amount,
with respect to any period shall not exceed the rates provided for in this
paragraph notwithstanding the occurrence of multiple concurrent Registration
Defaults.

     If a Holder has converted some or all of its Securities into Common Shares,
the Holder will not be entitled to receive any Additional Interest with respect
to such Common Shares or the principal amount of the Securities that have been
so converted. In addition, in no event will Additional Interest be payable in
connection with a Registration Default relating to a failure to register the
Common Shares deliverable

                                       8
<PAGE>

upon conversion of the Securities. For avoidance of doubt, if the Company fails
to register both the Securities and the Common Shares deliverable upon
conversion of the Securities, then Additional Interest will be payable solely in
connection with the Registration Default relating to the failure to register the
Securities.

     The Additional Interest Amount shall be payable on each Interest Payment
Date during the Registration Default Period (and on the Interest Payment Date
next succeeding the end of the Registration Default Period if the Registration
Default Period does not end on a Interest Payment Date) to the Record Holders of
the Registrable Securities entitled thereto pursuant to the terms of the
Indenture; provided that any Additional Interest Amount accrued with respect to
any Security or portion thereof redeemed by the Company on a redemption date,
purchased by the Company on a repurchase date or converted into Underlying
Common Shares on a conversion date prior to the Interest Payment Date, shall, in
any such event, be paid instead to the Holder who submitted such Security or
portion thereof for redemption, purchase or conversion on the applicable
redemption date, repurchase date or conversion date, as the case may be, on such
date (or promptly following the conversion date, in the case of conversion),
unless the redemption date or the repurchase date, as the case may be, falls
after June 1 or December 1 and on or prior to the corresponding Interest Payment
Date in which case such amounts shall be paid to the Holder entitled to receive
payments of interest in respect of such Securities pursuant to the terms of the
Indenture; and provided further, that, in the case of a Registration Default of
the type described in clause (iii) or (iv) of the first paragraph of this
Section 2(e), such Additional Interest Amount shall be paid only to the Holders
entitled thereto by check mailed to the address set forth in the Notice and
Questionnaire delivered by such Holder. The Trustee shall be entitled, on behalf
of registered holders of Securities or Underlying Common Shares, to seek any
available remedy for the enforcement of this Agreement, including for the
payment of such Additional Interest Amount. Notwithstanding the foregoing, the
parties agree that the sole damages payable for a violation of the terms of this
Agreement with respect to which additional interest or liquidated damages are
expressly provided shall be such Additional Interest Amount. Nothing shall
preclude any Holder from pursuing or obtaining specific performance or other
equitable relief with respect to this Agreement.

     All of the Company's payment obligations set forth in this Section 2(e)
that have accrued with respect to any Registrable Security at the time such
security ceases to be a Registrable Security shall survive until such time as
all such payment obligations with respect to such security have been satisfied
in full (notwithstanding termination of this Agreement pursuant to Section
8(n)).

     The parties hereto agree that the additional interest provided for in this
Section 2(e) constitute a reasonable estimate of the damages that may be
incurred by Holders of Registrable Securities by reason of the failure of a
Shelf Registration Statement to be filed or declared effective or available for
effecting resales of Registrable Securities in accordance with the provisions
hereof.

     SECTION 3. Registration Procedures. In connection with the registration
obligations of the Company under Section 2 hereof, the Company shall:

     (a) Before filing any Shelf Registration Statement or Prospectus or any
amendments or supplements thereto with the SEC, furnish to the Initial Purchaser
and the Special Counsel of

                                       9
<PAGE>

such offering, if any, copies of all such documents proposed to be filed at
least three Business Days prior to the filing of such Shelf Registration
Statement or amendment thereto or Prospectus or supplement thereto (other than
supplements or amendments that do nothing more than name Notice Holders and
provide information with respect thereto).

     (b) Subject to Section 3(h) hereof, prepare and file with the SEC such
amendments and post-effective amendments to each Shelf Registration Statement as
may be necessary to keep such Shelf Registration Statement continuously
effective during the Effectiveness Period; cause the related Prospectus to be
supplemented by any required prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) under the
Securities Act; and use its best efforts to comply with the provisions of the
Securities Act applicable to it with respect to the disposition of all
securities covered by such Shelf Registration Statement during the Effectiveness
Period in accordance with the intended methods of disposition by the sellers
thereof set forth in such Shelf Registration Statement as so amended or such
Prospectus as so supplemented.

     (c) As promptly as practicable give notice to the Notice Holders, the
Initial Purchaser and the Special Counsel, (i) when any Prospectus, prospectus
supplement, Shelf Registration Statement or post-effective amendment to a Shelf
Registration Statement has been filed with the SEC and, with respect to a Shelf
Registration Statement or any post-effective amendment, when the same has been
declared effective (other than supplements or amendments that do nothing more
than name Notice Holders and provide information with respect thereto), (ii) of
any request, following the effectiveness of the initial Shelf Registration
Statement under the Securities Act, by the SEC or any other federal or state
governmental authority for amendments or supplements to any Shelf Registration
Statement or related Prospectus or for additional information, (iii) of the
issuance by the SEC or any other federal or state governmental authority of any
stop order suspending the effectiveness of any Shelf Registration Statement or
the initiation or threatening of any proceedings for that purpose, (iv) of the
receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose, and (v) of the occurrence of, but not the nature of
or details concerning, a Material Event, which notice may, at the discretion of
the Company (or as required pursuant to Section 3(h)) state that it constitutes
a Deferral Notice, in which event the provisions of Section 3(h) shall apply.

     (d) Use its reasonable best efforts to obtain the withdrawal of any order
suspending the effectiveness of a Shelf Registration Statement or the lifting of
any suspension of the qualification (or exemption from qualification) of any of
the Registrable Securities for sale in any jurisdiction in which they have been
qualified for sale, in either case as promptly as practicable, and provide
prompt notice to each Notice Holder and the Initial Purchaser of the withdrawal
of any such order.

     (e) As promptly as practicable furnish to each Notice Holder, the Special
Counsel and the Initial Purchaser, upon request and without charge, at least one
conformed copy of each Shelf Registration Statement and any amendment thereto,
including exhibits and all documents incorporated or deemed to be incorporated
therein by reference.

                                       10
<PAGE>

     (f) During the Effectiveness Period, deliver to each Notice Holder, the
Special Counsel, if any, and the Initial Purchaser, in connection with any sale
of Registrable Securities pursuant to a Shelf Registration Statement, without
charge, as many copies of the Prospectus relating to such Registrable Securities
(including each preliminary prospectus) and any amendment or supplement thereto
as any such person may reasonably request; and the Company hereby consents
(except during such periods that a Deferral Notice is outstanding and has not
been revoked) to the use of such Prospectus or each amendment or supplement
thereto by each such person in connection with any offering and sale of the
Registrable Securities covered by such Prospectus or any amendment or supplement
thereto in the manner set forth therein on the terms set forth herein.

     (g) Prior to any public offering of the Registrable Securities pursuant to
a Shelf Registration Statement, use its commercially reasonable efforts to
register or qualify or cooperate with the Notice Holders and their respective
counsel in connection with the registration or qualification (or exemption from
such registration or qualification) of such Registrable Securities for offer and
sale under the securities or Blue Sky laws of such jurisdictions within the
United States as any Notice Holder reasonably requests in writing; prior to any
public offering of the Registrable Securities pursuant to a Shelf Registration
Statement, use its commercially reasonable efforts to keep each such
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period in connection with such Notice Holder's offer and sale of
Registrable Securities pursuant to such registration or qualification (or
exemption therefrom) and do any and all other acts or things reasonably
necessary or advisable to enable the disposition in such jurisdictions of such
Registrable Securities in the manner set forth in the Shelf Registration
Statement and the related Prospectus; provided that the Company will not be
required to (i) qualify as a foreign corporation or as a dealer in securities in
any jurisdiction where it would not otherwise be required to qualify but for
this Agreement or (ii) take any action that would subject it to general service
of process in suits or to taxation in any such jurisdiction where it is not then
so subject.

     (h) Upon (A) the necessity to amend the Shelf Registration Statement or any
Prospectus to comply with the Securities Act, the Exchange Act or the respective
rules and regulations promulgated by the SEC thereunder or the issuance by the
SEC of a stop order suspending the effectiveness of a Shelf Registration
Statement or the initiation of proceedings with respect to a Shelf Registration
Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence
of any event or the existence of any fact (a "Material Event") as a result of
which a Shelf Registration Statement shall contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, or any Prospectus
shall contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, or (C) the occurrence or existence of any pending corporate
development with respect to the Company or a public filing with the SEC that, in
the reasonable discretion of the Company, makes it appropriate to suspend the
availability of a Shelf Registration Statement and the related Prospectus:

                                    11

<PAGE>

          (i) in the case of clause (B) above, as promptly as practicable
     prepare and file, if necessary pursuant to applicable law, a post-effective
     amendment to such Shelf Registration Statement or a supplement to the
     related Prospectus or any document incorporated therein by reference or
     file any other required document that would be incorporated by reference
     into such Shelf Registration Statement and Prospectus so that such Shelf
     Registration Statement does not contain any untrue statement of a material
     fact or omit to state any material fact required to be stated therein or
     necessary to make the statements therein not misleading, and such
     Prospectus does not contain any untrue statement of a material fact or omit
     to state any material fact required to be stated therein or necessary to
     make the statements therein, in the light of the circumstances under which
     they were made, not misleading, as thereafter delivered to the purchasers
     of the Registrable Securities being sold thereunder, and, in the case of a
     post-effective amendment to a Shelf Registration Statement, use its
     commercially reasonable efforts to cause it to be declared effective as
     promptly as is practicable, and

          (ii) give notice to the Notice Holders, and the Special Counsel, if
     any, that the availability of a Shelf Registration Statement is suspended
     (a "Deferral Notice").

The Company will use its reasonable best efforts to ensure that the use of the
Prospectus may be resumed (x) in the case of clause (A) above, as promptly as is
practicable, (y) in the case of clause (B) above, as soon as, in the sole
judgment of the Company, public disclosure of such Material Event would not be
prejudicial to or contrary to the interests of the Company or, if necessary to
avoid unreasonable burden or expense, as soon as practicable thereafter and (z)
in the case of clause (C) above, as soon as in the reasonable discretion of the
Company, such suspension is no longer appropriate. The Company shall be entitled
to exercise its right under this Section 3(h) to suspend the availability of a
Shelf Registration Statement or any Prospectus, without incurring or accruing
any obligation to pay additional interest pursuant to Section 2(e), so long as
the aggregate duration of any periods during which the availability of the Shelf
Registration Statement and any Prospectus is suspended (each, a "Deferral
Period") does not exceed 60 days in the aggregate in any consecutive 12-month
period.

     (i) If requested in writing in connection with a disposition of Registrable
Securities pursuant to a Shelf Registration Statement, make reasonably available
for inspection during normal business hours by a representative for the Notice
Holders of such Registrable Securities, any broker dealers, attorneys and
accountants retained by such Notice Holders, and any attorneys or other agents
retained by a broker-dealer engaged by such Notice Holders, all relevant
financial and other records, all relevant corporate documents and other relevant
information as may be reasonably requested by such representative for the Notice
Holders, or any such broker dealers, attorneys or accountants in connection with
such disposition, in each case as is customary for similar "due diligence"
examinations; provided that such persons shall first agree in writing with the
Company that any non-public information shall be used solely for the purposes of
satisfying "due diligence" obligations under the Securities Act and exercising
rights under this Agreement and shall be kept confidential for a period of five
years by such persons, unless (i) disclosure of such information is required by
court or administrative order or is necessary to respond to inquiries of
regulatory authorities, (ii) disclosure of such information is required by law
(including any disclosure requirements pursuant to federal securities laws in
connection with the

                                       12

<PAGE>

filing of any Shelf Registration Statement or the use of any prospectus referred
to in this Agreement), (iii) such information becomes generally available to the
public other than as a result of a disclosure or failure to safeguard by any
such person or (iv) such information becomes available to any such person from a
source other than the Company and such source is not bound by a confidentiality
agreement, and provided further that the foregoing inspection and information
gathering shall, to the greatest extent possible, be coordinated on behalf of
all the Notice Holders and the other parties entitled thereto by the Special
Counsel. Any person legally compelled to disclose any such confidential
information made available for inspection shall provide the Company with prompt
prior written notice of such requirement so that the Company may seek a
protective order, confidentiality treatment or other appropriate remedy.

     (j) If requested by any Notice Holder, (i) promptly incorporate in the
Shelf Registration Statement or Prospectus, pursuant to a supplement or
post-effective amendment if necessary, such information regarding such Holder as
required by the rules and regulations of the SEC as such Holder may reasonably
request to be included therein (unless the Company reasonably objects to such
inclusion and, in the opinion of counsel to the Company, such information is not
required to be so incorporated) and (ii) make all required filings of such
supplement or such post-effective amendment as soon as practicable after the
Company has received notification of the matters to be incorporated in such
filing.

     (k) Comply with all applicable rules and regulations of the SEC and make
generally available to its securityholders earning statements (which need not be
audited) satisfying the provisions of Section 11(a) of the Securities Act and
Rule 158 thereunder (or any similar rule promulgated under the Securities Act)
for a 12-month period commencing on the first day of the first fiscal quarter of
the Company commencing after the effective date of a Shelf Registration
Statement, which statements shall be made available no later than 45 days after
the end of the 12-month period or 90 days if the 12-month period coincides with
the fiscal year of the Company.

     (l) As applicable, cooperate with each Notice Holder to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities sold or to be sold pursuant to a Shelf Registration Statement, which
certificates shall not bear any restrictive legends, and cause such Registrable
Securities to be in such denominations as are permitted by the Indenture and
registered in such names as such Notice Holder may request in writing at least
two Business Days prior to any sale of such Registrable Securities.

     (m) Obtain opinions of counsel to the Company (which counsel and opinions,
in form, scope and substance, shall be reasonably satisfactory to the Holders
and Special Counsel) addressed to each Notice Holder, covering the matters
customarily covered in opinions requested in underwritten offerings and obtain
"cold comfort" letters from the independent registered public accounting firm of
the Company (and, if necessary, any other registered public accounting firm of
any subsidiary of the Company, or of any person or business acquired by the
Company for which financial statements and financial data are or are required to
be included or incorporated by reference in the Shelf Registration Statement or
the related Prospectus or in the documents incorporated or deemed to be
incorporated therein) addressed to the Company and

                                       13
<PAGE>

each Notice Holder, such letters to be in customary form and covering matters of
the type customarily covered in "cold comfort" letters in connection with
underwritten offerings.

     (n) Provide a CUSIP number for all Registrable Securities covered by each
Shelf Registration Statement not later than the effective date of such Shelf
Registration Statement and provide the Trustee and the transfer agent for the
Common Shares with printed certificates for the Registrable Securities that are
in a form eligible for deposit with The Depository Trust Company.

     (o) Not later than the effective date of the Shelf Registration Statement,
use its best efforts to cause the Indenture to be qualified under the TIA in
connection with the registration of the Registrable Securities, cooperate with
the Trustee and the Holders to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the terms of
the TIA and execute, and use its reasonable best efforts to cause the Trustee to
execute, all documents as may be required to effect such changes and all other
forms and documents required to be filed with the SEC to enable the Indenture to
be so qualified in a timely manner.

     (p) Cooperate and assist in any filings required to be made with the
National Association of Securities Dealers, Inc.

     (q) Cause the Underlying Common Shares covered by the Shelf Registration
Statement to be listed or quoted, as the case may be, on each securities
exchange or automated quotation system on which the Common Shares is then listed
or quoted.

     SECTION 4. Holder's Obligations. (a) Each Holder agrees, by acquisition of
the Registrable Securities, that no Holder shall be entitled to sell any of such
Registrable Securities pursuant to a Shelf Registration Statement or to receive
a Prospectus relating thereto, unless such Holder has furnished the Company with
a Notice and Questionnaire as required pursuant to Section 2(d) hereof
(including the information required to be included in such Notice and
Questionnaire) and the information set forth in the next sentence. Each Notice
Holder agrees promptly to furnish to the Company all information required to be
disclosed in order to make the information previously furnished to the Company
by such Notice Holder not misleading and any other information regarding such
Notice Holder and the distribution of such Registrable Securities as the Company
may from time to time reasonably request. Any sale of any Registrable Securities
by any Holder shall constitute a representation and warranty by such Holder that
the information relating to such Holder and its plan of distribution is as set
forth in the Prospectus made available or delivered by such Holder in connection
with such disposition, that such Prospectus does not as of the time of such sale
contain any untrue statement of a material fact relating to or provided by such
Holder or its plan of distribution and that such Prospectus does not as of the
time of such sale omit to state any material fact relating to or provided by
such Holder or its plan of distribution necessary to make the statements in such
Prospectus, in the light of the circumstances under which they were made, not
misleading. Each Holder further agrees not to sell any Registrable Securities
without delivering, or, if permitted by applicable securities law, making
available, to the purchaser thereof a Prospectus in accordance with the
requirements of applicable securities laws. Each Holder further agrees that such
Holder will not make any offer relating to the Registrable Securities that would
constitute an "issuer free

                                       14
<PAGE>

writing prospectus" (as defined in Rule 433 under the Securities Act) or that
would otherwise constitute a "free writing prospectus" (as defined in Rule 405
under the Securities Act), unless it has obtained the prior written consent of
the Company.

     (b) Upon receipt of any Deferral Notice, each Notice Holder agrees not to
sell any Registrable Securities pursuant to any Shelf Registration Statement
until such Notice Holder's receipt of copies of the supplemented or amended
Prospectus provided for in Section 3(h)(i), or until it is advised in writing by
the Company that the Prospectus may be used.

     SECTION 5. Registration Expenses. The Company shall bear all fees and
expenses incurred in connection with the performance by the Company of its
obligations under Sections 2 and 3 of this Agreement whether or not any Shelf
Registration Statement is declared effective. Such fees and expenses shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses (x) with respect to filings required to be
made with the Financial Industry Regulatory Authority, Inc. and the SEC and (y)
of compliance with federal and state securities or Blue Sky laws (including,
without limitation, reasonable fees and disbursements of the Special Counsel in
connection with Blue Sky qualifications of the Registrable Securities under the
laws of such jurisdictions as Notice Holders of a majority of the Registrable
Securities being sold pursuant to a Shelf Registration Statement may designate),
(ii) printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities in a form eligible for deposit with The
Depository Trust Company), (iii) all expenses of any persons in preparing or
assisting in preparing, word processing, printing and distributing any Shelf
Registration Statement, any Prospectus, any amendments or supplements thereto,
any, securities sales agreements and other documents relating to the performance
of and compliance with this Agreement, (iv) all fees and disbursements relating
to the qualification of the Indenture under applicable securities laws, (v) the
fees and disbursements of counsel to the Company in connection with any Shelf
Registration Statement, (vi) fees and disbursements of the Trustee and its
counsel and of the registrar and transfer agent for the Common Shares, (vii)
Securities Act liability insurance obtained by the Company in its sole
discretion, (vii) the reasonable fees and disbursements of Special Counsel
(other than fees and expenses in connection with any underwritten offerings),
and (ix) the fees and disbursements of the independent registered public
accounting firm of the Company and of any other Person or business whose
financial statements are included or incorporated or deemed to be incorporated
by reference in a Shelf Registration Statement, including the expenses of any
"cold comfort" or similar letters required by or incident to such performance
and compliance. In addition, the Company shall pay the internal expenses of the
Company (including, without limitation, all salaries and expenses of officers
and employees performing legal or accounting duties), the expense of any annual
audit, the fees and expenses incurred in connection with the listing by the
Company of the Registrable Securities on any securities exchange on which
similar securities of the Company are then listed and the fees and expenses of
any person, including special experts, retained by the Company. Notwithstanding
the provisions of this Section 5, each seller of Registrable Securities shall
pay any broker's commission, agency fee or underwriter's discount or commission
in connection with the sale of the Registrable Securities under a Shelf
Registration Statement.

     SECTION 6. Indemnification and Contribution.

                                       15
<PAGE>

     (a) The Company agrees to indemnify and hold harmless each Notice Holder,
each person, if any, who controls any Notice Holder within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act, and each
affiliate of any Holder within the meaning of Rule 405 under the Securities Act
from and against any and all losses, claims, damages and liabilities (including,
without limitation, any legal or other expenses reasonably incurred by such
Holder in connection with defending or investigating any such action or claim)
caused by any untrue statement or alleged untrue statement of a material fact
contained in any Shelf Registration Statement or any amendment thereof, or any
Prospectus (as amended or supplemented if the Company shall have furnished any
amendments or supplements thereto), caused by any omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, in the light of the circumstances
under which they were made, except insofar as such losses, claims, damages or
liabilities are caused by any such untrue statement or omission or alleged
untrue statement or omission based upon information relating to any Holder
furnished to the Company in writing by or on behalf of such Holder expressly for
use therein; provided that the foregoing indemnity shall not inure to the
benefit of any Holder (or to the benefit of any person controlling such Holder)
from whom the person asserting such losses, claims, damages or liabilities
purchased the Registrable Securities, if a copy of the Prospectus (as then
amended or supplemented if the Company shall have furnished any amendments or
supplements thereto) was not sent or given by or on behalf of such Holder to
such person, if required by law so to have been delivered at or prior to the
written confirmation of the sale of the Registrable Securities to such person,
and if the Prospectus (as so amended or supplemented) would have cured the
defect giving rise to such losses, claims, damages or liabilities, unless such
failure is the result of noncompliance by the Company with Section 2(c) hereof.

     (b) Each Holder agrees severally and not jointly to indemnify and hold
harmless the Company and the Company's directors and officers who sign any Shelf
Registration Statement and each person, if any, who controls the Company (within
the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act) or any other Holder, to the same extent as the foregoing indemnity
from the Company to such Holder, but only with reference to information relating
to such Holder furnished to the Company in writing by or on behalf of such
Holder expressly for use in such Shelf Registration Statement or Prospectus or
amendment or supplement thereto. In no event shall the liability of any Holder
hereunder be greater in amount than the dollar amount of the proceeds received
by such Holder upon the sale of the Registrable Securities pursuant to the Shelf
Registration Statement giving rise to such indemnification obligation.

         (c) In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to Section 6(a) or 6(b) hereof, such person (the "indemnified
party") shall promptly notify the person against whom such indemnity may be
sought (the "indemnifying party") in writing and the indemnifying party, upon
request of the indemnified party, shall retain counsel reasonably satisfactory
to the indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the reasonable
fees and disbursements of such counsel related to such proceeding. In any such
proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such

                                       16
<PAGE>

counsel shall be at the expense of such indemnified party unless (i) the
indemnifying party and the indemnified party shall have mutually agreed to the
retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include both the indemnifying party and the
indemnified party and representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between them. It
is understood that the indemnifying party shall not, in respect of the legal
expenses of any indemnified party in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm (in addition to any local counsel) for all such
indemnified parties and that all such fees and expenses shall be reimbursed as
they are incurred. Such firm shall be designated in writing by, in the case of
parties indemnified pursuant to Section 6(a), the Holders of a majority (with
Holders of Securities deemed to be the Holders, for purposes of determining such
majority, of the number of shares of Underlying Common Shares into which such
Securities are or would be convertible as of the date on which such designation
is made) of the Registrable Securities covered by the Shelf Registration
Statement held by Holders that are indemnified parties pursuant to Section 6(a)
and, in the case of parties indemnified pursuant to Section 6(b), the Company.
The indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by reason
of such settlement or judgment. No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement of any pending
or threatened proceeding in respect of which any indemnified party is or could
have been a party and indemnity could have been sought hereunder by such
indemnified party, unless such settlement includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter
of such proceeding.

     (d) To the extent that the indemnification provided for in Section 6(a) or
6(b) is unavailable to an indemnified party or insufficient in respect of any
losses, claims, damages or liabilities referred to therein, then each
indemnifying party under such paragraph, in lieu of indemnifying such
indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities (i) in such proportion as is appropriate to reflect the relative
fault of the indemnifying party or parties on the one hand and of the
indemnified party or parties on the other hand in connection with the statements
or omissions that resulted in such losses, claims, damages or liabilities, as
well as any other relevant equitable considerations. The relative benefits
received by any Holder shall be deemed to be equal to the value of receiving
registration rights under this Agreement for the Registrable Securities. The
relative fault of the Holders on the one hand and the Company on the other hand
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Holders or by
the Company, and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The Holders'
respective obligations to contribute pursuant to this Section 6(d) are several
in proportion to the respective number of Registrable Securities they have sold
pursuant to a Shelf Registration Statement, and not joint.


                                       17

<PAGE>

     The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 6(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any such action or claim.
Notwithstanding this Section 6(d), no indemnifying party that is a selling
Holder shall be required to contribute any amount in excess of the amount by
which the total price at which the Registrable Securities sold by it and
distributed to the public were offered to the public exceeds the amount of any
damages that such indemnifying party has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

     (e) The remedies provided for in this Section 6 are not exclusive and shall
not limit any rights or remedies which may otherwise be available to an
indemnified party at law or in equity, hereunder, under the Purchase Agreement
or otherwise.

     (f) The indemnity and contribution provisions contained in this Section 6
shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
any Holder, any person controlling any Holder or any affiliate of any Holder or
by or on behalf of the Company, its officers or directors or any person
controlling the Company and (iii) the sale of any Registrable Securities by any
Holder.

     SECTION 7. Information Requirements. The Company covenants that, if at any
time before the end of the Effectiveness Period, the Company is not subject to
Section 13 or 15(d) under the Exchange Act, it will make available to any Holder
or beneficial holder of Registrable Securities in connection with any sale
thereof and any prospectus purchaser of Registrable Securities, the information
required pursuant to Rule 144A(d)(4) under the Securities Act upon the request
of any Holder or beneficial holder of Registrable Securities and it will take
such further action as any Holder or beneficial holder of Registrable Securities
may reasonably request, all to the extent required from time to time to enable
such Holder or beneficial holder to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemption
provided by Rule 144A under the Securities Act, as such rule may be amended from
time to time. Upon the request of any Holder or any beneficial holder of
Registrable Securities, the Company shall deliver to such Holder or beneficial
holder a written statement as to whether it has complied with such filing
requirements, unless such a statement has been included in the Company's most
recent report filed pursuant to Section 13 or Section 15(d) under the Exchange
Act.

     SECTION 8. Miscellaneous.

     (a) No Conflicting Agreements. The Company is not, as of the date hereof, a
party to, nor shall it, on or after the date of this Agreement, enter into, any
agreement with respect to its

                                       18

<PAGE>

securities that conflicts with the rights granted to the Holders in this
Agreement. In addition, the Company shall not grant to the holders of the
Company's securities (other than the Holders in such capacity) the right to
include any of its securities (other than the Registrable Securities) in the
Shelf Registration Statement provided for under this Agreement. The Company
represents and warrants that the rights granted to the Holders hereunder do not
in any way conflict with the rights granted to the holders of the Company's
securities under any other agreements.

     (b) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless the Company has obtained the written consent of Holders of a majority of
the then outstanding Underlying Common Shares constituting Registrable
Securities (with Holders of Securities deemed to be the Holders, for purposes of
this Section, of the number of outstanding shares of Underlying Common Shares
into which such Securities are or would be convertible as of the date on which
such consent is requested). Notwithstanding the foregoing, a waiver or consent
to depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Holders whose securities are being sold pursuant to
a Shelf Registration Statement and that does not directly or indirectly affect
the rights of other Holders may be given by Holders of at least a majority of
the Registrable Securities being sold by such Holders pursuant to such Shelf
Registration Statement; provided that the provisions of this sentence may not be
amended, modified or supplemented except in accordance with the provisions of
the immediately preceding sentence. Notwithstanding the foregoing, this
Agreement may be amended by written agreement signed by the Company and the
Initial Purchaser, without the consent of the Holders of Registrable Securities,
to cure any ambiguity or to correct or supplement any provision contained herein
that may be defective or inconsistent with any other provision contained herein,
or to make such other provisions in regard to matters or questions arising under
this Agreement that shall not adversely affect the interests of the Holders of
Registrable Securities. Each Holder of Registrable Securities outstanding at the
time of any such amendment, modification, supplement, waiver or consent or
thereafter shall be bound by any such amendment, modification, supplement,
waiver or consent effected pursuant to this Section 8(b) whether or not any
notice, writing or marking indicating such amendment, modification, supplement,
waiver or consent appears on the Registrable Securities or is delivered to such
Holder.

     (c) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand delivery, by facsimile, by courier or
by first class mail, return receipt requested, and shall be deemed given (i)
when made, if made by hand delivery, (ii) upon confirmation, if made by
facsimile, (iii) one Business Day after being deposited with such courier, if
made by overnight courier or (iv) on the date indicated on the notice of
receipt, if made by first class mail, to the parties as follows:

          (i) if to a Holder, at the most current address or facsimile number
     given by such Holder to the Company in a Notice and Questionnaire or any
     amendment thereto;

          (ii) if to the Company, to:

                      Canadian Solar Inc.

                                    19

<PAGE>

                      199 Lushan Road
                      Suzhou New District
                      Suzhou, Jiangsu Province 215129
                      People's Republic of China
                      Attention: Chief Financial Officer
                      Facsimile No.: (86-512) 6690-8087

                      with a copy to:

                      Latham & Watkins LLP
                      8 Connaught Place
                      41st Floor, One Exchange Square
                      Central, Hong Kong
                      Attention: David Zhang, Esq.
                      Facsimile No.: (86-852) 2522-7006

          (iii) if to the Initial Purchaser, to:

                      Piper Jaffray & Co.
                      345 California Street, Suite 2400
                      San Francisco, California  94104
                      Attention: General Counsel
                      Facsimile No.: (415) 984-5121

                      with a copy to:
                      Wilson Sonsini Goodrich & Rosati, Professional Corporation
                      650 Page Mill Road
                      Palo Alto, California  94304
                      Attention: John A. Fore, Esq.
                      Facsimile No.: (650) 493-6811

or to such other address as such person may have furnished to the other persons
identified in this Section 8(c) in writing in accordance herewith.

     (d) Approval of Holders. Whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or its affiliates (as such term is
defined in Rule 405 under the Securities Act) (other than the Initial Purchaser
or subsequent Holders if such subsequent Holders are deemed to be such
affiliates solely by reason of their holdings of such Registrable Securities)
shall not be counted in determining whether such consent or approval was given
by the Holders of such required percentage.

     (e) Successors and Assigns. Any person who purchases any Registrable
Securities from the Initial Purchaser shall be deemed, for purposes of this
Agreement, to be an assignee of the Initial Purchaser. This Agreement shall
inure to the benefit of and be binding upon the successors and assigns of each
of the parties and shall inure to the benefit of and be binding upon

                                       20

<PAGE>

each Holder of any Registrable Securities, provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Indenture. If any transferee of any
Holder shall acquire Registrable Securities, in any manner, whether by operation
of law or otherwise, such Registrable Securities shall be held subject to all of
the terms of this Agreement, and by taking and holding such Registrable
Securities, such person shall be conclusively deemed to have agreed to be bound
by and to perform all of the terms and provisions of this Agreement and such
person shall be entitled to receive the benefits hereof.

     (f) Submission to Jurisdiction, Etc. The Company hereby submits to the
non-exclusive jurisdiction of the U.S. federal and New York state courts in the
Borough of Manhattan, The City of New York in any suit or proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby. The
parties hereby irrevocably and unconditionally waive any objection to the laying
of venue of any lawsuit, action or other proceeding in such courts, and hereby
further irrevocably and unconditionally waive and agree not to plead or claim in
any such court that any such lawsuit, action or other proceeding brought in any
such court has been brought in an inconvenient forum. The Company irrevocably
appoints CT Corporation System, 111 Eighth Avenue, New York, N.Y. 10011, as its
authorized agent in the Borough of Manhattan, The City of New York, New York
upon which process may be served in any such suit or proceeding, and agrees that
service of process upon such agent, and written notice of said service to the
Company by the person serving the same to the address provided in Section 8(f)
shall be deemed in every respect effective service of process upon the Company
in any such suit or proceeding. The Company further agrees to take any and all
actions as may be necessary to maintain such designation and appointment of such
agent in full force and effect for a period of seven years from the date of this
Agreement.

     (g) Waiver of Immunity. With respect to any suit or proceeding arising out
of or relating to this Agreement, the Purchase Agreement, the Indenture or the
Securities or the transactions contemplated hereby or thereby, each party
irrevocably waives, to the fullest extent permitted by applicable law, all
immunity (whether on the basis of sovereignty or otherwise) from jurisdiction,
service of process, attachment (both before and after judgment) and execution to
which it might otherwise be entitled, and with respect to any such suit or
proceeding, each party waives any such immunity in any court of competent
jurisdiction, and will not raise or claim or cause to be pleaded any such
immunity at or in respect of any such suit or proceeding, including, without
limitation, any immunity pursuant to the U.S. Foreign Sovereign Immunities Act
of 1976, as amended.

     (h) Judgment Currency. The obligation of the Company in respect of any sum
due to the Initial Purchaser under this Agreement shall, notwithstanding any
judgment in a currency other than U.S. dollars or any other applicable currency
(the "Judgment Currency"), not be discharged until the first business day,
following receipt by the Initial Purchaser of any sum adjudged to be so due in
the Judgment Currency, on which (and only to the extent that) the Initial
Purchaser may in accordance with normal banking procedures purchase U.S. dollars
or any other applicable currency with the Judgment Currency; if the U.S. dollars
or other applicable currency so purchased are less than the sum originally due
to the Initial Purchaser hereunder, the Company agrees, as a separate obligation
and notwithstanding any such judgment, to indemnify

                                       21
<PAGE>

the Initial Purchaser against such loss. If the U.S. dollars or other applicable
currency so purchased are greater than the sum originally due to the Initial
Purchaser hereunder, the Initial Purchaser agrees to pay to the Company an
amount equal to the excess of the U.S. dollars or other applicable currency so
purchased over the sum originally due to the Initial Purchaser hereunder.

     (i) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be original and all of which taken together
shall constitute one and the same agreement.

     (j) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     (k) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     (l) Severability. If any term, provision, covenant or restriction of this
Agreement is held to be invalid, illegal, void or unenforceable, the remainder
of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or
invalidated thereby, and the parties hereto shall use their reasonable best
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction, it being intended that all of the rights and privileges
of the parties shall be enforceable to the fullest extent permitted by law.

     (m) Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and is intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein and the registration rights granted by the
Company with respect to the Registrable Securities. Except as provided in the
Purchase Agreement, there are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein, with respect to
the registration rights granted by the Company with respect to the Registrable
Securities. This Agreement supersedes all prior agreements and undertakings
among the parties with respect to such registration rights. No party hereto
shall have any rights, duties or obligations other than those specifically set
forth in this Agreement.

     (n) Termination. This Agreement and the obligations of the parties
hereunder shall terminate upon the end of the Effectiveness Period, except for
any liabilities or obligations under Section 4, 5 or 6 hereof, any
confidentiality obligations under Section 3(i) hereof, and the obligations to
make payments of and provide for additional interest under Section 2(e) hereof
to the extent such damages accrue prior to the end of the Effectiveness Period,
each of which shall remain in effect in accordance with its terms.

                  [Remainder Of Page Intentionally Left Blank]

                                       22


<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.

                                           CANADIAN SOLAR INC.



                                           By: /s/ Bing Zhu
                                               ---------------------------------
                                               Name: Bing Zhu
                                               Title:  CFO











Confirmed and accepted as of
the date first above written:

PIPER JAFFRAY & CO.



By: /s/ Martin C. Alvarez
    ---------------------------------
    Name:    Martin C. Alvarez
    Title:   Managing Director







                         [Registration Rights Agreement]




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>4
<FILENAME>h01912exv5w1.txt
<DESCRIPTION>EX-5.1 OPINION OF WEIRFOULDS LLP REGARDING THE VALIDITY OF COMMON SHARES BEING REGISTERED
<TEXT>
<PAGE>
                                                                     Exhibit 5.1


Barristers & Solicitors                                      WeirFoulds LLP




March 3, 2008                                                Andrew W. H. Tam
                                                             T: 416-947-5071
                                                             atam@weirfoulds.com

                                                             File 11628.00001


Canadian Solar Inc.
199 Lushan Road
Suzhou New District
Suzhou 215129
People's Republic of China

Dear Sirs/Madames:

Re: Canadian Solar Inc. (the "Company")

We have acted as special legal counsel to the Company in Canada in connection
with the filing with the U.S. Securities and Exchange Commission (the "SEC") on
March 3, 2008 of a registration statement on Form F-3 (the "Registration
Statement") relating to the registration under the U.S. Securities Act of 1933,
as amended (the "U.S. Securities Act"), of US$75,000,000 in aggregate principal
amount of 6.0% Convertible Senior Notes issued December 10, 2007 and due
December 15, 2017 (the "Notes") and any common shares of the Company (the "Note
Shares") which may be issuable upon due exercise of the conversion rights
granted pursuant to the Notes.

For the purposes of rendering the opinions set out below, we have examined a
copy of the Registration Statement. We have also reviewed the Articles of
Continuance of the Company dated June 1, 2006 (and all amendments thereto), the
by-laws of the Company dated June 1, 2006, a certificate of an officer of the
Company dated March 3, 2008 (a copy of which is annexed hereto) (the "Officer's
Certificate") and made such inquiries and examined such questions of law as we
have deemed necessary in order to render such opinions.

In rendering the opinion expressed in Paragraph 1 below, we have relied solely,
as to the existence of the Company, upon a Certificate of Compliance issued in
respect of the Company by Industry Canada on March 3, 2008 (the "Certificate of
Compliance").

We have assumed (a) the genuineness and authenticity of all signatures and the
conformity to originals of all copies (whether or not certified) examined by us,
and the authenticity and completeness of the originals from which such copies
were taken, (b) that where a document has been examined by us in draft form, it
will be or has been executed and/or filed in the form of that draft, and where a
number of drafts of a document have been examined by us, that all changes
thereto have been marked or otherwise drawn to our attention, and (c) the
accuracy and completeness of all factual representations made in the
Registration Statement and other documents reviewed by us.


The Exchange Tower, Suite 1600              Telephone     416-365-1110
P.O. Box 480, 130 King Street West          Facsimile     416-365-1876
Toronto, Ontario, Canada   M5X 1J5          Website       www.weirfoulds.com
<PAGE>
Barristers & Solicitors                                           WeirFoulds LLP



We have not been instructed to undertake and have not undertaken any further
inquiry or due diligence in relation to the transaction or transactions which
are the subject of this opinion. The opinions set out below are given only as to
and based on circumstances and matters of fact existing as at the date hereof
and of which we are aware consequent upon the instructions we have received in
relation to the subject matter hereof and as to the laws of Canada as the same
are in force at the date hereof. In giving this opinion, we have relied upon the
completeness and accuracy (and assumed the continuing completeness and accuracy
as of the date hereof) of the Officer's Certificate as to matters of fact and
the Certificate of Compliance without further verification, and have relied upon
the foregoing assumptions, which we have not independently verified.

We have made no investigation of and express no opinion in relation to the laws
of any jurisdiction other than Canada. This opinion is to be governed by and
construed in accordance with the laws of Canada and is limited to and is given
on the basis of the current law and practice in Canada.

On the basis and subject to the foregoing, we are of the opinion that:

1.   The Company is a company organized, existing and in good standing under the
     Canada Business Corporations Act.

2.   Upon due exercise of the conversion rights granted to holders of the Notes
     in accordance with their terms, including, without limitation, payment of
     the applicable conversion price, the Note Shares will be validly issued,
     fully paid and non-assessable common shares in the capital of the Company.

We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the references to our firm under the captions
"Enforceability of Civil Liabilities" and "Legal Matters" in the prospectus
forming part of the Registration Statement. In giving such consent, we do not
hereby admit that we are experts within the meaning of Section 11 of the
Securities Act, or that we are within the category of persons whose consent is
required under Section 7 of the Securities Act or the Rules and Regulations of
the SEC promulgated thereunder.


Yours truly,

WeirFoulds LLP

/s/ WeirFoulds LLP

AT/lb
Encls.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.2
<SEQUENCE>5
<FILENAME>h01912exv5w2.txt
<DESCRIPTION>EX-5.2 OPINION OF LATHAM & WATKINS LLP REGARDING THE VALIDITY OF THE CONVERTIBLE SENIOR NOTES
<TEXT>
<PAGE>
                                                                     Exhibit 5.2

(LATHAM & WATKINS LLP LETTER HEAD)




March 3, 2008


Canadian Solar Inc.
199 Lushan Road
Suzhou New District
Suzhou 215129
People's Republic of China




     Re: $75,000,000 Aggregate Principal Amount of 6.0% Convertible Senior Notes
         due 2017
         --------------------------------------------------------------------

Ladies and Gentlemen:

     We have acted as special United States counsel to Canadian Solar Inc., a
Canadian corporation (the "Company"), in connection with the issuance of
$75,000,000 aggregate principal amount of 6.0% Senior Convertible Notes due 2017
(the "Notes"), convertible into common shares, without par value, of the Company
(the "Common Shares"), under an Indenture dated as of December 10, 2007, in the
form most recently filed as an exhibit to the Registration Statement (as herein
defined) and an officers' certificate dated December 10, 2007 setting forth the
terms of the Notes (the "Indenture") between the Company and The Bank of New
York, as trustee (the "Trustee"), and pursuant to a registration statement on
Form F-3 under the Securities Act of 1933, as amended (the "Act"), filed with
the Securities and Exchange Commission (the "Commission") on March 3, 2008 (the
"Registration Statement"). This opinion is being furnished in connection with
the requirements of Item 601(b)(5) of Regulation S-K under the Act, and no
opinion is expressed herein as to any matter pertaining to the contents of the
Registration Statement or related prospectus, other than as expressly stated
herein with respect to the issue of the Notes.

     As such counsel, we have examined such matters of fact and questions of law
as we have considered appropriate for purposes of this letter. With your
consent, we have relied upon certificates and other assurances of officers of
the Company and others as to factual matters without having independently
verified such factual matters. We are opining herein as to the internal laws of
the State of New York, and we express no opinion with respect to the
applicability thereto, or the effect thereon, of the laws of any other
jurisdiction or as to any matters of municipal law or the laws of any local
agencies within any state.

     Subject to the foregoing and the other matters set forth herein, it is our
opinion that, as of the date hereof, when the Notes have been duly executed,
issued, and authenticated in accordance with the terms of the Indenture and
delivered against payment therefor in the circumstances contemplated by the
Registration Statement, the Notes will have been duly authorized by all
necessary corporate action of the Company and will be legally valid and binding
obligations of the Company enforceable against the Company in accordance with
their terms.


<PAGE>


MARCH 3, 2008
PAGE 2


(LATHAM & WATKINS LLP LETTERHEAD)

     Our opinion is subject to: (i) the effect of bankruptcy, insolvency,
reorganization, preference, fraudulent transfer, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors, or the
judicial application of foreign laws or governmental actions affecting
creditors' rights; (ii) the effect of general principles of equity, whether
considered in a proceeding in equity or at law (including the possible
unavailability of specific performance or injunctive relief), concepts of
materiality, reasonableness, good faith and fair dealing, and the discretion of
the court before which a proceeding is brought; (iii) the invalidity under
certain circumstances under law or court decisions of provisions providing for
the indemnification of or contribution to a party with respect to a liability
where such indemnification or contribution is contrary to public policy; and
(iv) we express no opinion as to (a) any provision for liquidated damages,
default interest, late charges, monetary penalties, make-whole premiums or other
economic remedies to the extent such provisions are deemed to constitute a
penalty, (b) consents to, or restrictions upon, governing law, jurisdiction,
venue, arbitration, remedies, or judicial relief, (c) the waiver of rights or
defenses contained in Section 3.09 of the Indenture; (d) any provision requiring
the payment of attorneys' fees, where such payment is contrary to law or public
policy; (e) any provision to the extent it requires that a claim with respect to
the Notes (or a judgment in respect of such a claim) be converted into U.S.
dollars at a rate of exchange at a particular date, to the extent applicable law
otherwise provides; and (f) the severability, if invalid, of provisions to the
foregoing effect.

     With your consent, we have assumed (a) that the Indenture and the Notes
(collectively, the "Documents") have been duly authorized, executed and
delivered by the parties thereto other than the Company, (b) that the Documents
constitute legally valid and binding obligations of the parties thereto other
than the Company, enforceable against each of them in accordance with their
respective terms, and (c) that the status of the Documents as legally valid and
binding obligations of the parties is not affected by any (i) breaches of, or
defaults under, agreements or instruments, (ii) violations of statutes, rules,
regulations or court or governmental orders, or (iii) failures to obtain
required consents, approvals or authorizations from, or make required
registrations, declarations or filings with, governmental authorities.

     This opinion is for your benefit in connection with the Registration
Statement and may be relied upon by you and by persons entitled to rely upon it
pursuant to the applicable provisions of the Act. We consent to your filing this
opinion as an exhibit to the Registration Statement and to the reference to our
firm contained in the Prospectus under the heading "Legal Matters." In giving
such consent, we do not thereby admit that we are in the category of persons
whose consent is required under Section 7 of the Act or the rules and
regulations of the Commission thereunder.



                                                        Very truly yours,

                                                        /s/ Latham & Watkins LLP

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-8.1
<SEQUENCE>6
<FILENAME>h01912exv8w1.txt
<DESCRIPTION>EX-8.1 OPINION OF LATHAM & WATKINS LLP REGARDING CERTAIN U.S. TAX MATTERS
<TEXT>
<PAGE>
                                                                     Exhibit 8.1



(LATHAM & WATKINS LLP LETTERHEAD)

March 3, 2008


Canadian Solar Inc.
199 Lushan Road
Suzhou New District
Suzhou 215129
People's Republic of China



     Re:  $75,000,000 Aggregate Principal Amount of 6.0% Convertible Senior
          Notes due 2017
          -----------------------------------------------------------------


Ladies and Gentlemen:

     In connection with the issuance of $75,000,000 aggregate principal amount
of 6.0% Convertible Senior Notes due 2017 (the "Notes"), convertible into common
shares, without par value, of the Company (the "Common Shares"), under an
indenture dated as of December 10, 2007, in the form most recently filed as an
exhibit to the Registration Statement (as herein defined) between the Company
and The Bank of New York, as trustee, and pursuant to a registration statement
on Form F-3 under the Securities Act of 1933, as amended (the "Act"), filed with
the Securities and Exchange Commission (the "Commission") on March 3, 2008
(the "Registration Statement"), you have requested
our opinion concerning the statements in the Registration Statement under the
caption "Taxation-Certain U.S. Federal Income Tax Considerations."

     The facts, as we understand them, and upon which with your permission we
rely in rendering the opinion herein, are set forth in the Registration
Statement and the Company's responses to our examinations and inquiries.

     In our capacity as counsel to the Company, we have made such legal and
factual examinations and inquiries, including an examination of originals or
copies certified or otherwise identified to our satisfaction of such documents,
corporate records and other instruments as we have deemed necessary or
appropriate for purposes of this opinion. In our examination, we have assumed
the authenticity of all documents submitted to us as originals, the genuineness
of all signatures thereon, the legal capacity of natural persons executing such
documents and the conformity to authentic original documents of all documents
submitted to us as copies. For the purpose of our opinion, we have not made an
independent investigation, or audit of the facts set forth in the
above-referenced documents.

<PAGE>
MARCH 3, 2008
PAGE 2



(LATHAM & WATKINS LLP LETTERHEAD)



     We are opining herein as to the effect on the subject transaction only of
the federal income tax laws of the United States and we express no opinion with
respect to the applicability thereto, or the effect thereon, of other federal
laws, the laws of any state or any other jurisdiction or as to any matters of
municipal law or the laws of any other local agencies within any state.

     Based on such facts and subject to the limitations set forth in the
Registration Statement, the statements of law or legal conclusions in the
Registration Statement under the caption "Taxation-Certain U.S. Federal Income
Tax Considerations" constitute the opinion of Latham & Watkins LLP as to the
material United States federal income tax consequences of an investment in the
Notes or the Common Shares received upon the exercise of Notes.

     No opinion is expressed as to any matter not discussed herein.

     This opinion is rendered to you as of the date of this letter, and we
undertake no obligation to update this opinion subsequent to the date hereof.
This opinion is based on various statutory provisions, regulations promulgated
thereunder and interpretations thereof by the Internal Revenue Service and the
courts having jurisdiction over such matters, all of which are subject to change
either prospectively or retroactively. Also, any variation or difference in the
facts from those set forth in the Registration Statement may affect the
conclusions stated herein.

     This opinion is furnished to you, and is for your use in connection with
the transactions set forth in the Registration Statement. This opinion may not
be relied upon by you for any other purpose. However, this opinion may be relied
upon by persons entitled to rely on it pursuant to applicable provisions of
federal securities law.

     We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the use of our name under the captions "Legal
Matters" in the Registration Statement. In giving such consent,
we do not thereby admit that we are within the category of persons whose consent
is required under Section 7 of the Act or the rules or regulations of the
Commission promulgated thereunder.



                                            Very truly yours,



                                            /s/ Latham & Watkins LLP


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>7
<FILENAME>h01912exv12w1.txt
<DESCRIPTION>EX-12.1 STATEMENT OF COMPUTATION
<TEXT>
<PAGE>
                                                                               .
                                                                               .
                                                                               .
                                                                    Exhibit 12.1



                               Canadian Solar Inc.
                       Ratio of Earnings to Fixed Charges
                                   (Unaudited)

<Table>
<Caption>
                                                                                                             Nine
                                                                                                            Months
                                                             Year Ended December 31,                        Ended
                                               ----------------------------------------------------       September
                                                2002        2003       2004        2005       2006         30, 2007
                                               -----       -----      ------      ------    -------       ---------
<S>                                            <C>         <C>        <C>         <C>       <C>           <C>
Computation of Earnings:
  Income before taxes and minority
   interests.............................      $ 921       $ 654      $1,820      $4,409    ($8,998)       ($6,279)
  Minority interest in pre-tax income of
   subsidiaries that have not incurred
   fixed charges.........................       (215)       (209)          0           0          0              0
  Fixed charges..........................          5           3          11         282      2,267          1,038
                                               -----       -----      ------      ------    -------        -------
    Earnings.............................      $ 711       $ 448      $1,831      $4,691    ($6,731)       ($5,241)
                                               -----       -----      ------      ------    -------        -------

Computation of Fixed Charges:
  Interest expense.......................      $   0       $   0      $    0      $  104    $ 1,488        $   943
  Amortized debt discount................          0           0           0         135        706              0
  Interest portion of operating lease
   expense...............................          5           3          11          43         73             95
                                               -----       -----      ------      ------    -------        -------
    Fixed charges........................      $   5       $   3      $   11      $  282    $ 2,267        $ 1,038
                                               -----       -----      ------      ------    -------        -------

Ratio of Earnings to Fixed Charges.......        142         149         166          17          -              -
                                               -----       -----      ------      ------    -------        -------

  Deficiency.............................                                                   $ 8,998        $ 6,279
</Table>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>8
<FILENAME>h01912exv23w1.txt
<DESCRIPTION>EX-23.1 CONSENT OF DELOITTE TOUCHE TOHMATSU
<TEXT>
<PAGE>
                                                                    Exhibit 23.1



            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in this Registration Statement on
Form F-3 of our report dated May 28, 2007, relating to the financial statements
and financial statement schedule of Canadian Solar Inc., appearing in the Annual
Report on Form 20-F of Canadian Solar Inc. for the year ended December 31, 2006,
and to the reference to us under the heading "Experts" in the Prospectus, which
is part of this Registration Statement.



/s/ Deloitte Touche Tohmatsu CPA Ltd.

Deloitte Touche Tohmatsu CPA Ltd.
Shanghai, China

March 3, 2008


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.3
<SEQUENCE>9
<FILENAME>h01912exv23w3.txt
<DESCRIPTION>EX-23.3 CONSENT OF CHEN & CO. LAW FIRM
<TEXT>
<PAGE>

                                                                    Exhibit 23.3


(CHEN&CO.LAWFIRM LETTERHEAD)


March 3, 2008

Canadian Solar Inc.
No. 199 Lushan Road
Suzhou New District
Suzhou, Jiangsu 215129
People's Republic of China

Ladies and Gentlemen:

We hereby consent to the use of our name under the caption "Enforceability of
Civil Liabilities" in the prospectus included in the registration statement on
Form F-3, originally filed by Canadian Solar Inc. on March 3, 2008, with the
Securities and Exchange Commission under the Securities Act of 1933, as amended.
In giving such consent, we do not hereby admit that we come within the category
of persons whose consent is required under Section 7 of the Securities Act of
1933, as amended, or the regulations promulgated thereunder.



Sincerely yours,

/s/ Chen & Co. Law Firm
Chen & Co. Law Firm


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-25.1
<SEQUENCE>10
<FILENAME>h01912exv25w1.txt
<DESCRIPTION>EX-25.1 STATEMENT OF ELIGIBILITY OF THE BANK OF NEW YORK AS A TRUSTEE
<TEXT>
<PAGE>

                                                                    Exhibit 25.1

================================================================================

                                    FORM T-1

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                            STATEMENT OF ELIGIBILITY
                   UNDER THE TRUST INDENTURE ACT OF 1939 OF A
                    CORPORATION DESIGNATED TO ACT AS TRUSTEE

                      CHECK IF AN APPLICATION TO DETERMINE
                      ELIGIBILITY OF A TRUSTEE PURSUANT TO
                             SECTION 305(b)(2) |__|

                           ---------------------------

                              THE BANK OF NEW YORK
               (Exact name of trustee as specified in its charter)

New York                                                    13-5160382
(State of incorporation                                     (I.R.S. employer
if not a U.S. national bank)                                identification no.)

One Wall Street, New York, N.Y.                             10286
(Address of principal executive offices)                    (Zip code)

                           ---------------------------

                               CANADIAN SOLAR INC.
               (Exact name of obligor as specified in its charter)

Canada                                                      Not Applicable
(State or other jurisdiction of                             (I.R.S. employer
incorporation or organization)                              identification no.)

No. 199 Lushan Road
Suzhou New District
Suzhou, Jiangsu 215011
People's Republic of China
(Address of principal executive offices)                    (Zip code)


                           ---------------------------

                     6.0% Convertible Senior Notes due 2017
                       (Title of the indenture securities)

================================================================================

<PAGE>

1.   General information. Furnish the following information as to the Trustee:

     (a)  Name and address of each examining or supervising authority to which
          it is subject.

<Table>
<Caption>
- --------------------------------------------------------------------------------
            Name                                         Address
- --------------------------------------------------------------------------------
<S>                                           <C>
Superintendent of Banks of the State of       One State Street, New York, N.Y.
New York                                      10004-1417, and Albany, N.Y. 12223

Federal Reserve Bank of New York              33 Liberty Street, New York, N.Y.
                                              10045

Federal Deposit Insurance Corporation         Washington, D.C.  20429

New York Clearing House Association           New York, New York   10005

</Table>

     (b)  Whether it is authorized to exercise corporate trust powers.

     Yes.

2.   Affiliations with Obligor.

     If the obligor is an affiliate of the trustee, describe each such
     affiliation.

     None.

16.  List of Exhibits.

     Exhibits identified in parentheses below, on file with the Commission, are
     incorporated herein by reference as an exhibit hereto, pursuant to Rule
     7a-29 under the Trust Indenture Act of 1939 (the "Act") and 17 C.F.R.
     229.10(d).

     1.   A copy of the Organization Certificate of The Bank of New York
          (formerly Irving Trust Company) as now in effect, which contains the
          authority to commence business and a grant of powers to exercise
          corporate trust powers. (Exhibit 1 to Amendment No. 1 to Form T-1
          filed with Registration Statement No. 33-6215, Exhibits 1a and 1b to
          Form T-1 filed with Registration Statement No. 33-21672, Exhibit 1 to
          Form T-1 filed with Registration Statement No. 33-29637 and Exhibit 1
          to Form T-1 filed with Registration Statement No. 333-121195.)

     4.   A copy of the existing By-laws of the Trustee. (Exhibit 4 to Form T-1
          filed with Registration Statement No. 333-121195.)

                                     - 2 -
<PAGE>

     6.   The consent of the Trustee required by Section 321(b) of the Act.
          (Exhibit 6 to Form T-1 filed with Registration Statement No.
          333-106702.)

     7.   A copy of the latest report of condition of the Trustee published
          pursuant to law or to the requirements of its supervising or examining
          authority.


                                     - 3 -
<PAGE>


                                    SIGNATURE


     Pursuant to the requirements of the Act, the Trustee, The Bank of New York,
a corporation organized and existing under the laws of the State of New York,
has duly caused this statement of eligibility to be signed on its behalf by the
undersigned, thereunto duly authorized, all in The City of New York, and State
of New York, on the 22nd day of February, 2008.





                                      THE BANK OF NEW YORK


                                      By:  /S/     FRANCA M. FERRERA
                                           -------------------------------------
                                            Name:  FRANCA M. FERRERA
                                            Title: ASSISTANT VICE PRESIDENT

<PAGE>

                                                                       EXHIBIT 7

- --------------------------------------------------------------------------------
                       Consolidated Report of Condition of

                              THE BANK OF NEW YORK

                    of One Wall Street, New York, N.Y. 10286
                     And Foreign and Domestic Subsidiaries,

a member of the Federal Reserve System, at the close of business December 31,
2007, published in accordance with a call made by the Federal Reserve Bank of
this District pursuant to the provisions of the Federal Reserve Act.

<Table>
<Caption>

                                                                                              Dollar Amounts
                                                                                                In Thousands
<S>                                                                                           <C>
ASSETS
Cash and balances due from depository institutions:
   Noninterest-bearing balances and currency and coin..                                            3,211,000
   Interest-bearing balances...........................                                           24,114,000
Securities:
   Held-to-maturity securities.........................                                            1,776,000
   Available-for-sale securities.......................                                           25,801,000
Federal funds sold and securities purchased under agreements to resell:
   Federal funds sold in domestic offices..............                                            7,888,000
   Securities purchased under agreements to
     resell............................................                                              168,000
Loans and lease financing receivables:
   Loans and leases held for sale......................                                                    0
   Loans and leases, net of unearned
     income............................................                                           34,419,000
   LESS: Allowance for loan and
     lease losses......................................                                              262,000
   Loans and leases, net of unearned
     income and allowance..............................                                           34,157,000
Trading assets.........................................                                            4,576,000
Premises and fixed assets (including capitalized
   leases).............................................                                              946,000
Other real estate owned................................                                                3,000
Investments in unconsolidated subsidiaries and
   associated companies................................                                              719,000
Not applicable
Intangible assets:
   Goodwill............................................                                            2,492,000
   Other intangible assets.............................                                            1,002,000
Other assets...........................................                                            8,819,000
                                                                                                 -----------
</Table>
<PAGE>

<Table>
<S>                                                                                              <C>
Total assets...........................................                                          115,672,000
                                                                                                 ===========

LIABILITIES
Deposits:
   In domestic offices.................................                                           31,109,000
   Noninterest-bearing.................................                                           18,814,000
   Interest-bearing....................................                                           12,295,000
   In foreign offices, Edge and Agreement
     subsidiaries, and IBFs............................                                           54,411,000
   Noninterest-bearing.................................                                            3,890,000
   Interest-bearing....................................                                           50,521,000
Federal funds purchased and securities sold under agreements to repurchase:
   Federal funds purchased in domestic
     offices...........................................                                              893,000
   Securities sold under agreements to
     repurchase........................................                                              110,000
Trading liabilities....................................                                            3,743,000
Other borrowed money:
   (includes mortgage indebtedness and obligations
   under capitalized leases).......                                                                3,571,000
Not applicable
Not applicable
Subordinated notes and debentures......................                                            2,955,000
Other liabilities......................................                                            9,751,000
                                                                                                 -----------
Total liabilities......................................                                          106,543,000
                                                                                                 ===========
Minority interest in consolidated
   subsidiaries........................................                                              157,000

EQUITY CAPITAL
Perpetual preferred stock and related
   surplus.............................................                                                    0
Common stock...........................................                                            1,135,000
Surplus (exclude all surplus related to preferred
   stock)..............................................                                            2,368,000
Retained earnings......................................                                            5,918,000
Accumulated other comprehensive income.................                                             -449,000
Other equity capital components........................                                                    0
Total equity capital...................................                                            8,972,000
                                                                                                 -----------
Total liabilities, minority interest, and equity
   capital.............................................                                          115,672,000
                                                                                                 ===========
</Table>
<PAGE>

     I, Bruce W. Van Saun, Chief Financial Officer of the above-named bank do
hereby declare that this Report of Condition is true and correct to the best of
my knowledge and belief.

                                                        Bruce W. Van Saun,
                                                   Chief Financial Officer

     We, the undersigned directors, attest to the correctness of this statement
of resources and liabilities. We declare that it has been examined by us, and to
the best of our knowledge and belief has been prepared in conformance with the
instructions and is true and correct.


Gerald L. Hassell
Steven G. Elliott                       Directors
Robert P. Kelly



- --------------------------------------------------------------------------------






</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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